General Mills and Corporate Social Responsibility: Sustainability Goals: General Mills pledges to source raw materials only from sustainable sources. By 2020, they plan to sustainably source 100% of the top ten raw materials they use in their products. The main issue they face is in Indonesia, where palm oil farming has caused severe deforestation. In order to combat this problem, General Mills joined the Round Table for Sustainable Palm Oil (RSPO) and fully supports the RSPO …show more content…
According to Nepstad (2016) people in poor, rural communities are likely to clear trees by burning them in order to make the land fertile. Forcing these farmers to cease clearing land would further impoverish them. General Mills can further prevent deforestation by working together with these small-scale farmers. Currently, General Mills is part of Field to Market, an alliance of organizations that aspires to create opportunity in agricultural supply chains by promoting improvements in productivity, environmental quality, and human well-being (Field to Market, 2016). In allegiance with Field to Market, General Mills can introduce the knowledge, skills and technology required by farmers in order to sustainably produce palm oil. General Mills would be able to closely monitor where their palm oil comes from and be certain that the oil does not come from illegal farming sites. They would also be assured of the quality of the palm oil and that the human rights of the indigenous population are not being threatened. By promoting sustainability, many corporations receive long-term results such as “greater access to capital, reduced operating costs, improved financial performance, and enhanced brand image” (Rondinelli & London, 2001, 5). General Mills would receive recognition for actively supporting a healthier Indonesian …show more content…
Not only would the program give the farmers a bigger voice by being associated with a multinational corporation such as General Mills, but they would also gain new knowledge and skills, which would further help the economic stability of these communities.
Environment: Since farmers would no longer be forced to burn the trees down for fertile land, carbon emissions would lessen. This would also help General Mills’ goals of eliminating climate change, and ensuring animal welfare. According to Ruysschaert and Salles (2014), the greatest danger to animals is not hunting but the loss of habitats due to oil palm farming in Indonesia (438). By preventing land clearing, General Mills would save the habitats of Indonesian animals and reduce the endangerment of certain species.
Possible Risks: Government