Corporate Responsibility, Sustainability and Ethics in Food Sector

This report provides a comprehensive analysis of business ethics, corporate responsibility, and sustainability within the food industry. It begins with an introduction to these core concepts, emphasizing their importance for business success and brand image. The main body of the report delves into the key challenges related to corporate responsibility and sustainability, such as transparency demands, investor pressures, corporate culture conflicts, high investment costs, and business environment uncertainties. It also explores sustainability challenges including increasing population, changing government policies, the need for technological innovation, and diverse customer preferences. Furthermore, the report highlights important ethical and moral practices within the food sector, such as maintaining product quality. The report concludes with recommendations for the food industry to improve its ethical and sustainable practices.

Business Ethics,
Responsibility and
Sustainability
1

Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Explain various key challenges related to the corporate responsibility and sustainability in
context of food industry..........................................................................................................3
Discuss various important practices within the sector which will making references to
ethically and moral issue........................................................................................................7
Recommendation....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
2

Introduction
This report will assist in better understand the concept of business responsibility,
sustainability and ethics. Now a days both the government and customers are very conscious
towards the nature and want that the company will effectively fulfil their responsibility, maintain
sustainability and ethics while operating their business. It was analysis that customers were also
prefer to buy products from those company who ethically conduct their business operations. All
the three concepts will play an essential role in the growth and success of company. It will help
an organisation to create a strong brand image in the target market and also provide long term
growth in the market. Business ethics will define the practices & polices of a business related to
controversial subjects (Antonini, Beck and Larrinaga, 2020). It will include corporate
governance, insider trading, discrimination, and so on. Other than this an organisation is also
responsible to its all stakeholders as because all the stakeholders will help them in achieving
higher growth and goal of business. So it is also the responsibility of business to better analysis
their responsibility towards the employees, society, customers and each and every person who
have some interest in business. For this report Food industry is taking into consideration for this
report. The concept of Food industry is complex and wider as it will include various small and
large business who provide food items to customers all over the wold. It will include various
activity such as production of goods, distribution and packaging etc. This report will include
various challenges related to the corporate responsibility and sustainability. Other than this it will
include various best practices within the sector which will making references to ethical and
moral issues & also include some recommendation which help the selected sector to being more
responsible by taking into account global consideration.
MAIN BODY
TASK
Explain various key challenges related to the corporate responsibility and sustainability in
context of food industry.
Business ethics- Ethics refers to the set of different rules and principles which h are
followed by an organisation (Axjonow, Ernstberger and Pott, 2018). While business ethics refers
to a code of conduct which is required to follow by the business at the time of conducting various
business activities. With the help of ethics the industry will set various standards for the
3

organisation for regulating their behaviour. It will help the organisation to easily differentiate
between the wrong and the right part of businesses. It was analysis that ethics that are formed in
the organisation are not rocket science. But simply they are based on the creation of a human
mind because of which it was analysis that ethics will depend on the influence of the place, time
and the situations. Business ethics will compromises of all these values and principles which will
help in effectively guiding the behaviour of organisation. It was analysis that the business in the
selected food industry will require to maintain a balance between the needs of their stakeholders
and their desires. This will assist them in generating more profit. Selected industry will timely
ensure that businesses will gain profit without affecting the individual or society.
Corporate responsibility- It was analysis that responsibility is generally define a the
decision of an organisation & behaviour of a person which will assist in improving the standard
of living of other people (BOZAYKUT BÜK, 2020). While corporate responsibility refers to the
policies that a company will use for providing support to the principles of sustainable
development. These principles will define that an organisation will not only require to generate
economical values or revenue but also they are require to create an effective and positive impact
on the environment and society. It was analysis that those organisation who conduct the CSR
activity are expected to give more focus on their internal management system so that wastage
can be reduce and effectively consume the resources etc. In context of selected food industry
they are ensure that their each business will contribute in the development of a better society.
Business sustainability- It refers to doing business without negatively influence or
impact the environment, community or society as a whole. It was analysis that sustainability in
business generally divided into two main categories (Centobelli, Cerchione and Mittal, 2020).
Which are the effect of business activities on the environment and effect of business on the
society. Main goal of sustainable business strategy is to make a positive impact on the
environment and society. Sustainability of business will covered a wider area of environmental,
economical, and social factors at the time of business decision making. In context of selected
industry it was analysis that sustainability of business strategy of each business is different from
other because it will be depend on the business goal and organisation value.
Challenges related to corporate responsibility
Now a days customers are only want to purchase products from those companies who
fulfil their social responsibility and business are also able to attract them toward their business
4

products and services. It was analysis that organisation will face various challenges at that time
of fulfilling their corporate social responsibility. These are discussed below:
The demand for transparency and disclosure- It was analysis that all the stakeholders
whether it is consumer, supplier, customers and investors of company are increasingly
demanding greater transparency & accountability from the companies with whom they are doing
business. It was understand that businesses will require different practices which will provide
prioritize way to effectively collect, organize, analyse and manage their data for clear, accurate
and complete reporting of financial and business activities. This will require a lot of time and
money of business and also the chances of information leakage will increase because of higher
transparency demand of their stakeholders. Which will reduce the power of company to face
competitors in the market (García‐Sánchez and Martínez‐Ferrero, 2018).
Pressure from investors- Another challenge that will be faced by company while
performing their corporate social responsibility. It was analysis that those people who are
looking for investing their money are wish to invest in a company which will provide higher
return on their investment. It was analysis that shareholders of company wants higher return and
they are not agree to spend their profit on any other kind of activity. They wants to divide the
whole profit which is earned by the company because of higher pressure from the shareholders
and investors is created on the company. Higher pressure will create more challenge for
company to perform their corporate social responsibility effectively.
Corporate culture and different priorities- It was analysis that it is very crucial for
organisation to present a united front with regard to business ethics and its stances on political,
environmental and social issues. But it was analysis that organisation will struggle to get
everyone onto the same frame. In context of selected industry, it was analysis that goal and
business priorities are different from business to business. Which will create difficulties for them
to perform an effective corporate responsibility. The needs and requirements to each and every
stakeholder is different from one to another and better understanding their requirement is an
challenge for company. It was analysis that if an organisation wants to effectively fulfil their
corporate social responsibility then they are require to better understand the demand of each and
every member so that they will effectively perform their corporate social responsibility.
High amount of investment- Another important challenge that was faced by an
organisation while performing their CSR activity is the high cost of money which is required for
5

fulfilling their CSR activity. It was analysis that performing corporate responsibility will require
a lot of money and a business whose financial condition is not so good is not able to perform
their responsibility. This factor will also influence business to fulfil their responsibility towards
the various stakeholders or society (Doshmanli, Salamzadeh, and Salamzadeh, 2018).
Uncertain business environment- Another important challenge that an organisation will
face and which create barriers in the path of company to perform their corporate responsibility is
the uncertainty in business. It was analysis that business is established in an dynamic
environment and any change in this factor will influence the growth of business and also stop
them to perform their responsibility.
Challenges related to sustainability in food industry
It was analysis that at the time of maintain the sustainability businesses will also face
various kind of challenges, which are discussed below:
Increasing population- It was analysis that the growing population of a country is the
biggest challenge for the big industry to maintain the sustainability in their business. it was
analysis that now a days the population is grow at a rapid rate but the resource are limited which
will create problems in maintaining sustainability in business. For effectively maintaining
sustainability the food industry is require to use less resources or require to use the resources in a
proper way so that they will maintain sustainability, but it is difficult for the food industry to
maintain higher level of sustainability because of growing population. The business in the food
industry are also require to fulfil the demand and hunger of each individual. This will create
problem for business to maintain sustainability in their business (Gielens and et. al. 2018).
(Source: Feeding the world in 2050 and beyond, 2018)
6

Changing policies of government- Another important challenge that was faced by food
industry is the changing policies of government. It was analysis that because of scarcity of
resources and increase in the pollution the government will rapidly change the rules and
regulations because of which businesses will face problems in maintain sustainability. And when
the business are not able to maintain sustainability in their business the interference of
government in business will increased. Other than this political party instability of a country will
also create challenges for business. As because change in political party means the standards of
sustainability which is fixed by the previous government is also change. This will also influence
the growth and success of business.
Sustainability require innovation- It was analysis that maintaining sustainability in the
business will require technology innovation which h is not an easy task. If an organisation will
use efficient technology which will reduce the wastage of resources and increase the efficiency
of producing goods will help an organisation to maintain sustainability in their business. But
innovating a new technology is not a work of single day it will require a lot of time and money.
This will create challenge in the path of company to maintain the sustainability in their business.
In the food industry there are also some small business which have no capacity to adopt the
innovative technology and because of that they are not able to maintain the sustainability in the
food industry.
Different taste and preferences of customers- Another important challenge that will
create problem for businesses to maintain sustainability in their business is the taste and
preferences of customers. It was analysis that the food industry will fulfil various kind of needs
of their customers such as some people are health conscious and only prefer to buy healthy
products, while there are some people who prefer to eat fast food, some prefer to eat non-veg and
so on. The wider demand of customers will create problem for company to maintain
sustainability in their industry (Hossain, 2018).
Discuss various important practices within the sector which will making references to ethically
and moral issue.
Maintain quality of goods- In the food industry maintaining the quality of food and
providing best and healthy products to customers will consider as the best practice in the food
industry. Maintain the quality is an ethical activity of business. It was analysis that now a days
people are more conscious towards their health and prefer to eat something healthy and tasty. So
7

by make the quality control on top priorities business are able to attract more and more
customers towards their business and also earn higher profitability. In context of food industry,
they will formulate various rules and regulation related to quality of products and services.
Which will assist them in ethically performing different activities.
Focus on research and development- Another best practice of food industry that they
will focus on research and development. They are effectively analysis the needs and requirement
of their customers through regular research as because the taste & preferences of customers are
rapidly changes. This practice will provide necessary information to business to run their
operations effectively. Other than this it was analysis that the level of competition in the food
sector will increase day by day and for better attracting the customers towards any business they
are require to conduct an effective research on their customers. This will help them to achieve
competitive advantage in market by providing unique products to their customer (Kassel and et.
al. 2018).
Invest in employees- Another important practice in food industry which is refers to
ethics and moral issues is invest in the employees. It was analysis that employees are the person
who will invest their efforts for the achievement of business goal and their efficiency in work
will provide higher level of customer’s satisfaction. So it is important for every organisation to
provide effective training and development programs which will help them in increasing the
efficiency of their employees and also increase their level of productivity. Investing in
employees is consider as an ethical activity of business and by providing them effective training
they are also fulfil their responsibility towards their employees (Rendtorff, 2018).
Use of green technology- another best practice of food industry is the use of green
technology in their business. With the increase in the rate of pollution it was analysis that this is
consider as a best practice which will help them in maintaining sustainability in their business.
This will also create a good image of company and also help them to achieve higher profitability
and growth (Nizam, and et. al. 2019).
More transparency and accountability- It was analysis that transparency and
accountability is consider as the best practice in the food industry. As because people wants to
ensure that the quality of goods and services they will consume is good and accountability will
create more trust of customers and investors on the business. It was analysis that this practice of
business will create a good image of company and also increase the sales for company products.
8

Recommendation
From the above discussion it was analysis that they food industry will require to take
various important steps which will assist them in future growth and development. In context of
selected industry, various recommendation is discussed below:
 It was recommended that they are require to focus on developing the efficient and
environmentally friendly food processing technology which will assist them in
maintaining better sustainability and fulfil the corporate responsibility.
 It was recommended to selected food sector that they will need to focus on more
transparency and accountability. This will attract more and more new investors towards
the company. As because now a days investors are only invest their money to the
company who will show higher transparency and accountability. This will help business
to attract more and more investment and better investment will help them to expand their
business in the global market (Osagie, and et. al. 2019).
 From above discussion it is analysis that corporate social responsibility will play an
essential role in the growth and development of company. So it is recommended to
selected food sector that they need to promote CSR activities in their business and require
to effectively follow their corporate responsibility so that both the community and
business will grow (Prado, and et. al. 2020).
 In context of selected food industry it was analysis that it was quite difficult for company
to maintain sustainability in their business as because of increasing population rate. So it
is recommended that they will require to invest more amount in the development of new
technology which will assist them in reducing the wastage of resources and maintain the
sustainability of resources by providing better quality products to their customers. This
will also help them in achieving more profit as because customer are easily attract the
high quality products with reasonable price.
 Another important recommendation to selected industry that they will require to follow
ethical code of conducts in their business so that any kind of unfair activity is not exist in
the business. There are various ethical activity that a business can follow at the time of
operating their business activity such as providing better remuneration to employees,
good quality products to customers and better perform the corporate social responsibility
9

of business. This will assist them to maintain a strong brand image in the market (Vo,
Xiao and Ho, 2019).
In context of selected food industry Arla Foods Company is taking into consideration. It
is Danish multinational company which is based Viby, Denmark and founded 2000. It was
analysis that company will face various challenges related to the corporate responsibility and
sustainability. (The Alra Food challenge, 2017). Such as company will face a global
challenge to transform their food systems and their food consumption pattern in order to
secure sustainability in future. Agriculture has been identify as one of the major contributor
to global warming and puts pressure on limited planetary resources like freshwater and
biodiversity. It was analysis that the biggest challenges that company face is the increasing
population. Other than this company will take various actions which will assist them in
making references to ethically and moral issue. Company will provide organic cow milk
which contain high quality and add valve for their customers. Other than this company will
focus on research and development activities which will help them to analysis better analysis
the sustainability ideas or products.
This report is based on the secondary information which is collected from online source
and journals. Secondary source will provide quick and reliable information as these
information are collected by experts and professionals which will define high quality of this
report.
10

CONCLUSION
From the above discussed report it is concluded that all the three concepts which are
business ethics, responsibility, and sustainability. All play an essential role in the future growth
and success of business. Business ethics will help them in determining the ethical activities in
their organisation. While corporate responsibility of business will help them to fulfil their
responsibility towards their stakeholders and various interested parties. It will assist them in
creating a good image of company. The important of these factors will increase day by day as
because now of scarcity of resources and increasing rate of pollution. Through this report various
challenges are analysis which are related to the corporate responsibility and sustainability of
business. It will include pressure from shareholders, more accountability and transparency
demand of customers, different priorities and high amount of investment is required for it. Other
than this it will include various best practices which will assist in the growth and development of
selected sector such as, maintain the quality of food products, and increase more investment on
employees of organisation. Other than this more focus on research and development and use of
green technology is consider as the best practices of business.
11

REFERENCES
Books & Journal
Antonini, C., Beck, C. and Larrinaga, C., 2020. Subpolitics and sustainability reporting
boundaries. The case of working conditions in global supply chains. Accounting, Auditing &
Accountability Journal.
Axjonow, A., Ernstberger, J. and Pott, C., 2018. The impact of corporate social responsibility
disclosure on corporate reputation: A non-professional stakeholder perspective. Journal of
Business Ethics. 151(2). pp.429-450.
BOZAYKUT BÜK, T., 2020. CORPORATE SUSTAINABILITY REPORTING PRACTICES
IN TURKEY. Pamukkale University Journal of Social Sciences Institute/Pamukkale Üniversitesi
Sosyal Bilimler Enstitüsü Dergisi, (39).
Centobelli, P., Cerchione, R. and Mittal, A., 2020. Managing sustainability in luxury industry to
pursue circular economy strategies. Business Strategy and the Environment.
Doshmanli, M., Salamzadeh, Y. and Salamzadeh, A., 2018. Development of SMEs in an
emerging economy: does corporate social responsibility matter?. International Journal of
Management and Enterprise Development. 17(2). pp.168-191.
Gielens, K., and et. al. 2018. The new regulator in town: The effect of Walmart's sustainability
mandate on supplier shareholder value. Journal of Marketing. 82(2). pp.124-141.
Hossain, M.M., 2018. Sustainability reporting by Australian local government authorities. Local
Government Studies. 44(4). pp.577-600.
Kassel, K., and et. al. 2018. A sustainability mindset model for management
education. Developing a Sustainability Mindset in Management Education. pp.3-37.
Nizam, E., and et. al. 2019. The impact of social and environmental sustainability on financial
performance: A global analysis of the banking sector. Journal of Multinational Financial
Management. 49. pp.35-53.
Osagie, E.R., and et. al. 2019. Contextualizing individual competencies for managing the
corporate social responsibility adaptation process: The apparent influence of the business case
logic. Business & Society. 58(2). pp.369-403.
Prado, A.M., and et. al. 2020. Simulations versus case studies: Effectively teaching the premises
of sustainable development in the classroom. Journal of business ethics. 161(2). pp.303-327.
Rendtorff, J.D., 2018. The Danish model of corporate citizenship: The Novo group.
In Progressive Business Models (pp. 221-240). Palgrave Macmillan, Cham.
Vo, T.T., Xiao, X. and Ho, S.Y., 2019. How does corporate social responsibility engagement
influence word of mouth on Twitter? Evidence from the airline industry. Journal of Business
Ethics. 157(2). pp.525-542.
Online
The Alra Food challenge, 2017. [Online] Available through <http://www.innovatefood.dk/the-
arla-foods-challenge/>
12