International Foundation Year ProgrammeUndergraduate Study Skills in English.Continuous Assessment Task : Report PlanStudent name : Ali AlkasbiStudent number : 200820443Due Date : 18-11-2013Tutor : Jennifer Hirst Word Count : 3144This report is commissioned by the national consumer magazine called 'Right To Buy'.
The cocoa industry has is a big industry in the world. It gets its raw products from the farms in Ghana and Ivory Coast. They are processed to get products like chocolate and other by- products. It is considered a very crucial industry that it has its own challenges and benefits as a whole.
BackgroundGhana and Ivory Coast farms supply 75% of the world cocoa market, the cacao bean is sold to chocolate manufacturers such as Nestle and Barry Callebaut, two of the biggest in the field which make it accessible to the customers all over the world. But many concerns have surfaced in recent years regarding some Violations that happen in the cocoa farms such as child labor, Trafficking and Slavery. Abdul as an example started working in cocoa farms in Ivory Coast when he was seven years old, although he is exposed to hard working conditions, he has never tasted chocolate. Many efforts have been put to investigate these problems, however, lack of safety and resources make these investigations hard to do.
We want to look at the implication of corporate social responsibility in relation to stakeholders from the companies perspective in another angle. The fact that the farmers supply them with the raw product means they are directly affected by the companies. The reports of child labor and other misdoings of the farmers affects the cocoa factories and companies in a very big. A corporate social responsibility aspect of how the companies are helping the farmers to eliminate this problem. Children are not meant to be working in the farms always but they are meant to be studying. The fact brings us the picture that is portrayed always when the farmers are asked and they deny this claim.
Definition of CSRCorporate social responsibility is where the companies are meant to take charge of the stakeholders and the impact which they have on them as a whole. Stake holders expect the companies to take care of them in all areas and the environment as a whole. The cocoa industry is very big considering the market that it supplies its products. This industry like any other industry should have checks and balances that companies follow.
Companies like Nestle and Barry Callebaut have been known to do the following projects as their corporate social responsibility work for the stakeholders;
Paying the farmers well to ensure they afford to pay adult workers. Money is considered to be the best incentive you can give to the farmers and this is given in form of good pay. When the farmers are paid well they will look for personnel and pay them well with breaking any labour rules like using child labor.
Conducting educational campaigns to farmers on various issues related to farming and child labor. The campaigns will be ranging on different topics that will be addressed that affect the stakeholders in one way or another. The essence of these campaigns is to ensure the farmers and other stake holders are up to date with all the enhancement of all areas and fields that concern them directly or indirectly.
Providing machinery and advice when it comes to the farmer how they should take care of their cocoa. This comes in when they want specifically to benefit the farmers specifically. This is a technique where they use corporate social responsibility to address the issue of child labor by advocate the farmers to use the machines to have and plough their fields hence human labor is reduced. ( Carroll and Buchholtz, 2003)Improving buying stations to ensure the farmers have a smooth and good experience in the process of selling their products to the companies. The companies have been computerized and machines bought to ensure the process of loading and off- loading the cocoa is easy and smooth.
Teaching farmers on how to use their earning from the sale of cocoa in a good way to ensure they build for the future if the industry and their investment. When they are taught how to plough back their amount back to their business in a strategic way they will increase their output and benefit from the cocoa in a big way. ( Carroll and Buchholtz, 2003)Aims and overviewsWe already know the corporate social responsibility projects that the companies are performing for the organization. We want to assess whether they effective or not since the farmers should be the people who benefit from these things in a very big ways. The essence of this analysis is to provide a clear picture to the company and the stakeholders on what is happening on the ground. Once people have a clear picture of what is happening on the ground then they will be in a position make a way forward.
Figures and graphsMany efforts were put to tackle the cocoa industry's problems which are mainly child labor, slavery ad trafficking.Nestle, one of the largest manufacturers in the industry, has done some activities to prevent the use of child labor on the company's cocoa supply chain in cote d'Ivoire. Firstly, Nestle Joined the FLA to improve working conditions in its supply chain. Then they made an action plan to address child labor, which they consider as the first step in a long process. Moreover, they trained farmers so they can be educated and play a role to help the company addressing th problem, 6,000 farmers received training in 2012. Additionally, they distributed better quality cocoa plants, which could increase the productivity of the plantations as well as life levels so they would not use the cheaper choice workers who are children. Regarding the children themselves, Nestle planned to build schools for them and first school was opened in March in 2012. (Nestle, 2012, Nestle sets out actions to address child labour in response to Fair Labor Association report on the company's cocoa supply chain ) & ( Fair Labor Association, 2013).Barry-Callebaut another manufacturer in the industry has done many actions to improve working conditions in its supply chain; Providing child labor sensitization activities, A focus on the education for children by putting aside 42m$ to build 2 new primary schools, How building schools could address the child labor, Training and how - how the company engage with farmers, farmer organizations and other partners.Source for the 5 points above(Barry Callebaut, 2013)
Barry Callebaut inaugurates new rural primary schools and community learning centers in Côte d’Ivoire) According to the FLA some governments use their power to improve working conditions in the industry. Government of Cote d'Ivoire was mentioned in FLA's report to made efforts to address child labor; what they made to deal with WFCL and trafficking, frameworks the made to deal with WFCL , action plans issued to address child labor, and how they determine the nature of WFCL.
Source for the 4 points above → ( Fair Labor Association, 2013) In contrast governments of Ghana and Ivory Coast connive employers who violate international labor laws ( Food empowerment project, ND ). Some individuals has played a role to help solving problems of child labor, slavery and trafficking. For example Idriss Kante, general secretary of the driver's union in Sikasso, Tried to stop trafficking since 2003 and he rescued over 150 children from being trafficked in 2008 and 2009 ( Bastard Film Production, 2010).
Conclusion
Companies like Nestle and Barry Callebaut have been known to do the following projects as their corporate social responsibility work for the stakeholders;Paying the farmers well to ensure they afford to pay adult workers. Conducting educational campaigns to farmers on various issues related to farming and child labor. Providing machinery and advice when it comes to the farmer how they should take care of their cocoa. Improving buying stations to ensure the farmers have a smooth and good experience in the process of selling their products to the companies, teaching farmers on how to use their earning from the sale of cocoa in a good way to ensure they build for the future if the industry and their investment.
References
BASTARD FILM PRODUCTIONS. 2010. ‘The Dark Side of Chocolate’. [online]
[accessed 30 May 2013] Available 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’[online] [accessed 30 May 2013]Available from:
http://www.fairlabor.org/sites/default/files/documents/reports/nestle_cocoa_consultation.pdf
Food empowerment Project. ND. ‘Slavery in the Chocolate Industry’ [online]
[accessed 30 May 2013] Available from: http://www.foodispower.org/slavery-in-the-chocolate-industry/
Available from: http://www.nestle.co.uk/ [accessed 30 May 2013]
Cargill
Available from: http://www.cargill.co.uk/en/cargill-overview/index.jsp [accessed 30 May 2013]
http://www.cargill.com/corporate-responsibility/pov/cocoa-sourcing/
ADM
Available from: http://www.adm.com/en-US/Pages/default.aspx [accessed 30 May 2013]
Barry Callebaut
Available from: http://www.barry-callebaut.com/ [accessed 30 May 2013]
