Cadbury Business Ethics New Zealand Samples

Management students studying in New Zealand Business Schools get a lot of assignment tasks. It includes academic activities like essay writing, dissertation, case study, and thesis writing. One of the most complex tasks is Business Ethics practice by various companies. NZ Management students write various business essays. One of the hot topics is ‘Cadbury Business Ethics’.

Let us discuss ‘Cadbury Business Ethics New Zealand Samples’.

A Brief Introduction About Cadbury

Cadbury is an international confectionery company based out in London. It operates its business in more than 50 countries. John Cadbury started this chocolate making company in 1824 in Birmingham, England. Since 2010, Cadbury is managed and owned by Mondelez International. Cadbury is one of the largest chocolate manufacturing company which is recognized for making various kinds of tasty chocolates.

Cadbury’s business expansion in New Zealand started out at Dunedin. In 1930, Cadbury joined hands with the native confectioner, Richard Hudson. The factory was located in New Zealand’s South Island and is producing chocolates till March 2018.  The Dunedin factory was a tourist attraction due to its presence of a chocolate waterfall. It also has another factory in Auckland’s North Island.

Business Ethics of Cadbury

Cadbury has self-promoted itself as the most ethical chocolate brand in New Zealand. It started to put labels of ‘Cocoa Life’ in every packet of chocolate bars. The label is a small green logo.  It even asked some journalists to go to Africa for checking their way of doing business is ethical or not. Cadbury has proposed these journalists to visit the cocoa plantations in West Africa. Though the latter declined this offer of visiting the African cocoa fields.

The parent company of Cadbury- Mondelez International defended the move of replacing the Fairtrade label with that of the Cocoa life. They provided a statement that the company is not getting separated from the Fairtrade system. Rather, it is just a growth of the partnership. However, the chiefs of Fairtrade New Zealand and Australia – Molly Olson said that this move is different from the policy of Fairtrade. It lies significance only on the fair price paid to the producers of the developing country.

This move by Cadbury does not specify anything related to the issues of forced labor and child labor. The NZ and AUS Fairtrade chief has stated that chocolate buyers will get confused between the labels of Cocoa Life and Fairtrade. This is because that Cadbury did not issue any affidavit regarding the comparison of Cocoa Life and Fairtrade.

Therefore, this is one of the several ethical issues raised in the business practice of the Cadbury company.

Ethical Issues Raised in Cadbury Company

Let us talk about this ethical issue in the Cadbury company.

Ethical Issues: Withdrawing from Fairtrade

Cadbury has introduced a green logo and a label called ‘Cocoa Life’ in every chocolate packet in 2009. This move has violated the rules of Fairtrade policy. This is because it favors the company’s own sustainability scheme’ Cocoa Life’ over the Fairtrade scheme.

Impact of Cadbury’s Critical Issues

Cadbury’s critical issues with the introduction of its own sustainability scheme and logo called ‘Cocoa Life’ has several issues. These issues are rising because Cadbury’s partnership with Fairtrade is at stake.

The issues are briefly discussed as –

• Low Wage System

Without Fairtrade, the issues of a poor wage system arise between the company and the local Africans working in the cocoa plantations. There will be no intervention from Fairtrade policy. Ultimately, local Africans will get very less pay. Ultimately, the cocoa workers will not get access to other support facilities like health, education, and learning of the sustainable practice of food growing.

• Low- Level Working Condition

If Fairtrade policy is not associated with Cadbury, the laborers will be forced to work in inhuman conditions. Moreover, their life will be at risk while working in life- killing hazardous chemicals. There will be no safety for workers at all since their safety will no more priority for the company.

• Job Discrimination

Local workers in Africa will face job discrimination on basis of religion and gender. There will be no equal job opportunities.

Rectification to Solve Company’s Ethical Issues

Cadbury has worked to solve this ethical issue smartly. It has made some alterations with the move. The Cocoa Life scheme has replaced the Fairtrade policy to develop future cocoa farming communities. So, Cadbury confirms that African cocoa farmers will get fair pay for their cocoa production. This fair price pay is decided on terms of loyalty and trade payments.

Therefore, Cadbury is doing many things to solve this kind of ethical issues. The company has put a lot of actions to regain its reputation in the market.

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