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Yum! Brands today released its 2013 Corporate Social Responsibility report, outlining the company's efforts in four areas — food, people, community and environment.
To complement the report, Yum! has declared April as "CSR Month" and will be sharing videos, infographics and facts about its initiatives.
A highlight of this year's report is the company's supply chain section, particularly in light of last year's supply chain crisis that affected its KFC China brand.
In December of 2012, KFC China was accused of having excessive levels of antiobiotics in its poultry supply (a practice that expedites chicken's growth cycle). To underscore the effect of this news, January's same-store sales declined 41 percent at KFC in January.
Yum!'s China division operates its own independent chain supply system, with more than 500 suppliers listed, the report said.
The company also conducts supplier assessments through its STAR (Supplier Tracking and Recognition) system, an audit system that monitors standards for all suppliers. In 2012, the report adds, Yum! began integrating the Global Food Safety Initiative into its STAR system, to ensure that suppliers are certified, adding another layer of quality assurance.
The 2013 China supply chain crisis is not referenced directly in the CSR, however the company did outline its emerging issues program and crisis management program.
It also stated: "We have become more aware of, and attentive to, our social and environmental impacts. We have been responsive to issues as they arise, yet we cannot always control or avoid them at every stage of the supply chain. We fostered a trusting partnership and we are asked to provide input when challenges arise."
Other than indirectly addressing supply chain issues, the company also highlighted a number of milestones in 2013 relating to its food offerings. Among them:
Menu initiatives in 2013
Looking ahead to 2014:
The report also provides updates on the company's culture, environmental/sustainability efforts and philanthropic cause – World Hunger Relief — which has raised nearly $185M for those in need around the world.
"We are proud to share the accomplishments of our brands as they support the commitments we've made to be socially responsible and work to become the defining global company that feeds the world," Jonathan Blum, SVP, chief public affairs and global nutrition officer, said in a news release.
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