Corporate Social Responsibility in the Agri-Food Sector

Abstract

Sustainable development is desired not only for public institutions but also for private companies that have realized the importance of sustainable management of limited resources available to mankind. The activity of large transnational corporations is not guided only by the principle of profit maximization, but also by corporate social responsibility (CSR). This chapter focuses on CSR programs run by agri-food companies taking into account the particularities of their activity and the importance of the consumers` behavior to improve the activity of companies in the CSR area. On the one hand, making profits is a desideratum of any company, but on the other hand, companies in the agri-food sector must also ensure the observance of the food safety principles and consumer protection. This is also demonstrated by the major implications of the scandals generated by food contamination with various bacteria or chemicals. Consumer force shapes the activity of these companies, and intense competition leads the managers of these companies to run various CSR programs that eventually lead to increased visibility of the firm and to improving economic indicators. The objective of the chapter is to establish the specificities of the agri-food sector companies. These companies have a high responsibility taking into account the impact of food consumption on the health of the population in the short, medium, and long term and the consequences of this situation on the investments that had to be made in the health sector. The final consumer is a force that sanctions the inappropriate behavior of food producers, but he/she must have a good food education in order to be able to remodel the activity of agri-food companies.

Implication of TNCS In Agri-Food Sector – Challenges, Constraints and Limits - Profit or CSR?

“…At the same time, new technologies impose the need for sectoral adaptation as part of either maintaining the competitiveness of the agricultural sector or reducing dependence on migrant labor in these areas. Also, as (Deblonde et al, 2007;Pandey et al, 2019;Borsellino et al, 2020;Jiang & Chen, 2020;Yao et al, 2020;Zaman et al, 2020) highlights the unsustainable or unethical practices of agri-food corporations such as inhumane treatment of livestock, use of pesticides and fertilizers with consequences on environmental and food contamination, genetically modified crops, water usage and recycling, questionable practices (such as misleading or double standard offers on product quality sold in developed and developing countries), environmental pollution, monopolistic practices, small farm exclusion, improper working conditions, land use change and land grabbing. Starting from the heterogeneous nature of agriculture, the implication effects of TNCs in the agri-food sector may be different, especially as the reaction of farmers is focused on ensuring the economic sustainability of their farms and less on CSR.…”

“…In literature (Ene, 2009;Jan, 2009;Stancu, 2012) often globalization is considered as another factor that contributes to the remodeling of the agri-food sector, with positive contributions on food security but also negative effects such as standardization of dietary patterns that could influence health, segmentation, relocation of different stages of production, the existence of global chains that could affect trasability of food products, dependence of the agro-food sector on the distribution sector. As it is highlighted in (Jan, 2008, Aschemann-Witzel et al 2015Zaman et al, 2020), in developed countries, high living standards generate food waste, while in developing countries; much of the population is on the brink of poverty and lives in rural areas, where agriculture is a major source of livelihood. The increase in the demand for agri-food products has also favored the development of agro-industrial enterprises, a phenomenon observed mainly in developing countries.…”

“…The agricultural sector can generate a negative impact on the environment through various mechanisms such as soil degradation, deforestation, greenhouse gas (GHG) emissions, soil and water pollution through the use of fertilizers or pesticides (UNCTA, 2009, Zaman et al, 2020. The degradation of the environment that threatens food security and safety has led to an increase in the concerns of economic agents in agriculture to promote the principles of sustainable development through various mechanisms and instruments, at national, regional and international levels.…”

“…However, researchers (Panait et al, 2014;Lombardi et al, 2015;Raimi et al, 2015;Palazzo et al, 2016) draw attention to the use of CSR programs as a tool to improve the company's image, without a real involvement of the company in promoting sustainable development principles, in response to pressure from certain stakeholders, mainly NGOs or as a tool to improve consumer loyalty. The agri-food sector has a huge potential for CSR given the large number of people who are affected by the actions of agri-food companies as buyers, suppliers, rural communities in which they operate In addition, the impact of these companies on the environment is significant both by the negative externalities it can generate and by the positive externalities it achieves (Zaman et al, 2020) and the public goods it provides (Zekić, Bojan Matkovski, 2017) in the form of achievement of food security and food safety, environmental protection of agricultural land, establishment of viable rural communities; biodiversity conservation, preservation of landscape and cultural and historical heritage ofrural areas; Therefore, CRS must be in the agri-food sector a long-term, permanent and proactive strategy (Martos-Pedrero et al, 2019) to ensure the reduction of risks related to future events. Local communities are a very important category of stakeholders as a target for CSR programs (Deigh et al, 2016).…”

Implication of TNCs in agri-food sector: Challenges, constraints and limits: Profit or CSR?

“…As remarked in the literature (Vasile & Ungureanu, 2014;Schwarz et al, 2015;Heijman et al, 2019;Bowers & Cheshire, 2019;Balogh & Jámbor, 2020), agriculture has to face new challenges imposed by the implementation of new production systems, climate change, price volatility, development of international trade with agricultural products, changing diets, urbanization or depopulation of rural areas At the same time, new technologies are imposed by the need for sectorial adaptation as part of either maintaining the competitiveness of the agricultural sector or reducing dependence on migrant labor in these areas. Also, as (Neumayer & De Soysa, 2005;Deblonde et al, 2007;Pandey et al, 2019;Borsellino et al, 2020;Jiang & Chen, 2020;Yao et al, 2020;Zaman et al, 2020) highlight the unsustainable or unethical practices of agri-food corporations such as inhumane treatment of livestock, use of pesticides and fertilizers with consequences on environmental and food contamination, genetically modified crops, water usage and recycling, questionable practices (such as misleading or double standard offers on product quality sold in developed and developing countries), environmental pollution, monopolistic practices, small farm exclusion, improper working conditions, exacerbation of child labour, land use change and land grabbing.…”