Cadbury Plc Performances to the Society and Community
Today, the increase of the social awareness rendering the consumers be more sensitive, judgmental towards the product and companies (Seb Chan 2007). Therefore, companies should consider on their performances from the society eye. Intend to avoid the business issue or problem and keep their position in the global market (Institute of Market Economics 2007). As one of the biggest British companies engaged in confectionery manufacture (Food Business Review n.d.), the success rate of Cadbury can be determined by the company’s performances to the stakeholder and the society as the way to shared understanding each other or called as social contract This paper examines the performances of Cadbury Plc relate to the Stakeholder which are Consumer and Community. Indentify the company issues of the chocolate product that bring impact to the consumer and their contribution as the step of fights against poverty and slavery issue on the fair trade. Case Against Cadbury
The well-known problem of Cadbury is the contribution on obesity to the children. The company has to take the responsibility regarding their product of Cadbury’s Diary Milk that raise the obesity rates. As the evidence of this, The Sunday Times (October 28, 2004) reported that Health figures in the UK show 8.5 per cent of six-year-olds and 15 per cent of 15-year-olds are obese. The Food Standards Agency predicts that obesity will cost approximately of UK £3.6 billion a year by 2010. Therefore, to solve obesity issue and criticized by stakeholder, Cadbury has attempt to preventing it by change the ingredient and resize the portion of the chocolate (Glaetzer 2009). Furthermore, the recent business issues befalling to the Cadbury is the issue of salmonella bacteria contaminated to the chocolate product. The BBC NEWS (July 16, 2006) stated that salmonella contamination considering being big issues when revealed that there had been 56 cases of salmonella infection after the consumption of Cadbury chocolate. As the result, Cadbury charged for the guilty of the issue and fined around £1 million because of distributing an unsafe chocolate to the public (Out law 2007). Further, the salmonella contamination had big impact to the company, which is: The company had to recalled the products around 1 million chocolate bars costing £5 million from the market. And another £20m to change the procedures and repaired the source of problem to prevent another problem to happen again in the future (Forbes 2006). Which contamination was caused by the leaking waste water pipe. The pipe dripped the bacteria into the chocolate crumb that used to make the chocolate bars (microbiologynews 2007). How the Cadbury's handle and respond to the scandal of food poisoning was contrast to the traditional crisis management of being open, honest and responsive (Carroll 2009) also collaborative as their values (Cadbury n.d). Cadbury considered cannot capable to solve the scandal quickly as company fault to inform the Food Standards Agency and public for five months after the problem occurred and the y are advised to improve their lateness on private testing the contamination procedures (Carter 2006). Cadbury also denied the media report that the company should consider on compensation to the victims and not respond the Food Standard Agency that the company had neglected the requirement on hygiene guidelines (Elamin 2006). As the result of incident, the Cadbury’s Diary Milk chocolate selling fallen by 2.5 percent and clear the reason is caused by the lack of consumer confidence and damaged public trust on the brand (Adam, Martin and Joelle 2009). The fine that charged Cadbury £1 million because of the lack of safety procedure should consider put into their perspective. Because “a simple leak in a production facility can snowball and jeopardize the entire brand.”(Lindgreen 2009, 25). The Salmonella is a bacterium that can cause stomach upset, fever,...
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