BUSINESS ENVIRONMENT AND SOCIAL

SUSTAINABILITY

SUBMITTED BY:
GROUP NO. 8
- Ankit Gupta PGMA2009
- Khyati bakshi PGMA2027
- Priya Dey PGMA2034
- Vishakha Singh PGMA2055
- Sudha Kumari PGMA2051

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 CONTENT
s.NO Heading Page no.
1. Overview 3-4
2. Sustainability practices of 5-7
the firm.
3. Critical analysis 8
4. Scope of Improvement 9
5. Challenges faced by the firm 10
6. References 11

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OVERVIEW
Cadbury is one of the world’s leading brand. For different age groups Cadbury has
varieties of chocolates, gums, and candies. They have workforce of more than 46,000
workers across all over the globe. Cadburys is a British company founded by John
Cadbury In 1824. Its first outlet was opened in Birmingham. It operates in 50 countries
all over the world.

John Cadbury’s values and traditions can be reflected in his company. His true belief in
alcohol increasing poverty rate forced him to introduce chocolates, cocoa, tea at his
shop as an option for people. Around 1842, John’s brother collaborated to form
Cadburys Brothers of Birmingham. After few years George and Richard started gaining
profits and expanded their business. Their chocolates showed increment on every step.
In 2010 February, American Kraft Company acquired Cadburys despite numerous
protests.

ABOUT THE PRODUCTS:

Cadbury has a scope of items from chocolate bars, cakes and rolls, drinks, frozen yogurt
and boxes, packs and tins of chocolates. To be more explicit in the chocolate bars they
give from their works of art like Dairy Milk, Bournville to the new items like Crunchie,
Twirl, Wispa, Twisted, Flake, Boost, Chomp, Double Decker and perhaps the most recent
item dispatched in the year 2010 called the Silk. There item is basically focused towards
the youth population of the market.

Corporate Social Responsibility (CSR) is at the core of their prosperity. At Cadbury India
have consistently accepted that great qualities and great business go connected at the
hip. It's essential for their legacy and the manner in which they do things today. CSR is
tied in with developing our business dependably.

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Major statistics
1. MARKET SHARE –
The market is relatively scattered with the five largest confectionery firms
accounting for around 40% of the market. There are huge number of companies
which participate in the markets only a regional or local basis. There is a huge
competition of Cadbury against multinational, regional and national company.
In India Cadbury has a share of over 70% in the market, which is the highest share
of Cadbury brand globally.
In India, Cadbury “Dairy Milk” is a benchmark for other chocolates and is
regarded as the “gold standard”.

2. REVENUE ANALYSIS –

3. Leadership-
The management style that Cadbury follows is of a Democratic style. Where all
the members of a company work as a team.

SUSTAINABILITY PRACTICES OF A
FIRM

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 INDUSTRY, INNOVATION & INFRASTRUCTURE
A website was launched by Cadbury “DearCadbury.com” in which they provide
information to their consumers regarding the ethical sourcing practices, consumption,
and their responsibility towards environment (CSR website by Cadbury to gain trust of
consumers).

 CLIMATE ACTION
Cadbury has introduced its corporate responsibility and sustainability report in year
2007-2008 under which, they mentioned that the company has eliminated carbon
emissions to approx. 4% till date.
Cadbury initiated the “Purple goes Green” program in July 2007 aiming to reduce its
impact on global environment. Under which it aimed:
1. To reduce Carbon emissions to 50% by 2020.
2. To reduce standard packaging by 10% and seasonal packaging by 25%.
3. To implement water reduction programs.
4. To advocate green business practices with colleagues, suppliers, customers,
peers, and consumers.

 GOOD HEALTH AND WELL-BEING

Cadbury is member of Roundtable on Sustainable Palm Oil (RSPO), which helps to
maintain the sustainability of Palm oil production. Cadbury uses forty thousand tons
of Palm oil, which is slightest as compared to others that consume millions of tons.
To ensure the well-being of the consumers Cadbury has developed a new set of
“Good Manufacturing Practices” which includes areas like personnel hygiene, cleaning
protocols, storage, warehousing, and transportation.

 NO POVERTY
In order to reduce poverty Cadbury collaborated with cocoa, and with the help of this
collaboration its enhanced farmers by increasing their incomes.

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 PARTNERSHIP TO ACHIEVE THE GOALS
1. Cadbury also collaborates with industry partners like Green peace and WWF to
further achieve sustainable goals.
2. It has its partnership with scientific groups such as “International life science
institute” which enables Cadbury to gain an insight of different food
ingredients in relation to the health of consumers.
3. Cadbury worked with supply chain partners that consists of NGO’s, trade
associations, farmers, stake holders’ groups in order to sustain long term
supply of ingredients required.

 GENDER EQUALITY
Cadbury is a brand which emphasize on the Gender equality, lets look at the Factory
of Cadbury in Andhra Pradesh which maintain its Gender equality it has its fifty
percent of employees’ women.

The best part of Cadbury is they feel that the uniqueness of the company will be
achieved by maintaining the gender parity. It looks after its female employees by
various action like creche facility for young mothers, medical center that stays open
day and night, a gynecologist visits the site every fortnight, a changing room specially
for women, sanitary napkin dispenser, a separate hostel is also available.

 LIFE ON LAND
Cadbury has trained one lakh seventy-five thousand farmers to produce much more
cocoa with ensuring it does not harm environment as planting trees more and more
trees can protect the cocoa region’s future with this it also ensures that cocoa farmers
earn and live better lifestyle.

 DECENT WORK AND ECONOMIC GROWTH

Cadbury has trained approx. twenty thousand young generation about cocoa farming
it has also educated seventy-two thousand members of community on financial

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 literacy. It has trained fifty thousand women’s in developing their business skills. It
also monitored that there is no child labor in its community.

 RESPONSIBLE CONSUMPTION AND PRODUCTION

1. It has initiated sustainable wheat program across Europe under which they
achieved twenty percent reduction in pesticide use.
2. Areas where there is scarcity of water, it has reduced its usage by twenty five
percent.

 ZERO HUNGER

Cadbury cocoa partnership was launched in 2008, to support and develop thriving
cocoa communities of Africa, South East Asia, and Caribbean. The Cocoa partnership
has commitment of $73 million for sustainable cocoa farming and through this they
promised one million cocoa Farmers for sustainable livelihood by increasing yields of
cocoa crop twenty percent by 2012 and 100% y 2018 and this created a new source
of income for hundred cocoa communities.

CRITICAL ANALYSIS

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 Being a confectionary Brand, whatever Cadbury do as a sustainable practice it
leaves behind the fact that it is not inherent part of our diet. Which makes it
difficult to increase its daily consumers.
 By consuming large quantity of chocolate, it can increase in calorie intake which
may lead to obesity and weight gain which increase the risk of high blood
pressure, diabetes, cardiovascular disorders, cavity etc.
 High consumption of Cocoa can lead to skin allergies, constipation, headaches
etc.
 One of the previous reports of 2012 says that live worms were found in Cadbury’s
dairy milk chocolate, which eventually reduced its sale during that particular year.
 Plastic packaging that is still being used by Cadbury for its product is increasing
plastic waste which is non-biodegradable and hence harmful for the
environment.
 It has been seen in 2005 when it was prohibited to do child labor, Cadbury was
not ready to show its reports and took 2 years for clarifying the same. Many
industry officials believed that the kind of certification sought by the protocols
was unrealistic.

SCOPE OF IMPROVEMENT
 Cadbury can launch immunity booster eatables.
 It can reduce the use of sugar by replacing it by sugar free ingredients
which are not harmful for the health.
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 eliminating the use of plastic packaging by recyclable or biodegradable
packaging, which will contribute to the environment.
 Cadbury should reduce its carbon emissions, which is being generated while
producing the chocolates.
 it should take a step towards reducing the water wastage.

Challenges faced by Cadbury

1. To fill the gap – to meet its sustainability practices, company needs to fill the gap
between actual production and sustainable production and to fill this gap the company
needs high investment in two levels which is community level and farm level. they can
do it by building schools, providing medical facilities and other infrastructure.

2. To make customers believe in the safety in the process and packaging of dairy milk.

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 3. One of the major challenges which was faced by the company was to regain the trust
of the customers that they lost during “worm case’.

4. The changing climate and high temperature directly affect the cocoa beans. This also
affects the living of farmers. Also, the major business of Cadbury is dependent on
agriculture and if it is affected, it affects many users of the company, mainly farmers.

REFERENCES
https://chocolateclass.wordpress.com/2020/03/24/whos-to-blame-cadburys-
involvement-in-slave-labor/

https://economictimes.indiatimes.com/opinion/interviews/deeper-product-
penetration-will-drive-growth-in-india-cadbury/articleshow/5387525.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

https://www.mondelezinternational.com/Snacking-Made-Right/Reporting-
and-Disclosure

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