Kellogg’s: People, Passion, Pride

“Bringing our best to you”

Monday 8 June 2009, by Berta Ferrer Castells, Berta Requeno Canals, Cristina Morales Trillo

WHY DID WE CHOOSE THIS COMPANY?

During its 100 years of history, Kellogg’s commitment to corporate social responsibility has been the key part of its heritage and culture. Kellogg’s has had a worldwide expansion following many specific values as integrity, accountability, passion, humility, simplicity and results.
Kellogg Company’s values, K Values™, shape its culture and guide the way it runs its business.
The company has been chosen one of the World’s most ethical companies in 2007 and 2008 by Ethisphere, a magazine that looks at the importance of the ethics-profit balance.
We think that it is interesting to study a company of its size and importance over the World.

MAIN FACTS ABOUT THE ACTIVITIES OF THE COMPANY

The Company began with only 44 employees in Battle Creek, Michigan, in 1906. Today Kellogg Company manufactures in 19 countries and sells its products in more than 180 countries. The goal of being the best in the categories it competes has guided Kellogg’s. It has historically been a leader in industry, innovation and marketing.
Its founder, W.K. Kellogg, had a strong commitment to nutrition, health and quality. His vision continues to drive improvement in the products and processes, with the goal of providing great-tasting, nutritious products that meet the most rigorous quality standards.
Despite its huge growth, the Company has retained many of the values instilled by Mr.Kellogg in those early years.
At Kellogg, they work hard at meeting the changing needs and demands of the consumers. That’s why they are constantly working to enhance their products and develop new food innovations through a great variety of brands specialized in ready-to-eat cereal, portable breakfast, snacks and fruit snacks, cookies and crackers and natural, organic and frozen products.
Kellogg employees around the world are the most important competitive advantage for the company. The main goal is to provide an environment in which each of their employees can succeed. This requires constant diligence and the evolution of their developmental process. Mr.Kellogg recognized a century ago: “the success of our company is dependent on the success of our employees”.

ETHICAL CHALLENGES THE COMPANY IS ADDRESSING AND REASONS TO TRUST IN IT

The mission of the company is to drive sustainable growth through the power of its people and brands by better serving the needs of its consumers, customers and communities. Its commitment is reflected in its values: “We Are Passionate about Our Business, Our Brands and Our Food.”

• Marketplace: Kellogg is committed to providing high-quality foods and highlights its performance and progress in the areas of health and nutrition, responsible marketing, consumer information and labeling, product quality, and food safety and supplier diversity. As an example for it, in June 2007, in what many viewed as an industry-leading approach, the company announced changes in its practices for marketing to children under age 12.

• Workplace: Kellogg’s invests its money in people, and that statement holds true today. It invests in recruiting, developing, engaging and retaining high-performing talent in all of its global locations. Achieving this powerhouse of talent will help it to fulfill its vision of becoming the food company of choice. As an example of inclusion and diversification the executive team is multicultural and composed by European, American, Canadian and African workers (many of them women).

• Environment: Environmental issues are increasingly shaping the context of the company. The cost and availability of water and energy; the impacts of agricultural production on land, biodiversity and water quality; and rising concerns about climate change all have implications for operations throughout its value chain.
It has implemented initiatives aimed at reducing its environmental impacts in the areas deemed most important in its materiality analysis; energy use, greenhouse gas (GHG) emissions, water use, waste and packaging.

• Community: The strong legacy of giving continues at this company today. The company believes in the responsibility it has over it communities whether it is donating products to the hungry, educating young people about proper nutrition and working to reduce global malnutrition. Its charitable contributions and programs come from two primary sources: Kellogg Company and Kellogg’s Corporate Citizenship Fund, a charitable corporate foundation.

CHALLENGES THE COMPANY MIGHT FACE IN THE FUTURE AND WAYS TO IMPROVE

- Kellogg’s should continue its efforts to engage employees, provide learning and development opportunities to help the company to create a talent powerhouse, and uphold the ethics instilled by its founder.

- To build a workforce that is representative of the consumers’ demographics, and to provide an open and innovative atmosphere that values new approaches, processes and ideas.

- The company should work to improve the country’s healthcare system.

- Another goal should be to remain a trusted leader in creating ethical and responsible marketing standards and providing the information its customers need to make healthy and informed choices. The safety and quality of products should always remain its top priority.

- The high aspirations should be to achieve reductions improvements in its use of materials and resources, reduce the ratio of packaging to product, and increase the recycled and recyclable content in its packaging.

- To continue to make donations that benefits the missions of a variety of causes.

Bibliography

1. Ethisphere, “2008 World’s Most Ethical Companies”; June 3, 2008; http://www.ethisphere.com/wme2008/
2. Ethisphere, “2007 World’s Most Ethical Companies”; May 23, 2007; http://www.ethisphere.com/2007-worlds-most-ethical-companies/
3. BNET, Food & Beverage Close-Up; June 8, 2009; http://www.findarticles.com/p/articles/mi_m5CNB/is_2009_June_8/ai_n25490765/
4. Kellogg’s; http://www.kelloggs.com/

Location: Battle Creek (United States of America, Michigan)

Sector: food processing, cereals, cookies, crackers

Official website: http:// www.kelloggcompany.com/

Key figures:

Annual Revenue 2008: US$ 12.8 billion
Net Income: US$ 1.15 billion
Total Assets: US$ 10.95 billion
Number of Employees: 32,000 (2008)
Countries of operation: Valls - Spain, Bremen - Germany, Manchester - UK , Wrexham - UK , Battle Creek, Michigan - USA , Seoul - South Korea , Shinjuku, Tokyo - Japan, Bangkok - Thailand, Mumbai - India, Pagewood - Australia, Rosny-sous-Bois - France, London, Ontario - Canada, Querétaro - Mexico , Maracay, Aragua - Venezuela , United Bakers - Russia , São Paulo - Brazil , Swords, Dublin - Ireland.

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