Company Assessment: Suntory Holdings Ltd

Company Information

Suntory Holdings Ltd is a food processing industry that deals with various products ranging from alcoholic beverages to non-alcoholic beverages, health foods, restaurants, food businesses, and flowers. The company is based in Japan with outlets in various countries. The company’s corporate social responsibility (CSR) report was produced in 2009. The CSR report of 2012 is a 63-page report that seeks to provide information on the company’s social responsibility in a way that the stakeholders can understand. The document is also available at www.suntory.com/csr/ for online users.

CSR/Sustainability Report

The organization follows the guiding principles of the Kyoto Protocol. According to Craig, liquor organizations have to follow the industrial standards of the International Labor Organization (12). The organization has achieved the recommendations of ISO 2600. The report followed the Global reporting initiative (GRI) of 2006. It also followed the ISO 26000 guidance on social responsibility guidelines. Moreover, it had a mechanism for gathering feedback. Inquiries on the report could be made through the CRS department; Suntory holdings limited Daiba 2-3-3, Minato-ku, Tokyo, 135-8631, Japan. Telephone numbers for feedback were also provided in the report. The report was edited and published by tekeji Kitmasu publishers. The report was audited by the ministry of the environment in line with the ministry of environment reporting guidelines of 2007. Various stakeholders were engaged in the preparation of this report. It indicates that the MS&AD’s insurance group also audited and issued the report as external auditors. Jernigan affirms that Suntory Holdings Ltd is guided by a code of conduct that emphasizes legal compliance and respect for international standards of conduct especially on procurement (87). It considers human rights, health, safety, and labor laws and regulations in Corporate Social Responsibility that guarantee quality and safety in CSR. It considers the global environment by preserving information security on procurement and personnel in a bid to coexist with society. Various stakeholders were involved when making the report. These included business partners, the local community, employees, environment managers from the government, and the management committee of CSR. According to Craig, a company such as Suntory Holdings Ltd must engage the stakeholders in order to realize the social expectations of people and the demands of society (8). Such engagement provides specific information to the CRS committee. Hence, it can engage in a more specific manner.

Report Analysis

A good balance is evident between the quantitative and qualitative data that the report provides. The quantitative data was provided in the form of tables and charts. The data is further analyzed into averages and percentages in comparison with other groups. Such information gives the reader a clearer image of the process. Qualitative information is provided through an in-depth analysis and discussion of the programs, requirements, codes of conduct, guiding principles, and results. The organization has specific goals set for its CSR program. For example, minimizing water usage, optimizing container packaging to reduce CO2 emission, and improving business quality in line with the company’s mission. The CSR group has its goals organized into three stages namely assessment of the current situation of CSR, verification of the CSR issues at hand, and verification of the CSR issues with experts and implementation stakeholders. According to the assessment on page 62 of the report, success was achieved in various areas such as, “environmental conservation, community involvement and development, consumer issues, fair business practice, human rights, governance, and labor practice” (Lazer, Murata, and Kosaka 69). The report recognizes that there has been negative publicity about the involvement of the company in liquor processing. However, Jernigan asserts that the company provides and processes the best quality liquor in observance of international standards (88). Although the report seems perfect, there is a need to include customers’ opinions about the effectiveness and the need of various CSR activities that it partakes in. The report is a complete package from the public relations desk. Lazer, Murata, and Kosaka confirm that CSR reports such as this one of Suntory Holdings Ltd are properly detailed to provide insights and understanding to the stakeholders of the company in a language that is understandable by all (69). The report has also been audited in line with the guiding principles of ISO26000 to make it more acceptable and reliable.

Integrative Analysis

The company’s approach to CSR is in line with the beliefs that it upholds. This inference is clearly visible from the mission of the company which is, ‘In harmony with people and nature. The CSR vision is ‘Bringing water to life. The two ideas are congruent to each other. Peng points out how companies give back to society by sharing their profits with people hence giving their life meaning (87). This achievement is similar to the idea of water giving life to people. Since the organization deals with water in the form of beverages, it is also able to revive and restore water sources in the environment through its CSR activities. The report indicates some diagnostics of the CSR process that is done by auditors during the assessments. The management interacts through brainstorming to correct the extremes of the same.

References

Craig, Tim. “Achieving Innovation Through Bureaucracy: Lessons From The Japanese Brewing Industry.” California Management Review 38.1(1995): 8-36. Print.

Jernigan, David. “Global Alcohol Producers, Science, and Policy: The Case of the International Center for Alcohol Policies.” American Journal of Public Health 102.1(2012): 80-89. Print.

Lazer, William et al. “Japanese Marketing: Towards a Better Understanding.” Journal of Marketing 49.2(1985): 69-81. Print.

Peng, Ito. “A Fresh Look at the Japanese Welfare State.” Social Policy & Administration 34.1(2000): 87-114. Print.

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