Summary on Archer Daniels Midland Corporate Social Audit Paper
A corporate social audit could be explained as the assessment that could be done for the company’s performance, however, the major is to focus on the company corporate social responsibility objectives. Social audit focuses to evaluate measurable goals that the business need to meet in order to support and balancing social responsibility regarding to the expectations the stakeholder because there is the demand for more ethical practices. The companies have the social and environmental responsibilities and it is considered as the great business performance in the 21st-century business (Lussier & Sherman, 2013).
Moreover, this report focus on the corporate social audit of Archer Daniels Midland Company as the company has the headquartered in Decatur, Illinois. ADM feels the responsibility towards the stakeholders as annual report shows that the company participated in major social responsibility programs and the company also focuses on the social and environmentally favorable aspects.
Corporate Social Audit and Intended to Measure Responsible Behavior
Regarding focused on the aspects of the corporate social audit, the companies in the modern world are focused on to treat the nonshareholder and the stakeholders in the effective ways, so that there could be understanding of the strong connection that the company develops through influencing on the environmental sustainability and socially favorable characteristics. Corporate social audit maintain a strong connection of the company because the major concerns of the company is environment (Ertuna, 2016).
In order to evaluates the responsible behavior of the company there is the need to focus on the company performance, if company promotes the fair working conditions and there is the honest accounting reports and focus on the development of the trust and integrity through the transparency regulations then it means that the company is focused on the elements of social responsibility through promoting recycling or the renewal of materials etc. (Rahim & Idowu, 2015).
Archer Daniels Midland Company, from the year 2016 is focused on the significant advancements so that the company could able to meet the social and environmental goals, however, the major focus and the operations of the company is to focus productive contribution towards the society. According to the Chairman and CEO of the company, Juan Luciano, “We are addressing some of the world’s most urgent needs by improving our energy and water efficiency, implementing initiatives to ensure a sustainable global supply chain, enforcing human rights, and in local economies where ADM operates” (ADM.com, 2017).
Assessment of the Company
ADM is focused on the environmental aspects as the company in 2001, violated major federal lawsuits that is based on the air pollution however, the company paid $1.46 million fine for the clean-air regulations there was the issue in the Decatur feed plant and ADM focus on to spend about $1.6 million in order to reduce the air pollution. Moreover, in 2003, there were again the federal air pollution complaints but the company focuses on the Clean Air Act and focus on to upgrade the pollution control plant so that it could be modernized, ADM again paid about $4.5 million and about $6 million for the maintenance of the environmental projects (Broughton, 2016).
ADM has focused on to eliminating the 60,000 tons of harmful emissions. In order to reduce the company carbon footprint the company have done the partnership with the “Midwest Geological Sequestration Association” so that there could be advancement in the process and the stakeholder trust on company could be supported.
ADM have the effective strategies of the sustainable development as there is the focus on the law, operations teams, company human resources and the technology so that effectiveness can be there in the operation. Thus, there is the focus on to make the regular reports so that there could be implementation of the effective strategies through the efforts and progress. The company have the corporate group in EMEA, South America and North America in order to support the sustainability so that initiatives could be taken and there could be the implementation of the effective strategies of the competitive advantage (ADM.com, 2017).
ADM in order to focus on the consumer welfare focused on the current practices for the human and animal nutrition. The company have the team’s example, there are 700 scientists and engineers that focus on to provide the effectiveness for the efficiency and the environmental profile. The teams are doing innovation to improve the beverage applications.
The company is focused on the fair trade practices as ADM focused on to sign the International Trade Center’s (ITC) so that there could Trade that is based on the effectiveness and the Sustainable Development Principles. However, company knows that through promoting the sustainability, harmonization and the transparency there could be focus on the fair trade system and thus, supply chains could also be effective, in this way, ADM is supporting the UN’s for the Sustainable Development of the Goals.
Treatment of Employees
The company ADM is focused to do the “Commitment to Respect Human” as the rights and code of conduct is being focused in the company, the employees are treated fairly so that they could participate and make the sound decisions for the company. The company is maintaining the trust with the stakeholder so that there could be effectiveness in business operation, the value is given to business partners, communities and the shareholders by the employees and there is appropriate handling (Baker, 2013).
Relationships with Customers, Suppliers, Distributors, Communities, Investors and Regulators
The company have maintained the relations with all the stakeholders as the effective practices are focused so that there could relationship of trust with the customers, suppliers, distributors, communities, investors and regulators etc. The quality system is monitored in the company so that customers concerns could be fully focused and the performance could be focused according to customers’ expectations. The suppliers of the company focused as they are given the rights so that business practices could be efficiently focused, the suppliers are expected so that they able to do business fairly and ethically. The company is determined with the compliance and the applicable so that laws and regulations could be followed.
Assessment Social Impact
ADM strength is it good reputation regarding effective practices in social audit in the market. According to fortune the company is 500 conglomerate, the company have more than 270 plants in the worldwide and focused on maintain the cereal grains and oilseeds are so that these things can be further processed into other products example, food, beverage etc. ADM also giving the facilities of the agricultural storage and the transportation services to the stakeholders in the market.
The weaknesses include the environmental concerns that the company face in the market, as ADM did the violation of act on air for the two times, and in this way, company unethical conducts are in news, as the company also using employees as for the agricultural exportation the company is known for making money from the employees (Broughton, 2016).
There are the sustainability challenges in the grain industry, however, there are the advantages with the growing technology in the world, but there are challenges of the traceability regarding the products to the company (Sosland, 2017).
“Espoused” Corporate Values
Regarding focused on the corporate social audit of Archer Daniels Midland it could be said that company global social audit is satisfied because the effective steps are taken in order to improve the sustainability and ethical business practices. The company is feeling the fiscal responsibilities through accounting and financial monitoring so that there could be evaluation that hoe social responsibility components are treating by the company and there is the proactively contribution or not.
- ADM.com. (2017). 2016 Corporate Sustainability Report- Our Sustainability Journey. Retrieved June 23, 2017, from https://adm.com/en-US/responsibility/2016CorporateSustainabilityReport/Pages/default.aspx
- Baker, M. (2013, November 19). Archer Daniels Midland, GrainCorp and the liability firewall. Retrieved June 23, 2017, from https://theconversation.com/archer-daniels-midland-graincorp-and-the-liability-firewall-20424
- Broughton, A. (2016, September 7). Agricultural expropriation: Making money from farmers. Retrieved June 23, 2017, from https://links.org.au/agriculture-expropriation-making-money-farmers
- Ertuna, I. O. (2016). Wealth, Welfare and the Global Free Market: A Social Audit of Capitalist Economics. CRC Press.
- Lussier, R. N., & Sherman, H. (2013). Business, Society, and Government Essentials: Strategy and Applied Ethics. Routledge.
- Rahim, M. M., & Idowu, S. O. (2015). Social Audit Regulation: Development, Challenges and Opportunities. Springer.
- Sosland, M. (2017, April 24). Editorial: Challenges facing grain industry. Retrieved June 23, 2017, from https://www.world-grain.com/articles/news_home/World_Grain_News/2017/04/Editorial_Challenges_facing_gr.aspx?ID=%7B48026E35-BC8F-40F8-AAF4-900949148544%7D&cck=1