Evaluating Dannons Corporate Social Responsibility Initiatives - Case Study Example

? Evaluating Dannon’s Corporate Social Responsibility Initiatives Evaluating Dannon’s Corporate Social Responsibility Initiatives Introduction Dannon is a member of the Danone family of companies, and it is highly committed towards the health of the largest number of people across America through its healthy products. Dannon was established in 1942 in New York by Daniel Carasso who sold the first products to pharmacies in Barcelona for children who suffered from digestive disorders. Its headquarters are in White Plains and has its plants in OH, NY, TX, Fort Worth, West Jordan, Utah and Minister. Dannon has since become the yoghurt founding company in America. Dannon is one of the leading producers of beverages, packaged foods and top selling yoghurt brands globally. The main value of the company is Health and Nutrition. The mission of the company is towards the provision of health through the food supply to the largest number of people possible (Dannon’s CSR 2009 Overview). The vision of the company is health for all people. The company is always looking for different ways of encouraging people to eat healthier and delightful tasting dairy products. Dannon produces and sells over 100 different products across the globe which varies in different sizes, styles and flavors of cultured dairy products. Transparency 1. Level of public disclosure. The company has a high level of public disclosure. That is, Dannon Company makes the information about its company public and makes it open to investors and shareholders. In every financial year, the company makes public its CSR report, events and all annual reports. The company gives a press release of all activities taking place including company awards and all nutrition grants. All this is done with the aim of enhancing investor and shareholder confidence on the company. 2. Responsibility for environment/sustainable development. Dannon Company engages in Corporate Social Responsibility activities. The company shows a high level of responsibility for the environment and sustainable development. For sustainable development, Dannon Company is highly committed to brining health to a large number of people across America through its products. As part of its sustainable development, company has also increased its health and nutrition and nature of its produces which include packaging, energy consumption and manufacturing (Dannon’s CSR 2009 Overview). The company has also cut by 10% on its overall carbon footprint during the 2009 financial year. As part of its responsibility towards sustainable development, Dannon Company helps people in making informed food choices in order to improve their health and nutrition. Dannon Company also supports initiatives which encourage nutrition education, supports research and education which help in exploration of the relationship between better health and nutrition. To Dannon Company, its responsibility goes beyond the usual business of just producing yogurt products as it the company’s privilege to be an active partner in the provision of families with information and tools required for health lives. Dannon Company is committed to three core values in its corporate social responsibility activities, and they include health and nutrition, nature and people. The company is highly committed in the production of those products which are quite useful to the consumer (Laszlo, 2003). The company strives to makes nutritious products, engages families and children at the community level, and makes use of Dannon Next Generation Nutrition to help children in understanding the usefulness of healthy eating habits. The company also limits the kind of products to advertise to children and engages in childhood nutrition education programs. When it comes to nature, the company is highly committed to environmental sustainability as it has been saving on its carbon foot print, has reduced the quantity of its primary packaging and also saves fuel by re-inventing different ways of making energy saving bottles and cups. The company works hard to ensure all actions reflect its actual commitment and value to the environment (Dannon’s CSR 2009 Overview). For example, the company receives all its fresh milk from local producers which helps in the reduction of the transport emissions pre-production. The greater varieties provided by the company reduces the distance travelled by the consumers. The company has also started a waste water treatment process as part of it economic sustainability, and it is engaged in community wellness programs. 3. The process of managing and reporting risk. All risks involved through out a financial year and the different ways of managing those risks are usually clearly stated in the annual reports. This is done with the main aim of enhancing transparency which would then increase the level of investor confidence. The company reports all the risks involved in running the business in its annual reports and then gives the stakeholders all what was done in mitigating the stated risks and the cost of risk mitigation involved. As a result, the company becomes truly transparent in its operation to all stakeholders hence increased investor and consumer confidence. Accountability 1. Level and nature of stakeholder engagement. Dannon Company is quite accountable to all of its stakeholders, and it incorporates and engages them in all activities in which those stakeholders are responsible to. All stakeholders of Dannon Company are highly engaged in the company operations. To the company, all stakeholders are part and parcel of the company. For example, people who include customers, employees and other stakeholders are regarded as the key asset of the company. The company is highly concerned and highly regards any public opinion about the company and its operations. Public opinion is crucial to the company as it reminds the company of its responsibility in the industrial world (Dannon’s CSR 2009 Overview). The company also works in collaboration with partners for a healthier generation. Employees in the company are also engaged all the way from manufacturing to marketing which makes them take responsibility in the identification and incorporating environmental initiatives in all business strategies and products. 2. How the needs of the stakeholders are tailored The needs of all stakeholders are tailored in connection to the vision and mission of the company. The company creates job which is central to the employee’s lives and by doing this, employee’s needs are adapted. The company supplies quality and nutritious products to all consumers. The company provides consumers with the right nutrition by the help of a diverse portfolio of products which are adapted to consumer’s needs and preferences in texture and taste. Dannon has also made it a priority to train and develop its employees at all levels. It has also expanded its employee tuition assistance program. The company also believes that its people development strategy is quite good for employees and the company which gives them an opportunity to grow together. To cater for the needs of the local communities, Dannon Company supports the efforts of the community, makes charitable donations to the community, ensures a clean and a sustainable environment as well as health and nutritious products (Dannon’s CSR 2009 Overview). 3. The existence of success of any communications strategies. Different communication strategies are used by the company to communicate with its stakeholders. Departmental meetings are the communication strategy used to communicate to the employees in regard to different planned community service activities. To communicate to investors and the public at large, Dannon Company uses press releases. The different communication strategies used by the company have proved successful in the past judging from the level of consumer awareness of the products and activities. Credibility 1. The company’s understanding of the concept of sustainable development. Dannon is highly committed to respecting the environment and it work hard to ensure that all of its actions reflect their commitment. From the sourcing of its ingredients to the design of the manufacturing and packaging and the distribution of the products, Dannon is highly committed towards the reduction its impacts on the environment (Dannon’s CSR 2009 Overview). The company fully understands the concept of sustainable development where the company abides by the Danone Environmental Charter to enhance its sense of responsibility. The company has also purchased a Green-e certified Renewable Energy Credits to enhance its credibility on sustainability (Sadler, 2002). 2. Efforts to manage the impacts of its supply chains and products. To manage its impacts on supply chain, Dannon Company has been ensuring delivery of orders and products in time. To enhance the supply of its products, the company has several branches across the world. Over 50% of its products are supplied by trucks in the participating companies in the United States of America. All this is done to ensure timely delivery in the supply chains in order to avoid any shortage in the market. Right sourcing is the strategy used in the distribution of products to all participating companies and branches. 3. The existence of data collection, measurement or management procedures Dannon Company often conducts market surveys, which are quite beneficial in the company decision making. For example, in 2009, the company conducted a survey where 85% of the company employees participated. This is a clear indication that there is the existence of data collection in the company in order to perform market measurement hence management decision making (Dannon’s CSR 2009 Overview). The management procedures include decision making, which are based on the market surveys conducted. The company also carries out survey from consumers to determine their level of satisfaction, how they feel about the company product and their consumption level. References Dannon 2009 CSR Activities. Retrieved from http://www.csrwire.com/press_releases/30198-Dannon-Reports-2009-CorporateSocial-Responsibility-Activities. Dannon’s CSR 2009 Overview. Retrieved from http://www.dannon.com/pdf/2009_csr_overview.pdf. Dannon CSR Report: Cuts Carbon Footprint by 10%. Retrieved from http://www.environmentalleader.com/2010/08/06/dannon-csr-report-cutscarbon- footprint-by-10/. Laszlo, C. (2003). The sustainable company: How to create lasting value through social and environmental performance. Washington, DC: Island Press. Sadler, P. (2002). Building tomorrow's company: A guide to sustainable business success. London, UK: Kogan Page Publishers. Read More