Kraft Foods is a huge global business which is responsible for many successful brands. Which many people think are businesses that stand in the market alone. Kraft has to create a very specific and individual business ethics plan for each separate brand. This is because all of the brands target markets vary and are spread from Canada to Australia. The trustworthiness of a business, its customer service, its customer care, its way of dealing with customers and its urge to retain their old customers, is a part of the business ethics.
Business ethics leave a long-lasting impression on the customers. Kraft Food managers with support from team members of the Compliance & Integrity and Legal groups help employees understand the ethical standards expected of the business. Training educates employees worldwide about Kraft’s ethics and compliance practices. ‘In 2010, Kraft Foods employees at all levels took a Code of Conduct online training and completed an acknowledgment form.’ In late 2010, Kraft Foods began providing the course to the legacy Cadbury employees.
In addition, they offered in-depth courses to employees based on their responsibilities. The areas included food safety, antitrust, anti-bribery and responsible marketing. They frequently measure and evaluate how they as a business are complying with ethics this shows that Kraft Foods take pride and time in making sure that all the areas of their business and the brands are running smoothly.However, when Kraft Foods were finalising the deal to take over Cadbury’s many papers were publishing articles about how when the US giants take over the company it would make there Ethical rating plummet.
‘Researchers at the Ethical Company Organisation said the ethical index rating of Cadbury will fall from a respectable 68 to something closer to Kraft’s existing score of 44 if the takeover bid is accepted by shareholders. ‘ Even with this huge drop in ethnicity Cadbury’s refused to take the ethics into consideration with the takeover bid.’Helping People around the World Eat and Live Better’ (www. kraftfoods. com) Kraft Foods have six aims which they always refer to when doing business and producing new products to the market these are as follows Innovation, Quality, Safety, Respect, Integrity and Openness (www. kraftfoods.
com). This proves once again that Kraft Foods have a very precise and set out goals which they try to set all their objectives on and aim to move forward by using these guidelines.Innovation is satisfying real-life needs with unique ideas within the business, Quality is fulfilling a promise to deliver the best product or service possible, Safety is ensuring high standards in everything Kraft make and work with, Respect caring for people, communities and the environment, Integrity always making sure they are doing the right thing and finally Openness is listening to the ideas of others and encouraging an open dialogue between all areas of the business and community.Kraft focus on these aims and values directly from the top of the business down, this is a good approach because it means everyone within the business knows the expectations in every part of business which is essential and it leaves no space for people questioning it.
Even though Kraft have these values and aims it doesn’t stop the brands within them having their very own aims and values for that in particular product they are marketing.Through doing this Kraft Foods are making sure they are staying to the structure and formation they have set through the mission statement and aims/goals set. In an ethical stance this is very important because it proves to the customers they do their upmost as a business to achieve all of the goals which they set themselves and stop at nothing to achieve everything to the maximum potential. Corporate Governance is essential trust of consumers, customers, communities, regulators, suppliers and employees is something Kraft does not take for granted.This is important to the ethical stance of Kraft’s and any other business because without one of the areas mentioned the business would not be able to run smoothly and to its full capability, leading to a bad reputation and negative consumer view.
They strive to earn that trust every day by doing what they say they we will do and holding themselves accountable, even on the occasions when they fall short. And, as a public company, Kraft has the added responsibility to be open and responsive to approximately 80,000 shareholders worldwide.Living up to these expectations and obligations is not always easy.
It requires detailed planning and hard work. That’s why they have structures and policies to help promote the ethical and efficient governance of the company. They also have internal and external auditors to monitor the compliance with those policies and procedures. Of all Kraft’s assets, the public’s trust is the one they value most. The governance policies, Code of Conduct and expectations of suppliers are all parts of the daily effort to preserve trust.
Like any company, they sometimes fall short ‘With coffee supplies falling, consumers can expect to pay more for that morning cup of Joe’ (http://www. strategicsourceror. com/2011/05/with-coffee-supplies-falling-consumers. html) This statement is one of the negative effects that a supplier can have on the final outcome of the product produced, in this instant it is because their crops are becoming more and more scarce. But the standards, policies and systems make it clear to anyone who works for the company or uses their business. They’re working to create a more ‘delicious world’.In May 2003 Kraft Foods, saw one of its most popular products under attack.
A lawsuit filed against the company claimed that its Oreo cookies contained Tran’s fatty acids. The lawsuit alleged that Kraft Foods used ‘hydrogenated vegetable oil’ in these cookies, which was detrimental to the health of consumers in the long run. The lawsuit demanded a ban on the marketing and selling of Oreo cookies to children in California.
The lawyer, who filed the lawsuit in the general public’s interest, also claimed that Kraft Foods did not even list the amount of Trans fatty acids present in Oreo cookies on its pack.However, Kraft Foods had already been in contact over there rights to what they need to include on the packaging, and no such ruling had been passed. This shows that Kraft are constantly making sure that they are not breaking the law within any aspect of their brands and it is a good example of Kraft being very productive and quick to act on any allegations put up against them. This leads to a good reputation in the business even though the ingredients is now banned from such products.