ETHICAL ANALYSIS OF

KELLOGGS

Submitted byAngelina Naorem

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 secondlargest 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.

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.

1) Employees
Kelloggs invests heavily in its employees and future

employees.
Kelloggs global employer brand communicates the KValues 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

 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.

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 wellbeing of its consumers.

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.

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.

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

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.

 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

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.

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 like TV,
print ads, social media such as Facebook, Twitter,

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

THANK YOU