Integrating Climate Change: Cargill's Strategy for Sustainability

This case study critically evaluates Cargill's roles and responsibilities in incorporating climate change and sustainability into its business strategy. It discusses the roles of Cargill's board of directors as sustainable managers and explores the concepts and tools used for strategic business management to address sustainability challenges. The case highlights Cargill's efforts in reducing its environmental footprint, engaging with farmers for sustainable practices, and collaborating with various stakeholders to achieve its sustainability goals. The analysis also covers the challenges faced by Cargill, such as environmental compliance, the politics of climate change, and the need for better supply chain management. Tools like internal organizational relationships, compliance monitoring, SWOT analysis, and generic competitive strategies are suggested to improve Cargill's sustainability efforts and overall business performance. The study concludes that Cargill's commitment to sustainability is crucial for its long-term success and contribution to a more sustainable food supply chain.

Cargill The Risky Business of
incorporating Climate
Change and Strategy Task 1
Critically evaluate the roles
and responsibilities of Cargills
Board of

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Roles and responsibilities of Cargill board of directors as sustainable managers: .....................3
Concepts and tools used for strategic business management to deal with problem of
sustainability:...............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Climate change is the long term shift in weather patterns and temperatures. It shifts
naturally and includes wind patterns, temperature and precipitation. Cargill is one of the largest
agribusiness company and privately held company in US. Company has power to become the
important driver of the climate change conversation and also fit the new industry standards. In
2013, company Cargill was traditionally silent group with bad environmental record
(Ögmundarson, 2020). This report will discuss the roles and responsibilities of Cargill board of
directors as sustainable managers as well as also elaborate the tools and concepts of strategic
business management that are applicable to problems of sustainability.
MAIN BODY
Roles and responsibilities of Cargill board of directors as sustainable managers:
The main purpose of Cargill board of director is to focus on sustainability environmental
and control the climate change and strategic growth for agribusiness industry. The Cargill have
various board of Directors such as Aana Richo, Rger Wtachorn, Ben Ase, Dr. Sheila Riggs, Kojo
Amoo Gttfried, Susan Cnzemius mercer (MacDonald, 2020).
Sustainability is referred as the means of meeting the needs of current generation without
nay compromising the needs of the future generation. It consists the balances between the
environmental care, economic growth and social well-being. The main purpose of sustainability
is to reduce the global warming and disastrous consequence. There are various types of sustain
abilities such as environmental, economic and social sustainability. There are the impact on the
competitive advantages due to the sustainability. It helps in increase the business brand loyalty,
intellectual property, innovation, etc. it also includes the various factors such as organizational
responsiveness, cost leadership and effective supply chain management (Tàpies, 2019).
CEO of Cargill must decide that whether to push Cargill into the climate change by join
the innovative initiatives and risky business project that wanted to elaborate the economic effect
on climate change on the US economy. The negative environmental also affects the business
stakeholders. The agribusiness industry responsibilities to take all activities to take a products of
agriculture from origination to market, planting, specially cultivation, harvesting, processing and
distribution.
There main roles of board of directors as sustainable managers is to establish the
innovation, disruption, sustainable solution, building safe in food and agriculture (Gill and

Mathur, 2018). They also manage the commercial, finance, operations leadership roles as
sustainable manager. Board of director have responsibilities for the business sustainability,
global communication systems and corporate responsibility. There focus on the global
sustainability to reduce the environmental footprints and plays significant roles in leading the
company sustainability efforts. The board of directors leads the business global aqua nutrition
business with the sustainability programs to help farmers (Handayani, Ali and Mukhidin, 2020).
They also lead the company global strategy and developments functions, mergers and
acquisition, focusing on strategy as well as focus on business developments. They also need to
undertake the building environmental assessment and environmental design and leadership in
energy assessments. They have to create the complete sustainability plans, initiating the
renewable energy, communicate plant to the project teams because to interact with project team
and aware about them regarding the sustainability plan are most important for them (Walker,
Kuzma and Smoor, 2022). They also have to organize and chairing meetings and advising the
latest technologies with zero carbon for agribusiness.
The board of directors of Cargill has launched programs and trainings for farmers who
are connected with company to enhance their agricultural practice which can lead to eco-friendly
farming. This training can also enable farmers to become entrepreneurs who can be able to
manage their farms as business (Bello-Bravo and et.al., 2022). The management of company
focus on profitability by giving satisfaction to all its stakeholders. The training to farmers has
given a positive short term trend for productivity which has resulted into increase in profitability
of company (Samans and Nelson, 2022). Company has also focused on building deforestation
free supply chain and protect forest and restoring forest landscape. The leaders of Cargill are
committed to customer driven growth strategy and are working on innovation, disruption and
building safe and sustainable environment. Company is driving a culture of continuous
improvement through sustainability in both commercial and functional areas.
The ambition of company is to have most sustainable food supply chain in the world as
company has realized that agriculture is part of solution for the challenges faced by environment
and eco system (Bruner, 2021). Company is focused on rising food demand by addressing
climate changes, conserve water and forest. Cargill feels that it is responsible to protect planet
and people to ensure safe and secure environment and future of generation. Company through
collaboration with farmers, customers, local and national community it can achieve its goal of

becoming sustainable organization (Weber, 2020). The board of directors is responsible for
accomplishment of company’s goals and objectives and to enhance profitability and growth of
company. The technical assistance implemented by Cargill has enabled increase in production
and reduced carbon footprint. The technical system which is implemented by company is low
carbon agricultural system which promotes production. Company has also launched many
programs to support animals and ecosystem.
The sustainability effort of company has reduced greenhouse gas emission. The multi-
pronged approach to protect, restore and regenerate lands will be able to mitigate climate impact.
The board of directors of Cargill has partnered with black farmers to build an equitable future in
agriculture which can positively impact environment and ecosystem. This collaboration has also
enabled company to improve access to markets, capital, information and technology (Hoffman,
2018). The aim of this collaboration can build an ecosystem that can connect black farmers,
resources and customers and develop a better supply chain. The board of directors of Cargill
have set priorities which have environmental, social and economic impact on business and its
functions.
Concepts and tools used for strategic business management to deal with problem of
sustainability:
Cargill is facing some issues in term of its sustainability. The organization is somehow
paving the way forward to deal with those perils. Over the time, it is seen that some new
elements are also taking place and toppling the ability to hike efficiency level. Climate change is
perceived to be the biggest demon (Hori and Syugyo, 2020)
Over the period, it is experienced that there is issue of rise of environmental compliance. The
world is now more inclined to discuss organizational policies pertaining to climate change. As
the management already revealed that it is all about secrecy. They are operating their business in
such an industry where they cannot afford any misconception in their targeted customers
(Bilovodska, et. al. 2020)
Its subsidiary has released 28000 gallons’ phosphoric acid in the river. So such perilous
points are impacting its business. Here, to deal with the issue organization installed a practise
and participated with “Environmental Watchdog Groups”. This concept is quite new where
organization align with some groups which help them in brining better and more favourable
practises (Oliva and Kotabe, 2019) This concept believes that there must be such groups with

whom strong plans can be imparted. Cargill has made collaboration with these groups which
enabled it to comply with the environmental laws.
The organization also used “Compliance Monitoring Tool”. This is the tool which is
used by the entity to enable itself to comply with the prevailing laws, and legitimation. The
organization has avoided Clean Air act. Which deteriorated its fair practises. It is often seen that
organizations are facing severe challenges in term of their better sustainable practises (Borges,
et. al. 2021) If they are not aligning with these rules, then would not be able to uphold their
sustainability related goals.
There has been an issue of Politics of climate change. The organization has faced this
challenge to combat with the politics of climate change. There are some political forces which
are somehow impacting this industry to more drastic manner. It is necessary for them to have a
fully-fledged policy to avoid this challenge (Montmasson-Clair, et. al. 2019) Sustainability
cannot be achieved if there is no fair treatment in term of political efforts. There is sense of
favouritism so organizations are facing this severe challenge (Pröllochs and Feuerriegel, 2020)
To deal with the issue there are some applicable tools and concepts which will be helpful in
many ways. It would also bring better practises to the organization in term of eradication of
perils. In such predicament the organization is eligible or suitable to go with “Intern
organizational relationship” (Demir, 2018) This is the concept of strategic business
management which helps in raising voice against unfair treatments. By hook or crook the
organization would be able to cope up with political inclination and betterment can be imparted.
At the same time, Industry structure is needed to be perceived. Cargill is the entity which is
engaged in such an organization which is hugely associated with climate change. If the entity
desires to bring higher sustainability, then the only way is to have a long lasting plan and also
ensuring its strong practise (Bryson, and George, 2020) The generic competitive strategies
would be also helpful. This is the tool which gives competitive advantage to an organization.
There are number of competitors in the market such as Archer Daniels Midlands, Bunge,
Monsanto etc.
The Fragmented agribusiness industry is quite frequent in term of its nature changing.
The entity cannot deny the fact that with absolute plan it can ensure better sustainability
otherwise it may get led to gloomy side. There are number of laws and regulations when it comes
to agribusiness due to its wider diaspora (Howard et. al. 2020)

It is seen that the organization has generated a mammoth quantity of waste. So the need
becomes higher to minimize this waste and hiking productivity (Newell, 2020) This is only
possible with the help of better strategic management policy. There are number of strategies but
the tool which suits in such predicament is Supply chain and Inventory management. The
organization is needed to have such an inventory management policy.
The organization is having challenge of Risky business project. The entity is working in
quite competitive business environment. There is good competition and political over vigilantism
is also impacting business practises. It is intended that the business is supposed to abide with all
the environmental norms. So can avoid any form of peril which may hinder its way to be
sustainable organization.
In such predicament the concept of internal business environment becomes so inevitable.
The entity may go with some tools such as SWOT, (Kouloukoui, et. al. 2020) this is often used
by entities to decipher their real position and interpreting different aspects. Such as their
strengths, weaknesses, opportunities, and threats. The model is quite helpful since in the present
market there are hyper risks in agribusiness. And entity is not in mood to go with those perils
which may lead some catastrophes to it (Groth and Seipold, 2020)
There has been an issue of disproportionate share of their economic power. There are
widely ranging farmer groups which are supplying to the organization. So if they are not having
great trust then the problem of supply may take place. (Nambiar, 2019) It would be a great
challenge since due to climate change the supply aspect is getting weaken and agribusiness is
going under sesquipedalian change. In such predicaments the most appropriate strategy which
applies is better supply chain management.
So above all those potential concepts and tools have been presented on the basis of the
case study which will be proven helpful to the entity and it would be able to cope up with the
challenges and threats leading to gloomy side.
CONCLUSION
Form the report above it can be twigged that for an organization the importance of
sustainable strategies is quite higher. The report has presented deeper insights of roles and
responsibilities of Board of Directors. For fulfilment of the aim, Cargills organization has been
taken into consideration. At the same time, different concepts and tools were also deciphered
with respect to strategic business management. It paved the way for dealing with organizational

problems of sustainability. The entity is getting operated in a quite complex business
environment so for ensuring its strong sustainability it has to deal with some factor which were
discussed to the fullest length.

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