Tag Archives: corporate social responsibility

Overcoming a History of Human Rights Abuses: Cocoa’s Evolution from Contributing to the Slave Trade to Combatting Child Labor

The well-documented history of cocoa tells the story of an industry driven by greed. However, the picture that is often painted does not speak to how this has evolved.

Dating back as far as 1500 BCE to 400 BCE, the period spanning the Olmec civilization, discoveries and research have firmly validated the significant role that cocoa has long-played in both culture and religion (Coe and Coe, 2013). The same history speaks to a past whereby:

  • origins and producers were exploited by explorers, instigating and contributing to the slave trade for years;
  • industrialized nations seeking to dominate processing and control greater market share, sparked proxy wars with the imposition of tariffs on imports originating from colonies other than their own (present and/or former); and
  • saw industrialized nations assume a patriarchal stance that significantly limited powers and diminished the voice of producing origins (former colonies)—lost ground that would take them years to recapture.
Map of Mesoamerica – Foundation for the Advancement of Mesoamerican Studies (FAMSI)

The following seeks to detail cocoa’s dark past—one whose opacity perpetuated years of human rights abuses including forced and child labor. Having evolved as an industry, the following will also outline industry’s transition into an ever-increasingly transparent and responsible global industry that remains challenged by perceptions based on its past and wrestling to break free from its dark history.

Cocoa’s Sordid Past and Contribution to the Slave Trade

Spanning the Pre-Classic (2000 BCE to 300 CE) to Post Classic (900 to 1500 CE) periods, the number and diversity of explorers ballooned, ultimately leading to a dramatic shift in where and by whom cocoa was produced, as well as who (specifically which nations and companies) would profit from its trade, increasingly efficient processing, and mass manufacturing.

Due largely to voluntary and involuntary migration (i.e., the slave trade) the movement of goods and saw Theobroma cacao cultivation spread from its genetic origins of the Amazon Basin and cultural and religious roots which have been traced back to Mesoamerica (present-day Mexico through Central America) (Coe and Coe, 2013).

Global flow of goods and movement of people during the height of the slave trade.

In what is now present-day Central and South America, during the early 1500s, under the encomienda system, Spanish conquistadors were granted rights to force indigenous inhabitants to perform labor in their favor (Martin, 2019). This led to an irreparable deterioration of culture and loss of land (Martin, 2019). On the other side of the Atlantic, chattel slavery, the practice whereby people are treated as property, between 1500 and 1900, it is estimated that up to 15 million Africans were enslaved, of which 40 out of every 100 died in waiting or during transatlantic transport. In both cases, indigenous peoples were forced to cultivate cocoa while seeing little to no profit in return. In addition, favoritism played into economic positioning among industrialized nations as tariffs and quotas sought to control production and supply with demand (Leissle, 2018).

As cocoa’s production footprint broadened, applications and formulations evolved, popularity within consumer markets increased, and its importance as a traded commodity destined for processing units around the world surged.

As competition grew fiercer, regulation became an ever more critical element to ensure the crop’s viability. But most importantly, it was introduced to ensure economic stability for countries and operators who relied on the trade. This period gave rise to regulatory standards and voluntary certification programs in cocoa—both of which grew more diverse and exacting during the late 1980s present day.

Perhaps the most prolific shift, and marking industry’s acknowledgment that improvements were both possible and needed, with the enactment of the Harkin Engel Protocol in 2001, accountability, and requirements to proactively identify instances, address breakdowns, and prevent arrange of defined human rights abuses took center stage. When introduced, regulatory requirements and elements core to voluntary certification systems fundamentally changed how supply chain operators engaged producers, managed their businesses, interacted with the market, and reported.

During the same period, industry associations were established, and collective efforts launched. Among them were groups such as the World Cocoa Foundation (WCF), International Cocoa Initiative (ICI), and the Child Labor Cocoa Coordinating Group (CLCCG), all groups representing interests at every level from all sides.

In due course, regulations and certifications designed to promote best practices, ensure worker (producer), crop, and environmental protections, combat fraudulent claims, and ensure accurate reporting and labeling (i.e., of provenance, certification claims, production practices, quality, etc.) have improved, expanded, and been welcomed.

Adoption, adaptation, replication, and the proliferation of programs, as well as their capabilities and level of sophistication, continue to evolve rapidly. Not glued simply to factors related to compliance, conformity, or competitiveness, companies are investing significant amounts of resources to align with and exceed regulatory, consumer, and commercial standards and expectations. However, despite advances, and an elongating track record of progress and proactive effort, the industry is often chastised for not doing enough, investing enough, or sharing enough.

Stuck in the Past and Unable to Break the Cycle: The Vilification of the Cocoa Industry

Sampling of Collective Industry Efforts – Programs and Reporting

Seeking to address systemic constraints perpetuating or exacerbating breakdowns, the industry has demonstrated its willingness and ability to come to affect change.

For example, after launching, implementing, and learning from the original and subsequent iterations of the World Cocoa Foundation (WCF) Cocoa Livelihoods Program (CLP), after several years of complex negotiations (balancing risk, exposure, and financial implications), WCF and its member companies launched, and have developed good traction with Cocoa Action, one of several WCF initiatives designed, developed, and implemented with and through its members.[1] While they admit that it took more time to lay the groundwork that they had initially anticipated, they ultimately emerged with a thoughtful and thorough platform that continues to progress well.[2]

Additionally, since its founding in 2002, the International Cocoa Initiative (ICI) has significantly influenced positive movement on all fronts concerning child labor, including the development of new tools, systems, and metrics to measure progress. This includes the consultative process that led to the development of standards for collective and individual Child Labour Monitoring and Remediation Systems (CLMRS).

Recognizing that they can only harness so much, Industry has teamed with governments, international standard-setting bodies, research institutions, and others to advance efforts to combat forced and child labor, address its root causes, and improve reporting practices to bolster transparency.

Sampling of Individual Company Efforts – Programs and Reporting

Having worked inside and alongside the world’s leading cocoa companies, I recall several meetings where heads of responsible sourcing and on-the-ground activities expressed concern that not enough was being done to address the root causes. Without taking on migration, land, voting, and school registration issues, efforts would continue to face challenges. To do this, the group discussed land ownership and migratory movements of Burkinabe to Côte d’Ivoire, their inability to secure land, and in many cases, to register their children in school. While it was not the first, and certainly not the last, this was a good reminder that addressing the child labor issue was not as clear-cut as many often like to think.

Beyond programs that tighten controls, incentivize parents for producing school registration certificates, third-party certification audits that verify adherence to specific standards and practices, and collective and individual company efforts to refine and expand CLMRS, the industry continues to improve the technical scope of their programs.

The following list provides a snapshot of reports detailing global efforts to address a wide range of unique challenges faced by cocoa farming communities—including child labor. These are offered in response to comments made during the recent film screening and panel discussion “Examining Brazil’s Cocoa-Chocolate Supply Chain.” – May 2019 Discussion

Key takeaways from the May 2019 discussion [and report] aligned with similar panels and studies that point to:

  1. The complexity and scope of the issue;
  2. range and number of actors and implications along the value chain at each stage;
  3. need for leaders, officials, and representatives from all sides (public and private), and on all levels (municipal, regional, national, and international) to work together to develop and enact responses that effectively address root causes; and
  4. calls for greater transparency.

Specific to claims around the lack of transparency and access, deficiencies noted during the discussion included the following:

  1. Visibility into supply chain monitoring plans, geographical scope, findings, and improvements; and
  2. the number, frequency, and quality of public disclosures of internal reports.

In practice, the following are evident:

  1. Companies are proactively and thoughtfully engaged in addressing child and forced labor—not merely in response to regulations or calls from consumers or international bodies;
  2. companies are leading in investments in certification programs, traceability systems, coordinating industry-wide efforts and policy formulation; and
  3. the quality and frequency of reporting are there despite claims that it is absent of lacking.
Excerpt from the Cocoa Life progress report outlining Key Performance Indicators (KPIs).

These are vital considerations to bear in mind when looking at the balance of what is being done, by whom, how it financed, and what is being said about those leading the way and reporting on it as appeals for greater transparency play into the vilification of cocoa companies instead of praise for their role in realizing progress.

While there is much more to bring into the frame, the above does tell speak to the other side of the story—one that is rarely shared.

Things have come a long way; however, despite grand efforts to date, many forms of forced and child labor still exist, and the number of instances of human rights violations are still far too prevalent. To that end, much more can and will continue to be done. Going forward, stakeholders must move forward together with the mindful that this is an ever-evolving and continuously improving process in terms of design, implementation, and measurement.

So while independent company activities and collective industry-wide efforts have evolved and improved with learnings over the years, there are programmatic gaps and blind spots that must be proactively and constructively addressed.

Works Cited

Casara, M., Dallabrida, P., Martin, Carla D. “Examining Brazil’s Cocoa-Chocolate Supply Chain”. Harvard University: Cambridge, MA. April 24, 2019. Film Screening and Discussion.

Martin, Carla D. “Slavery, Abolition, and Forced Labor”. Harvard University: Cambridge, MA. March 6, 2019. Lecture.

“Child Labor in the Production of Cocoa”. March 22, 2018. U.S. Department of Labor, Bureau of International Labor Affairs. Accessed April 30, 2019. https://www.dol.gov/agencies/ilab/child-labor-cocoa.

“Child Labor in the Production of Cocoa”. March 22, 2018. U.S. Department of Labor, Bureau of International Labor Affairs. Accessed April 30, 2019. https://www.dol.gov/agencies/ilab/child-labor-cocoa.

“Cocoa Life 2017 Progress Report”. 2017. Mondelez International. Accessed April 28, 2019. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf.

“How We Measure Progress”. Mondelez International. Accessed April 28, 2019. https://www.cocoalife.org/impact#.

“Assessment of Forced Labor Risk in the Cocoa Sector of Côte d’Ivoire”. Verité, 2019. Accessed April 23, 2019. https://www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf.

“Nestle Cocoa Plan, Tackling Child Labour 2017 Report”. Nestle. 2017. Accessed April 29, 2019. https://www.nestle.com/asset-library/documents/creating-shared-value/responsible-sourcing/nestle-cocoa-plan-child-labour-2017-report.pdf.

Picolotto, A., Giovanaz, D., Casara, J., Loth, Laura W., Lambranho, L., Casara, M., Dallabrida, P., Sabrina, R., and Kruse, T. “Cocoa Supply Chain: Advances ad Challenges Toward the Promotion of Decent Work”. 2019. International Labour Organization (ILO), Public Labour Prosecutor’s Office (MPT), Papel Social. https://cocoainitiative.org/wp-content/uploads/2019/04/Cocoa_EN.pdf.

“2017 Child Labor Cocoa Coordinating Group Annual Report”. United States Department of Labor. 2017. Accessed April 23, 2019. https://www.dol.gov/sites/default/files/documents/ilab/CLCCG2017AnnualReport.pdf.

“Harkin-Engel Protocol”. U.S. Department of Labor, Bureau of International Labor Affairs. 2001. Accessed April 24, 2019.

https://www.dol.gov/sites/default/files/documents/ilab/Harkin_Engel_Protocol.pdf.

“Examining Brazil’s Cocoa-Chocolate Supply Chain: Film Screening and Discussion, Part 1” [Multimedia Video]. Retrieved from the Fine Cacao and Chocolate Institute YouTube Channel. April 27, 2019. https://www.youtube.com/watch?v=OKr2_0egfzA.

“Examining Brazil’s Cocoa-Chocolate Supply Chain: Film Screening and Discussion, Part 2” [Multimedia Video]. Retrieved from the Fine Cacao and Chocolate Institute YouTube Channel. April 27, 2019. https://www.youtube.com/watch?v=OKr2_0egfzA.

“Child Labour Monitoring and Remediation System (CLMRS) in the Société Coopérative Ivoirienne du Négoce des Produits Agricoles (SCINPA) Cooperative”. Olam International. 2017.

Leissle, Kristy. Cocoa. Polity Press, 2018.

Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. 3rd Edition, Thames & Hudson, 2013.


[1] Initiatives, World Cocoa Foundation (WCF), https://www.worldcocoafoundation.org/initiatives/

[2] CocoaAction 2017: What We Have Learned, World Cocoa Foundation (WCF), https://www.worldcocoafoundation.org/2017cocoaactiondata/

Corporate Social Responsibility Within the Chocolate Industry: Analyzing Nestlé

In an era where small batch chocolate producers have already taken effective steps in creating a more sustainable and equitable chocolate supply chain, larger corporations have also begun to take up the mantle and move in a positive direction. The large players in the chocolate market are perhaps the most crucial to making significant improvements to the system of the cacao production. Companies like Nestle have started focusing on sustainability, beginning to finally look at some of the core issues behind cacao sourcing. In analyzing the sustainability section in Nestlé’s annual report, I aim to evaluate their success in becoming a solution to the problems of the cacao-chocolate supply chain.

Creating Shared Value

Corporate Social Responsibility is a form of self-regulating business model that aims to create positive social and environmental impacts through managing shared risks and creating shared opportunities. It goes beyond just compliance and corporate philanthropy. Nestle seems to have a solid conceptual understanding of effective corporate social responsibility, stating a clear goal of ‘creating shared value’. While they still have a lot more room to make actual improvements in their supply chain and production, Nestlé still stands as a good example to begin leading other companies in the right direction.

The most salient and material risks I see for Nestle as a business are nutrition, rural development, human rights, and climate change. Several of these issues are ethical issues we’ve talked about in class and all of them have been touched on in their sustainability report. The fact that Nestlé recognizes such issues is a strong success in itself, but Nestle could be more effective in taking action on their goals.

Nutrition

Nutrition is a salient goal for Nestle because of the increases in obesity and other health problems among adults. In sweetness and power, Mintz argues that the desirability of sugar confronts the costs it poses to health and world systems. Sugar consumption has increased by 50% since the 1970s, and is a cause of increasing dietary problems. A large majority of Nestle products are high in sugar, making this one of the issues that core to their business and therefore most important to address in an actionable way. There is also a material opportunity for Nestle in this issue; There is a growing consumer base looking for healthier foods. Nestle acknowledges this in their own report, referencing a value add for investors of selling healthier options. The legitimacy of addressing this problem is validated by its inclusion into their strategic initiatives, but Nestlé could perhaps make it more core to their business strategy.

They mention multiple examples of new healthy offerings, but could use more work in increasing the healthiness of existing products. Most Nestle products still contain very high amounts of sugar and they only give anecdotal evidence of examples of sugar reduction. For example, on their website under the “Our Impact” tab, they discuss having already decreased the sugar content of the KitKat and plans to reduce the sugar content of it even further. To truly create value for a consumer base that is eating too much sugar, making more major changes to existing products is necessary in addition to just taking advantage of the material opportunity of providing new healthy options. Yet these small steps are important in leading large corporations towards making real changes to our system of sugar consumption. It proves that companies can still be economically successful even as they take steps to create a more sustainable relationship with their customers.

Social Inequality

Rural development and poverty reduction is another issue at the core of ethical considerations within the chocolate supply chain. Rural farmers receive only a fraction of the profits from chocolate production. They are in fact “the most poorly compensated for their efforts,” especially in relation to the amount of effort contributed (Leissle 129). The largest share of profits is 44.2% which goes to retailers, while only 6.6% goes to the farmers themselves (Leissle 129).

This issue of rural development and poverty reduction is touched on by Nestlé but perhaps more superficially than is necessary to affect the entire system of chocolate production. As one of the top three chocolate producers in the world, they have the ability to affect approximately 10% of chocolate sourcing (Statista 2016). As one of these top companies, taking charge to reduce inequity would force the hand of other chocolate companies to do the same. Instead, Nestlé emphasizes inconsequential initiatives like using cage free eggs and broadly touch on “responsible sourcing” in the major summary areas on “adding value to communities”. This in in lieu of talking about the fact that cacao farmers receive less than 10% of the profits from production. Nestle responds only to the material as opposed to salient points of the issue by creating training for farmers in order to achieve more effective cacao growth. Nestle could do a lot more to achieve higher percentages of responsibly sourced cacao and other raw materials.

Outside of their annual report, sustainability report, and information on the impact tab of their website, Nestlé has a separate website explaining their cacao plan. This plan explains the future goals Nestlé has for continuing to combat the inherent inequality in the supply chain. It points to solid initiatives of funding a co-op system that offers a higher premium for cacao to the farmers. This is an effective program but they could learn from small, mission focused chocolate companies to make such a system cover 100% of the cacao they source (as opposed to the portion it covers currently).

There are other problems within the supply chain as well. Human rights is an extremely important issue within Nestlé’s supply chain. Specifically, there is a salient issue of child labor within cacao supply chains. Carol Off references child slavery in the chocolate supply chain by explaining that “boys, some as young as nine, were working on farms where they had no relatives… [and] they weren’t being paid” (Off 121). There has been some success in combatting some of the more obvious forms of child labor, but without being paid enough for their beans, children often join in helping their families out of obligation and necessity. Again, Nestlé does a good job realizing the issue and drawing attention to it, recognizing that this salient risk is becoming more material to them as information becomes more readily globalized to their consumers. Despite this, their proposed plan addressing child labor is not comprehensive and the flier focusing on reducing child labor is highly focused on numbers of children, not percentages, which is very worrying. Nestlé is taking the right steps but similar to the community equity problems, they need to focus on higher percentages of responsibly sourced cacao.

Slide From Nestlé’s Tackling Child Labor Report

In general, Nestlé is very effective at realizing its most salient issues and creating ambitious and actionable goals to alleviate them by finding material opportunities. While their reporting is specific enough to lead to effective goals, Nestlé could increase its legitimacy by taking more immediate action towards those long term goals. They show strides in year over year growth but lack a comprehensive year over year plan. Nestle provides concrete improvements in the CSR space that can be compared to other companies within the food/beverage sphere, but even at the top of their class they ignore major issues by glossing over them with broad language and abstract intermediate goals.

Despite the need for continued improvement in sustainability strategy, I still feel that Corporate Social Responsibility has the opportunity to transform the cacao industry into a more positive space for all stakeholders involved. Small bean-to-bar chocolate companies are great examples of how companies can achieve a double bottom line of economic and social success, but they cannot change the system alone. Large corporations must begin to carry some of the burden through the process of creating shared value, a framework laid out by the UN Sustainable Development Goals and the UN Guiding Principles on Business and Human rights. These frameworks lie outside of direct legislation but instead allow large companies to take some of the burden in fixing the critical problems within the cacao supply chain.

Work Cited

Leissle, Kristy. Cocoa. Polity Press, 2018. 

Off, Carol. Bitter Chocolate: The Dark Side of The World’s Most Seductive Sweet. The New Press, 2006.

 “How Sugar Consumption Is Changing America [INFOGRAPHIC].” Avail Clinical Research, 28 July 2014, www.availclinical.com/news/sugar-rush-how-sugar-consumption-is-changing-america-infographic/.

“U.S. Adult Consumption of Added Sugars Increased by More than 30% over Three Decades.” ScienceDaily, ScienceDaily, 4 Nov. 2014, www.sciencedaily.com/releases/2014/11/141104141731.htm.

 “Chocolate Companies: Market Share Worldwide 2016.” Statista, 2016, http://www.statista.com/statistics/629534/market-share-leading-chocolate-companies-worldwide/.

Links

“Home.” Nestle Cocoa, http://www.nestlecocoaplan.com/.

Nestle.com, www.nestle.com/csv.

Annual Review 2018. 2018, http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2018-annual-review-en.pdf.

Chocolate Brands and Cause-Related Marketing

Companies use Corporate Social Responsibility (CSR) policies, where they publicly make an effort to behave ethically or give back to some cause, not only to improve the ethics of their operations but also as a marketing ploy. A related phenomenon, Cause-Related Marketing (CRM), capitalizes on consumers’ desires to feel like they are supporting an ethical business with ethical practices.

Marketing and strategy experts have written papers about how CSR and CRM campaigns work best when the campaign aligns with the corporation’s history and existing strategy, and cannot work if there is conflict (Porter and Kramer, 2006). For example, McDonald’s has been criticized for publicizing its support for children’s charities while also promoting unhealthy eating habits among children, and a tobacco company would not be able to believably promote a group that aims to prevent smoking amongst minors. Other campaigns fail simply because they are too broad in scope or jostling with other companies to be the one company that consumers understand are working in that problem space. But some companies are able to pull it off by selecting a specific area related to their brand: ConAgra Foods decided to promote its food brands by starting a campaign called Feeding Children Better, and Avon promoted breast cancer awareness as a woman-focused cosmetics company (Cone, Feldman, and DaSilva, 2003). Environmental sustainability practices have been called out as a particularly good way for companies to incorporate CSR because they are usually able to see financial savings as well as build consumer goodwill (Porter and Kramer, 2006).

The chocolate industry has been leading the field in terms of corporate social responsibility and cause marketing for generations. Chocolate companies such as Cadbury and Hershey have fostered reputations for caring work environments from the start, and Mars has been an early leader in operational effectiveness. With their multi-million dollar marketing budgets, each firm is definitely investing in doing CSR and CRM right, and their current CSR and CRM emphases can be traced back to their namesake founders’ values and priorities. Each firm has had its own unique journey from founding to current marketing strategy, and each strategy highlights the unique properties of that company.

Cadbury

Cadbury, now owned by Kraft, is extremely explicit that the latest Cadbury marketing campaign is designed explicitly to remind consumers about Cadbury’s history as a Quaker company with Quaker morals (Roderick, 2018). However, the path back to its Quaker roots after its acquisition by Kraft has been circuitous.

“Our founder John Cadbury was a philanthropist, and there are so many examples of acts of kindness that he did. The best example is the creation of Bournville, where he provided homes for factory workers, there was a doctor’s surgery and cricket and football pitches. That was a real example of his generosity, and we want our new global brand platform to shine a light on our roots, but also shine a light on acts of kindness existing today.”

Benazir Barlet-Batada, Cadbury brand equity lead

When Cadbury was initially founded during the height of the Industrial Revolution, factories were considered awful places; Cadbury built Bournville to be a “garden city” where workers could live happy lives as well as work productively in the chocolate factory. This was a moral imperative for Cadbury as a Quaker, and although critics pointed out that Cadbury’s paternalistic policies were not exactly perfect and rent in Bournville was too expensive for many Cadbury employees, the British government lauded Cadbury’s “model village” as an exemplar for other companies to follow (Satre, 2005). This glowing reputation survived the Sao Tome slavery scandal, and the public stance that the company took about caring about its sourcing may have inspired it to make Dairy Milk the first Fairtrade certified mass-produced chocolate bar generations later (Freedman, 2009).

Cadbury used its ethical reputation as an argument when fighting a hostile takeover bid from Kraft (Freedman, 2009). The hostile takeover succeeded in 2010, much to the chagrin of many Brits who were proud of Cadbury and the ideals it stood for and were worried that the acquisition would cause it to prioritize profits over social good. Kraft’s acquisition of Cadbury became an example of greedy American-style capitalism crushing the wholesome British chocolate company, with one reporter subtitling her article “How one of Britain’s best-loved brands went from a force for social good to the worst example of brutal corporate capitalism” (Fearn, 2016).

Their fears have been warranted: Kraft almost immediately broke (admittedly unrealistic from a business standpoint) promises to keep production in the UK, outsourcing production to Poland, as well as announcing that they would move away from Fairtrade and towards their own, in-house label called Cocoa Life (Martin, 2017). While Fairtrade UK published a defense of Cadbury, stating that “Fairtrade is going to be working even more closely with Cadbury from now on” to help them develop Cocoa Life standards, some critics are concerned that the lack of transparency if all companies begin constructing in-house policies will damage efforts for international fair trade standards (Crowther, 2016; Ionova, 2017).

Some marketing analysts imply that marketing campaigns after the takeover also lost touch with the British consumer base, and Cadbury cut short its planned 10-year campaign centered around Joy in the product (which began in 2012) to transition to the current one centered around Kindness (Roderick, 2018). Despite now being owned by a multinational giant, Cadbury hopes to remind people about its roots as an ethical company. Whether this new marketing campaign is effective at removing the shadow cast by Kraft’s ownership still remains to be seen, but you can watch one of their first ads of the campaign below:

The first ad of Cadbury’s latest marketing campaign, which emphasizes “kindness and generosity”

To look beyond marketing campaigns at Cadbury’s stated Corporate Social Responsibility goals, we can look at Cadbury’s site, cadbury.co.uk, which has a section titled “Our Community” which lists their CSR projects: the Cadbury Foundation (donations to a diverse portfolio of initiatives), Cocoa Life (their Fairtrade replacement), and 30% less sugar (“helping chocolate-lovers manage their sugar intake better”). I would argue that the last example isn’t a great example of Corporate Social Responsibility, since it is more of a marketing point and not paired with any initiatives to proactively encourage healthier chocolate consumption, such as nutrition education. However, Cadbury does make it clear that its priority is communities like Bournville, emphasizing projects that its employees are passionate about, pointing back to the founders and their “investment in the welfare of their employees”, and writing about Cocoa Life’s impact on “cocoa communities”.

Cadbury interprets John Cadbury’s mission as one of community-building and philanthropy, and due to issues of brand perception after the Kraft takeover it is focusing its entire current marketing strategy on emphasizing that to consumers.

Hershey

Like John Cadbury, Milton Hershey held strong moral views. As Michael D’Antonio describes in his 2006 book Hershey, he was very personally involved in every aspect of the development of his factory town down to the details of house construction. His policies of treating his workers fairly and with respect earned him great loyalty, and although it was tempered with the times when he overreacted, firing people for trivial offenses, the external world saw him as a kindly, paternalistic industrialist (D’Antonio, 2006). From the start, the Hershey Company focused on ethics as a marketing strategy.

People who purchased Hershey Chocolate weren’t buying a treat, they were contributing to a grand experiment that was going to prove that big business, often feared and resented, could do remarkable good

.

Michael d’antonio, author of hershey

Hershey has consistently maintained that image through the generations. However, it is difficult to maintain a Corporate Social Responsibility campaign on a general broad ideal, especially when the focal point of the ideals is one mortal man. Therefore, since Milton S. Hershey cannot live forever, and some of the factory town utopia ideals did not age extremely well, the Hershey Company had to narrow down its Corporate Social Responsibility focus.

The Hershey Company decided to focus on children as its unique differentiator to help its cause marketing initiatives stand up. Although Hershey’s work establishing his factory town was ground-breaking in the US, Cadbury had done the same work in the UK, and others had done similar work with less publicity around the world. But Milton and his wife Catherine’s pet philanthropic project, the Milton Hershey School, is unique to Hershey’s, and Hershey marketers seized on the theme of helping children.

Hershey’s website lists its CSR initiatives under a tab called “Shared Goodness“, which also lauds its history as “one of America’s first companies built with a purpose”. In addition to sponsoring the school, Hershey’s other CSR initiatives include “Shared Futures: The Heartwarming Project” for encouraging teens and their communities to make meaningful connections in the US and “Shared Business: Cocoa for Good” to work with the UN to improve conditions for children in cocoa-producing regions in addition to general policies for ethical operations. In the case of Cocoa for Good in particular, Hershey’s understands that the problem of improving conditions in cocoa-producing regions is a complex problem, so it doesn’t claim to solve any of the issues outright. Instead, it explains how its initiatives align with UN Sustainable Development Goals (The Hershey Company, 2018)

On its website, the Milton Hershey School proudly proclaims that it has been “providing life-changing opportunities for 110 years and counting”. In its Cocoa for Good press release, Hershey’s relates its goal to “nourish one million minds by 2020” back to the Hershey School, pointing out that both share the overall goal of “giving children the chance at a better future” (The Hershey Company, 2018).

Hershey has always been consistent with its value propositions and execution of CSR initiatives. Hershey’s proudly publishes an annual Corporate Social Responsibility report, signaling the importance that it places on those initiatives by elevating CSR to the same level of importance as annual financial reports. It also produces videos, one of which you can watch below:

The video for Hershey’s 2017 Corporate Social Responsibility campaign, “Shared Goodness”

Because it has been more consistent than Kraft-owned Cadbury in recent years, Hershey’s has room to explore with its marketing strategy, and its most recent ad campaign “heartwarming the world” is not as explicitly connected to Hershey’s progressive ideals (Wohl, 2018). However, it does share the basic theme of generosity and spreading the pleasure of Hershey’s, just as the company wants consumers to remember Hershey would have wanted.

Ever since the initial glowing reviews of Milton Hershey in the press, Hershey’s has been able to successfully position itself as an ethical chocolate producer that gives back. Regardless of whether the reputation is deserved, it has certainly been earned by 125 years of consistent marketing.

Mars

Like Hershey, Forrest Mars was very personally involved in the development of his business. Unlike Hershey and Cadbury, he did not have any pretensions of philanthropy. Instead, Forrest Mars made it very clear that he was in the chocolate business for the challenge of succeeding in the market. He was an early pioneer of Total Quality Management techniques, enforcing in the 1930s policies that it would take other American manufacturers until the 1980s to even begin to recognize the importance of. He could be compared to Steve Jobs in terms of personality, standards, and treatment of his employees, but his area of expertise makes him more of a Tim Cook. He built an emphasis on operations and quality into the backbone of his company (Brenner, 1999).

Forrest ran his businesses strictly by the numbers, but not in an accounting sense.

Joel Glenn Brenner, author of Emperors of chocolate

The concept that excellence in operations can be a corporate strategy in and of itself is a relatively new one, but it is a philosophy that Forrest Mars clearly supported. It requires an emphasis on quality and efficiency throughout the organization to ensure that the company can produce a better quality product faster and cheaper than any of their competitors. In order to succeed at this strategy, the reputation of the product should be able to stand for itself, and it should be relatively affordable, especially for such a high-quality product. Such an organization aligns extremely well with sustainability initiatives.

Sustainability initiatives have the dual benefit of being good ethically, and therefore building goodwill among potential consumers, as well as being good for the company’s profits as they are able to produce more efficiently when they produce less waste or use less raw material (Porter and Kramer, 2006). Forrest Mars’s hatred for waste and encouragement of rework very naturally evolves into a CSR initiative for sustainability.

Mars very recently rebranded to bring the focus away from candy, hinting that it would like to explore possibilities of conquering new markets, exactly as Forrest Mars would have wanted (Dworski, 2019). In fact, it is extremely difficult to tell from its website exactly what it is that the company sells. However, it is clear that sustainability is a major priority.

Mars’s “Sustainable in a Generation Plan”, which is featured with several other embedded videos on https://www.mars.com/sustainability-plan

Mars has a very broad definition of “sustainability”, counting pretty much anything that could have a positive impact on the future, from analyzing its supply chain to find room for improvement to assisting veterinarians with student loan debts. While supply chain analysis makes perfect sense given Forrest Mars’s penchant for operations research, some of the more philanthropic examples might seem like a bit too much of a financial drain with no payoff for such a pragmatic company. However, investing in meeting high quality standards can also seem like a financial drain initially. Eventually, though, the investment pays out dividends, and it seems clear that Mars is continuing to follow that strategy.

Conclusion

Cadbury’s work with Fairtrade and its current owner Kraft’s return to the philosophy of kindness, Hershey’s work with children, and Mars’s work on sustainability are easily derived from their founding goals and priorities.

References

Confronting Gender Inequality in West African Cocoa Production Through Chocolate Advertisements

Chocolate has been a fascination in the West since its discovery in Mesoamerica centuries ago. Early in the history of the Western consumption of chocolate, it became feminized. Chocolate was associated with luxury and leisure in the eighteenth century, but as it became more accessible to the working class in the nineteenth century, women were charged with providing wholesome cocoa for respectable consumption in the family (Robertson, 2009). Due to the persistent feminization of chocolate, women have been the focus of marketing campaigns to sell chocolate. Cocoa adverts have fetishized images of western housewives, mothers, and women in heterosexual relationships to sell their products (Martin, 2019a). These women are often depicted as becoming irrational, narcissistic, or excessively aroused due to chocolate. However, these advertisements reveal the underlying prejudice and stereotyping that exists in the cocoa supply chain. Chocolate largely originates from the cocoa farmed in West Africa, which produces 75% of the world’s cocoa. Although this arrangement began in the 1800s, West Africans only consume 4% of the world’s chocolate (Martin, 2019b). This is due to the fact that most African-grown cocoa is exported abroad for production and the primary markets for these chocolate producers are thus outside of Africa. The romanticized image of chocolate in Western advertisements neglects the labor that goes into farming cocoa and the challenges that cocoa farmers in West Africa face. Furthermore, the dilemmas within the cocoa supply chain are exacerbated for women cocoa farmers, who are often denied privileges their male counterparts are afforded and are especially susceptible to certain dangers. Rather than focusing on Western women, who are not involved in the production of chocolate, a newer campaign has emerged to empower West African women cocoa farmers and bring light to just how integral they are in the production of chocolate.

It has been documented that women have been involved in the cocoa industry since its inception in West Africa, specifically Ghana (Robertson, 2009). Cocoa farming would not have gotten to where it is today without the labor of women, as it was central in almost every aspect of cocoa production and sale (Robertson, 2009). However, these contributions have not been met with the appropriate amount of recognition and credit. This blog will highlight women farmers in Ghana and Côte d’Ivoire, which are two of the world’s largest cocoa-growing countries and both are found in West Africa. In Ghana, women cocoa farmers earn 25%-30% less than their male counterparts and in Côte d’Ivoire women cocoa farmers earn up to 70% less than their male counterparts (Pacyniak, 2014). Also, in both countries women are met with more obstacles, such as lower farm productivity, smaller farms, and less access to financing and farm inputs. Gender gaps beyond cocoa income and productivity plague women cocoa farmers in Ghana, as women have a 25% lower level of training, a 20% lower receipt of loans, and 30%-40% lower access to critical farm inputs (e.g. fertilizer). According to women cocoa farmers, they lack the funds necessary to hire labor, making it difficult to produce cocoa (Odoi-Larbi, 2008). Gender inequality in Ivorian cocoa farming manifests in almost none of the 4% of women in cocoa co-operatives having leadership positions. Furthermore, in Côte d’Ivoire 86% of men had legal rights to their plots, while in 67% of cases, the land accessed by women was not owned by them. Although Fairtrade is an institutional arrangement designed to help producers in developing countries achieve better trading conditions, not all West African cocoa farmers benefit equally from Fairtrade (“Does Fairtrade mean a fair deal for female cocoa farmers?”, 2016). For instance, even though Fairtrade is a positive force in Ghana, women cocoa farmers are not benefitting from Fairtrade to the same extent as their male counterparts. It was found that many of the poorest and most marginalized cocoa farmers in Ghana are excluded from participating in such co-operatives, and most of these farmers are women.

The previously mentioned trials and tribulations of women cocoa farmers are addressed in the video below. As was mentioned earlier, the global cocoa supply comes from small farms in West Africa, but these farmers are often paid poorly for what they grow. Typically, women take on the heavy lifting when it comes to their share of the work, but they see minimal profits. The women in this video are from Ghana and Côte d’Ivoire and although they do most of the work, only a quarter of the cocoa farms are owned by women. The women explain this disparity, as they discuss the patriarchy that prohibits them from inheriting land. More recently, however, Fairtrade has made strides to ensure that support exists that helps women raise their income and their voices. This includes eliminating women’s dependency upon their husbands and giving women their own land on which they can produce their own cocoa. With their own farms, these women are more independent and can flourish with the right resources available to them. The video ends by urging consumers around the world to choose Fairtrade chocolate in order to support these women cocoa farmers. Other efforts have been started to raise awareness about these farmers, as the injustice of women working for nothing to produce the chocolate that we love must end.

Fairtrade and gender inequality in West Africa

Several efforts have commenced to promote corporate social responsibility, which would aid in the fight for equality for women in the cocoa supply chain. One such effort is Cocoa Life, which began in 2008 and is empowering women in Ghana’s cocoa growing communities (Amekudzi, 2013). Cocoa Life was created by Mondelēz International, a company looking to advance the rights of women cocoa farmers by increasing the emphasis on gender equality in Ghana and Côte d’Ivoire and advocating for industry-wide action (Pacyniak, 2014). To address the aforementioned challenges women cocoa farmers face, Mondelēz International presented new action plans to build upon its Cocoa Life program. This plan was a $400 million, 10-year effort set in motion in 2012. In Ghana, this project is farmer centered and based on Cocoa Life’s Cadbury Cocoa Partnership in Ghana. Specifically, Cocoa Life encourages entrepreneurship among women cocoa farmers through farmer education on cocoa agronomy and farmer training at the village level. The video below, produced by Cocoa Life, involves interviews of women cocoa farmers in Ghana who recount the times when they were excluded from the ins and outs of cocoa farming. They have been encouraged to mobilize and learn how to manage their own farms. Their situations have been improved and they have set the stage for future women cocoa farmers to prosper in their communities.

Mondelēz International, Cocoa Life, and Ghanaian women’s rights in cocoa farming

Another example of an attempt at corporate social responsibility to help women in West African communities is The Cargill Cocoa Promise. Cargill recognized that women are forced to balance household work with cocoa farming, in conjunction with having unequal access to training, inputs, and education (“Empowering women cocoa farmers in Côte d’Ivoire”, 2014). The Cargill Cocoa Promise aims to understand how gender barriers limit access to skills, information, and inputs amongst women cocoa farmers. This project kickstarted inclusive training sessions and raised awareness of gender issues. Practical steps were proposed to improve the day-to-day activities of these farmers. The people in the video below discuss how this project was conceived and executed in Côte d’Ivoire. Researchers found that culture was a driving force that exacerbated the issues plaguing women cocoa farmers, as culture determined who got to own land. They encouraged discussions within the communities in order to facilitate change and overcome the cultural biases. Also, this project increased financial literacy among women cocoa farmers, as the organizers established village savings and loan schemes, which would aid in entrepreneurship efforts.

The Cargill Cocoa Promise, corporate social responsibility, and women empowerment in West Africa

As was preliminarily mentioned, a newer campaign has emerged to shed light on the West African women who make large contributions to the production of chocolate. Divine Chocolate Limited is a purveyor of Fairtrade chocolate and although it was originally established in the United Kingdom, it is co-owned by the Kuapa Kokoo cocoa farmers’ co-operative in Ghana. In order to emphasize to UK chocolate shoppers that Ghana is a cocoa origin site, Divine Chocolate released a set of advertisements that feature women cocoa farmers from Ghana, and these advertisements appeared in British editions of women’s magazines, such as Elle, Cosmopolitan, Red, and OK! (Leissle, 2012). As is shown in the images below, the women cocoa farmers are depicted as glamorous business owners who participate in transnational exchanges of raw materials and luxury goods, and as beneficiaries of these exchanges. These women are a part of the Kuapa Kokoo co-operative, which makes them co-owners of Divine Chocolate. The advertisements emphasize the women’s position as co-owners, as they state each woman’s name along with her position. Also, Ghana’s adinkra symbols appears on Divine Chocolate’s bar wrappers and this is shown in the photographs. Furthermore, the background of each advertisement shows ‘Africa’, which is represented by images of Ghana’s agricultural economy. This includes cocoa drying tables, plantain trees, coconut trees, mud buildings, and dusty roads. Each woman appears in the foreground holding pieces of chocolate, which is a luxury food made from the fruit they farm. These images are paired with titles such as ‘Equality Treat’, ‘Decadently Decent’, and ‘Serious Chocolate Appeal’ in order to suggest to consumers that their own enjoyment of Divine Chocolate bars should come not only from the joy of eating chocolate, but from the fact that the women who farm the cocoa also enjoy it. This implies that the Kuapa Kokoo women cocoa farmers not only grow the raw materials, but they also consume the chocolate. This is a far cry from the statistic reported earlier that said only 4% of West Africans consume the world’s chocolate.

Divine Chocolate advertisement featuring Beatrice Mambi.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Priscilla Agyemeng.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Rita Nimako.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.

Divine Chocolate’s advertisements are revolutionary in that they do not rely on the stereotypical and romanticized images of Western women to sell their chocolate. Instead, this company is knocking down two birds with one stone: they are empowering West African women cocoa farmers while challenging the notion that Africa is not modern. Leissle states that “the Divine images pose a challenge to narratives that cast Africa as continually on the losing side of harmful dualisms and reframe Africa’s role in modernity” (2012). In Binyavanga Wainaina’s “How to Write About Africa”, he challenges Western literature that persistently refuses to disperse a picture of a “well-adjusted African” (unless he or she has won a Nobel Prize), neglects the fact that the continent is dynamic in that it is full of deserts, jungles, highlands, and savannahs, and depicts the African woman as starving, nearly naked, and waiting for the aid of the West (2006). However, the Divine Chocolate adverts pose the Ghanaian women cocoa farmers as “attractive, socially mobile beneficiaries of their own development efforts” (Leissle, 2012). The videos previously discussed highlighted that West African women are commonly held back in their farming endeavors by the patriarchal notion that women are only instrumental in uplifting the family. However, the Divine women are not tethered to their responsibilities as wives and mothers and are not viewed as reproductive laborers in these advertisements. These women are framed as “active agents of a self-gratifying transnational business arrangement” (Leissle, 2012). Overall, the combinations of the Divine women’s playful, yet strong, poses, the invitation to enjoy chocolate, and the text present West African women cocoa farmers as savvy luxury consumers and implies their individual participation in the privileged aspects of modernity narratives (Leissle, 2012).

One way to address and combat the gender inequality that exists in the cocoa supply chain is to draw attention to West African women as primary contributors. The fetishization of Western women in chocolate advertisements only exacerbates the issue at hand because it masks the labor that was invested into producing the chocolate. In looking at the origins of the chocolate, one will find that West Africa as the world’s primary cocoa growing region is faced with many critical challenges, such as volatile income, unfair farm economics, and lack of laborers (Martin, 2019b). Women cocoa farmers are especially harmed by these challenges as the patriarchy in West Africa makes it difficult for them to overcome these obstacles. However, some solutions have gone into effect to empower these women. Additionally, Divine Chocolate’s campaign presents “a fresh visual reframing of the exchanges of goods and capital between Africa and Europe” (Leissle, 2012). Other purveyors of chocolate should follow in Divine Chocolate’s footsteps when it comes to advertisements and give credit to the people who make eating chocolate possible.

References

Amekudzi, Y. P. (2013, February 28). Cocoa Life- the project empowering women in Ghana’s cocoa growing communities. Retrieved April 30, 2019, from https://businessfightspoverty.org/articles/yaa-peprah-amekudzi-cocoa-life-the-project-empowering-women-in-ghanas-cocoa-growing-communities-2/

Does Fairtrade mean a fair deal for female cocoa farmers? (2016). European Union News.

Empowering women cocoa farmers in Côte d’Ivoire. (2014, April 15). Retrieved April 30, 2019, from https://www.cargill.com/story/empowering-women-cocoa-farmers

Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

Martin, C. (2019). Lecture April 3: Race, ethnicity, gender, and class in chocolate advertisements. Harvard University.

Martin, C. (2019). Lecture March 27: Modern day slavery. Harvard University.

Odoi-Larbi, S. (2008). Female Cocoa Farmers Cry for Help. Africa News Service.

Pacyniak, B. (2014). Mondelez affirming women’s rights in cocoa-growing areas. Candy Industry, 179(6), 12-13.

Robertson, E. (2009). Chocolate, Women and Empire: A Social and Cultural History (Studies in imperialism (Manchester, England)). Manchester; New York: New York: Manchester University Press; Distributed in the United States exclusively by Palgrave Macmillan.

Wainaina, B. (2006, January 19). How to Write About Africa. Retrieved April 30, 2019, from https://granta.com/how-to-write-about-africa/

Multimedia sources

Cargill. (2016, March 7). Women in agriculture: empowering African cocoa farmers [Video file]. Retrieved from https://www.youtube.com/watch?v=sYeGiFHlDm4

Fairtrade Foundation. (2019, March 5). Meet the Women Cocoa Farmers Facing Adversity in the Ivory Coast [Video file]. Retrieved from https://www.youtube.com/watch?v=yP5NR3BbdKE

Mondelez International. (2013, November 12). Cocoa Life: Community leaders – Interview with Gladys and Vida in Ghana [Video file]. Retrieved from https://youtu.be/REMKY62MHno

Images retrieved from Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

Chocolats Halba – Analysis of a Swiss Chocolate Company

This text investigates Chocolats Halba, a Swiss producer of chocolate, and its contributions to solving the various problems in the cacao industry. Founded by two chocolatiers working from their living room, this company is now a part of Coop, which is one of Switzerland’s largest retail companies. Chocolats Halba delivers its products both to Coop and to companies worldwide and also operates its own factory stores, the Schoggihüsli. The company is a rather large producer of bean-to-bar chocolate, making over twelve-thousand tons of chocolate per year and generating 135 million swiss francs in revenue from these efforts. It is thus a remarkable example of an essentially industrial producer of chocolate that nevertheless conforms to at least a reasonable moral standard. The company’s English website, containing further information and an introductory video, may be found at this address: http://chocolatshalba.ch/en/company.html (Chocolats Halba – Facts and Figures).

Chocolats Halba describes itself as a company that aims to provide benefit to both its customers, employees and also to the environment. More specifically, the company aims to both address the common human issues of cacao production in addition to, and to produce in an environmentally sustainable manner. To achieve this, the company is closely involved with all parts of its supply chain, performing extensive supervision. The stated benefits which the company seeks to obtain from this policy is to ensure that its products be morally responsible and superior in quality. As might be expected from a Swiss chocolate producer, quality in particular is a major part of the company’s brand image. Notably, to ensure quality, the company’s entire production capacity, and with it most of its employees, is based in Switzerland. To the same end, the company also maintains close relations with its associated cacao growers. The company’s position is also prominent on the packaging of its products, which notably bear information not only on the source of the cacao, but also on the origin of most other ingredients. The packaging also prominently displays information on the sustainability practices pursued in its production. Furthermore, the company’s chocolate also includes detailed information on the terroir and history of the specific cacao varieties it incorporates. The near profusion of labels and other information on the image below illustrates this point. In a similar effort to market its closeness to cacao growers, the company generally prominently incorporates imagery of these people in its packaging and marketing. (Chocolats Halba, Partners & Quality (http://chocolatshalba.ch (Retrieved 19-04-19)))

Information found on the back of a chocolate bar made by Chocolats Halba. It provides a detailed breakdown of the various ingredients and their origins and displays several labels. Also note how it emphasizes the “Swissness” of the product. Image Credit: Own Work

The policy of Chocolats Halba is to exclusively source its cacao from certified cooperatives, with which it cooperates closely, a list of which it also makes publicly available. Both to inform its own policies, and to inform its customers of the quality of its products, the company has also obtained nearly a dozen certifications, including UTZ, Fairtrade and Bio labels. Two of these, the Fairtrade and the Swiss Bio label, also directly feature on the packaging of many of the company’s products, as may be seen in the image above. The company applies these principles as well as the associated labels not only to its cacao, but to each of the ingredients it uses. The company’s strict adherence to these principles has also allowed it to feature prominently and positively in several recent rankings and has allowed it to win various Swiss and international awards. (Chocolats Halba, Certificates & Partners & Quality & News (http://chocolatshalba.ch (Retrieved 19-04-19)))

The main certifications used by this company remarkably closely echo some of the main ethical criteria for morally acceptable chocolate production. The main categories of such criteria might be said to be those of cacao farmers’ situation and that of sustainability. Both of these are complex issues, that cannot easily be addressed. As for workers’ rights, some of the main problems with cacao production are unfree labour, including that by children, and the low prices paid to cacao producers. The low prices paid for cacao by the world market, which are to no small degree an inheritance of colonialism underlie many of these issues. With low cacao prices, benefits accrue mainly to the consumers and retailers of chocolate; while troubles accrue to those who actually produce the cacao itself. Such troubles include the need to deploy cheap labour, which may be underpaid or even unfree: this is also a reason for child labour. However, simply paying more for chocolate, should one be willing to do so would not necessarily contribute to solving this problem. It would do so only if a significant part of the additional revenue thus generated would end up with the farmers. (Leissle, Cocoa, p. 128 – 131)

Various efforts to achieve this exist, including initiatives such as Fairtrade. Fairtrade offers benefits including price floors and communal funds for farmers’ communities. However, the Fairtrade label may be diluted in efficacy by the common practice of certifying only some ingredients, or only part of a whole. (Leissle, Cocoa, P. 144 – 146) As aforementioned, Chocolats Halba subscribes to the Fairtrade label, among others. It also does not in any way dilute the significance of this label; which applies to all ingredients it uses. Notably, the company also engages extensively in direct trade; a solution thus far engaged in by a limited number of chocolate manufacturers. Direct trade offers various unique benefits, with one of the most important being that it allows for a larger share of profit to be received by cacao growers instead of by middlemen. In case of this company, it also allows the possibility of informing consumers of a product’s terroir. The company makes extensive use of the opportunities this allows, as demonstrated by the information provided by the packaging material depicted below. (Leissle, Cocoa, P. 153 – 157) (Chocolats Halba, 2016 Report, Purchasing)

Information on the terroir of a chocolate’s cacao component provided on the packaging of a bar made by Chocolats Halba. This text also refers to the company’s environmental efforts, while emphasizing quality throughout. Image Credit: Own Work

As for sustainability, the main issues with chocolate production is that many of the crops involved in it are commonly produced in manners that are not particularly sustainable. Notably, the cultivation of many of these crops involves the sue of herbicides and pesticides and artificial fertilizers as well as extensive transportation before being processed in more energy-intensive processes. The production of sugar from sugarcane is an example, sugar being a ubiquitous ingredient in chocolate. The production of cane sugar is particularly onerous, being exhausting upon the soil and thus commonly leading to extensive deforestation. It is also energy-intensive to produce, requiring a long growing season and heavy irrigation along with extensive processing to finally produce sugar. (Mintz, Sweetness and Power, P. 19 – 21, 25)

While the production of cacao itself is somewhat less energy intensive, it too presents the issue of having to transport raw materials over often considerable distances to factories and from there to consumers. Likewise, though cacao is generally cultivated amongst other trees rather than in monoculture plantations, its production likewise often includes the use of various poisonous substances. Indeed, in many regions, extensive use of such substances is common, despite the environmental and medical hazards. (Coe, The True history of Chocolate, P. 263) In this field as well, Chocolats Halba pursues rather desirable goals, as demonstrated by its adherence to several standards for organic production, including the Canadian, American and Swiss standards of organic production. Adhering to these standards means to pursue methods of production that are in harmony with nature, which, translated into practice, means not using artificial fertilizers, herbicides and similar substances in production. Similarly, the company also makes all its packaging materials from FSC-certified or recycled paper.  (Chocolats Halba, Labels (http://chocolatshalba.ch (Retrieved 23-04-19)))

 In addition, the company also pursues carbon neutral methods of production. This involves actively keeping a tally of the emission involved in making a given product and avoiding these wherever possible, or if that cannot be done, to offset them instead. In the case of Chocolats Halba, offsetting emissions generally means the planting of hardwood trees, which is done in collaboration with he same cooperatives from which the company procures its raw materials. Apart from somewhat reducing environmental impact, an additional benefit of this approach is to improve the local environments of these cooperatives by increasing biodiversity and even offering a long-term source of income. This particular approach is a part of a unique project by the company which involves cultivating cacao as one of many crops on the same plot of land. These other crops include manioc, maize, bananas, sweet potatoes and hardwood trees. This “dynamic agroforestry” is supposed to increase both the local biodiversity and the variety of income sources, and hence financial security, available to the cultivator. This method is also supposed to be particularly compatible with the rather small land plots held by the majority of the members in the cooperatives that deal with the company. This method of cultivation also has the benefit of decreasing the proportion of the cacao crop that fails due to disease or other causes each year. This benefit mainly derives from how the more diverse environment provides superior conditions for cacao trees, including more shade and less likelihood of pest attacks due to the lower density of cacao trees. Hence, this method provides the dual benefits of an environmentally responsible mode of production combined with more security for workers. Chocolats Halba and its parent company have been promoting this method of production as an alternative to monoculture cultivation of work-intensive and environmentally depleting high-yield varieties. Further information on this method, as featured in one of the company’s reports may be found here: https://sustainability.chocolatshalba.ch/en/nhb2016/report.html. (Chocolats Halba, 2016 Report, Sustainability (https://sustainability.chocolatshalba.ch (Retrieved 25-04-19)))

The company also aims to keep its Switzerland-based chocolate production carbon neutral; and has generally succeeded decently at these efforts. For example, the company sources most of the energy it uses from natural gas and district heating. Meanwhile, the company’s new factory in Pratteln is notable for being equipped with a considerable surface worth of solar panels as well as the capability to reuse waste heat. These facilities also make almost exclusive use of less undesirable refrigerants such as ammonia and carbon dioxide. Similarly, the company also receives and makes most of its deliveries by rail to reduce transport-related emissions. As with the production of its raw materials, this company also aims to offset the emissions generated by its facilities in Switzerland. To this end, the company also engages in emissions trading, and has overseen the planting of a few hundred thousand trees. The result of these efforts is that the company has been operating climate-neutrally since 2011, according to some definitions. (Chocolats Halba, 2016 Report, Energy & Climate (https://sustainability.chocolatshalba.ch (Retrieved 25-04-19)))

To conclude, Chocolats Halba offers a remarkable example of a larger chocolate producer contributing positively both to improving workers’ situation and at making its products in a decently sustainable manner. Furthermore, the company not only provides one positive example, it also demonstrates that such positive effects may be achieved in relatively little time: this company’s practices were not particularly noteworthy in these regards until recently. In the last decade however, the company has made remarkable progress towards the goal of conforming to higher ethical standards, thus setting an example of how great progress may be made quickly by those willing to invest the effort. The company’s labelling efforts also demonstrate how producing chocolate in a sustainable and responsible manner may further serve as a successful marketing strategy . Thus, Chocolats Halba provides an example of how such practices can benefit both the company, the consumer and the producer in how they allow for superior products that come with greater transparency, at less cost.

Works Cited:

Multimedia Sources:

MJ, Image of the Rear of Chocolate Packaging of Chocolats Halba

MJ, Image of the Interior of Chocolate Packaging of Chocolats Halba


The Sticky and Complicated Future of Chocolate

the modern mocha is a bittersweet concoction of imperialism, genocide, invention, and consumerism served with whipped cream on top.”[1] ― Sarah Vowell

Humorist Sarah Vowell captures much of the history of chocolate (and coffee) in this little quip. However, the history of chocolate is long and its social, economic, and political implications are vast. Putting the positive impacts of invention aside, the negative impacts of imperialism and consumerism more than linger. They have resulted in gross economic inequities and lasting environmental and social damage, particularly in the production end of the cocoa supply chain. It’s going to take the force of consumerism and capitalism to right these inequalities and bring about sustainability.

Approximately 70% of the world’s cocoa is produced in West Africa by small farms spread out across the area. In the 1980s cocoa farmers received approximately 16% of the chocolate profits, today this percentage has been greatly reduced to 3%.[2] Cocoa farmers are not organized and have little bargaining power against more organized buyers.

Profit shared on cocoa supply chain
Figure 1: Farmers share of chocolate profits is small and has been in decline since the 1980s when global cacao prices were regulated. In the 1980s farmers were receiving around 16% of the chocolate profits. Martin, Carla D. “Introduction.’” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture. [3]
The 2018 Cocoa Barometer highlights the many challenges for cacao farmers, including volatile pricing. From September 2016 – February 2017, farmers experienced a 30%-40% decline in income (Ghana farmers were protected by this price drop through government subsidies). Although prices are on the rise again, the overall trend the past 60 years is a decline in prices (see figure 2). With farmers having little, to no, protection from their governments they are hardest hit by market fluctuations, while others on the value chain will see an increase of their profit margins, even if only temporary.[4]

2018 Cocoa Barometer Long-term cocoa price trends
Figure 2: The average production of Ivorian cocoa in the seasons 2010/11, 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16 was around 1,600,000 metric tonnes (mt). Cocoa production in 2016/17 and 1017/18 is around 2,000,000 mt, an increase of about 400,000 mt. (ICCO Quarterly Bulletins) The overproduction in 2016/17 was around 300,000 metric tonnes, according to the ICCO Quarterly Bulletin, Volume XLIV no 1, page 50, table 1.[5] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018.http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
Farmers in West Africa make well below a living wage of $2.51 per day, averaging $0.78 per day (FairTrade).[6] The Cocoa Barometer asserts that the price drops are directly related to improved production due to new farming areas created from deforestation. More than 90% of West Africa’s original forests are gone.

An estimated 2.1 million children work in West African cocoa fields. Structural issues such as poverty, lack of schools, and infrastructure also contribute to the high levels of child labor.[7] Efforts in the past few decades to end child labor, preserve the environment, and to balance these inequities have been challenging and difficult to measure. Currently, third party certification bodies have been the only levers toward implementing and measuring sustainability efforts as well as signals to consumers as to where, and how, their chocolate products are sourced.

Major Certification Bodies
Three major certification bodies associated with cocoa. Note Utz and Rainforest Alliance has merged and will announce new standards in late 2019 for the New Rainforest Alliance.

The three main certification entities are Fairtrade, Utz and the Rainforest Alliance. Fairtrade Standards are designed to support the sustainable development of small producer organizations and agricultural workers in the poorest countries in the world.[8] Similarly, Utz certification was created to show consumers that products were sustainably sourced. Rainforest Alliance certification meant farmers met rigorous environmental and social standards.[9] In January 2018, Utz merged with the Rainforest Alliance. The New Rainforest Alliance plans to publish a singular program at the end of 2019.[10]

Certification and bean-to-bar efforts in the specialty chocolate market have many success stories, but compared to the global consumption of chocolate, these efforts have only made a dent.[11] The Fine Cacao and Chocolate Institute (FCCI) reports, with caveats intended to illustrated the challenges of obtaining this data, that there are 481 specialty chocolate makers and manufacturers worldwide that represent approximately 6% of the annual global production of cacao.

International Cocoa Organization, ICCO, ultrapremium cacao, fine cacao, bulk, certified
Figure 3: Ultrapremium fine and Fine cacao comprises 246,000 tonnes (6%) of the 4,031,200 tonnes of cacao produced annually (ICCO 2015). [12]
The FCCI defines this market segment as those chocolate makers and manufacturers that choose to purchase specialty cacao at a premium price for purposes of taste quality and/or sustainability reasons.[13] Within this small group, sustainability is but a factor in paying the price premium, but not necessarily a primary factor. In order for sustainability initiatives to have any meaningful impact to cocoa farmers the major chocolate manufacturers need to take the lead and invest in best practices throughout their supply chain that address the environmental, social, and economic challenges their farmers face.

Cocoa Barometer, Certified Cocoa, 2017, Mondelez International, Nestle, Mars, Hersheys, Ferrero, Lindt und Sprungli
Figure 4. Data kindly provided by the companies. Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

Recent Commitments by the Majors / Certifications & Goals

Mondelēz International (a subsidiary of Kraft)
Chocolate Brands: Cadbury, Alpen Gold, Côte d’Or, Toblerone, etc.
Certification provided by FLOCERT through a private labeling partnership.

In 2012 Mondelēz International invested $400 million to create its Cocoa Life program. The program plans to empower 200,000 cocoa farmers and one million community members by 2022. In April 2018 Mondelēz International reported that they have reached 120,500 cocoa farmers, in a variety of programs and they reached 35% certified cocoa.[14]

Mondelēz  International, Cocoa for Life, 2017 Progress
Figure 5: Cocoa Life infographic showing Mondelēz 2017 Progress in Numbers. Includes increases in sustainably sourced cocoa and reach to farmers and communities from previous year.[15]
Cocoa Life is tied to the UN Sustainability Development Goals (SDGs), with an emphasis on Goals 1 (no poverty), among others. Cocoa Life has partnered with local governments and NGOs to build community-centric Child Labor Monitoring and Remediation Systems (CLMRS), which educate farming communities on the dangers of child labor, identify children at risk, and remediate cases with its local partners. Cocoa Life CLMRS programs have started in Ghana and continue to increase. Roll out of CLMRS in Côte d’Ivoire will begin in 2018. Nestlé has also implemented CLMRS program into its sustainability programs.[16]

Mondelēz, CLMRS, 2017
Figure 6: Child Labor Monitoring and Remediation Systems (CLMRS) deployed by Mondelēz International in 2017 with plans to ramp up in 2018.[17] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 21. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

Nestlé
Chocolate Brands: Smarties, Nestlé Crunch, Butterfinger, KitKat, etc.
Certifications: Utz and Fairtrade

In their detailed, first report (2017), co-authored with the International Cocoa Initiative (ICI), Nestlé asserts that certification is not enough and that additional support for the farmer is needed. In fact, Nestlé asserts that certification drove the issue of child labor “underground” as farmers would hide any child laborers when inspectors came around.[18] While Mondelēz set up CLMRS in Ghana, Nestlé set up its CLMRS in Côte d’Ivoire and report a 51% reduction of child labor in a recent sample of 1,056 children over a two-year period. [19]

Nestle, Child Labour, Child Labor, 2017 Corporate Responsibility Report
Figure 7: Nestlé targets child labor by its Child Labor and Monitor Remediation Systems (CLMRS) in Côte d’Ivoire. Nestlé hopes to scale the successful parts of the program to meet the goals of its Cocoa Plan.[20]
Nestlé is also investing in Community Liaison People (CLPs) to educate the community of the dangers of child labor. They are targeting women and mothers as they are more likely to invest their income and education into their family. The CLPs are local young people who are paid to train and the cost of the CLPs are split between Nestlé and the farmer. Remediation is highly individualized, but these activities are ones Nestlé continues to invest.[21] Nestlé hopes to scale their more successful initiatives to meet the goals of its Cocoa Plan, which is set to reach 57% cocoa certification by the end of 2020.

Nestle, CLMRS, Child Labour Monitoring and Remediation System, ICI, International Cocoa Initiative
Figure 8: An overview of how Nestlé’s Childe Labour Monitoring and Remediation System (CLMRS) works by engaging the community, assigning monitors, monitoring, reporting, validation, analysis, recommends remediation, remediation carried out by partners, monitoring continues ensure remediation is carried out.[22]  Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.23 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf
Nestle, Cocoa Plan, CLMRS, Certified Cocoa
Figure 9: Infographic on Nestlé Cocoa Plan Challenges and Ambitions in CLMRS program reach and tonnes of certified cocoa.[23] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.49 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

Ferrero
Chocolate Brands: Ferrero Pralines, Nutella, Kinder Chocolate
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[24]

According to its 2016 Social Responsibility Report Ferrero has made a commitment to 100% certified cacao by 2020 and 75% by the end of 2018.[25]

Ferrero, Sustainability Report, Certified Cocoa
Figure 10: Ferrero touts its success toward reaching its certification goals.[26] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 170 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In its April 2018 Cocoa Barometer reports Ferrero is 70% certified (figure 4), and by its own reporting, on track to meet its goal of 75% cocoa certification (figure 10).

Ferrero reports partnerships with cacao cooperative ECOOKIM, the largest in Côte d’Ivoire, which takes part in the Fairtrade Africa program “It Takes a Village to Protect a Child.” Similar to CLMRS, the program establishes a Child Labor Committee to raise awareness about child labor, create child protection policy, and monitor activity at the community level. Ferrero reports that 9,413 children benefitted from this program. [27]

Ferrero also works with Save the Children to work toward ending child labor. It reports 1.2 million children are forced to work in hazardous conditions, however, Ferrero has set relatively modest goals of reaching 500 children, 7,500 members of 10 communities, and 100 representatives of local institutions.[28]

Ferrero, Save the Children, Cocoa, Sustainability, Community Development
Figure 11: Ferrero reports modest results on in their efforts to address child labor.[29]   Source: Save the Children, December 2016 – Protection des enfants vulnérables dans les communautés productrices de cacao dans le département de Soubré en Côte d’Ivoire – Ajournement pour Ferrero. Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 182 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In January Ferrero announced it planned to acquire Nestlé’s U.S. confectionary business for $2.8 billion in cash making Ferrero the third largest confectionary company in the U.S.[30] It is anticipated that Ferrero will realign their sustainability goals after the acquisition of Nestlé, but their goals are currently similar.

The Hershey Company
Popular Chocolate Brands: Hershey’s Chocolate Bar, Cocoa, Kisses, and Baking chocolates, Kit Kat, Almond Joy, Mounds, Reese’s, York.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[31]

Hershey, Open source map, cocoa farms, sustainability, transparency
Figure 12: Hershey Source Map for Reese’s Peanut Butter Cups. Pictured above is a zoomed in version of W. Africa. Users can zoom in and view the name of Cocoa Coop, educational location, or an area they obtain cocoa. The map also shows locations around the world for ingredients such as milk and sugar, plus other sources of chocolate in South American. Hershey also has a source map for its Hershey’s Milk Chocolate with Almond Bars. [32] https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f
Hershey, Sustainablity Goal
Figure 13: Hershey reports its on track to reach its goal of 100% certified cocoa by 2020.[37]   The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 27. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf
In its 2016 Corporate Social Responsibility Report, The Hershey Company highlights progress in their Learn to Grow agriculture and empowerment program, serving 48,300 farmers in West Africa.[33] The report also highlights its Energize Learning program, which provides Vivi energy bars to students improving overall nutrition. The program is a partnership with the Ghana School Feeding Program and Project Peanut Butter and 50,000 kids in Ghana receive 50,000 Vivi bars every day.[34] Hershey also partnered with The World Cocoa Foundation’s (WCF) Climate Smart Cocoa Program to address climate change impacts to cocoa growing regions. The partnership will pilot a series of programs to develop “climate-smart” best practices to inform the Learn to Grow curriculum and through Hershey’s CocoaLink program knowledge sharing between farmers will be allowed via low-cost mobile technology.[35] Hershey’s report indicates that it is on schedule to reach its 100% certified goal by 2020.[36] In April 2018 the Cocoa Baramoter reports Hershey reached 75% (see figure 4). Also in April 2018, Hershey announced the creation of its Cocoa for Good sustainability programs

Beyond certification, Cocoa for Good seeks to address the most pressing issues facing cocoa-growing communities. The strategy is to target four key areas: increase family access to good nutrition, elimination of child labor and increase youth access to education opportunities, increase household incomes for women and men, zero deforestation and increased agroforestry. The announcement came with a $500 million commitment by 2030 and like Mondelēz International and Mars, aligns its strategy to contribute to the goals of the United Nations Sustainable Development Goals.[38]

Mars
Chocolate Brands include: M&M, Snickers, Twix, Dove, Milky Way, etc.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.

In September of 2017, Mars announced its Sustainable in a Generation Plan, with a pledge to invest $1 billion over the next few years to address threats such as climate change, poverty in its value chain, and scarcity of resources.[39] This is across all their raw products, not just cocoa. Oxfam will serve as an advisor to their Farmer Income Lab, which aligns with the United Nations Sustainability Development Goal 1 (no poverty). The Farmer Income Lab will seek to create solutions through research for farmers working in Mars’ supply chain in developing countries.[40] Other actions include improving cocoa farming methods, pests and disease prevention, and unlocking the cocoa genome.[41] Engagement with others actors in the cocoa industry is also key, such as the World Cocoa Foundation and CocoaAction. Mars’ Chief Sustainability & Health and Wellbeing Officer, Barry Parkin, also serves as Chairman of World Cocoa Foundation.

Mars, Cocoa Sustainability
Figure 14: Mars identifies that 5 million cocoa farmers are impacted, but focuses mainly on addressing technology issues in farmer in a belief it will fix the social challenges that farmers face, such as a extreme poverty, child labor, and infrastructure concerns included in other sustainability plans.[47]
Mars may lay claim as the first major chocolate company to commit to 100% certified chocolate by 2020, but its progress has lagged, reporting 50% of their cocoa being certified in 2016[42] and the same percentage being reported by the cocoa barometer in 2018 (figure 4). During this same time frame Ferrero and Hershey have demonstrated increases in certification of cocoa reporting 70% and 75% certificated cocoa, respectively (figure 4).[43] Their website lacks a corporate social responsibility report and the information available on their site appears to be written in 2016, except for recent press releases and Income Position Statement.[44] For example Mars’ claim to be the only major manufacturer to work with all three major certification organizations Utz, Rainforest Alliance, and Fairtrade International is outdated.[45] Hershey and Ferrero include these bodies in their 2016 sustainability reports.

Until the recent announcement of Sustainable in a Generation Plan, Mars’ approach, as described on their website, leans more toward improving farmer yield through technology (fertilizer, farming techniques, mapping the cacao genome) than increasing living wages and address child labor. A press release by Frank Mars in April 2018 urges collaborative scientific approach and extolls their work on breeding higher yield cocoa plants for improving farmer incomes.[46] However, higher yields do not always improve farmer incomes. As previously mentioned, the recent Cocoa Barometer report suggests that higher production results in driving down price, thus less income for farmers. Perhaps Mars’ real progress is tied to the progress of the World Cocoa Foundation.

World Cocoa Foundation (WCF) and CocoaAction

CocoaAction is a voluntary industry-wide organization that aligns the world’s leading cocoa and chocolate companies, cocoa producing governments, and key stakeholders on regional priority issues in cocoa sustainability run by the World Cocoa Foundation (WCF). The WCF member companies committed to CocoaAction include Mondelēz International, Nestlé, Ferrero, The Hershey Company, Mars, Incorporated, among others.[48] In November of 2017 a Framework of Action was announced by the WCF with the governments of Côte d’Ivoire and Ghana and major chocolate and cocoa companies to end deforestation, restore forest areas, and accelerate investment in long-term sustainable production of cocoa, and the development and capacity-building of farmers’ organizations and farmer’s income. Commitments also include participation of policy creation by farmers and extensive monitoring and reporting. The Framework of Action involves governments and companies that represent 80% of the global cocoa production and usage.[49] If implemented correctly, these commitments should go a long way in repairing the deforestation in West Africa. 

The Future of Chocolate

These efforts are welcome and it is promising that the majors can successfully  collaborate with governments, NGOs, and each other in the important effort to secure the future of chocolate and those that produce it. It is also encouraging to see the major manufacturers release sustainability reports, however, as barometer.org reports, many of their commitments fall well short compared to the actual scope of the problem. The commitment to reach 400,000 children by 2020 would only impact 18% of children in need (figure 15). Similarly meeting commitments to help farmers in CocoaAction would only reach 15% of farmers in need (figure 15). Regarding living income, farmers are only making $0.78 per day, 31% of the living wage of $2.51 per day (figure 15). The Cocoa Barometer report stresses that a living wage, among other factors, is a major component that these initiatives must include in their sustainability initiatives. From available data, all reports aspire to improve farmer income, either by improving productivity or identifying additional income generating activities. However, these plans do not set a living wage as a goal. As mentioned earlier in this article more production doesn’t always result in more income.

Cocoa Barometer, Scale of solutions vs problem, Cocoa Sustainability, CLMRS, CocoaAction, Cocoa Farmer
Figure 15: Scale of solutions vs. scope of the problem. The data for this infographic was publicly available in the case of CocoaAction and Fairtrade. The International Cocoa Initiative graciously provided their data. The authors of the Barometer do not wish to imply that these organisations are doing an insufficient job, but simply that the scale of the interventions chosen by the sector as a whole are dwarfed by the size of the challenges.[50]   Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
The future of chocolate depends on the fate of cocoa farmers and their fate relies on untangling a mess of social and economic issues caused by imperialism, and exacerbated by free market capitalism and consumerism. The goals set forth in these reports are generally headed in the right direction, but their success is dependent on their ability to make their initiatives successful, then scale up on that success. Accountability and transparency among the industry and at the government level is also paramount to measure the effects of these initiatives. Consumers also have a role in making responsible purchases and applying pressure on corporations and governments to minimize inequality in the supply chain and certification plays an important role. If farmers continue to be marginalized, then there will be little incentive for a younger generation of farmers to take up the trade and chocolate may become a rare treat indeed.

 

Works Cited:

[1] Vowell, Sarah. The Partly Cloudy Patriot. Simon & Schuster. New York, New York. October 2002. p. 42

[2] Martin, Carla D. “Introduction.” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture.

[3] Ibid.

[4] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. Web. p. 11. April 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[5] Ibid. p. 52.

[6] Ibid. p. 6.

[7] Ibid. p. 3.

[8] Fairtrade. Aims of Fairtrade Standards. Web. May 8, 2018. https://www.fairtrade.net/standards/aims-of-fairtrade-standards.html

[9] The Rainforest Alliance. What Our Seal Means. Web. May 8, 2018. https://www.rainforest-alliance.org/

[10] Utz. Joining Forces: Utz and the Rainforest Alliance. April 24, 2018. Web. May 9, 2018. https://utz.org/merger/#QA_merger

[11] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. p. 6. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[12] Martin, Carla. “Sizing the craft chocolate market.” Fine Cacao and Chocolate Institute (blog). August 31. 2017. Web. April 25, 2018. https://chocolateinstitute.org/blog/sizing-the-craft-chocolate-market/.

[13] Ibid.

[14] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 2. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

[15] Ibid. p. 5

[16] Ibid. p. 21

[17] Ibid. p. 21

[18] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.24 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

[19] Ibid. p. 22

[20] Nestlé. Introducing our first report on tackling child labour in cocoa. Web. April 2018. https://www.nestlecocoaplanreport.com/

[21] Ibid. 37

[22] Ibid. p. 23

[23] Ibid. p. 49

[24] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 171 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf

[25] Ibid. p. 170

[26] Ibid. p. 170

[27] Ibid. 175

[28] Ibid. p. 181

[29] Ibid. 182

[30] Ferrero. Ferrero to Acquire Nestlé’s U.S. Confectionary Business. January 16, 2018. Web. May 9, 2018. https://www.ferrero.com/group-news/

[31] The Hershey Company. Our Certified Ingredients. Web. April 30, 2018. https://www.thehersheycompany.com/en_us/responsibility/good-business/responsible-sourcing.html

[32] Hershey. Hershey’s Milk Chocolate with Almonds Open Source Map. Zoom View. Web. April 2018. https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f

[33] The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 11. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf

[34] Ibid. p. 23

[35] Ibid. p. 12

[36] Ibid. p. 27

[37] Ibid. p. 27

[38] Hershey. Hershey Announces Cocoa For Good, the Company’s Half-billion Dollar Sustainable Cocoa Strategy. April 4, 2018. Web. April 30, 2018. https://www.thehersheycompany.com/content/corporate/en_us/news-center/news-detail.html?2340764

[39] Mars. Unveiling Our Sustainble in a Generation Plan. Sept. 5, 2017. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/newsroom/unveiling-our-sustainable-in-a-generation-plan

[40] Farmers Income Lab. Challenges. Web. May 9, 2018. https://www.farmerincomelab.com/

[41] Mars. Income Position Statement: The Current Situation. Web. May 9, 2018. http://www.mars.com/global/about-us/policies-and-practices/income-position-statement

[42] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[43] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[44] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[45] Ibid.

[46] Mars. Frank Mars Calls for the Cocoa Industry to Take a Collaborative Scientific Approach to Cocoa. April 26, 2018. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/frank-mars-cocoa-collaboration

[47] Mars. Cocoa: Caring for the Future of Cocoa, Our Approach. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[48] CocoaAction. World Cocoa Foundation. Web. April 2018. http://www.worldcocoafoundation.org/about-wcf/cocoaaction/

[49] World Cocoa Foundation. Two-thirds of Global Cocoa Supply Agree on Actions to Eliminate Deforestation and Restore Forest Areas. Nov. 2017. Web. April 2018.

[50] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

There is No Pleasure in Guilty Chocolate!

Why do you love chocolate? Because it is good! It tastes good and makes you happy. It is all that is good in the world wrapped in a beautiful candy bar. What if you learned that your delicious candy bar is a by-product of something bad, the output of someone else’s suffering?  A child’s suffering? Would you enjoy it just the same? Eating is not just a means to satisfy hunger; it is also an emotional and psychological experience.  We like to eat, and we like to eat good food without any negative connotations. Chocolate does not taste as good when it is served with a side of guilt. Chocolate tastes better when you wholeheartedly know that it came from a good place and produced in an ethical and social responsible manner.

Did you know that the global chocolate industry is nearly $100 billion dollars a year? The United States alone spends a little over 18 billion dollars in chocolate (2015), and that the average American consumes approximately 4.3 kilograms / 9.5 pounds of chocolate a year (2015). In comparison, beating the Americans at chocolate consumption are the Swiss who consume approximately a little over 9 kilograms / 20 pounds per person, then tied for second place are the Germans and the Austrians who approximately consume 3.6 kilograms / 7.4 pounds per person (Satioquia-Tan). Chocolate can be found anywhere around the world and is affordable to the masses especially to those who live in the developed world. Chocolate can be found in candy bars, truffles, fudge, cakes, muffins, biscuits, breakfast cereals, pancakes, health bars, sauces, drinks, in your café mocha, and anywhere you can sprinkle chocolate syrup. You can buy it in a specialty shop, supermarket, mini-market, drugstore, or any corner street gas station.

The majority of chocolate eaters are rather naïve in knowing the history and the current nature of the chocolate-making business. They simply eat it because they love chocolate without really knowing what it is, where it comes from, who makes and how; or any related social issues. For those consumers who are more aware of the social and economic impacts of the chocolate industry are a little more selective in choosing and enjoying their chocolate. To fully appreciate food is to experience it through all the possible senses, the physiological and psychological (Stuckey 13). Only twenty percent of what we physiologically taste happens in our mouths, the rest of the tasting experience happens through our remaining senses of sight, smell, touch, and sound. We, also, want to psychologically feel good about what we are eating. We want to know about the origins, the farming practices, and the ethics of what we are tasting (Stuckey 14). We want to know the context, the beautiful story, of what we are eating so we can enjoy it fully. The other option is to choose to remain a little ignorant of the subject as not to sour our chocolate taste, however this pleasure would be more superficial and would not represent the fullest appreciation of what we are eating. To fully appreciate today’s chocolate, we will have to fully experience it with the body and mind in full awareness of its origins, present journey and social impacts.

  1. What is Chocolate?

Cocoa is the main ingredient for all chocolate recipes.  Cocoa derives from cacao seeds, or more commonly referred to as cacao beans, which grow on the Theobroma Cacao tree.  Cacao trees are finicky trees that can only bear fruit in hot and humid tropical climates,twenty degrees from the equator at a specific altitude. These trees are highly dependent on midges, an insect, for its flowers to pollinate and bear fruit (Coe and Coe 19-21, 27). Cacao beans grow inside a fruity, pulp filled pod, approximately 30-40 beans grow inside one pod. Unlike most trees, where fruit grow dangling down from branches, cacao pods sprout directly from the tree trunk. In raw form, cacao beans constitute half its size in fat, cocoa butter. When cocoa butter is extracted from the cacao bean, what remains is the cocoa (or cocoa powder), the main ingredient of all chocolate (Coe and Coe 27). Before cacao beans turn into chocolate, cacao fruit is first farmed.  Upon harvest, fruit pods are removed from trees and cracked open to extract its beans with machetes. Cacao beans are then fermented, dried, sorted, roasted, transported, winnowed (deshelled), ground to a liquor, pressed (to remove the cacao butter), conched, and then what remains is added to chocolate-making recipes. Chocolate is the result of a labor intensive and highly processed food.

  1. Where Does Cacao Come From?

Cacao is native to the New World, the South American’s amazon basin region (Coe and Coe 25), and the Mesoamerican native cultures of the Mayans and Aztecs and predecessors were the first peoples to ever make chocolate dating back as far as 1500 BCE (Coe and Coe 33). Cacao was precious and a sacred food reserved for the elite, special occasions, and sacred rituals. Mayan and Aztecs Gods often appear alongside or in the form of cacao trees in their native hieroglyphs and surviving art (Coe and Coe 42). So precious, cacao beans were even used as a means of monetary currency. In 1545, documented is the commodity price of a tamale: one tamale equals one cacao bean (Coe and Coe 98-99). Upon colonizing Mesoamerica, the Spanish conquistadors were the first Europeans to discover and spread the taste of chocolate to Europe starting in the 1500’s (Coe and Coe 108). At the beginning of the chocolate history in Europe, chocolate was rare, expensive, and for the upper class.  Then as time passed and soon after the industrial revolution, chocolate became relatively common and affordable to the masses.

Amazon Basin
Amazon basin (based on Wikipedia, Amazon basin article, by Kmusser, using Digital Chart of the Word and GTOPO data)

After the end of the American colonial period, in the late 1800’s, the Spanish and the Portuguese introduced cacao to West Africa. Due to favorable climate conditions, cacao flourished in West Africa.  Today, approximately seventy percent of the world’s cacao comes from West Africa (Wessel and Quist-Wessel 1). The Ivory Coast and Ghana are the two major countries that supply cacao.  There are 2 million, small (3 hectares acres in size), independent farms (Ryan 52) in West Africa that supply three million metric tons of cacao per year (World Cocoa Foundation).

2000px-Ghana_Côte_d'Ivoire_Locator.svg
West Africa, Ivory Coast depicted in orange and Ghana  depicted in green (based on Wikipedia, Ghana-Ivory Coast Relations article)

  1. What Are the Social Issues Involving the Chocolate Industry?

Since the first Europeans, the Spanish conquistadors, landed in the New World, the cacao industry has been tainted with slavery and forced labor since 1650’s (Berlan 1092). Upon colonizing Mesoamerica, the Spanish forced the natives to pay tribute in labor and cacao to their new Spanish Crown.  After millions of natives died of diseases, the Spanish, like other colonists in the Americas, resorted to using chattel slavery from Africa to extract New World resources (Presilla 24, 33). Chattel slavery officially ended in 1884, however it continued in disguise in Portuguese West Africa well into the 1900’s in the cacao industry and some reports state that it persisted until 1962 (Berlan 1092).

Today, cacao farmer incomes are very volatile for it depends on operating profits, and since cacao is a commodity, the market price.  Farmers need to sell their cacao at a high enough price in order to pay off their operation expenses which includes labor, a major expense, just like most businesses. Unexpected operating expenses and / or a fall in market price can be devastating on farmer revenues/incomes. Cacao farmers, per capita, constantly live without the security of a reliable living wage. In 2015, cacao farmers earned 50 to 84 cents on the American dollar a day (Cocoabarometer). As it is, cacao farmers barely break even, and there is little economic incentive for them to stay in the cacao farming business.  Due to local poverty and lack of other options, farmers continue to grow cacao under pressure to lower operating costs and often resort to desperate means to make a profit, break even, or just enough to pay for rice and cooking oil (Off 5).

In more recent history in the 1990’s and early 2000’s, a wave of newspaper stories and documentary films exposed the existence of child labor, trafficking, and slaves in West African cacao farms which caused much consumer outrage. The media graphically showed the world the extreme poverty and hard lives of cacao farmers in West Africa and the desperate measures farmers take to lower operating costs by using child slave labor (Berlan 1089).

The documentary, Slavery: A Global Investigation (2000), especially shocked viewers by showing how easy it was to find child slaves working on cacao farms and how the local people seem to accept the practice as a way of life. On camera, journalists were able, with relative ease, to overtly interview real child slaves and get first-hand testimony about their hardships, a farm owner who openly admitted to having slaves and in how to get them, and a local official who confirmed as matter of fact that at least 90% of the Ivory Coast farms use child slave labor.  Ninety percent implies the existence of hundreds of thousands of slaves (Ryan 118). A 2000 US State Department report estimated that 15,000 Malian children worked on Ivory Coast cacao farms and that many of were under 12 years old and sold into indentured service (Off 133). Two of the local documentary crew even demonstrated how easy it was to buy slaves, posing as buyers, they went to the marketplace and were able to purchase two boys for the total of forty British pounds (approximately $40) within thirty minutes. Economics, low cacao market price, was credited as being the main reason why these farmers resorted to using slavery.  With such low cacao market prices, farmers cannot afford to pay employee wages and still make a profit, and they have no other income options. In contrast, in a free and mature economy, if a business is not profitable it goes out of business, and one can start a new business or find a new job, this is not the case for the West African cacao farmers.

Since the West African child labor scandals, there has an increased awareness and legislation attempts to eradicate forced and most hazardous child labor. Child labor in general is so embedded into the West African culture, not all children who work on farms are slaves or working with hazards. Most children work as part of the family on their family farms. It was deemed impossible and impractical to create a law that would abolish all form of child labor, however a voluntary agreement, The Harking-Engel Protocol, was signed among the Ivory Coast and the International Chocolate and Cocoa Industry in accordance with the International Labor Organization to end the worst forms of child labor in 2001 (Ryan 44, 47). Because of extreme poverty and lack of options, there are children who are better off working for they will at least have access to some food. Today, consumers are more aware, corporations have put efforts in demonstrating social responsibility in self-certifications, and nonprofit/advocacy organizations, have emerged and increased advocacy. There is still much poverty among cacao farmers, and many children  are still working on farms and some are still suspected of being forced to work against their will.  The child labor problems still exist today.  We, the world, hoped for that the state of child labor in West Africa would be better, however it could be worse.

It is natural that corporations would seek to do business with a poorer and less mature economies so to benefit from cheaper labor costs, but there should be limits when business practices violate human rights and the ability for workers to make a livable wage. It is evident that cacao farmers need more money so can they afford to hire farm workers to help cultivate their labor intensive cacao farms. In the least, the cacao market price needs to go up. It may mean that consumers would have to pay a little more for their chocolate treats. Would you be willing to pay a little more for your candy bar if it would end child and forced labor?

I realize that blindly throwing more money at the problem will not necessarily fix it if local corrupt governments and other stakeholders are still there to scheme away the extra money intended for the cacao farmers. This is a complex issue which requires multi-approach solution. We, the consumers, the governments, NGOs, the corporations, the media (or lack of media), the farmers, are all part of the problem, and we could also all be part of the solution. West African farmers and their children need special consideration for they are the most powerless demographic group in the chocolate food chain. The ones with the most power in the chocolate food chain by default have the most ability, and therefore the greater responsibility, to effect change. Wealthy companies and consumers are in the best position to invest and apply influence in the solution. We, the consumers, should expect that our chocolate companies to conduct business in an ethical and social responsible manner or make better consumer choices if they do not.

Here, in the first world, we would not accept the practice of child labor or slavery in our backyard, and we should not accept it elsewhere and in the products that we use and the foods we eat.  The West African modern-day slave issue is especially heartbreaking for it involves children in producing sweets that we all so enjoy so much. If we all knew that children were being kidnapped and forced to cultivate cacao, we would all enjoy the taste of our chocolate a little less. As consumers, we need to be more conscious about what we eat and learn as much as possible so we can make better consumer choices, maybe write a customer complaint to your chocolate provider or your congressman to influence change in law.  There is no better tasting chocolate than the one that is free from social guilt. In the end, we should all have the right to enjoy good and good-tasting chocolate.

Works Cited

Berlan, Amanda. “Social Sustainability in Agriculture: An Anthropological Perspective on Child Labour in Cocoa Production in Ghana. The Journal of Development Studies, vol. 49, no. 8, 2013, pp. 1088-1100. http://dx.doi.org/10.1080/00220388.2013.78004.

Cocoa Barometer 2015 report, USA Ed. Cocoabarometer.org. http://www.cocoabarometer.org/International_files/Cocoa%20Barometer%202015%20USA.pdf

Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. 3rd ed., Thames & Hudson, 2013.

Off, Carol. Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet. The New Press, 2008.

Presilla, Maricel. The New Taste of Chocolate, Revised: A Cultural & Natural History of Cacao with Recipes. Ten Speed Press, 2009.

Ryan, Orla. Chocolate Nations: Living and Dying for Cocoa in West Africa. Zed Books, 2011.

Satioquia-Tan, Janine. Americans East How Much Chocolate? CNBC.com, 23 Jul. 2015, 7:41 PM ET.  http://www.cnbc.com/2015/07/23/americans-eat-how-much-chocolate.html

Stuckey, Barb. Taste What You Are Missing: The  Passionate Eater’s Guide to Why Good Food Tastes Good. Free Press, 2012.

Slavery: A Global Investigation. Produced and directed by Brian Woods and Kate Blanchet.  A True Vision Production in Association with HBO, 2000. TopDocumentaryFilms, topdocumentaryfilms.com/slavery-a-global-investigation.

Wessel, Marius, and Foluke Quist-Wessel. Cocoa Production in West Africa, a Review and Analysis of Recent Developments. NJAS – Wageningen Journal of Life Sciences., vol. 74-74, pp. 1-7, 12-2015. doi.org/10.1016/j.njas.2015.09.001.

World Cocoa Foundation, http://www.worldcocoafoundation.org/category/program-region/africa.

Exploitation or Smart Marketing? Comparing and Analyzing the Business Practices of Hershey’s and Divine Chocolate

Are chocolate companies exploiting workers when they use a values-based approach to promote sales? Although some companies are clearly exploiting its workers, there is a difference between exploitation and smart marketing. 

Let’s compare the practices of Hershey’s Chocolate and Divine Chocolate to illustrate this point: The elements of exploitation exist in the practices of Hershey’s because they are advertising falsehoods and treating their workers as the opposite of what they market; Divine Chocolate is the polar opposite of Hershey’s in this manner because they market values that they  actually practice, making them smart marketers – not exploiters.

Defining Exploitation

Is Divine Chocolate being exploitative? Exploiting in itself is deriving full use of something or someone unfairly (Alberts). Let’s first define exploiting for our own terms when it comes to thinking about chocolate companies – Exploiting is the act of a chocolate company using an element to maneuver, outrank, increase sales, or brand the company in a certain way without giving fair benefit to the people that they are using to achieve these goals.

Exploiting also has the following connotations when it comes to chocolate companies such as (but not limited to) when it comes to what they do; this will be used as our litmus test to determine whether or not true exploitation is at play:

Workers that are a part of a minority, less powerful group (women, international students, children, members of the economic lower class)

Not fairly paying workers for their work

Misrepresenting benefits to workers

Misrepresenting a situation to consumers

Using workers to promote ideas/situations that are not actually occurring within the company (i.e. the idea of gender equality when women may get paid less than men)

Branding the company in a way that promotes an idea to sell product but using opposite means to get there (i.e. the idea of fair trade but using a farm/manufacturing factory that does not promote fair trade)

*Not giving the same rights and privileges to workers that are granted to consumers (this may come in the form of cacao workers cultivating and being a part of the process of making chocolate but actually never tasting chocolate in its final form themselves; this is an industry norm that happens more often than most consumers would think)

Hershey’s Chocolate

Before we analyze the possibility of Divine Chocolate being exploitative, let’s analyze a company that passes the litmus test for exploitation – Hershey’s Chocolate.

By analyzing their pictures in advertisements and their marketing and comparing it to the real picture of the company, we can certainly see how Hershey’s Chocolate is being exploitative.

Hershey’s history of exploitation goes back essentially since the beginning of the start of the company; the company often used farms and factories that did not pay its workers a fair wage, lowered the standard of living, and took part in the enslaving of workers by providing unsafe conditions (Anti-Given that, one would think that the company would have “changed its tune” so to speak. However, Hershey’s has not done so and has continued to abuse their power as a top-tier chocolate company. It has been proven that Hershey’s is still taking part in these kinds of practices, which has been noted by researchers on international student workers that took part in a foreign exchange program in the United States with Hershey’s as their sponsor. According to the New York Times:

The students, who were earning about $8 an hour, said they were isolated within the plant, rarely finding moments to practice English or socialize with Americans. With little explanation or accounting, the sponsor [Hershey’s] took steep deductions from their paychecks for housing, transportation and insurance that left many of them too little money to afford the tourist wanderings they had eagerly anticipated (Preston).

How can Hershey’s not be an exploiter if international student workers, who are usually unfamiliar with the United States, cannot afford to even travel to the places that they wanted to see; these international workers took the job with Hershey’s in order to site-see in exchange for work, and Hershey’s is essentially taking that element away from them. Further, the promises that Hershey’s made to the students regarding a certain amount of money given to them was understood by the company to be separate from the housing, transportation, and insurance. Clearly, Hershey’s is exploiting the international workers by lowering their wages in order to get labor in the form of the cheapest way possible; these deductions would not even begin to cover a legal and livable way or manner if an American had this job. Thus, Hershey’s found a way to bypass the legal system in order to get cheaper labor – in the form of exploited international students.

Additionally, one cannot even argue that Hershey’s has learned its lesson on this front – despite the media attention, public outcry, and protests from students alike, Hershey’s is still running this program; imagine the kind of exploitation that could be occurring in more vulnerable areas if this kind of company if this type of exploitation is happening in the United States. If the plant in Pennsylvania is seeing these kinds of abuses, it is safe to assume that the exploitation along the Ivory Coast and the Americas are seeing abuses that are hidden away from the public.

Now, let’s take a look at the advertisements in Hershey’s pictures that are quite different than the actual reality of the company. For instance, in Figure 1, we see how Hershey’s is advertising itself as a chocolate that is a part of “shared goodness:”

 

images

(Figure 1. Hershey’s Community Archives)

 

This advertisement, at first glance, may not seem like a direct link to exploitation, but the company is promoting itself as a brand that is values-based. It draws upon the picture of a happy family and talks about how Hershey’s “good business” practices translates into better chocolate for the family, resulting in a “better life and bright future.” However, just from the proven evidence discussed regarding the student workers, the reality of Hershey’s is very different than what it is advertising. Clearly, Hershey’s is branding itself as a business that is “good,” however, it is not actually being a “good” business with values.

This type of misrepresentation marketing is all throughout many of their advertisements throughout the years. For example, Figure 2 tells another compelling story about how Hershey is actually promoting diversity when it is really not:

1986_hersheys_mini_ad

(Figure 2. Hershey’s Community Archives)

In this picture, children of different ethnicities and races are being shown; Hershey’s is advertising themselves as a company that promotes inclusiveness across all kinds of ethnic and racial divides. For instance, it talks about how it puts different kinds of candies for all kinds of kids. However, the example of exploitation of its international student workers tells a very different kind of a story. How can a brand that claims to be “inclusive” not be inclusive to its international workers? How could a brand that would never be able to legally get away with reductions in paychecks and amenities for American workers be so inclusive if it takes a legal loophole to do so for its international workers? Clearly, it can be seen how just this one type of exploitation is being used in full force, which passes our litmus test on essentially all fronts. It has abused a sensitive group, misrepresents benefits to workers and unfairly promises them lies, and then brands the company in a way that misrepresents the brand to the consumer, whom otherwise would think that Hershey’s has excellent values just from looking at their advertisements; Hershey’s, knowing that most targeted and loyal consumers are not going to search for their name on the Internet every time they want to buy a bag or piece of chocolate, use this to their advantage.

 

Divine Chocolate

Now let’s compare how Divine Chocolate uses certain advertisements to help attract consumers, but is not being exploited in their efforts, which is the polar opposite of what Hershey’s is doing:

Divine Chocolate, according to Sam Binkley employed a values-based marketing strategy in order to justify their price:

Divine has moved on from selling mainly on the basis of the solidarity value of its product to material use value taste. [Divine Chocolate] still is slightly more expensive as it must, other than the likes of Nestle and Kraft, fulfill its double bottom line of economic and social viability. So while the product is competitive on a level of quality, its price still needs to be justified in terms of justice or solidarity. In order to go beyond this, Divine [needed] to add symbolic use value to its brand, engage in consciously designed commodity aesthetic in order to push into unchartered mass markets (Binkley).

 

Divine Chocolate, like Hershey’s, desired to push even further for profits for their already-successful companies so it could stay competitive; however, what makes it different than other companies is that it is a specialty type of chocolate in a specialty kind of market. In order to be competitive within those specific markets, Divine Chocolate desired to break and expand into the mass markets by justifying their price to those kinds of consumers. In turn, it created the Women’s Empowerment Campaign, which promotes the equality of women chocolate workers, in order to attract consumers (Divine Chocolate).

 

But how is Divine Chocolate, unlike Hershey’s, not being exploitative if they are using mass marketing strategies in the form of women’s empowerment campaigns to sell their product? The difference here is that Divine Chocolate is actually doing what they say and promote in terms of their campaign to sell product.

 

The women’s empowerment campaign is real because it is empowering women in ways that they have never been empowered before. For instance, Divine Chocolate started their journey to change conditions when they gave 44 percent equity to Kuapa Kokoo, the largest shareholder of the company’s assets; this co-operative represents 85,000 farm members across 1,257 villages, and is now the largest co-operative in the world; it is credited with the rise of female cacao ownership of at least 20 percent (Leissle, Wiego). Divine allows women farmers to take a special part in an ownership that no other chocolate company has seen before; clearly, it is empowering women in a way that not only represents them as true stakeholders, but brings positivism to an industry that can be quit laborious, abusive, and depressing for other workers who are not afforded such basic rights. Further, approximately 2 percent of the turnover from Divine is specifically used to promote programs to help farmers gain more skills such as good governance programs, literacy programs, and model farming lessons. Thus, Divine not only gives more than fair equity to its workers (the largest of its kind in history), but invests even more money from their profit to ensure that their workers are gaining life skills to use both inside and outside the farm; by bringing in educational and quality of life programs, Divine is sending an authentic message with real action to the female farmers of Ghana: Divine wants to support you and your work by uplifting you and the community.

By examining the advertising campaigns of Divine Chocolate, we can see a message of solidarity and unity that runs throughout its campaign. For instance, in Figure 3, Divine Chocolate uses a picture of an attractive, healthy-looking female worker to get their message across loud and clear:

2015-04-01-aaas-e119-lecture-9-race-ethnicity-gender-and-class-in-chocolate-advertisements-goo-copy-version-2

(Figure 3. Divine Chocolate)

Many critics may charge that because the woman is attractive, dressed nicely, and looks happy, Divine Chocolate is exploiting its female workers because it promotes “sexuality” and an “untrue side of the chocolate industry”. However, this picture of the woman is an accurate picture because Divine Chocolate helps uplift women to give them the lifestyle that can afford many of these luxuries; with their fair payouts and fair trade program, Divine Chocolate can accurately use this advertisement as an authentic way to attract consumers. When looking at this advertisement, most consumers, on first glance, would think of Divine Chocolate as a chocolate brand that is an “equality treat” – because it is. They further humanize the female chocolate worker, who is actually a co-operative co-owner, by putting her name on the advertisement; the consumer will be led to think that when they buy a bag or piece of Divine Chocolate, the benefit will be going to female workers like Beatrice – and rightfully so because it actually is doing that. That, in itself, is not exploitation but a smart marketing scheme that is a “win-win” for both Divine Chocolate and female workers like Beatrice. All in all, Divine Chocolate has gone out of their way to make this picture a reality – their own values-based version of the chocolate industry.

In Figure 4, we can see how this values-based campaign continues throughout many of their packaging:

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(Figure 4. Divine Chocolate)

In their designs, Divine Chocolate presents itself as a champion for women by placing designs that are aesthetically pleasing to many females and placing a message on top of the packaging reading “Empowering Women Cacao Farmers.” Like in the picture above, some critics may think that by putting this packaging out in this manner, Divine Chocolate is exploiting women workers because they are using designs that attract consumers to think that they are helping women workers. However, like stated in the previous discussion, they actually are helping women. Further critics may charge that this is being used for International Women’s Day to “cash in” on the holiday, but that charge only further hones in on the point that Divine Chocolate is not being a champion of women just on Women’s Day but essentially every day.

 Just because a company uses an element of their system (which, in this case, is championing the female worker) to sell product does not mean that they are being exploitative. On the other hand, if Divine Chocolate was using the same business practices as Hershey’s and using this campaign, they would then be exploitative. But Divine Chocolate is simply promoting the ideas and concepts that they have actually put into practice.

If these points did not already answer the question of whether or not Divine Chocolate is being exploitative for you, let’s take a direct look back at our litmus test for exploitation

Litmus Test: Is Divine Chocolate partaking in any of the following?

Workers that are a part of a minority, less powerful group (women, international students, children, members of the economic lower class)

Not fairly paying workers for their work – No, workers are granted an excellent amount of equity

Misrepresenting benefits to workers – No, workers are actually being empowered by the company

Misrepresenting a situation to consumers –No, the women’s empowerment campaign is authentic

Using workers to promote ideas/situations that are not actually occurring within the company (i.e. the idea of gender equality when women may get paid less than men) –No, the women’s empowerment campaign is helping women

Branding the company in a way that promotes an idea to sell product but using opposite means to get there (i.e. the idea of fair trade but using a farm/manufacturing factory that does not promote fair trade) –No, ideas like fair trade and empowerment are involved

*Not giving the same rights and privileges to workers that are granted to consumers (this may come in the form of cacao workers cultivating and being a part of the process of making chocolate but actually never tasting chocolate in its final form themselves; this is an industry norm that happens more often than most consumers would think) –No, workers are a part of the brand name but also benefiting from the marketing taking place since they get a higher amount of equity, which equals and translates into improved working conditions and lifestyles

Clearly, unlike Hershey’s, Divine Chocolate does not pass the litmus test for exploitation; the Women’s Empowerment Campaign is a real campaign, which Divine Chocolate uses for smart marketing and true empowerment.

 

References

Alberts, Heike. “Using Cocoa and Chocolate to Teach Human Geography.” Journal of Geography, 2010.

Binkley, Sam. “Cultural Studies and Anti-Consumerism.” New York: Routledge, 2011. Print.

Case Study: Women Cocoa Farmers in Ghana. Wiego. <http://www.wiego.org/wiego/case-study-women-cocoa-farmers-ghana&gt;

Divine Chocolate. <http://www.divinechocolate.com/us/&gt;

Hershey’s Community Archives. <http://blog.hersheyarchives.org/category/hershey-chocolate/marketing/&gt;

Leissle, Kristie.  “Cosmopolitan cocoa farmers: refashioning Africa in Divine Chocolate Advertisements.” Journal of African Studies, 2012.

Preston, Julia. “Pleas Unheeded as Student’s U.S. Jobs Soured.” New York Times, 2011.

The Cocoa Industry in West Africa. Anti-Slavery International, 2004. <http://www.antislavery.org/wp-content/uploads/2017/01/1_cocoa_report_2004.pdf&gt;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hershey’s Social Responsibility: A Case Study on How the Rise of Social Media Holds Companies to a Higher Standard

The production and selling of chocolate is around a $100 billion USD per year global industry (Martin, 2017). However, while chocolate may be a big business, there have been many instances of social injustices and questionable business practices thought it’s history. Given that over half of the world’s confectionary market is completely dominated by 5 major players; Mars, Kraft, Nestle, Ferrero and Hershey, all of these companies could have a tremendous impact on efforts to rectify injustices and improve business practices (Martin, 2017). Unfortunately, historically some of these companies, Hershey for example, have not only failed to take an active social role but have actually contributed to the problem. Recently, however Hershey and other major companies have experienced a shift in their company culture and have actively invested their resources into increasing social responsibility and sustainability. This shift and changed attitude can partially be attributed to the rise of social media and the consumer’s growing awareness, investment, and involvement in how companies operate.

History of Hershey

Historically Hershey has not always utilized the most socially responsible business practices. One extremely controversial issue within the chocolate industry is the issue of sourcing. Amongst the many ethical problem that can arise in the process of sourcing cocoa is the issue of acceptable labor conditions. This particular issue has seemed to cause trouble for Hershey’s business on more than one occasion. At the turn of the 20th century it was discovered that slave labor was being used at the Cadbury cocoa farms located in São Tomé and Príncipe (Higgs, 2012). Cadbury, experienced both government and public backlash for his continued involvement within the areas, until finally in 1910 the company formally boycotted cocoa from São Tomé and Príncipe, and moved their operations to the Gold Coast in Africa (Higgs, 2012). Unfortunately, Hershey their American counterpart chose not to participate in the boycott, thereby facilitating the existing infrastructure of slave labor and allowing it to continue well in the mid-1900s (Martin, 2017). This is not the only instance of questionable cocoa sourcing during the Hershey’s history. More recently, Hershey has also received a considerable amount of unfavorable coverage based on the working conditions and the use of child labor in cocoa farms in Cote d’Ivoire specifically along the Ivory Coast (Phillips & Caldwell, 2005).

Hershey’s Shifting Values and Increased Social Responsibility

Although Hershey has had a history of questionable and controversial business practices, the company is now contributing to efforts to rectify social injustices and improve working conditions within the chocolate industry, by increasing their own social responsibility. In 2014, the company also released their first corporate social responsibility report in attempt to increase transparency and accountability, stating that they wanted to “reimagined [their] corporate brand, with a clean, modern identity.”

This video highlights some of the initiative that Hershey has taken on  in order to improve their social responsibility. Some of the accomplishment that they highlight are helping cocoa farmers increase their productivity, reducing waste and water use to increase environmental sustainability, and investing in children and their future. They specifically mention how they are supporting a cause in Ghana known as Project Peanut butter as well as how they have built a school on the Ivory coast and are investing in education at home in the United States.

The Role of Social Media

This increase in social responsibility from not only Hershey, but also other major companies, can be attributed in large part to the rise of social media and the growing awareness and interest of the consumer. Snider, Hill, and Martin (2003) discuss how the internet has given the public access to certain information and has reduced companies’ ability to act as gatekeepers of information to their stakeholders. As a result of this vast expansion of information accessibility, consumers are now more concerned than ever that the companies they are buying from and supporting are not only producing high quality product, but also doing it in a way that is ethically sound. In fact a study conducted by Maignan and Ralston (2002) revealed that one of the main reasons that companies listed for committing to socially responsible behavior was pressure from stakeholders, notably consumers, to behave in socially responsible ways (Campbell, 2007). With the introduction of social media, consumers have a new tool to apply this social pressure with. They are now able to give immediate and very public feedback when their standards for product quality and social responsibility are not being met and companies are responding accordingly.

These tweets are examples of how social media, in this case specifically twitter, has increased the accountability of Hershey. The tweets range from being about issues of quality, to product innovations/requests, to issues about ethical business practice. Despite the wide range of topics that are covered in tweets @ Hershey, Hershey makes a point of responding to every one. This illustrates just how important and powerful social media feedback can be.

One example of social media having a extremely significant and immediate impact on a company’s business is the recent Kendall Jenner Pepsi Commercial fiasco.

Pepsi aired this commercial featuring Kendall Jenner in early April of this year. The video was immediately met with criticism and public outrage on social media about the video being appropriative and tone-deaf, by using serious political issues to sell soda.

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Many people complained that it trivialized decades of protests against police brutality, as well as trivializing the black lives matter movement, specifically because of the image towards the end of the commercial of Kendall Jenner handing the police officer a can of Pepsi, which many compared to the now famous image captured of Ieshia Evans at a protest moments before her arrest. This tweet, shown above is just one of many tweets complaining about the lack of social awareness that was displayed in this ad.

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One particularly notable tweet came from Bernice King, Martin Luther King’s daughter. She too found the pepsi commercial to be appropriative and trivializing of the hardship and struggle that her father faced in the fight for civil rights.

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Within 24 hours, due to the public uproar and continued outrage expressed over social media Pepsi pulled the ad, which probably cost millions to produce and issued a public statement, which they shared across multiple platforms of social media, apologizing for “missing the mark.” While Hershey has never faced social media back lash of this magnitude, the pepsi example clearly illustrates what a huge and swift impact social media and public response can have on how companies conduct their business and represent themselves.

Is it all Enough? Hershey’s Lack of Transparency

Although it is evident that social media has the potential to hold companies accountable and enact tangible change, it may not have a broad enough reach to completely revolutionize the chocolate industry and all of the social injustices occurring within the business just yet. True, Hershey seems to have taken great strides in increasing their company’s social responsibility and investing their resources into making sure that they are improving working conditions and making the world a better place. But, are they really doing enough? One thing that I did find disheartening was the underwhelming amount of company transparency and lack of emphasis on their work in social responsibility on their website.

The images above are all screen shots from different company homepage, In the upper left corner, you will see a screenshot from Hershey’s homepage, in the lower left hand corner is a screen shot of Mars’ homepage and the upper and lower righthand images are screenshots of Nestle’s company homepage.

Screen Shot 2017-05-05 at 11.31.12 AM

Zooming onto the main menu of Hershey’s page, you can see that they don’t have any type of link to learn more about their social responsibility. At first I wanted to give Hershey the benefit of the doubt, so I clicked on their link to learn more about their story, to see if there was any mention of social responsibility on that page. I also clicked on their option to learn more about simple ingredients to see if while they were talking about their simple ingredients they also mentioned how they were ethically sourcing them.

Screen Shot 2017-05-05 at 11.32.01 AMScreen Shot 2017-05-05 at 11.32.25 AM

What I found was slightly disappointing, these are screen shots from the “Our Story” page (left) and the “Simple Ingredients” page (right). As you can see from the images, the informations is very heavily geared towards the wants and benefits of the consumer and doesn’t really make any effort to talk about socially responsibility at all. It seems like their only concern, at least as it is portrayed on their main website, is their responsibility to their consumer. In fact it was so difficult for me to find any mention of community involvement or social initiatives on their main website that in order to find out more about Hershey’s social responsibility initiatives, I actually had to specifically google “Hershey social responsibility” in order to find anything at all.

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In contrast, when you zoom onto the main menu options of the Mars and Nestle home-pages, you can see that right away there are options to learn about “Nestle in society” or how Mars is “Doing Our Part”. Once you visit their actual pages you can tell that both companies have taken great lengths to advertise their altruistic efforts and initiatives, and make their practices transparent and easily accessible. In fact their social responsibility and the initiatives that they are taking to make the world a better place are not only mentioned on these specific links, they are also integrated into their “About us” and “Who We Are” pages.

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The images above are screenshots from Nestle’s “About us” page (top image) and Mar’s “Who we are” page (bottom image). As you can see, both  Nestle and Mars have not only taken on missions to making the world a better place, but have integrated those missions into their core values and made them central to the overall goals of the company.

It seems to me like Hershey is unfortunately lagging behind their competitors in corporate transpanrency and committing to socially responsible initiatives and activism. An article by Newman, O’Connell and Exchange (2010) seems to indicate that this lack of transparency from Hershey is not only purposeful, but also indicative of socially irresponsible business behaviors specifically in reference to their sourcing practices. Newman, O’Connell and Exchange (2010) claim that despite almost ten years of commitments from Hershey to take responsibility for their cocoa supply chains and improve conditions for workers, significant problems such as, abusive child labor, trafficking, and forced labor continue to persist.

So, why is there such a difference between the seeming efforts of Hershey and its competitors? One thing that I think is interesting to note is the fact that both Mars and Nestle have expanded their businesses into other consumer packaged goods, from frozen foods, to beverages, to even pet care, while Hershey has really stayed with in the confectionary niche. Is there something about the confectionary market that allows for companies to escape harsh and intensive public scrutiny and thereby requires less social responsibilty? These are essential and pressing questions that we must figure out if we want to really push for social responsibility from all companies. We have seen the power of social media and have examples like Pepsi to prove that businesses will make major changes to their company’s culture, structure and operating environment, when there is enough social outcry for them to do so.  Admittedly, the issue of cocoa sourcing may not be as sexy, thrilling, or star studded as the issue of Kendall Jenner’s pepsi commercial, but we need to find a way to bring the indiscretions of companies like Hershey to the forefront of the publics attention in order to get the conversation trending and really push for tangible change.

Works Cited

Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of management Review, 32(3), 946-967.

Higgs, C. (2012). Chocolate Islands: Cocoa, Slavery, and Colonial Africa. Ohio University Press.

Martin, C. (2017, February 1). Chocolate, Culture and the Politics of Food: Mesoamerica and “the food of the gods” [Lecture]. Cambridge, MA.

Martin, C. (2017, March 1). Chocolate, Culture and the Politics of Food: Slavery, Abolition, and Forced Labor [Lecture]. Cambridge, MA.

Newman, T., O’Connell, E., & Exchange, G. (2010). Time to Raise the Bar: The Real Corporate Social Responsibility Report for the Hershey Company.

Phillips, R., & Caldwell, C. B. (2005). Value chain responsibility: A farewell to arm’s length. Business and Society Review, 110(4), 345-370.

Snider, J., Hill, R. P., & Martin, D. (2003). Corporate social responsibility in the 21st century: A view from the world’s most successful firms. Journal of Business ethics, 48(2), 175-187.

Media Cited

“Responsibility.” Corporate. Hershey, n.d. Web. 05 May 2017. https://www.thehersheycompany.com/en_us/responsibility.html

Account, HERSHEY’SVerified. “Tweets with Replies by HERSHEY’S (@Hersheys).” Twitter. Twitter, 05 May 2017. Web. 05 May 2017.

KendallnKylie. “Kendall Jenner for PEPSI Commercial.” YouTube. YouTube, 04 Apr. 2017. Web. 05 May 2017.

Maya. “The Best Example of White and Economic Privilege/ Ignorance I’ve Ever Seen. Never Forget Ieshia Evans. #Pepsi Pic.twitter.com/lXeTp7OBMj.” Twitter. Twitter, 04 Apr. 2017. Web. 05 May 2017.

Account, Be A KingVerified. “Media Tweets by Be A King (@BerniceKing).” Twitter. Twitter, 05 May 2017. Web. 05 May 2017.

“Pepsi Statement Re: Pepsi Moments Content.” PepsiCo. N.p., 5 Apr. 2017. Web. 05 May 2017.

Null. “Home.” Franchise. N.p., n.d. Web. 05 May 2017.

Nestle.com. N.p., n.d. Web. 05 May 2017.

“Mars, Incorporated – Global Petcare, Chocolate, Food, Candy, and Drink Brands.” Mars, Incorporated. N.p., n.d. Web. 05 May 2017.

From Cadbury to Nestlé: Big Chocolate & Forced Labor

While chocolate is a sweet delicacy enjoyed by millions around the world, the underlying forces of cacao production often leave a sour taste in consumers’ mouths. After Europeans “discovered” chocolate in Mesoamerica, its dissemination in Europe relied on the forced labor of indigenous populations and later African slaves on cacao plantations. Slavery was abolished on paper in England in 1833. Yet, it persisted under new names from serviçal in Sao Tome e Principe to “worst forms of child labor” in Côte d’Ivoire. I will compare the response of two influential companies in the cocoa industry–Cadbury and Nestlé–when faced with evidence of forced labor  in their cacao supply chain. While both companies’ actions are ultimately profit-driven, Cadbury took more legitimate actions to divest from forced labor than Nestlé, as the latter has yet to fully invest in ethically-sourced cacao.

Cadbury

William Cadbury’s awareness of forced labor in cacao plantations started with rumors of horrible work conditions in Sao Tome and Príncipe in 1901. At the time, Cadbury obtained 55% of its cacao from the area (Higgs 2012:9). He met with Portuguese authorities who assured him that new labour legislation addressed concerns of minimum wage (Satre 2005:23). Still, Cadbury commissioned Joseph Burtt in 1905 to investigate the work conditions in Sao Tome e Principe. Prior to Burtt’s return, Henry Nevinson published his investigative journalism in Harper’s Magazine in 1905.

Screen Shot 2017-03-24 at 07.27.43
Cadbury's_Cocoa_advert_with_rower_1885Nevinson shed light on the forced labor of indentured servants (serviçal) in Sao Tome e Principe (Martin 2017). It was indistinguishable from slavery. Burtt returns in 1907, and his report supports Nevinson’s research. Yet, British authorities request Burtt revise his findings to assuage Portuguese authorities because Portuguese authorities were instrumental to British colonial interests in South Africa (Satre 2005: 76, 24). Up to then, Cadbury’s actions were behind the public eye. While the company researched forced labor and attempted to negotiate with both British and Portuguese authorities with no divestment in sight, their consumers continued purchasing their “guaranteed pure and soluble” cacao. 

Nevinson persevered with his reporting and published “The Angola Slave Trade” in The Fornightly Review, which garnered a lot of publicity. Forced labor alarmed British consumers because although England had abolished slavery in 1833, they were still complicit to it. Slavery did not align itself with the Quaker values of the time. As consumers started demanding Cadbury take action, Cadbury takes a final trip to Sao Tome and Principe.

Upon his return, he convinces J.S. Fry and Rowntree, other British chocolatemakers to join him as Cadbury boycotts cacao production in Sao Tome and Principe. Presumably, Cadbury divests because of the continuous failed promises by the Portuguese government to ameliorate working conditions in both islands. While the Portuguese government was not intent on ending slavery in cacao production, Cadbury did not suddenly reach enlightenment in 1909. At the time of initial evidence of slavery in Sao Tome and Principe, Cadbury had no other sustainable source of cacao if it wanted to maintain its leading status amongst British consumers. A viable option was needed as the British confectionners turned to mainland West Africa. Hence, the boycott from its main source of cacao did not hurt Cadbury because during his backdoor negotiations with various stakeholders, cacao trees were being planted in the Gold Coast (present-day Ghana). From his visit to the Gold Coast in 1906 to the official boycott from Sao Tome’s cacao in 1909, cocoa harvest in the Gold Coast increased from 9004 to 20,534 metric tons (Grant 2005: 175). Therefore, in addition to being ethically sound, the move to the Gold Coast in 1909 was also business-proof.

Nestlé

A century later, big chocolate makers are still guilty of profiting from the fruits of forced labor in their supply chain. In 1998, A Taste of Slavery: How Your Chocolate May be Tainted was published. The UNICEF  report was one of the first to highlight evidence of child labor in West Africa, particularly in Côte d’Ivoire. Young people were often worked almost under horrible conditions: “the [Malian] boys had little to eat, slept in bunk-houses that were locked at night, and were frequently beaten. They had horrible sores on their backs and shoulders, some as a result of carrying the heavy bags of cocoa, but some likely the effects of physical abuse” (Off 2008: 121). Child labor in cacao farms in Côte d’Ivoire involves familial and contracted labor, often including human trafficking of children from neighboring countries like Mali and Burkina Faso. Such labor conditions violate the International Labor Organization (ILO) Minimum Age Convention and the ILO Forced Labour Convention (Schrage and Ewing 2005: 101-102).

Increasing media attention to such reports of child slavery pushed the cocoa industry to stop dawdling and take action because “the mistreatment of children posed a clear threat to corporate reputation and sales” (Schrage and Ewing 2005: 104). As the United States Congress began the legislative process of banning Ivorian cacao, the industry proposed a protocol to address the reports. In September 2001, the Chocolate Manufacters Association (CMA) and the World Cocoa Foundation signed the Protocol for the Growing and Processing of Cocoa Beans and their Derivative Products in a Manner that Complies with ILO Convention 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Chila Labor also known as the Harkin-Engel Protocol. Ever since its inception, the protocol has continuously been extended as chocolate companies fail to eradicate the worst form of child labor from their supply chain by their own deadlines. Many have critiqued the protocol as too lenient because a voluntary plan does not ensure the industry will be accountable.

Nestlé has undertook actions to adhere to the Harkin-Engel Protocol. The company joined the Global Issues Group (GIG), “an ad-hoc, pre-competitive association of cocoa industry participants formed in response to the agreements as spelled out in the Harkin-Engil Protocol” (Tulane research). Furthermore, Nestlé contracted UTZ Certified, a product certification organization, to be held accountable for its cacao consumption. Screen Shot 2017-03-24 at 16.27.24In 2009, Nestlé established the Cocoa Plan. The hyperlinked video highlights the work of the Cocoa Plan in Côte d’Ivoire. Through the International Cocoa Initiative, the Cocoa Plan has built schools throughout Côte d’Ivoire in order to provide alternatives for children who were previously child laborers or could potentially be involved in cacao production.This iniative, among others, empowers local communities and seeks to reduce the prevalence of the “worst forms of child labor” in cacao production.In addition, Nestlé has supported further investigation into their cacao sourcing. The Fair Labor Association (FLA) conducted a thorough investigation of the company’s cacao supply chain, making it the first chocolate-maker to undertake such a process (CNN 2012). The FLA has continued these investigations, which attest to Nestlé’s investment in an ethical supply chain. Nestlé’s actions were in response to growing criticism. The company had to handle lawsuits and respond to documentaries about the persistence of forced labor in Côte d’Ivoire in order to appease its consumer base, who was demanding more accountability in the cacao supply chain.

 

Screen Shot 2017-03-24 at 16.28.53Consumer demand for and consumption of ethically produced chocolate is highest in the United Kingdom. This trend explains why Kit Kat chocolate bars in the UK bear the Faitrade mark and Kit Kat chocolate bars in Germany do not. While both bars have the Cocoa Plan logo, Nestlé reveals that it only purchases 14.5% of its cocoa through the Plan, of which 75% is either UTZ or Fairtrade-certified (Nestle 2013: 160). While Nestlé has taken steps to ethically source its cacao, this has only been for consumers who actively demand it.

Similar to Cadbury, Nestlé is acting in a profit-maximizing way. Ethics are secondary because the investment in the Cocoa Plan for all of its chocolate would not be be as profitable beyond the UK. Unlike Cadbury, Nestlé has unfortunately not significantly addressed the Protocol because shared responsibility with other big chocolatemakers and lack of significant consumer demand diffuse the pressure to immediately conform.

Bibliography

Cadbury’s Advert with Rower 1885. 2010. Wikimedia Commons

CNN,. 2012. “Nestleé Advances Child Labor Battle Plan”. Retrieved March 23, 2017 (http://thecnnfreedomproject.blogs.cnn.com/2012/06/29/nestle-advances-child-labor-battle-plan/).

Grant, Kevin. A Civilised Savagery: Britain and the New Slaveries in Africa, 1884-1926.  London: Routledge, 2005.

Higgs, Catherine. Chocolate Islands: Cocoa, Slavery and Colonial Africa Athens: Ohio University Press, 2012.

Martin, Carla. “Slavery, Abolition, and Forced Labor.” Lecture, Chocolate Lecture, Cambridge, March 01, 2017.

Nestlé,. 2013. Nestlé In Society: Creating Shared Value And Meeting Our Commitments 2013. Nestlé. Retrieved March 21, 2017 (http://storage.nestle.com/Interactive_CSV_Full_2013/files/assets/common/downloads/Creating%20Shared%20Value%20Full%20Report%202013.pdf).

Nevinson, Henry Woodd. “The Slave-Trade of to-Day. Conclusion–the Islands of Doom.” Harper’s Monthly, 1906, 327-37.

Off, Carol. 2008. Bitter Chocolate. 1st ed. New York [u.a.]: The New Press.

Satre, Lowell J. Chocolate on Trial: Slavery, Politics, and the Ethics of Business.  Athens: Ohio University Press, 2005.

Schrage, Elliot, and Anthony Ewing. 2005. The Cocoa Industry And Child Labour. Journal of Corporate Citizenship. Retrieved March 22, 2017 (http://www.justice.gov.il/Units/Trafficking/MainDocs/The_Cocoa_Industry_and_child_labour.pdf).