Kellogg Case Study

1963 Words 8 Pages
Introduction The Kellogg Company is without a doubt one of the most recognized food production companies in the world with markets in over 180 countries. Headquartered in Battle Creek, Michigan, this American company is well known for their production of cereal, crackers, cookies, fruit snacks, waffles, chips and other snack related foods. Some of their well-recognized brands include but are not limited to Pringles, Cheez-It, Keebler, Pop Tarts, Rice Krispies, Eggo, Fruit Loops and Frosted Flakes. The Kellogg Company is listed as one of the top 20 largest food production companies in the world. Additionally, The Kellogg company is ranked 198th on the fortune 500 business list with sales of over 13.5 billion dollars in 2015. Their …show more content…
As of 2014 around 85% of Kellogg’s suppliers have done so. Kellogg does not mention if the additional 15% had signed the contract as of 2016. Next, Kellogg actively engages with their suppliers and shares their best practices related to social and ethical issues. This ensures that suppliers have the tools and knowledge to prevent such issues. Third, Kellogg undertook a risk assessment of worker and human rights. This allowed them to identify which parts of their supply chain or suppliers were at most risk for such issues. These sections of the supply chain are constantly subjected to announced as well as unannounced audits by a third party. Last, The Kellogg Company uses tools such as Sedex and Verisk Maplecroft to manage and verify risks in their supply chain. Sedex is “a secure, online database which allows members to store, share and report on information in four key areas” (“About Sedex”), such as labour standards, health & safety, the environment and business ethics. This allows Kellogg to verify that their suppliers are following policies. On the other hand Verisk Maplecroft is a “global risk analytics, research and strategic forecasting company” (“Verisk”). The Kellogg Company can use this tool to identify which suppliers are at most risk of human right issues. Again, these identified suppliers are subjected to frequent third party …show more content…
This requires the participating company to support the ten principles as discussed above. Under Principle 1, “Businesses should support and respect the protection of internationally proclaimed human rights” (source), companies are to follow the Guiding Principles on Business and Human Rights or Ruggie Principles. The Ruggie Principles, require companies to create and follow policies that respect human rights as well as having a due diligence process that identifies, prevents and reduces impacts on human rights. Additionally, companies are required to have a process that facilitates remediation for any negative effects on human rights in which the company contributes to. In terms of remediation, The Kellogg Company promotes a culture where employees feel comfortable reporting any concerns or violations of their code of ethics. They accomplish this by have a zero tolerance policy for what they call retaliation. This simply means that employees who report any violations cannot be subjected to any harm or punishment for doing so. Additionally, reporting can be done anonymously and confidentially to a third party reporting company through a service called the Ethics Alertline. This third party will then transfer the information to the companies Office of Ethics and Compliance where further investigations will be conducted.The Kellogg Company puts an emphasis on keeping sources of

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