A Brief Note On Corporate Social Responsibility

Submitted By cassiegale
Words: 801
Pages: 4
Open Document
Firms who embrace Corporate Social Responsibility are more valuable than those who do not. Through practicing Corporate Social Responsibility concepts, firms are able to increase profitability through improved reputation and decreased government regulation, while also providing solutions to social problems that businesses have either created themselves, or to which they have contributed through their operations. Examples of these actions can be seen in the breakfast-food industry, specifically in Kellogg’s, a key player in the cereal industry.
In 2007, the New York Times published an article titled “Kellogg to Phase Out Some Food Ads to Children,” written by Andrew Martin. The writing explains that, in response to a lawsuit proposed by two advocacy groups, Kellogg imposed self-regulation on cereals that would be marketed to children. Cereals would need to meet nutrition guidelines as specified by the company. If the food did not meet those requirements, and could not be reformulated to do so, the cereal would not be allowed to be advertised on children’s television networks, would not be able to contain prizes that encourage purchases, and would not be allowed to feature licensed characters, i.e. Disney Princesses, in order to promote sales to children. In response to the industry imposing these self-regulations, the lawsuit proposed by the Center for Science in Public Interest and the Campaign for a Commercial-Free Childhood was dropped. (Martin, 2007). Clearly, there is an immediate cost-benefit to Kellogg’s for self-imposed regulation in this case, the firm avoided legal costs associated with this suit. In addition, the company was able to improve its reputation. The agencies which originally brought the suit reversed their rhetoric, and instead encouraged other firms in the cereal industry to follow the example set by Kellogg’s. Some U.S. congressional members have additionally proposed increased regulation of the food industry and its marketing to children, but in response, the food companies have decided, instead, to self-regulate. Since 2007, no laws restricting marketing unhealthy foods to children have been imposed. However, many companies have joined self-imposed regulation groups, such as the Better Business Bureaus’ Children’s Food and Beverage Advertising Initiative, which is “designed to shift the mix of foods advertised to children under 12 to encourage healthier dietary choices and lifestyles.” (Council of Better Business Bureaus, 2014).
The American Psychological Society, along with many other reputable organizations, have published studies which correlate the increase in childhood obesity to advertising aimed at children. (American Psychological Association, 2014) If Kellogg, then, has marketed cereals with exorbitant sugar levels and high fat-content which provide the recommended daily value of calories in one serving, they have directly contributed to public health problems such as cardiovascular disease, high cholesterol, and high blood pressure, just a few side effects of childhood obesity, as recognized by the Center for Disease Control. (The Centers for Disease Control and Prevention, 2014) Though self-imposed regulations on marketing these foods to children are relatively new in the United States, a drop in the childhood obesity rate can already be observed. As exemplified in the New York Times article, “Obesity Rate for Young Children Plummets 43% in a Decade,” overall purchases of sugary foods and beverages have dropped
Show More

Related Documents: A Brief Note On Corporate Social Responsibility

Dannon Case Study Essay

(Lester, 2010) One of the most telling findings in the 2010 CSR branding survey was the importance of tying social responsibility to a product. Its conclusion was consumers are more likely to select the product with an added social benefit hen given a choice between similar products. (Lester, 2010) Research shows…

Words 2156 - Pages 9

Mhr 341 Essay

needs to do your own research and find facts and examples (better with statistics and numbers) to support your arguments/thesis. Debate 1 on Outsourcing One group acts as pro-outsourcing supporters while another group acts as anti-outsourcing. Pro-outsourcing group needs to discuss at least 3 or more aspects of upsides/pros/advantages/benefits/positive impacts of outsourcing on outsourcing nation. You may choose among those stakeholders groups: consumers, employees, companies (cost saving, diversification…

Words 2496 - Pages 10

Corporate Social Responsibility and Ngos Essay

The future of CSR NGO Partnerships OgilvyEarth and Millward Brown collaborated in research looking into relationships between NGO and corporates in China. Beyond looking at the rapidly changing landscape of NGOs, we wanted to take a closer look into how partnership are developed and the evolving co dependence of NGOs and Corporations in this shifting environment. In the last few decades, China’s focus has been primarily on the nation’s GDP growth. However, economic progress brought about new…

Words 4048 - Pages 17

Corporate Social Responsibility and Its Role in Community Development: An International Perspective Essay

Corporate social responsibility (CSR) refers to strategies corporations or firms conduct their business in a way that is ethical, society friendly and beneficial to community in terms of development. This article analyses the meaning of CSR based on some theories available in literature. It is argued that three theories namely utilitarian, managerial and relational theories of CSR supported by works of other scholars in the area could be used to suggest that CSR becomes an international concern due…

Words 6831 - Pages 28

Case Study Essay

organization of positive deviant behaviors, this paper explores the reasons why people tend to bend the norms, and the consequences brought about by these behaviors. In addition, some suggestions to courage positive deviant behavior in the organization are discussed. Good introduction. It is essential to figure out what behaviors can be considered as positive deviant ones in the workplace. Spreitzer and Sonenshein (2004) contend that Four pro-social types of behaviors, including whistle-blowing…

Words 1580 - Pages 7

Phi 440 Week 4

Profit & Non Profit John Doe PHI 440 Instructor: Professer 01 October 20** This paper is going to outline both not for profit and for profit organizations and the ethical dilemma’s they both face. In addition to describing the dilemma’s are what each company is doing to over come these obstacles. The two organizations I will be writing about are Joy Junction, a non-profit, local faith-based church and UNICEF, a global for profit organization whose purpose is to better…

Words 2584 - Pages 11

Essay on Northampton Group Inc. – Case Study Analyses: How to Increase Shareholder Value

How to increase shareholder value Nicole Arends, Jenny Feng, Laura Tromp & Zilha Wever FHTMS University of Aruba Mr. Don Taylor Corporate Finance FTS 2415 March 26, 2013 Introduction This Corporate Finance paper focuses on analyzing the challenges that Northampton Group Inc. (NGI) is facing as it tries to increase shareholder value. In the case study it is stated by the firm’s major shareholders, that they believe NGI is currently undervalued. In connection…

Words 5328 - Pages 22

Rewarding social responsibility at the top Essay example

Occasional Paper OP-153 June, 2008 PROS AND CONS OF REWARDING SOCIAL RESPONSIBILITY AT THE TOP Pascual Berrone IESE Occasional Papers seek to present topics of general interest to a wide audience. IESE Business School – University of Navarra Av. Pearson, 21 – 08034 Barcelona, Spain. Phone: (+34) 93 253 42 00 Fax: (+34) 93 253 43 43 Camino del Cerro del Águila, 3 (Ctra. de Castilla, km 5,180) – 28023 Madrid, Spain. Phone: (+34) 91 357 08 09 Fax: (+34) 91 357 29 13 Copyright © 2008 IESE Business…

Words 4286 - Pages 18

Essay about Strategic Marketing Plan for a Water Bottling Company

[pic] Strategic Marketing Plan for Water Mart Systems (Pvt.) Ltd [pic] Index Page |1.0 INTRODUCTION |3 | | 1.1 - Definitions for marketing |3 | | 1.2 – The role and the importance of marketing in strategic planning…

Words 2743 - Pages 11

Café de Coral Holdings Limited International Business Development Plan to Essay

SBS6481 International Business Strategy UON DBA Program Block 5, 2013 (November 17th 2013) Group Written Report Café de Coral Holdings Limited International Business Development Plan to enter Australia market Provided by H.E.L. Management Consulting Company Limited contents Pages 1. Executive Summary 3 2. Introduction 4 3. Industry Based view Analysis 5-6 4. Resource Based view Analysis 7-11 5. Institution Based view Analysis 12-15 6. Recommendations…

Words 5538 - Pages 23