Green And Fair Trade Marketing assignment paper

Question: Green and fair trade marketing are just marketing ploys to get more money from consumers without really furthering the goals of sustainability or fairer trade. Prepare a report discussing this statement with respect to an organisation with which you are familiar. Focus on either green or fair trade marketing. You will need to describe briefly what green or fair trade marketing practice(s) the organisation engages in. (Note: you are only required to discuss either green or fair trade practices, not both.) (b) Thesis In this part you have to make (an) argument(s) that support(s) the statement in the question, i.e. that green or fair trade marketing as practised by the organisation you have chosen is not conducive to genuine sustainability or fairer trade. You need to give concrete examples that show how this organisations practices do not really support sustainability or fairer trade. (c) Anti-thesis In this part you need to make the opposite argument(s), i.e. that the organisations green or fair trade practices do foster sustainability or fairer trade, again citing concrete examples of how this is the case. (d) Synthesis (Conclusion) In this part of the assignment you need to bring together the arguments from parts (b) and (c) and come to a reasoned conclusion as to whether and to what extent, on balance, you think the organisations practices support sustainability or fairer trade. Answer: Introduction Fair trade marketing is a social movement that is being increasingly adopted by multinationals in developed countries(Moberg 2010). Fair trade aims to promote better trading positions and conditions such that sustainability of the business can be greatly achieved. Advocates of fair trade in companies generally pay higher prices for the raw material in order to improve the social and environmental standards prevailing in the developing country. Fair trade motive is an extension of the corporate socially responsible act that promotes seeks that the product be consumed in developing countries as well, in order to promote equity in international trading. Cadbury is a Britain based multinational confectionery wholly owned by Mondelez International, an American company from 2010(Cadbury Retrieved on 14 th August, 2016). The report aims to analyze the green fair trade practices adopted by the company recently in order to adhere to corporate social responsibility standards and to create grea ter sustainability for its business, hence overcomes the practices of only getting extra money from customers(Pelsmacker 2006). Thesis The acts of green fair trade marketing needs to be adhered by the company and demonstrated in every aspect of the product that it produces(Audebrand 2008). Cadbury was founded in Birmingham in United Kingdom in the year 1824, by John Cadbury. The current headquarters of the company is based in Uxbridge in London and Irene Rosenfeld in the Chairman and CEO of the company. The companys is a highly profitable company that incorporates the CSR norms of fair trade marketing. On several cases the company has faced CSR charges as in 2006 Salmonella scare. Cadbury Schweppes were found contaminated with rare strain of Salmonella bacteria in seven products(The Retrieved on 12th August, 2016). The contamination occurred due to a pipe leakage in Marlbrook plant that produced chocolate crumb mix. The leakage was detected six months and resulted in Food Standards Agency issuing notice to the company to recall its chocolate bars. The company had to bear a cost of GBP20million in order to deal with the leakage and further charges for facing notice from Health Protection Agency. In this case the companys effort to resort to green fair trade practices were not conformed to and it could not pay extra to producers of Cocoa due to the excessive penalty paid by the company. In second case Cadbury had to recall several of its products in 2007 due to labeling error. The packaging on the products did not provide adequate information regarding nuts and potential allergens present in the product especially in Cadbury Schweppes. The minor blunder led to recalling of thousands of chocolate bars in the Somersdale Factory. In 2008 there was melamine contamination found in three Beijing factories of the company(Legalexaminer Retrievd on 9th July, 2016). This led to the brand recalling its products from China markets, Hong Kong, Taiwan and Australia. In 2009 Cadbury products were found to be using hydrogenated oils in its signature products. The nutrition labels that were present on the product mounted to zero value. Subsequently in 2014 there were traces of pork found in the product that were sold in Malaysia(MailOnline Retrieved on 12th August, 2016). Malaysias Department of Islamic Development (JAKIM) reported that several of Cadbury products contained traces o f pork DNA, that led to banning of the product in the country. Cadbury on various instances had proposed that it adopts sustainable practices for ethical business conduct and for greater good of the society. The above cases are a pure contradiction to the nature of green fair trade or sustainable practices that are adopted by the company(Didier 2008). On these various occasions the company made severe losses resulting in their failure or inability to pay extra to the producers of cocoa that can further improve their social conditions. Customers select Cadbury over local chocolate manufacturers due to the trust in the brand image, regarding their conformance to social and sustainable standards. But in cases of ethical violations such extra payments holds no good value and results in mistrust or breach of faith(Connolly 2006). The company on these cases procured cocoa and other necessary raw materials at the lowest cost such that the company can make minimum amount of profits. The producers of cocoa are primarily based in Ghana, who has indecent a nd absolutely formidable health and environmental conditions(Castaldo 2009). The production of cocoa is though comparatively large in scale by exporters benefit the maximum from such production reaping away profits from the producers. One of the advertisements of Cadbury focused that they conformed to the green fair trade practices by procuring the best cocoa from Ghana(Campaign Retrieved on 13th August, 2016). Though the intention of the advertisement as taken well but the basis of the advertisement was controversial. Therefore it can be assumed that the practices of green fair trade marketing are merely a gimmick to make customers pay extra towards sustainability goals(Doran 2009). Anti-thesis Fair trade practices are adopted by companies to attain broader social goals and for attaining sustainable practices(Raynolds 2007). Customers have access to huge amount of information and there is significant rise in social awareness and ethical concerns. Customers generally prefer to purchase products from companies that adopt fair trade practices such that their activities generate greater social effects. Each and every action of an organization has impact on the environment as well as on the larger community. Though there is significant large number of giant chocolate producers around the world but their endeavor has failed to improve the social and environmental conditions for growers of cocoa. Cadbury by adopting fair trade practices is trying to make its mark by its own initiative in the field(Campaign Retrieved on 13th August, 2016). The company has made several initiatives including its hot chocolate beverage and marks. Cadbury plans to invest a GBP 45 million in the coming ten years to farming cocoa in the developing nations. The investment initiative of the company can triple sales of cocoa in fair trade terms, for farmers in Ghana who are into cocoa. The initiative will also benefit millions of other farmers from the scheme, as it aims the development and creation of sustainability for farming and usage of modern techniques and pesticides(MacDonald 2007). Ghana farming uses traditional farming techniques and methods the new scheme will bring them immense opportunity to develop their existing farming practices and will benefit them to earn a more standardized living. It is a first of its kind initiative from Cadbury to address the growing concern of cocoa farming. Though Cadbury had been deeply criticized for its inability to adopt green fair trade practices, this initiative will prove to be a major move in the area of conformance to green fair trade marketing. The company has stringent corporate social responsibility norms and sustainable practices that are aimed at providing immense benefits to the society as a whole(Golding 2009). Researchers have been able to establish though conduct of several studies that fair trade practices has an influence on customer satisfaction which in turns generates greater brand name for the company. Often in fair trade practices when products of the multinational is sold in the raw material market it is ignored due to the existing condition of workers and farmers in the country. The product is often seen to be damaging sentiments for fellow farmers and other individuals involved in the production of the raw materials. Fair trade practices can act as a bridging gap in the sentimental issue and can create broader market and demand for the product. Hence multinational companies that adopt fair trade practices diligently have seen greater share in their revenue generation and increase in wider market access. Cadbury unlike other chocolate manufacturers had been avoiding any ethical practices and norms especially in the area of fair trade practices. There have been quite a few rumors regarding the inability to adopt the strategies related to CSR and its parent companys in-adherence to CSR. Cadbury is a brand name in the market across the world that is loved and admired by individuals globally. Dampening of ethical marketing norms would tamper the companys image in the eyes of the customers as well as shareholders(Hira 2006). The move in fair trade marketing practices has been a major initiative and drive taken by the company to ensure the future of its business and to maintain a competitive edge over others. Conclusion Green fair trade marketing practices is a methodology adopted by sustainable businesses in order to build greater sustainability for their business. The primary aim of fair trade marketing practices is to ensure that the raw material or unfinished products are purchased at a market rate or higher from their producers such that they are able to sustain their businesses in the long run. Cadbury is a large brand image in the field of chocolate manufacturers around the world. the company has earned substantial fame in order to retain its image and make it grow in the market. The report analyses the several challenges in regards to CSR issues that has been faced by the company and the fair trade marketing practices the company has adopted to overcome it. Global companies are often known to reap benefits from developing countries by reaping benefits by extracting raw materials at costs lower and gaining high amounts of profits from their productions itself. Application of fair trade practi ces can help the company gain substantial advantages and create awareness in the minds of customers for the existing problems and situations in a developing country. Thus, there are several positive aspects of fair trade marketing practices and multiple companies have gained significant advantages in terms of their product acceptances and so on. In the light of growing scarcity of cocoa production in Ghana, Cadbury has taken a major initiative to promote and provide a helping atmosphere in the farming. Ghana has been long deprived of the technical and modern methods of farming. The investment initiative by Cadbury will prove to be a major move for all the various farmers who are involved in production of various items in Ghana. Famers will stand to gain along with several corporations who source their raw materials from the place, thus Cadburys fair trade initiative will prove to be a landmark move in the field. Thus it can be concluded that green trade marketing does not only concerns to get extra money from customers, it does benefit the greater community as well. References Audebrand, L.K. and Iacobus, A., 2008. Avoiding potential traps in fair trade marketing: a social representation perspective.Journal of Strategic Marketing,16(1), pp.3-19. Cadbury, U Retrieved on 14 th August, 2016, 'Company History', https://www.cadbury.co.uk/the-story. Campaign, L Retrieved on 13th August, 2016, 'Cadbury Fair Trade Initiative', https://www.campaignlive.co.uk/article/887247/cadbury-dairy-milk-become-fairtrade#. Castaldo, S., Perrini, F., Misani, N. and Tencati, A., 2009. The missing link between corporate social responsibility and consumer trust: The case of fair trade products.Journal of business ethics,84(1), pp.1-15. Connolly, J. and Shaw, D., 2006. Identifying fair trade in consumption choice.Journal of strategic marketing,14(4), pp.353-368. Didier, T. and Lucie, S., 2008. Measuring consumer's willingness to pay for organic and Fair Trade products.International Journal of Consumer Studies,32(5), pp.479-490. Doran, C.J., 2009. The role of personal values in fair trade consumption.Journal of Business Ethics,84(4), pp.549-563. Golding, K.M., 2009. Fair Trade's Dual Aspect The Communications Challenge of Fair Trade Marketing.Journal of Macromarketing,29(2), pp.160-171. Hira, A. and Ferrie, J., 2006. Fair trade: Three key challenges for reaching the mainstream.Journal of Business Ethics,63(2), pp.107-118. Legalexaminer, N Retrievd on 9th July, 2016, 'Cadbury contained melamine', https://news.legalexaminer.com/melamine-contamination-in-cadbury-chocolates-made-in-china.aspx?googleid=248390. MacDonald, K., 2007. Globalising justice within coffee supply chains? Fair Trade, Starbucks and the transformation of supply chain governance.Third World Quarterly,28(4), pp.793-812. MailOnline, TM Retrieved on 12th August, 2016, 'Cadbury negative publicity', https://www.themalaymailonline.com/money/article/after-cadbury-scare-food-industry-navigates-around-halal-processing-standar. Moberg, M., 2010.Fair trade and social justice: Global ethnographies. NYU Press. Pelsmacker, P.D., Janssens, W., Sterckx, E. and Mielants, C., 2006. Fair trade beliefs, attitudes and buying behaviour of Belgian consumers.International Journal of Nonprofit and Voluntary Sector Marketing,11(2), pp.125-138. Raynolds, L.T., Long, M.A., Murray, D.L. and Wilkinson, J., 2007.Fair/alternative Trade: historical and empirical dimensions(pp. 15-32). Routledge. The, G Retrieved on 12th August, 2016, 'Cadbury contained Salmonella bacteria', https://www.theguardian.com/business/2006/aug/03/food.foodanddrink.