1. Submitted by- Angelina Naorem ETHICAL ANALYSIS OF KELLOGGS

2. COMPANY PROFILE An American multinational food manufacturing company. Headquartered in Battle Creek, Michigan, United States. Founded on Feb 19, 1906 by Will Keith Kellogg. In 2012, Kellogg's became the world's second-largest snack food company (after Pepsico) by acquiring the Pringles Potato Crisps brand. Kellogg Company named as one of the 2013 Worlds Most Ethical Companies by the Ethisphere Institute- 5th time Kelloggs has been recognized with this honour.

3. K-VALUES Kelloggs market leading position and reputation- built on its commitment to ethical business practices and its values-based culture. K-Values: values that guide decision-making and shape the way an organisation behaves. Kelloggs K-Values guide the way the company interacts with all of its stakeholders. Kelloggs products manufactured in 18 countries and sold in more than 180 countries. Kelloggs has to manage its relationships with a variety of stakeholders around the world.

4. 1) Employees Kelloggs invests heavily in its employees and future employees. Kelloggs global employer brand communicates the K-Values and the wide range of benefits that Kelloggs employees receive. Kelloggs refreshed company vision and purpose were a direct result of feedback from employees. Like the company uses market research to identify what its consumers want, it uses employee research to find out the needs and opinions of its employees through an employee survey. Employees requested to be able to communicate more openly. So, Kelloggs created a feedback training programme for all employees.

5. In keeping with Kelloggs K-Values, employees are encouraged to listen to and learn from each other. There are a range of ways that employees interact with each other, these include: a) Monthly business huddles - the leadership team talks to the whole UK business about performance against business goals, employee development initiatives and new marketing campaigns. b) Kelloggs global intranet - enables communication between employees across the globe, as well as celebrating employee achievements. c) Quarterly team talk webcasts - global and European leaders talk to employees across Europe about the performance of the business via a webcast.

6. 2) Customers Bacteria tests revealed that an open container of peanut butter manufactured by one of its suppliers, Peanut Corp. was a genetic match to the strain of salmonella that has sickened over 400 people in 43 states and contributed to two deaths. Kellogg voluntarily asked stores to stop selling its peanut butter crackers. Kellogg willingly put safety first, choosing to withdraw its crackers from the market and forego profits rather than put its customers at risk. Kelloggs decision shows real concern for the well-being of its consumers.

7. 3) Competitors Kellogg Company is in a constant battle for the #1 spot in the US cereal market with its main rival, General Mills. While the company works to fill the world's cereal bowls, it supplements its bottom line with snacks and cookies along with convenience foods such as Eggo waffles and Nutri-Grain and Bear Naked cereal bars. The top competitors of Kelloggs Company are General Mills Inc., Nestle S.A.,Ralcorp Holdings Inc.

8. 4) Community Kelloggs food bank initiatives across the world help engage communities and communicate food poverty messages. Kelloggs started working with the charity Seeds for Africa in 2010 to develop sustainable agriculture projects in Malawi and Kenya. The charity provides community groups with the tools and training they need to produce nutritious food that is secure and reliable. Kelloggs is committed to working with farmers to achieve sustainable agriculture where farmers grow crops year after year without negatively affecting future generations. In 2012 Kelloggs developed its breakfast clubs initiative with Seeds for Africa in Uganda, Kenya and Zambia.Three breakfast clubs were set up.

9. 5) CSR Activities Kelloggs organized a campaign to promote breakfast which will donate upto $200,000 to help feed children from food-insecure households. Kelloggs donates its products and annual cash donations to food banks around the world and redistributes these items to charities, voluntary organisation and breakfast clubs. Kelloggs started working with the charity Seeds for Africa in 2010 to develop sustainable agriculture projects in Malawi and Kenya and provides community groups with the tools and training they need to produce nutritious food.

10. STAKEHOLDERS The companys decisions and actions are all made with the best interest of its stakeholders. Kelloggs uses its size as a force for good. Its stakeholder engagement focuses on supporting its CSR activity. Stakeholder engagement: building two-way relationships with its stakeholders, is a key aim for Kelloggs.Two-way relationships help build trust between Kelloggs and its stakeholders. , Kelloggs does not focus on pleasing shareholders at the expense of other stakeholders.

11. Kelloggs uses a variety of strategies to maintain positive relationships with its stakeholders through its CSR initiatives. 4 pillars to its CSR strategy: 1) Marketplace ambition - meeting the needs of customers i.e., selling them safe, high quality products whilst engaging in ethical and responsible marketing. 2) Environment ambition - using scarce resources carefully whilst also reducing environmental impacts and supporting sustainable agriculture. 3) Community ambition - contributing to the communities in which the company operates, concentrating on nutrition and physical fitness. 4) Workplace ambition - supporting a talented and diverse workforce which values diversity and inclusion, abiding by best practice labour standards.

12. INTERNAL STAKEHOLDERS Stakeholders who have a key interest in the organisations decisions. Kelloggs key internal stakeholders include employees at all levels, all over the world, and shareholders. Kelloggs seeks to make a profit to secure high returns for its shareholders. Shareholders invest money into the business in return for a stake in the company. If the company makes a profit, its shareholders receive a share of these profits in the form of dividends.

13. EXTERNAL STAKEHOLDERS External stakeholders are ones who are outside of the organisation. Kelloggs key external stakeholders include customers, suppliers, communities and charities. Kelloggs supports, through donations of cereals and money, breakfast clubs in schools across the UK to make sure that all children have a healthy and nutritious breakfast. Kelloggs engages with customers and potential customers through its advertising campaigns likeTV, print ads, social media such as Facebook,Twitter, etc.

14. RECOMMENDATIONS Kelloggs can modify their strategy to suit local consumers. For e.g., in US, there is a huge cereal consuming population and hence, they can promote Kelloggs. In UK where people prefer food on the go and skip meals, one can emphasize the importance of breakfast. In India where there are other breakfast substitutes, they can promote consumption of cereal as breakfast. Invest more in suppliers and its employees to support and promote international expansion. Employ better internal communication mechanism to enhance strategy execution. Involve employees in strategic decision-making. Recruit more Baby-Boomers because their market is growing and they are the most health conscious and wealthiest generation. Expand their snack catalogue so that it is marketable to all age groups with all kinds of concerns and preferences.

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