MASHINIi

Kraft Heinz Co.

KHC.US | Manufacture of other food products n.e.c.

The Kraft Heinz Company is a multinational food and beverage company. It manufactures and markets a wide range of food products, including condiments and sauces, cheese and dairy products, ambient meals, frozen and chilled meals, packaged meats, refreshment beverages, coffee, and other grocery produ...Show More

Ethical Profile

Mixed.

Kraft Heinz's ethical standing is complex. The company has faced significant challenges, including approximately $123.9 million in penalties since 2000, notably a $62 million SEC settlement for financial misconduct. Reports suggest ties to alleged forced labor in Xinjiang (2020) and a $30 million racial discrimination lawsuit (2021). Conversely, Kraft Heinz committed $15 million to Rise Against Hunger to provide 463 million meals and $1 million in grants for Black-owned food businesses. The company targets 100% sustainable palm oil and cage-free eggs by 2025 (67% achieved). It also aims to reduce virgin plastic by 20% by 2030 and reports 87% recyclable packaging.

Value Scores

Better Health for All-40
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business30
-100100
Kind to Animals-10
-100100
No War, No Weapons-30
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities-40
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

-40

The Kraft Heinz Company Foundation committed $15 million over three years, starting April 2024, to Rise Against Hunger, aiming to provide 463 million meals, including 36 million micronutrient sachets, and supporting sustainable agriculture projects for an equivalent of 250 million meals.

1
The company also has a longstanding relationship with Feeding America, donating over 300 million pounds of food over seven years and supporting 33 food banks.
2
During the COVID-19 pandemic, Kraft Heinz committed $12 million globally, including a $6.6 million donation to Feeding America, personal protective equipment to healthcare facilities, and products to affected communities.
3
For mental health, Kraft Heinz offers Employee Assistance Programs in over 30 countries and a global LiveWell program focusing on social, financial, emotional, and physical well-being.
4

Fair Money & Economic Opportunity

0

Kraft Heinz Co is a multinational food and beverage company, not a financial institution. As such, KPIs designed for financial services, such as those related to consumer lending, deposit services, financial product pricing, customer financial data management, and debt products, are not applicable to its core business and are scored 0. While the company has various initiatives that support economic opportunity, including a supplier diversity program, the Heinz Black Kitchen Initiative which provided $3 million in grants to 62 Black food businesses by 2023

1
, and significant community donations (e.g., over $40 million in 2020
2
, $1.3 million to the Aliquippa School District
3
), these could not be quantitatively scored against KPIs requiring a 'share of loan/insurance book,' 'percentage of users' with specific financial outcomes, or 'percentage of annual pre-tax profit' due to the absence of the required base figures or direct alignment with the specific KPI definitions.

Fair Pay & Worker Respect

0

The provided articles describe various employment-related issues, including allegations of ties to forced labor in Xinjiang, China in 2020

1
, and lawsuits filed in 2021
2
and 2022
3
alleging systemic racial discrimination and wrongful termination, respectively. The company also incurred approximately $23.8 million in employment-related fines, including wage and hour law violations, since 2000
4
. However, none of the articles provide the specific quantitative data points required by the rubric for any of the KPIs, such as the share of the workforce earning a living wage, CEO to median employee pay ratio, collective bargaining coverage, recordable occupational injury rates (TRIR), pay equity ratios, employee engagement scores, voluntary turnover rates, the count of substantiated labor law violations in the past three years, or the share of the workforce on insecure contracts or with health insurance coverage. Therefore, no scores can be assigned for the defined KPIs based on the evidence provided.

Fair Trade & Ethical Sourcing

0

Kraft Heinz requires all its suppliers to accept its Supplier Guiding Principles (SGPs) as part of their contracts

1
, with integration into 100% of the supplier base's contracts and purchase orders
2
. Supplier site monitoring activities, including third-party audits for direct suppliers and assessments for indirect suppliers, occur on an annual basis.
3

Honest & Fair Business

30

Kraft Heinz scored 87.1/100 on the CPA-Zicklin Index for transparency in political spending.

1
The company maintains a comprehensive whistleblower program, including a 24/7 confidential, multi-lingual Ethics & Compliance Helpline operated by an independent third party, which allows anonymous reporting.
2
A strict non-retaliation policy is in place for good-faith reporting.
3
All employees, officers, and directors must annually certify adherence to a global Code of Conduct
4
and complete mandatory training on whistleblowing, with a 90% completion rate required for full bonus potential in zones.
5
For anti-corruption, Kraft Heinz has a Global Anti-Bribery/Anti-Corruption Policy, available in 14 languages,
6
and implements a risk-based, third-party due diligence program run by its Ethics & Compliance team.
7
Mandatory anti-corruption training is provided annually, with completion rates tied to bonus qualifications,
8
and supplier compliance is monitored through due diligence processes and partnerships with organizations like EcoVadis and Sedex.
9

Kind to Animals

-10

In 2023, 79% of poultry and pig supply and 82% of beef supply underwent third-party animal welfare audits at processing plants.

1
For cage-free sourcing, 64% of eggs and egg products purchased globally were cage-free or better in 2023
2
, with 100% of eggs in Europe being free-range.
3
Kraft Heinz has a comprehensive animal testing policy, stating it does not support or condone animal use for research not essential to food safety and does not maintain any testing facilities.
4
Legally required testing is completed by accredited third-party facilities
5
, and the company advocates for replacing animal testing with validated methods.
6
Regarding animal agriculture practices, in 2023, 30% of broiler chicken supply was provided enrichments
7
, and 21% of global pork supply came from sows housed in group pen gestation.
8
Broiler chicken stocking density is no greater than 6 pounds per square foot
9
, and the company expects suppliers to implement practices consistent with the Five Freedoms and have a zero-tolerance policy for animal abuse.
10

No War, No Weapons

-30

Kraft Heinz operates in the Packaged Foods industry, with its primary focus on manufacturing and marketing food and beverages, which inherently has minimal direct connection to military activities or arms production.

1
The company's operations do not intersect with military contracts or arms manufacturing.
2
Historically, from 2001 to 2010, Kraft had contracts with the U.S. Department of Defense, supplying food products to military personnel, with deals increasing from $148 million to $373 million.
3
Currently, it may indirectly supply common consumer goods to military facilities.
4
The company has committed $15 million to Rise Against Hunger, aiming to supply 463 million meals globally.
5
This represents approximately 0.056% of its 2023 net sales. Additionally, its brand Maxwell House donated $200,000 to Operation FINALLY HOME to build homes for veterans.
6

Planet-Friendly Business

-20

Kraft Heinz contracts renewable electricity to cover approximately 46% of its manufacturing facility demand in Europe and the U.S. over the next two years

1
.

Respect for Cultures & Communities

-40

Kraft Heinz has established three formal partnerships with community-focused organizations: Rise Against Hunger, Boys & Girls Clubs of America, and The LEE Initiative. In October 2024, the company faced criticism for a racially insensitive advertisement, which it promptly removed and issued an apology for.

1
This constitutes one reported cultural appropriation incident with remediation. Separately, in August 2021, three former employees filed a $30 million lawsuit alleging racial discrimination and inadequate management response to issues at a plant, which Kraft Heinz stated it investigated.
2

Safe & Smart Tech

0

In December 2023, Kraft Heinz investigated claims by the Snatch ransomware group regarding an alleged breach in August 2023.

1
The company determined the attack targeted a decommissioned external marketing website, confirming that internal systems were unaffected and operating normally, with no evidence of a broader attack.
2

Zero Waste & Sustainable Products

-40

Kraft Heinz has set a company-wide target to cut virgin plastic usage by 20% globally by 2030.

1
The company has implemented two waste reduction initiatives: introducing a fully recyclable ketchup cap, which eliminates 300 million plastic lids annually, and removing plastic 'shaker' bags from Shake 'N Bake, preventing 900,000 pounds of plastic waste annually.
2

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.