Corporate Social Responsibility in Food Supply Chain

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1) ANIMAL WELFARE

Government improvements: Humane Slaughter act of 1978 in the USA

the Food and Marketing Institute (FMI) is collaborating with the National Council of Chain Restaurants (NCCR) to implement animal welfare standards to minimize future consumer and NGO concerns (Food Marketing Institute 2005). These individual and industry efforts will set higher levels of responsibility throughout the food supply chain. Animal welfare practices and regulations are somewhat more advanced in Europe than the United States

Company itself (better CSR):

animal welfare improvements will not necessarily increase sales but will reduce the chance of sales loss from consumer concerns. Hughes (1995)

Food companies have pursued lower costs by implementing factory farming. It helped in reducing the costs, but it violated the animal welfare, which is issue of corporate social responsibility. organic farming (general exclusion of synthetic fertilizers, pesticides, and other chemicals) was 31% higher in cost. Bornett et al. (2003)

consumer willingness to pay more for improved animal welfare conditions. Bennett et al. (2002)

Citizens(informal) : their attitudes about animal welfare

although food safety was the primary consumer concern with respect to meat consumption, animal welfare is increasing in significance. Verbeke and Viaene (2000)

consumers perceive higher levels of animal welfare as an indicator of food safety and quality (Harper and Makatouni, 2002; Phan-Huy and Fawaz, 2003).

several barriers to consumer awareness of animal welfare practices: many consumers are not aware of differences in industry approaches to animal welfare including organic and free-range farming (Harper and Makatouni, 2002). Schroder and McEachern (2004); insufficient labeling, lack of high animal welfare standard product availability, and purchasing being out of consumer control due to eating out. Schroder and McEachern (2004)

2) BIOTECHNOLOGY (very bad for CSR!) → As biotechnology applications become more advanced (and possibly more controversial), food industry trepidation and risk may continue to grow.

Biotechnology offers many substantial food industry benefits including higher yields, lower costs, improved animal health, reduced crop loss, and less need for herbicides and pesticides (Gosling, 1996); enhanced product, shelf life, sensory appeal, and health/wellness attributes (Hossain and Onyango, 2004); allowness for disease testing as well as increase the production of pharmaceuticals derived from plants and animals (Gosling, 1996).

Government improvements

Company itself (better CSR):

Citizens(informal):
Consumer attitudes about food biotechnology and the subsequent threat to protest or boycott industry practices pose a considerable threat to food retailers.

3) COMMUNITY

support for the local community (business impacts such as educational support, economic development, job training, employee volunteering, health care, literacy, arts and culture, childcare, and housing) – financial donations

philanthropy not only strengthens employee loyalty but can also provide a source of corporate competitive advantage (Porter and Kramer, 2002; Smith, 1994). - potential influence and look for opportunities to support the community.

4) ENVIROMENT

The food industry has many impacts on the environment: Problems with manure disposal, soil and water damage, deforestation, and global warming from methane Fox (1997). Food industry retailers must not only be prepared to offer environmentally friendly products to consumers but also demonstrate responsible environmental care practices in their supply chains.

Consumer concerns about food industry impacts on the environment have led the emergence of organic food products, which are generally characterized by use of sustainable farming practices and limited use of chemicals in the farming process (US Department of Agriculture, 2005). – mixing of...
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