Legitimacy To Operate Power Management
Social give business the legitimacy to operate power . In turn, business need to fulfill certain social responsibility and public expectation , hence to keep their business long lasting and competitive. For a world-wire corporation like Cadbury , one of the largest confectionery company in the world, it play an important role in the society, how did the company put effort to reciprocate the society? There are lists of environmental commitments stated on the Cadbury's web site and launched a project named of ''Purple Goes Green" which include reducing carbon, water saving and packaging reduction.(Cadbury n.d.) As such, it is essential to assure Cadbury is not only paying lip-service to those environmental commitments, but also putting them into practice. This essay examines how Cadbury have done to fulfill its environmental commitments, and the implications of those commitments to the stakeholders and society. Beside, how they reacted when facing the challenges of chocolate recall from 2006 to 2008 and the Palm Oil crisis at 2009,and those consequence from the business scandals.Reducing Carbon by Cadbury
After Cadbury discovered that the carbon emissions of its milk chocolate products over 60 percent ,then it immediately took an action to solve this problem. To reducing carbon, Cadbury have launched a low carbon dairy farming which includes sending a farmers guide to change the cow's diet in order to lower the eructation of the cows so as to diminish the harmful to climate change. (Lindse 2009)These emissions have reduced by improving welfare and held health of the cows thus the greenhouse gas from the milk production can be reduced. What is more, fertilizers have also been timed in order to minimize waste and avoid excess use of inorganic fertilizers. Furthermore, power and energy have been saved by switching off equipments when not in use.(environmental Leader n.d.)From the low carbon dairy farming not only beneficial to climate change but also to cows and human. Also, under the prudent concept use in minimizing waste and saving power by Cadbury is making the aims of lower impact to climate change more effectively,
In term of carbon reducing, it was doubtless Cadbury have paid effort and made a well contribution to environment. From this environmental policies proved that Cadbury noticed the seriousness of global climate change issues and took action before the environmental groups giving pressure to them that means Cadbury actually hear the requirement and voice from the society and though carry out the environmental policies to response to the public.Reducing packaging by Cadbury
The remarkable environmental packaging of Cadbury are "Cadbury Treasure Eggs" in 2008 Easter which have solely packaged in foil rather than plastic or cardboard. These foil packaging have successfully reduces plastic by 78 percent and use cardboard 65 percent less than prior Easter eggs. And this environmental design help Cadbury won the Best Green Packaging Award at Green Awards at 2008 .Beside the new Easter eggs, Cadbury have also made changing on the package of other range of eggs and products. As a result, in 2008 under Cadbury's environmental packaging policy, 247 tones of plastic and 115 tones of cardboards have reduced which means 2000 trees have saved. (environmental Leader n.d.)
From the packaging event of Cadbury, it is obviously to see the company have took the initiative in helping to improve the environment pollution and actively to disseminate the environmental consciousness to public through their eco friendly products design, so as to meet the expectation from the public and pressure groups.Reducing water by Cadbury
As water scarcity is front of mind, Cadbury have concern about this issue since 2006 and made lots of efforts in this aspect. For instance ,Cadbury's India factory in Bangalore ,have a rooftop water recycle system to collect rainwater which use in cooling tower and boilers .In addition, after the collecting of rainwater ,the water recycle system also help in cleaning and filtering those rainwater for recharging the aquifer and this can aid to provide 40 percent of the population dependant on groundwater ,therefore the water recycle program in India have benefit both India people and Cadbury itself and form a win-win situation. (Sustainable Life Media n.d.)Beside , Cadbury's factory in Pakistan have faced the water scarcity problem .Since Pakistan have low rainfall rates ,water preserving is essential to the local people and society. Hence, Cadbury have paid money to invest in the water supply systems include providing the training program to staff and using meters to calculate the water usage. Lastly, Cadbury have successfully reduced 58 percent in water reduction per ton between 2000 to 2005.(Brad 2007)
Thus it can be seen from the Bangalore and Pakistan cases, Cadbury are very thoughtful, they care not only care about themselves but also the people around them without national boundaries. This water recycle program affect not only the company but also the local people of community ,and linked a good relation between company and public ,therefore to maintain a sustainable environment .Palm Oil Crisis
However, palm oil crisis have arrive in 2009 July . Cadbury have changed its ingredients of its famous Dairy Milk block chocolate with fewer cocoa solid (drop from 26 percent to 21 percent) while adding a kind of vegetable fats ,Palm oil. Palm oil is a cheaper source of vegetable fats and inferior substitute for Cocoa better, the major problem behind is the palm oil production ,which caused deforestation ,pollution and animal extinction problem .Meanwhile ,Cadbury insisted adding the palm oil was to improve the softer taste of chocolate but not on purpose to reduce cost and rise the profit. Also, they claimed that they are the member of RSPO(Roundtable for Sustainable Palm Oil)and have bought Green Palm certificate which can proved their palm oil has come from sustainable sources. Nevertheless, public against Cadbury and formed some "anti-Cadbury campaigns" on Facebook and Twitter. Under the pressure by public and media, Cadbury finally decided to recollect all the new palm oil Chocolate and remove Palm oil from the recipe and make an apology to the people.
From the palm oil crisis showed both the positive and negative side of Cadbury. On the positive side, after Cadbury have made a wrong decision , they heard the feedback from consumers, admitted and redressed the mistakes immediately .This conduct demonstrates Cadbury have fulfilled their responsibility and social obligations in correcting errors and have good communication with public . However on the negative side, this crisis showed the weakness of Cadbury. Since, palm oil is not a new ingredient of food, Cadbury should aware the harmful of these ingredient to deforestation ,pollution and causing animal extinction problem. Also, palm oil is a kind of vegetable oils which contain 50% saturated fat ,as is know to all taking too much of saturated fat will cause harmful to health, especially for those chocolate lover, therefore Cadbury added palm oil in the production of chocolate will cause unhealthy environment to the society, thus will fair to execute the public expectation.Chocolate recall from 2006 to 2008
On the contrary, quality of Cadbury's chocolate has been questionable from 2006 to 2008.At 2006,there were 7 range of Cadbury's products have been detected containing Salmonella bacteria and Birmingham City Council filed a lawsuit against them. As a result , Cadbury have recalled more than a million of chocolates and was forced to pay 1 millions pounds fines. However, the business scandals happened consecutively. During 2007,Cadbury recalled some of its products again due to the mistakes of labelling include the omitted label of nuts which may cause the potential allergens problem .Afterward, melamine have discovered in 11 chocolate products of Cadbury's at 2008 which was made from its Beijing's factory. The chocolate recall happened repeatedly, and this have big impact to China, Hong Kong, Tai Wan and Australia market.
Between 2006 to 2008 ,Cadbury announced three food recalling continually, these indicated a huge weakness of the corporation. First of all, the food quality and safety has high priority in confectionery factory and also the basic request of people. As the products of Cadbury was unsafe and involved toxic bacteria such as salmonella at 2006 and melamine at 2008 ,it is definitely harmful to society and stakeholder thus will cause destruction to environment and community. Secondly, after the first recalled of chocolate, Cadbury should aware the loophole in the food quality control and in responding should make improvement in quality monitoring so that to regain trust and reinstate to the standard expectation of public. In fact, one trouble follows another ,the second chocolate recall happened at 2007 which showed that Cadbury had seriously internal control problem because the nuts labels omitted of the packaging will cause precarious to customer for those allergic to nuts, hence Cadbury create a gap towards public expectation and fail to perform its social responsibility to community. At 2008 the melamine crisis of Cadbury, showed the weakness of internal food quality control of it company once again, as the chocolate involved toxic elements this will definitely destroy the goodwill and confidence from the stakeholder, thus to cause damage to the social contract between Cadbury and society.Conclusion of Cadbury's social performance
Cadbury have good performance in terms of reducing carbon , water and packaging, these have profound positive impacts to environment. what is more, Cadbury achieved the commitments which have stated in the Purple goes green project , and moving towards the final goals at 2020.The impacts of its environmental policies have benefited to improve climate change problem from reducing Carbon and packaging, also from the water recycle program helped the local people and community .Beside, in palm oil crisis showed that Cadbury have good communication between stakeholders and society ,finally to remove palm oil in response to satisfy the want of stakeholders.
However, palm oil crisis and the three food recall scandal showed the downside of Cadbury. In relation to palm oil crisis ,before to decide changing of chocolate formulation ,Cadbury should done adequate preparation to avoid misunderstanding with stakeholders and causing harmful to environment. Beside, the three food recall indicated the frailness food quality control of Cadbury. Therefore Cadbury should concern more about the unstable quality of its product and make improvement so as to execute the social contract obligation and make good social performance.
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