Kraft Heinz Company (KHC) has taken taken advantage of strategic leadership to create an ethical organization internally and externally. Strategic leadership refers to management's potential to express a strategic vision for the organization, and to motivate and persuade others to accept and adopt that vision.
Internally, KHC adheres to its Code of Ethics, which centers around three guiding principles: compliance with all applicable laws, regulations, and company policies; adherence to the highest ethical standards; and the duty to speak up/no retaliation. Within the adherence to highest ethical standards principle, the Code of Ethics prioritizes safety in the workplace, handling non-public information privately and confidentially, not tolerating discrimination or harassment, making delicious, safe, and high quality foods, and to market and communicate responsibly, just to name a few. By establishing the Code of Ethics, KHC's management has been able to derive a strategic advantage through maintaining an ethical organizational culture.
The Code of Ethics also states the company is a socially and environmentally friendly company that aims to actively engage in growing a better world. To accomplish this external goal, management has acted strategically and has established 'sustainable business practices.' For example, KHC will be focusing on the environment by aiming to reduce greenhouse gas emissions, reduce energy consumption, reduce water consumption, and reduce solid waste sent to landfills by 15% by 2020. The company is also focusing on animal welfare, as KHC believes it is important for consumers to feel good about the products they buy. An animal welfare policy has been established, and it even requires suppliers to have a zero tolerance policy for willful acts of animal abuse and neglect.
Overall, I feel Kraft Heinz Company is moving in the right direction ethically. In today's culture of social and environmental awareness, I feel the above strategic management decisions will pay dividends and help the company achieve competitive advantages within their industry.
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