Sustainability has become a significant issue in many companies as it affects their reputation among customers. At the same time, outsourcing and globalization have resulted in the spreading out of supply chains across continents. Therefore, the focus of implementing sustainability has shifted from the single organization to the entire supply chain. This is of particular importance for chocolate manufacturers with their multinational supply chains as they are held responsible by the public for any irregularities which happen in their supply chain.
Chocolate brand owners have been confronted with increasing criticism and pressure from politics and public due to the lack of sustainability in their supply chain. A current example is the TV documentary “Schmutzige Schokolade”, a film about child labor on cocoa farms in Ivory Coast, for which the Danish filmmaker Miki Mistrati blames the chocolate manufacturers. The film, which was broadcasted on ARD on October, 6th, 2010, at 11:30p.m., has been sold altogether to 18 countries and was consequently watched by several million television viewers.
This paper focuses on Sustainable Supply Chain Management in the chocolate industry. The following chapter contains a short theoretical introduction to the topic. It then focuses on giving an overview of the European, and there specifically on the German chocolate industry. Furthermore, it puts focus on the raw material cocoa from Ivory Coast, as cocoa butter and cocoa powder are among the main ingredients of chocolate and Ivory Coast is the world’s largest cocoa producer country. The last two chapters include the description of the importance, weak points, challenges and possible concepts of Sustainable Supply Chain Management for cocoa. The paper finishes with a summary and an outlook.
Table of Contents
1 Introduction
2 Theoretical Framework
2.1 Supply Chain Management
2.1.1 Definition of SCM and distinction to Logistics
2.1.2 Origin and development of Supply Chain Management
2.2 Sustainable Development
2.2.1 Characterization
2.2.2 History and growing political importance
2.3 Sustainable Supply Chain Management
3 Chocolate and cocoa industry overview
3.1 The European and German chocolate industry
3.2 The cocoa industry
3.3 Supply Chain Map for cocoa
4 Sustainable Supply Chain Management for cocoa
4.1 Importance of SSCM for the chocolate industry
4.2 Weak points of the supply chain for cocoa
4.3 Challenges of implementing a sustainable supply chain for cocoa
5 Concepts for a Sustainable Supply Chain Management for cocoa
6 Summary and Outlook
Research Objectives and Core Themes
This paper examines the integration of Sustainable Supply Chain Management (SSCM) within the chocolate industry, specifically focusing on the cocoa supply chain from Ivory Coast. It investigates the primary challenges of achieving sustainability in a globally fragmented, buyer-driven industry where brand owners face significant reputational pressure due to human rights and environmental issues.
- Fundamentals of Supply Chain Management and Sustainable Development
- Structural overview of the European and German chocolate industry
- Analysis of the complex cocoa supply chain and its primary weak points
- Critical assessment of child labor and deforestation in cocoa production
- Evaluation of Fair Trade and co-operative models as potential solutions
Excerpt from the Book
4.2 Weak points of the supply chain for cocoa
In the last years, there have been a growing number of negative publications and increasing criticism of the chocolate industry, mainly from NGOs and the press.
The main accusation is related to the widespread use of child labor on the cocoa farms, especially in Ivory Coast. According to the reports of several NGOs, up to 600,000 children, most of them just 10 to 14 years old, work on cocoa farms in this country, without any salary and up to 15 hours a day. This topic becomes even more controversial due to the fact that some of the children come from neighboring countries like Mali and Burkina Faso and may be victims of human trafficking. NGOs frequently report about these children getting kidnapped by human traffickers and being sold as slaves for small amounts of 230 € or less to the farm owners. Although it is difficult to specify the exact numbers - Greenpeace reports talk about 200,000 children and how many of them are slaves and how many are own children of the farmers -some reports indicate that 87% of the farm employees are own family, this topic has become of major interest for the public. In the view of many, the chocolate industry is responsible for tolerating and being the cause for this child labor which happens in their supply chain because of paying insufficient prices to the farmers and thereby forcing them to cut costs.
Summary of Chapters
1 Introduction: Provides the motivation for the study, highlighting how globalization has shifted the focus of sustainability from single organizations to the entire supply chain, specifically within the chocolate industry.
2 Theoretical Framework: Defines Supply Chain Management and Sustainable Development, establishing the three-pillar model of sustainability and differentiating SCM from traditional logistics.
3 Chocolate and cocoa industry overview: Examines the market structure of the European and German chocolate sectors and details the complex, multi-stage supply chain of cocoa beans from small farms in West Africa to processors and manufacturers.
4 Sustainable Supply Chain Management for cocoa: Analyzes the critical importance of SSCM for the industry while identifying major weak points such as child labor and environmental degradation in the Guinean rainforest.
5 Concepts for a Sustainable Supply Chain Management for cocoa: Proposes and critiques solutions including Fair Trade certification, the establishment of farmer co-operatives, and direct involvement of cocoa exporters to enforce standards.
6 Summary and Outlook: Concludes that while initiatives like Fair Trade and co-operatives are promising, large-scale sustainability requires the active participation of major cocoa exporters to achieve a win-win situation for all stakeholders.
Keywords
Supply Chain Management, SSCM, Chocolate Industry, Cocoa, Sustainability, Fair Trade, Child Labor, Ivory Coast, Sustainable Development, Farmer Co-operatives, Globalization, Logistics, Ethical Sourcing, Supply Chain Map, Corporate Responsibility
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores the implementation of Sustainable Supply Chain Management (SSCM) within the chocolate industry, analyzing how major manufacturers can address ethical and environmental challenges within their supply chains.
What are the central themes of the research?
Key themes include the structural complexity of cocoa sourcing, the impact of child labor, deforestation, and the effectiveness of current sustainability initiatives like Fair Trade.
What is the main objective or research question?
The objective is to identify why sustainability is critical for the chocolate industry and to evaluate practical concepts for managing supply chains more sustainably despite existing market complexities.
Which scientific methods were used?
The author uses a qualitative approach, synthesizing secondary data, reports from NGOs, industry analyses, and existing academic literature to model supply chain risks and potential improvements.
What topics are covered in the main body of the work?
The main body covers the theoretical definition of SCM, the specific structure of the cocoa industry in West Africa, the identification of weak points like child labor, and an evaluation of potential remedial concepts.
Which keywords best characterize this work?
Keywords include Sustainable Supply Chain Management, cocoa industry, Fair Trade, ethical sourcing, child labor, and supply chain complexity.
Why is the cocoa supply chain considered particularly difficult to manage?
The supply chain involves millions of small family farms, multiple layers of intermediaries, and a lack of transparency in countries where prices are not government-regulated, making it difficult for manufacturers to exert direct influence.
What is the conclusion regarding the Harkin-Engel-Protocol?
The author concludes that the protocol has been largely ineffective, noting that repeated deadlines for eliminating child labor were missed, which has damaged the trust between stakeholders and the industry.
- Arbeit zitieren
- Oliver Thomas (Autor:in), 2011, Sustainable Supply Chain Management in the chocolate industry, München, GRIN Verlag, https://www.hausarbeiten.de/document/171088
