This report is commissioned by National consumer magazine called “Right Buy”
(CRS): The corporate Social Responsibility
(FLA): Fair Labor Association
The chocolate industry is categorized as one of the most reputable and biggest organizations in the world. South America and Africa are the world largest cocoa producers (bastard film productions, 2010). According the reports of the food empowerment project, West Africa countries provide 75% of the cocoa for the world market. It went further to expound the fact that child labor is a scourge that threatens childhood in the chocolate industry. CRS are the activities taking place in the chocolate industry that shows the company’s self-regulation that aims at ensuring the stakeholders in the business are active compliance in accordance to the country’s law, international norms and the ethical standard governing their operations. It majors on the social and environmental scope of CRS. That is, it outline on the people perception on the socially and environmental impact of the chocolate industry. It is therefore prudent to research on the Nestlé Company because it serves as the best example for the CSR and the supply chains in an organization.
According to Carroll and Buchholtz, (2003) the corporate social responsibility (CRS) is the ethical, economical, discretionary and legal expectations that people in the community has of a company at a particular point and period on of time. On the other hand, supply chain is the net movement of goods and services. That is, the inflow and outflow of materials from the manufacturer or producers to the consumers. This is normally facility by availability of different channels of supply.
The purpose of study:
The paper aims at examining the practices of the corporate social responsibility specifically in the cocoa industry supply chain. The report is a reflection of the society persecutions on both positive and negative impacts of the cocoa industry supply chain. It focuses on the business ethic with the working environment and the economical impact on the people in the society.
The documentary film sheds more light on the illegal abuses of human trafficking and child labor law in some chocolate companies supply chains. In addition, it outlines the down side of the supply chained the chocolate industry on the children. The choice of this particular source majors on the reality and shed more light on the level of child exploitation in chocolate. It thus negatively affects the society by going against ethical principles that is among the key factors of corporate social responsibility (Bastard film productions, 2010).
In this article, the FLAs Global forum and Nestle outlines issues on consultation for development of a sustainable and reliable supply chains. The article gives the outline of how to approach the raising child labor in the cocoa supply chain. The cocoa industry uses the child labor to keep in supply chain operational. This increase number on child labor in the industry has attracted Nestle attention seeking to provide a lasting solution. It has set measure that reduces the child labor and at the same time enhances the process of supply chain in the industry. This article services as a good example for chocolate companies, which took the initiative of contributing in the struggle to eradicate the practice of child labor in the chocolate industry Fair Labor Association, (2013).
The article briefly covers on the world cocoa industry. Moreover, it highlights the challenges (suffering) facing children due to the presence of the slavery and the child labor in the cocoa industry supply chain that most of African cocoa-producing countries suffer from. The article is evident of for the existence of the laws of corporate social responsibility (CSR) in the cocoa industry supply chain (Food empowerment Project, ND. 2013)
The article addresses the measures set in place to solve the child labor problem in the supply chain of company. This comes as a response to the Fair Labor association that target at obtaining a lasting solution on the child labor issue. It therefore indicates that nestle played a major role in taking the initiative of reducing the rates of child labor in the cocoa industry Fair Labor Association, (2013).
According to George Afrane and Augustine Ntiamoah, (2008) the production process along with the process of cocoa comes with environmental effects. For instance, in Ghana the chocolate industry has a variety of impact on the environment, which is highlighted in the article thus allowing room for development of sustainability in the system that reduces the effects. It shows the impact of both production and process of cocoa in Ghana and recommends for possible solutions to curb the situation or effects (George Afrane & Augustine Ntiamoah, 2008).
The chocolate industry has largely contributed to the emergence of the child labor and slavery. The supply chain of the company has resulted to increase in the rate of child labor in order to achieve the aggregate production targeted by the organization. Both child labor and slavery adversely affected the child both physical and psychologically by interfering with the normal growth and development of a child. This includes the effect on the children education levels. It lowers the quality and level of education obtained by a child because in most events they are engaged in farmer activating providing their service for production (George Afrane & Augustine Ntiamoah, 2008). According to recently conducted research, it reveals that 30% of the laborers in the cocoa industry are children who are made to work at the firm against their will. In context, it clearly indicates that CRS of the company is going against the human rights for giving children equal chances in life to full-grown and develop to adulthood stage (Food empowerment Project, ND. 2013).
Nestle played a significant role of assisting many countries in the development of the cocoa industry. This is by ensuring majority of the farmers in the cocoa sector or field receives adequate training on the suitable practice of farming. According to Fair Association, (2013) it argues that nestle has been able to develop school and improved on the water sanitation for the cocoa producing countries. It also contributes in the increment of the procurement for the farmer and other concerned stakeholders (Food empowerment Project, ND. 2013). The Corporate social responsibility has maintained a good relationship between the cocoa industry and the people of the society. That is, it respects the people rights to quality and standards goods and service therefore setting strategic planning on their supply chains (Fair Association, 2013). The company supply chain takes into consideration the importance of meeting the consumer desires, which is evident through the adequate supply of social amenities to the people in the society.
Cocoa industry in a Ghana affects the natural resource such as the extraction of the fossil fuel and other valuable mineral, which are key factor of improving the economy of the country. The cocoa industry also has a hand in the production of agricultural pesticides and fertilizers necessary for improving the entire agricultural sector. It also destroys parts of the soil, plants and animal in the ecosystem by using pesticide on the cocoa farms on regular basis (Ntiamoah, & Afrane, 2008). According to the Fair Association, (2013) argument about the environmental impact of cocoa industry it states that it contributes to the deteriorating state of agricultural practices because it depletes the necessary soil nutrients for farming. This is through the activities of extracting fossil fuel. In addition, it comes along with positive impact to the agriculture due to the introduction of the fertilizer and pesticides with assists in improving the soil condition ready for farming and other agricultural activities.
In conclusion, the supply chains of chocolate industry are a continuous process from production, processing to the hand of the consumers. The industry’s supply chain ensures the supply meets the demand in the market. It has helped greatly the country’s economy: making sure that farmers get a ready market for their produce, create employment and raise the county’s general positive image of being a major cocoa producer. However, the industries have flaws with instances such as child labor and slavery but they have devised positive counter measures against these problems (Fair Labor Association, 2013). On measure is the creation of the institutions such as the FLA that look for eternal solutions to the child labor situation. It is way of giving back to the society, and are practicing the CRS in a certain levels by meeting the desire of the people in the society and making things fair between the industries and the society (Food empowerment Project, ND. 2013).
Ntiamoah, A., & Afrane, G. (2008). Environmental impacts of cocoa production and processing in Ghana: life cycle assessment approach. Journal of Cleaner Production, 16(16), 1735-1740.
Bastard film productions, (2010). ‘The Dark Side of Chocolate’. Retrieve from http://www.youtube.com/watch?v=7Vfbv6hNeng
Fair Labor Association, (2013). ‘Addressing child labor in Nestlé’s cocoa supply chain in Cote D’Ivoire’
Food empowerment Project, ND. (2013) ‘Slavery in the Chocolate Industry’ Retrieves from http://www.foodispower.org/slavery-in-the-chocolate-industry/
Fair Labor Association, (2013). ’’Nestle sets out action to address child labor in response to Fair Labor Association report on the company’s cocoa supply chain , ND’’