Introduction
Over the past few years, businesses and academic researchers alike have displayed increased levels of enthusiasm for corporate social responsibility (CSR). In particular, recent research suggests that CSR may be an excellent instrument to enhance the legitimacy of the firm among its stakeholders ( 1999) and to develop positive social responsibility images (1997; 2001).
In spite of the many definitions of CSR advanced in past research (1995; 1991), much debate remains as to the exact nature of this complex concept (2000). (1991, p. 693) integrated much of the previous work in an acknowledged definition of corporate social performance as the "configuration of the principles of social responsibility, processes of social responsiveness, and policies, programs, and observable outcomes as they relate to the firm's societal relationships.(1991) approach has been complemented by advocates of the stakeholder view of the firm ( 1995;1999; 1995) who argue that businesses are not really responsible toward society in general, but only toward their stakeholders. Integrating these two views, we propose that a firm committed to CSR has principles and processes in place to minimize its negative impacts and maximize its positive impacts on selected stakeholder issues.
This research essay focuses on the discussion about a multinational food manufacturing company in UK, Tate & Lyle. It would discuss the corporate social responsibility, particularly Tate & Lyle and their ethical business practice.
Company Background
Tate and Lyle PLC is a UK based multinational food manufacturer and is listed on the London Stock Exchange under the symbol TATA. It is the major producer of refined sugar, starches, animal feed and other food ingredients with global operations.
The company was formed in 1921 from a merger of two rival sugar refiners, Henry Tate & Sons and Abraham Lyle & Sons. Today operating globally with operations predominantly in Europe, the Americas and Asia, Tate & Lyle provides ingredients solutions and services to food, beverage and industrial customers.
Tate & Lyle operating with its purpose to create the world’s leading renewable ingredients business and with its vision to grow uniting businesses and partnerships in creating the world’s leading renewable ingredients business and building a consistent global portfolio of distinctive, profitable, high value solutions in products and services for their customers
Tate & Lyle has its roots in a number of well-established companies focused on sugars in Europe and Canada, wheat and corn milling in Europe and corn milling in the US. All of their ingredients are produced from renewable crops, predominantly corn (maize), wheat and sugar, but on a smaller scale incorporating other agricultural products.
Tate & Lyle is leading producer of cereal sweeteners and starches, sugar refining, value added food and industrial ingredients and citric acid. They are the world’s number one in industrial starches and wheat proteins, and the sole manufacturer of SPLENDA Sucralose. They deliver specific functional and taste-enhancing characteristics fundamental to the performance and appeal of customers’ end products. They provide ingredients to almost every famous food and beverage producer in the world and their industrial ingredients can be found anywhere from cappuccino bar to a carpet showroom.
Tate & Lyle operates over 65 production facilities in 29 countries, predominantly in Europe, Americas and Asia. There are 7,000 people employed in their subsidiaries with a further 4,800 employed in joint ventures.
Social Responsibility
Tate and Lyle plays an important role in all the communities in which they operates around the world. Over the years the company developed a Group-wide community involvement that forms one of the core components underpinning their ethical behavior. For the company, effective community involvement is more than about financial contribution but rather a partnership and building strong volunteer network. Healthy and well educated communities produced motivated employees and enhance recruitment, volunteering builds and broadens employees’ skills.
We believe that through partnering with organisations that have insight into local issues we can make a real difference. Education commands the majority of our total community spend with programmes involving working in partnership with specialist organisations, universities, colleges, schools and teachers. Whether mentoring, providing job experience placements, conducting mock interviews or participating in a range of activities, we know that our employee volunteers benefit at least as much as the students they work with.
Community spend by allocation
for financial year 2005
Excludes donations made to the Guyanese Flood and Asian
Tsunami disaster relief organisations.
Community support by region
Listed here are some examples of organisations we support in our key regions.
• UK: Tate Britain; Community Links;
Richard House Children’s Hospice;
• Americas: YMCA; United Way;
Millikin University, Illinois;
• Europe (excluding UK): Oratorio
Don Bosco-Saluzzo (community
organisation, Italy); Razgrad Special
Needs Centre (Bulgaria);
Levensvreugde (meaning ‘joy for life’)
(Belgium); and
• Asia (Vietnam): ‘For the Future’
Business Ethics
Code of Conduct
Scope
The following Business Code of Conduct sets out in abbreviated form the Tate & Lyle Ethical Commitments and Policy Guidelines, which were first published in May 2001 on our website.
Tate & Lyle shares the widely accepted view that the greater the level of management control a company has over a set of operations, the greater the responsibility to ensure compliance with Group Policies. The Group's ethical commitments and policy guidelines apply unconditionally to all operating units and subsidiary companies that are wholly owned by Tate & Lyle PLC.
The Group will also seek to apply them in those operations in which the Group has a stake of 50% or more. In relation to business operations in which Tate & Lyle has a minority stake, and in relation to suppliers and third party contractors, the Group's policies are made known to these commercial partners and they are encouraged by the Group to adopt them and implement them rigorously.
Relationships with suppliers vary from those that are directly with corporate entities to those with growers that are less structured. In other cases, raw materials are purchased via commodity exchanges, state-owned suppliers or under international conventions. Tate & Lyle will use the most appropriate methods at its disposal to ensure that suppliers uphold this Code. At the very least, this will involve making clear where we stand on key issues and offering help in implementing appropriate policies. We will give strong preference to dealing with commercial partners who demonstrate their commitment to the principles of this code by accepting compliance as a contractual requirement and we reserve the right to terminate our contractual relationship with commercial partners that consistently fail to meet the Group's standards.
General Business Practices
Tate & Lyle strives towards the highest ethical standards in all aspects of its business in all parts of the world. Good business standards and good management practices are regarded both as ethically proper and commercially responsible.
The Group will conform to all laws and regulations of each country where it conducts its business, and act with integrity and responsibility in its dealings with its customers, its employees, trade unions, Government, non-governmental organisations (NGOs), trade associations and the general public.
All Tate & Lyle employees worldwide are expected to be familiar with the Company's ethical commitments and policies, and to play their full part in ensuring that the standards they enshrine are lived out consistently in the day-to-day business of the Group.
Health & Safety
Tate & Lyle believes that no business activity is of such urgency or importance that it may be carried out in an unsafe manner. The Group target for accidents is to reduce them to zero. The Group is committed to providing safe and healthy conditions for its employees and visitors to its premises, and is committed to continuous improvement of its Health and Safety procedures and performance. Safety Committees comprised of employees work to ensure that safety remains paramount - safety is not just someone else's concern, it is everyone's responsibility. It is an ongoing process, which requires ongoing training.
Environment
Tate & Lyle takes environmental issues seriously, striving to be a good neighbour and to minimise the Group's environmental impact. All operations are conducted in recognition of the Group's responsibilities towards the natural environment within which we live and work, and the Group complies with all relevant local laws, regulations and consents. The Group subscribes to the principles of the International Chamber of Commerce's Business Charter for Sustainable Development, and to the popular definition of Sustainable Development as "a better quality of life for everyone, now and for generations to come".
Tate & Lyle's environmental policy is supported by written operational and reporting procedures that require the integration of environmental concerns into operating, training and management practices at all levels. Measurement of key impacts such as energy and water usage and solid waste emissions underpin our approach to reducing overall impact.
Click here for the Tate & Lyle GMO Policy Statement.
Quality
Tate & Lyle is committed to producing quality products and to providing the best possible service to our customers all over the world. The Group's drive to be 'best in class' has seen many of our companies set standards that competitors strive to follow.
Human Rights
Having operated in much of the developing world for over 60 years, Tate & Lyle recognises the responsibilities that being a major employer and source of income in those communities brings. Tate & Lyle recognises fundamental human rights and freedoms and strives to reflect these in its business operations. The Group is open to discussion concerning human rights issues relevant to the way it conducts its businesses with Government and NGOs alike. With regard to rare instances of sanctions or embargoes being imposed by the international community on countries where Tate & Lyle does business, the Group takes its lead from the relevant political authorities to ensure that no sanctions are broken and that any trade embargoes are observed. Tate & Lyle reserves the right, where it is able to do so, to withdraw from commercial relations with companies or countries where it is not possible for Tate & Lyle to operate in accordance with its own ethical standards and policies.
Competition and Anti-Trust
Tate & Lyle holds the view that profitability is a prerequisite of sustainable development, and the Group takes seriously its economic contribution to the lives of the individuals and communities who are touched by its businesses. The Group is committed to fair and vigorous competition within the regimes and competition frameworks of the countries and trade areas where the Group does business.
Human Resources
Tate & Lyle recognises that its employees world-wide are its single most valuable asset, and strives to achieve a 'best in class' position on human resource management in the context of each specific market sector and country of operation. Operating Units should seek to implement human resource policies that compare with those of other reputable employers in the country and industry concerned, while complying with or exceeding local laws and regulations, including any minimum wage requirements.
Equal Opportunities
Tate & Lyle is committed to a just and robust approach to equal opportunities in all parts of the business, with people gaining promotion on merit. Tate & Lyle's businesses operate in tough, globally competitive markets which are constantly changing. In order that the Group can meet and overcome these business challenges, improve its performance and promote business diversity, it is vital to recruit, train, promote and retain talented individuals irrespective of sex, age, marital status, disability, sexual orientation, race, religion, ethnic or national origin.
Whistle-blowing
Consistent with its commitment to promote an open, dynamic and responsible culture throughout its business operations, Tate & Lyle welcomes the voicing of genuine and serious grievances, or actual and alleged breaches of Company policy, by employees at every level to their superiors.
To this end, neither Operating Units nor their management or employees will be criticised for loss of business resulting from complying with the Company's policies. Nor will any employee suffer as a consequence of bringing breaches, or suspected breaches, of these policies to the attention of management, the Executive Committee or the Board.
All employees are made aware of their rights in this area, as well as the usual procedures for providing feedback (both positive and negative) to management on Company policies and operations.
Communities
Tate & Lyle has a long and respected track record of investment in and engagement with the various communities that it touches around the world. More important than any single initiative, the Group has a business culture that recognizes the need to support the local community if business development is to be sustained in the long term.
It is in the Company's interests to operate in strong, safe and healthy communities, helping improve the quality of life for employees as well as our neighbours. Furthermore, the Company believes that levels of commitment and motivation are increased if employees hold Tate & Lyle in high esteem and that new recruits will prefer to seek employment in businesses that have a strong focus on community involvement.
Supplier Diversity
Tate & Lyle recognizes the importance of diversity in all areas of our business. As responsible corporate citizens, we are committed to supporting the growth of businesses owned by minorities and women. It is our policy to ensure that all companies, regardless of race or gender of ownership, have the opportunity to earn our business. Tate & Lyle seeks to award business to companies that can meet our needs. Supplier selection is based on a number of elements including quality, price, service, financial viability, technical competence, capability to deliver, and overall risk analysis. Tate & Lyle will select suppliers from those that best meet our selection criteria. Preference will be given to minority suppliers that meet our selection criteria.
Global Purchasing Conditions
Long-term, good relationships with our partners and suppliers are very important at Tate & Lyle. For businesses supplying goods and/or services to Tate & Lyle, please click here for our Global Tate & Lyle Purchase Conditions.
Benchmark Performance
In September 2002, Tate & Lyle met the entry criteria required to be added to FTSE4Good, the UK-based corporate social responsibility index. We continue to meet those requirements and our inclusion was affirmed again this year. FTSE4Good's criteria are based on internationally accepted codes of conduct that have been ratified through an extensive global consultation exercise.
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