Businesses these days are much different from how it was in previous generations. Nowadays, society impacts that corporation has is not only about economic power, instead it has also gone into corporate social responsibilities. Cadbury is an international company that is the second largest confectionary company in the world. (Factbox: British confectioner Cadbury 2010). Therefore, they have a bigger impact to affect both positively and negatively on the society as they have a bigger influence and power on the society due to their dominance in market share. In this essay, it will go in depth about the performance of Cadbury in relation to its corporate social responsibility. This essay will explain and argue a balanced argument about the negative and positive impact Cadbury has today on its society by analyzing their “Cadbury Community” programme and their association with child labour.
Negative Social Responsibility of Cadbury
According to a documentary called “Slavery” on the BBC, it documented cocoa beans production and how it is related to child labour, in the documentary, it focused on Cadbury, aiming at them about that negative social responsibility that they have. The reason for child labour in the cocoa production is because of the prices that are set on the cocoa beans is very low when it is sold. For example, farmers are only selling their cocoa beans for only a mere sum of money, therefore they would want to gain more profit. The only way to do that is to get cheaper labour so that their expenses are not so high which would result in higher revenue earned at the end of the day. Since child labour is one of the cheapest labour in the world, it is the top choice for labour to keep cost down would be child labour.
In a brighter light, not everyone was affected by the low priced cocoa beans. For example, Cadbury was still able to employ many people around the world and still kept their product prices down to continue attracting their customers. However, Cadbury was later seen as a supporter of child labour. Reason being, Cadbury were purchasing the cocoa beans from the farmers that were using child labour for their cocoa beans production. This in turn makes Cadbury a supporter of child labour as well as they are purchasing the beans from the farmers which encourages them to continue that they are doing. The consumers later came into conclusion that the low prices of Cadbury’s chocolate were not worth the children’s hard cheap labour in the developing countries.
The world’s largest cocoa producer, Cote d'Ivoire has given the possibility of Cadbury to demand the cocoa beans at a very low price. (World Cocoa Production. n.d.) As they are the largest producers, they have more control of the cocoa prices around the world. To further exxagerate how much farmers of the cocoa production are getting paid, an example would be, for every kilogram of cocoa beans that a farmer harvest, they are getting paid almost the same amount of how much a bar of chocolate consumers pay for consumption. Which in most cases, would be a range of a dollar to two dollars. (Olivier. 2012.).
This is not following their policies that Cadbury should be following under their code of conduct (Our Business Principles. 2008.). In the document, it states that it is their responsibility, both corporate and social to make sure that there are proper and ethical practices to manage the business. Ethical issues such as human rights, ethical trading and employment practices are considered when business is done in Cadbury. However, that is not much of the case when Cadbury is purchasing low and unfairly priced cocoa beans from the farmers. This is against their ethical values of ethical trading. Reason being, as mentioned above in this essay, by purchasing the beans at such a low cost, it is encouraging the farmers to hire more child labourers in order to keep their cost of production down and...