Executive summary This report summarized the three important commercial activities of Fonterra Co-operative Group over the past decade. It will be analyzed and searched from different fields of society and we will see how Fonterra impacts on society and commented as the largest export trading company in New Zealand. Then I found out that two of three Fonterra’s most important business activities I have mentioned in this report have been criticized from the perspective of corporate social responsibility. Thus this report will be concluded that Fonterra is not operating as a socially responsible company.
Fonterra Co-operative Group establish at November 2001. It is the largest company in New Zealand, the sixth largest dairy company in the world as well. Thus Fonterra is being noticed by the whole world. In this report, I would like to investigate and communicate the three most important activities Fonterra had done in their business which are “School milk program” “Botulism Bacteria Scandal” and “Potential DCD Risk Event”. In addition, the purpose of this report will be focused on how Fonterra is perceived by outside of the organization. There are three part of this report about the business activities of Fonterra within decade. Firstly I would like to mention the “School milk program”. Society are widely praise this program which is stated proactive in CSR that both generic philanthropy and strategic CSR. In this case, company leader believe that they have responsibilities beyond earning profit. So managers will decide to taken their own initiative. On the other hand, Fonterra is criticized from the perspective of corporation social responsibility because of the “Botulism bacteria scandal” in 2013 and “Potential DCD Risk Event” in 2012. As for Botulism bacteria scandal, I will provide some opinion of local government, suppliers and consumers. As for Potential DCD risk Event I will provide the comments from domestic and abroad government, environmnetal researcher and local suppliers.
Fonterra “School milk program”
Fonterra made decision which is to pledge milk for all primary schools in New Zealand.(n.d. 2013) This program was announced in December 2012 and has already put to use to 600 schools in the south island.( Tessa J ,2013). The school milk program is widely endored by the media. Waverley Park principal kerry hawkins stated that the milk would take better care of the pupils who came to school without breakfast that can provide vital nutrition. In addition he also expressed that they are glad to be the part of this program and it is a sort of benefit to the children for the long run(Russel T,2013). Moreover, Education Minister Hekia Parata states the government will encourage those companies which will cooperate with the school communities to benefit childrens. Fonterra Milk for schools programme is a good way to helpchildren to improve their working effciency(n.d. 2013). Therefore, whether government and schools all perceives Fonterra to be a company have a responsibility to help society beyond simply paying taxes andobeying the law which states as proactive. Proactive companies in CSR are have both responsibility of philanthropy and strategic. Accoring to Bovee Thill, as one of proactive companies, Fonterra is giving money to causes unrelated to the company’s lines of whole business without directly profit but is investing in the areas that are aligned with the company’s business mission.
Botulism Bacteria Scandal
As the largest dairy exporter in New Zealand, Fonterra was reported by Reuters a kind of bacteria which can cause botulism in part of its dairy was found recently. In addition, Fonterra was prompted china to issue a recall of those disqualified products. Although the result of lately testing shows this is an incident by mistake, there are still some questions we can not get answers. For example, how long it took Fonterra to realize the…