Csr for Cadbury

Cadbury’s management in stakeholders

Cadbury Schweppes is the world's second-largest confectionery company after the combined Mars-Wrigley, making brands such as Dairy Milk chocolate, Trident gum and East eggs and possessing the No.1 or No.2 positions in more than 20 of the world’s 50 largest confectionery markets (Reuter 2010). Society is increasingly keeping a watchful eye on the social performance of companies as large as Cadbury (Davison 2006). There is a growing expectation that corporations can operate in a longer term and balanced view of their organization and role in society rather than in concentrating on just their own short-term profits (Jessica Foote et al.2010). Stakeholder management is an indispensable part of social performance, therefore, large companies such as Cadbury take into consideration the needs of various stakeholders, otherwise companies will suffer from reputational damage and loss of consumer confidence (Gueterbock 2004). This paper will critique the performance of Cadbury with respect of the management of its two groups of stakeholders: the communities from which Cadbury import cocoa beans and the consumers. While it is recognized that there are other types of stakeholders in Cadbury.

The case for Cadbury

Most notable is Cadbury’s social performance in relation to the fair trade of cocoa. The company began selling Dairy Milk under the Fair Trade logo in Britain and Ireland in 2009 (Matt 2010),and $350m Cadbury Dairy Milk bars will carry the Fair trade Mark each year around the world (Jane 2010). The move to Fair trade offers cocoa farmers a guaranteed price for their beans of at least $US1600 ($2270) per tonne, and a premium of $US150 per tonne on market prices above that level that farmers or workers (Stock 2010), in this way that farmers or workers can get a fair share of the eventual selling price of chocolates and not be exploited by manufactures, intermediates, or commodity brokers (Terrence 2010). The partnership impacted...