Business Proceedings Involves Initiatives

Question: Discuss about the Business Proceedings Involves Initiatives. Answer: Introduction Visser (2014) defines that CSR is business proceedings that involves initiatives for the benefits of the society. It not only supports the initiatives for greener environment but it also emphasizes on the effective business relation with their stakeholder. In this assessment, an argument will be elaborated that signifies that there are many organizations, who claims to have an ethical business approach in terms of economically and environmentally business procedure; but in reality, they are not so ethical. In this essay, the argument as mentioned earlier will be supported by illustrating the acquisition of Cadbury Plc. by Kraft Foods Inc. Discussion It is highlighted by Moeller (2012) that in order to attain maximum CSR rating, an organization not only have to satisfy their customers, but they also have to behave well with their internal stakeholders. In terms of the acquisition, the overtaking organizations have to comply with the existed business policy of the acquisition company for conquering an effective CSR for their betterment. However, in the context of Kraft, they did not fulfill their commitment that they make before acquisition Cadbury Plc (Tsagas 2012). Firstly, Kraft committed that they will not close Cadburys Somerdale factory and follow all their business procedure but Visser (2014) argued that in reality, they denied their commitment and closed the Somerdale factory within a month they acquired Cadbury. Tsagas (2012) also present the opinion that Cadbury, which is considered as the most ethical organization in terms of their business proceedings values their stakeholders. In 2000, Cadbury was in the state of questions for using cocoa from slave farms located in West Africa that results in the poor reputation of Cadbury (Justmeans.com 2016). The concerned organization then rectified their reputation by taking over the Green Blacks and their ethical business proceedings. Green Blacks is a chocolate manufacturing organization, which is known for their fair and organic trade labeled products. Moeller (2012) highlighted that Cadbury aligned their business procedure with the approach of Green Blacks so that the organization can attain more CSR value. In addition to that, Tsagas (2012) represents that in the year 2008, Cadbury had launched a 44 million Cocoa Partnership so that they can ensure their social, environmental and economic sustainability and can support million of cocoa farme rs from Ghana, Caribbean, India and Indonesia. Tsagas (2014) on the other hand argued that Kraft did not maintain such approach for effective CSR. They acquisition Cadbury for global expansion of their organization but did not value their existing business procedure of Cadbury. Moeller (2012) depicts that this scenario is an example of green-washing where prior to the acquisition, Kraft claimed that they would commit to continuing Cadbury's Cocoa Partnership and will support them in their business and reported that in media. However, Tsagas (2012) argued that Kraft had committed this because they have a terror of ferocity from House of Commons, trade unions and media. Thus, represents a state of green-washing Moreover, Ackerman (2016) stated that for maintaining an effective CSR value an organization has to consider the long-term stakeholder-friendly interpretation of the governing legislations and business approaches. The approach for following the long-term stakeholder-friendliness resembles the integration of non-financial information into investment decisions. The acquisition of the Green and Black resulted in fair-trading of chocolates to the end-users. However, Moeller (2012) argued that after the successful acquisition of Cadbury by Kraft, Green and Black struggles in accomplishing their strong business ethics agenda. Their struggle comes to an extent where they are started expecting a managerial buyout and hence send a proposal to Kraft, but they denied it and kept the company as a functioning part of their business (Justmeans.com 2016). All these facts are not mentioned in their CSR report and it is mentioned that they value their stakeholders and their principles for enhancing t heir effectiveness of the business, which is not true and hence can be considered as green-washing. In addition to that, Visser (2014) highlighted that the effectiveness of a CSR relies on how an organization behaves with their employee and what benefits they are providing to them. In a blog regarding the acquisition of Cadburys tragedy, it is mentioned that Krafts managers or working people do not behave with the Cadburys employee that results in a poor reputation for the concerned organization. Moreover, the closure of the Somerdale factory has resulted in loss of 400 jobs that also left many of the people homeless and weak brand recognition in UK (Justmeans.com 2016). Moeller (2012) stated that Quaker once owned Cadbury but they have offered many facilities to their employee like space for cricket in the break time, rose gardens, swings for the women employees and a family-friendly environment. Moreover, for offering a good and luxurious life experience, they also formulate utopian model towns. During this time, Quaker capitalists believed that serving society and improving the condition of local communities have to be considered first rather than making money (Justmeans.com 2016). Quaker when struggling in their business, Cadbury had utilized their business strategy and chocolate making approach for the betterment of both the company and built a "fairyland factory." Washingtonpost.com (2016) contains the argument that Kraft does not fulfil this approach for the Cadburys employee like Quaker had offered facilities of pension and Saturdays off, pensions, incrementing the salary, unemployment and sickness benefits along with regular checkups with doctor and dentists. Tsagas (2012) thus, states that this Quaker vision is now missing in Cadbury's atmosphere but is not mentioned in Kraft's CSR report and hence argued as green washing. Conclusion Thus, the entire discussion had led to a conclusion that Kraft being taken over the leading organization like Cadbury; they are not reported as an ethical organization like the one they have acquisition. Kraft, most of the time, denies their commitment to following the commitment of the other organization and hence well with their employee. However, they had close down the Somerdale plant and taken away 400 jobs that are an unethical move and not mentioned in the report that is broadcasted in media. Thus, this acquisition of Cadbury by Kraft is a perfect example of green washing. Reference List Ackerman, M., 2016. The impact of corporate social responsibility and mergers and acquisitions on a multinational corporation. A case study in the elevator industry. Justmeans.com., 2016.Bittersweet: How Kraft's Acquisition of Cadbury Ended the Dynasty of a CSR Luminary | Justmeans. [online] Available at: https://www.justmeans.com/blogs/bittersweet-how-krafts-acquisition-of-cadbury-ended-the-dynasty-of-a-csr-luminary [Accessed 26 Dec. 2016]. Moeller, S., 2012. Case study: Kraft's takeover of Cadbury.Financial Times, Jan,10(2012), pp.23-24. Tsagas, G., 2012. 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