Milkworld Ltd. started milk collection in the district it was situated with a collection of 511 Kgs. of milk from 180 farmers. The company set-up a system of direct and efficient contact with farmers. Company veterinaria
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2016
Milkworld Ltd. started milk collection in the district it was situated with a collection of 511 Kgs. of milk from 180 farmers. The company set-up a system of direct and efficient contact with farmers. Company veterinarians and agronomists supervise the milk routes and advise farmers on various issues including proper feed for the herds. Milk storage facilities have been set-up close to the farmers, veterinary services are provided free and medicines provided at wholesale price. The company assists farmers in artificial insemination programmes for their cattle, and helps them in obtaining subsidy and loans. By working very closely with the farmers of the district and its local administration, the company has helped to raise the quality and hygiene of the milk produced and improved the health and lifestyle of the farmers and other residents. Its contribution to the creation of prosperity on an ongoing and sustainable basis has not only transformed the district into a prosperous and vibrant milk district today, but also a thriving hub of industrial activity. On the basis of facts given in above case, what are your observations pertaining to performance of the company on corporate social responsibility?
Answer & Explanation:
In the given case, Milkwood Ltd. has provided following services to the farmers, who are stakeholders of the company. These services are the fine examples of the corporate social responsibility activities undertaken by the company. The Company veterinarians and agronomists supervise the milk routes. The Company advises farmers on various issues including proper feed for the herds. Milk storage facilities have been set up close to the farmers. Free Veterinary services are provided. Medicines provided at wholesale price. The company assists farmers in artificial insemination programs for their cattle. Providing subsidy and help in procuring loans. The company has helped to raise the quality and hygiene of the milk produced and improved the health and life style of the farmers and other residents. The company was working very closely with the farmers in the district and local administration. The company had undertaken above mentioned activities which were mutually beneficial to the company as well as farmers and local community of that district. The ongoing social responsibility activities of the company not only resulted into the transformation of the district into a prosperous and vibrant milk district but also helped making it a hub of industrial activities. The case clearly shows that the company had deep faith in "Stakeholder Theory" of Corporate Governance and in discharging social responsibility towards its stakeholders. It is an example of mutual benefit concept of social responsibility as business cannot exist and operate in isolation.
Topics: Corporate Social Responsibility
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