Corporate Environmental Responsibility: the Performance of Cadbury

Topics: Chocolate, Carbon dioxide, Methane Pages: 6 (2433 words) Published: March 31, 2011
Nowadays, more people tend to focus on environment issues of corporation because they are the main factors of causing pollution to the earth and impact to the ecological system. Cadbury is the world fourth biggest manufactory of chocolate, it had done a seriously rainforest destruction as a result of their business requiring large amount of raw materials that are collect from natural resources (Cadbury's Shareholders Find Palm Oil Leaves a Bitter Taste 2004).This essay examine the performance of Cadbury and how they dealing the problems with raw materials as well as the effect on the environment and stakeholders.

Cadbury used to be a small beverage shop in 1824, after merging with Schweppes to form Cadbury Schweppes, it acquire more companies after that and today it became one of the largest confectionery company ( history of Cadbury n.d.) and also one of the largest multi-national corporation (business service industry 2008). The starting main purpose of Cadbury is not creating new brand that people love but is to raise the shareholder value and they already succeed in achieving this purpose twenty years ago (Cadbury Schweppes 2004). After that they have just started to change their business target to create new brand that people love. Cadbury detected that there is a rare bacteria named “Salmonella” affecting numbers of their product and it is believe due to the leaking pipe, but they are not paying attention to this serious matter. Eventually, Cadbury was prosecuted because of countering health and safety legislation in the year 2007 and was fined 1 million pounds for their irresponsible performance which is also definitely effect the profit of stakeholders(Defying a Reputational Crisis – Cadbury’s Salmonella Scare: Why are Customers willing to Forgive and Forget? 2009). Today, Cadbury franchise such as India, USA, Canada have treated CSR as the key to the success of business comparing to the past; they believe that the responsible for environment, health and safety are very important to minimize the impact of environment, It is also important that they can become a profitable and effective company by this way and they will surely proud of what they have done (CSR helps businesses keep tabs on environmental, social impact 2010).

In order to fulfil society needs, Cadbury continuously launched 23 kinds of chocolate and keep improving their quality to the best from the year 1865 until today. Besides, Cadbury is the first company to provide pictures on the product instead of printing text on the product. There are also many special event held by Cadbury such as giving away some souvenirs products and also a redeem event for their customer to get further item by purchasing their products. (History of Cadbury n.d.)They also certified their chocolates as Fair-trade products by labelling it on the products to decrease the public pressure (Cadbury goes Fairtrade2009).

Impact on Environment

Since manufacturing chocolate require large amount of raw materials, Cadbury discover palm oil is the most basic and cheapest secret ingredient to make chocolate instead of using cocoa butter which require higher cost. Unfortunately, this lead to the serious deforestation problem that not only effected the environment but also many animals is killed. New Zealand's Auckland Zoo is the place where the primary deforestation took place and this was considered as a threat to most of the wild life that inhabited in that area especially Orangutan, they have became “the orphans of the palm oil” because most of their parents are killed during the deforestation(Palm oil costs Cadbury trusted title 2010). Auckland Zoo has also stop stocking Cadbury’s chocolate anymore to express their protest.(Auckland Zoo bans Cadbury chocolate due to palm oil content 2009).Auckland Zoo also organise an organisation in Facebook which is “Anti Palm Oil Community (APOC) “to focus the serious of the deforestation issue which destroy 300 rugby fields every...
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