The Pursuit of Financial Viability and Sustainability Efforts by Cadbury
The pursuit of financial viability throughout the supply chain, the use of Fairtrade certification, community support, and care for the environment are only a few examples of the remarkable sustainability efforts made by Cadbury (Pryor & Avern, 2017).
Importance of Customer Value and Attention to Supply Chain
Notably, businesses aim to increase customer value in order to achieve a long-lasting competitive edge. It suggests that all of the actions engaged in the supply chain, which serves as the route by which goods are delivered to consumers, require attention.
Sustainability Concerns for Cadbury
Cadbury makes chocolate using substances including cocoa, palm oil, and sugar, among others, as basic materials (Thomas, 2016). Therefore, the concerns of sustainability in the case of Cadbury include the welfare of small cocoa farmers, environmental protection, and consumer welfare among other aspects. It is on these grounds that this write-up will analyze critical measures of the company's sustainability with a particular focus on the triple bottom line along the supply chain.
Sustainability Efforts in Cocoa Farming and Environmental Protection
The Chocolate industry norms of sustainability seek to empower the Cocoa farmers which are the source of its primary raw materials (Pryor & Avern, 2017). In this case, the industry promotes the production of sustainable Cocoa and supports the farming organizations financially. There are further attempts to address the social needs of the farmers such as health and education concerns. The industry has also endeavored to increase the levels of income as a priority area in the production of Cocoa. Additionally, the industry seeks to undertake environmental protection to preserve the landscape on which raw materials are extracted. Palm oil, an ingredient in the Cadbury products has been associated with the destruction of wildlife habitats through the clearing of the rainforest to create space for farming (Bates, 2015). Finally, financial viability has also been an essential norm of sustainability in the industry. It is noteworthy that companies pay taxes to support government operations in their areas of services. Moreover, they have the mandate to promote fair prices and profits to the stakeholders in the supply chain.
Cadbury's Sustainable Partnerships and Environmental Promotions
Cadbury has demonstrated noticeable efforts in its sustainability campaigns. The company has invested in the supply chain through the latest partnership programs between Fairtrade and Cocoa Life which aim to transform the lives of cocoa farmers and their communities. Notably, most cocoa farmers are vulnerable to risks resulting from unfavorable environmental conditions which significantly impact their farming activities which is mainly depended on natural conditions. Cocoa Life initiative has provided $ 400 million intended to serve 200,000 cocoa farmers by the year 2022 (Pryor & Avern, 2017). It also aims to improve the lives of cocoa farmers through increased incomes and provide competitive prices for their produce. Finally, the initiatives have also demonstrated the company's efforts in promoting the environmental protection agenda. In the case of palm oil production, Cadbury launched its products in the Auckland Zoo as an indication of its loyalty to sustainable palm oil production (Pearce, 2009). The benefits of these initiatives include the establishment of stable farmer organization, availability of farm inputs, and environmental sustainability. As a result of its actions, the company has received several awards including the Food and Drink Federation Apprentice of the year (Cadbury, 2015). According to Pearce (2009), the company is considered to be highly committed to the effectiveness of its supply chain activities as demonstrated in its possession of the GreenPalm Certification.
Challenges and Potential Threats to Sustainability Efforts
The stated factors demonstrate Cadbury's attempts to uphold the social, financial, and environmental aspects of its performance. Palm oil production is associated with the destruction of wildlife habitat (Bates, 2015). Meanwhile, Cadbury has been in the forefront in promoting the production and purchase of the sustainable oil as demonstrated in its participation in the corporate initiative, Roundtable on Sustainable Palm Oil (RSPO). Through the incentive relieve the farmers of the cost of running a separate supply system. It is intended to reduce the clearance activities in the rainforest to create space for plantation. The need for sustainable palm oil is supported on the grounds of cost saving since it requires relatively small amounts of inputs while the produce is much (Bates, 2015). However, failure to abide by the instituted GreenPalm certification among some producers could result in undesirable effects such as pollution and destruction of habitat which are highly contested by the community.
Importance of Verifiable Source and Community Concerns
Unfortunately, there are limited checks established to ensure the certainty of the source of cocoa (Pearce, 2009). In the year 2009 when the Zoo staff in Auckland rejected the company's product on the grounds of using palm oil grown on the former rainforest, the company acknowledged the need to establish a sustainable source that is verifiable. The current certification allows plantation companies to sell certificates thus making it difficult to ascertain if the sources are indeed viable. The company also upheld its relationship with the UK government through the payment of Corporation taxes until 2014 when it sold part of it Modelez. Additionally, the move to turn its top brand Dairy Milk into Fairtrade has been of substantial benefits to the farmers and the environment. As a result, Cocoa farmers' incomes increased by 49% while the cocoa producers and consumers are joined into a profitable movement for change (Pryor & Avern, 2017). Other benefits of the Fairtrade included the training that farmers receive regarding ways of improving their incomes as well as environmental sustainability. Therefore, adequate monitoring and follow-ups on the established initiative will result in more practical sustainability efforts by the Company.
Challenges and Greenwashing Concerns
On the contrary, the company sustainability initiatives have been accompanied by greenwash and threat from the community. For instance, after adding palm oil to the Dairy Milk products, Cadbury moved to launch the product in a zoo (Pearce, 2009). It is a direct contradiction to the apparent threats that Kiwis face due to the clearing of the rainforest for palm plantations. In as much as the management claimed only to purchase sustainable palm oil, the denial of the product by the staff pointed out the uncertainty that exists irrespective of the GreenPalm certification. It indicated the limited contribution of Cadbury to the mitigation of climate change through friendly agricultural activities to the rainforest. Additionally, the end users that are consumers have voiced concerns over the health effects of the palm oil which arguably compromise the sustainability message. Bates (2015), pointed out the fact that, the addition of palm oil to the Cadbury products raised its fat contents which is a principal source of health complications among consumers. The Producers, especially small-scale farmers argue that the overemphasis of the Fairtrade on the minimum price could compromise its impacts on sustainability campaigns (Thomas, 2016). It implies that more investment into the communities especially the supply chain will result in trust among the players in the industry. As a result, the company needs to face the sustainability challenges by focusing on the broader economic and social aspects of the communities of operation.
Conclusion
Overall, Cadbury sustainability is revealed through the various initiatives targeting the social and economic well-being of the producers as well as consumers. As a result, the company's investments in the supply chain are evident in turning their top brands into Fairtrade product and partnering with the Cocoa Life. Other programs including the GreenPalm certification are intended to uphold the environmental integrity by protecting the rainforest which is a habitat for wildlife. However, the attempts to add palm oil in the Cadbury products and increased focus on minimum prices have likely negative impacts on its sustainability campaigns.
References
Bates, D. (2015). For Chocolate Companies on the hunt for a sustainable easter egg. Retrieved on 1st December, 2017 https://www.theguardian.com/sustainable-business/2015/mar/27/chocolate-palm-oil-easter-egg-nestle-mars-lindt-cadbury-ferrero
Cadbury (2015). Our story. Retrieved on 1st December, 2017 https://www.cadbury.co.uk/our-story?timeline=2015-2
Pearce, F. (2009). ‘Green palm oil’ claims land Cadbury’s in sticky chocolate mess. Retrieved on 1st December, 2017 https://www.theguardian.com/environment/cif-green/2009/aug/20/cadburys-palm-oil
Pryor, G. and Avern, J. (2017). Cocoa life sustainability programme expands to cover Cadbury Chocolate through new partnership with Fairtrade. Retrieved on 1st December, 2017 http://www.fairtrade.org.uk/en/media-centre/news/november-2016/cocoa-life-and-fairtrade-partnership
Thomas, D. (2016). Is Cadbury’s move the end of fairtrade? Retrieved on 1st December, 2017 http://www.bbc.com/news/business-38137480
