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One day, Willy Wonka… put an ad in the Evening Bulletin : “I, Willy Wonka, have decided to allow five children … to visit my factory this year. These lucky five will be shown around personally by me, and they will be allowed to see all the secrets and the magic of my factory ”
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One day, Willy Wonka… put an ad in the Evening Bulletin: “I, Willy Wonka, have decided to allow five children … to visit my factory this year. These lucky five will be shown around personally by me, and they will be allowed to see all the secrets and the magic of my factory” Charlie was one of the lucky ones to be shown around.
One day, Willy Wonka… put an ad in the Evening Bulletin: “I, Willy Wonka, have decided to allow five children … to visit my factory this year. These lucky five will be shown around personally by me, and they will be allowed to see all the secrets and the magic of my factory” Charlie was one of the lucky ones to be shown around. But…
One day, Willy Wonka… put an ad in the Evening Bulletin: “I, Willy Wonka, have decided to allow five children … to visit my factory this year. These lucky five will be shown around personally by me, and they will be allowed to see all the secrets and the magic of my factory” Charlie was one of the lucky ones to be shown around. But… There were some secrets Willy Wonka never told Charlie
Charlie and the chocolate factory • The brand Freia Melkesjokolade chosen as Norway’s ”Superbrand” • The tradition of Freia gründer Johan Throne Holst
Romantic, naïve image • Distinctly different from other food products (e.g. coffee) • Image based on marketing • Realities of production little known
Realities: • World market dominated by six multinationals: Mars/Masterfoods, Nestlé, Hershey, Cadbury, Ferrero, Kraft Foods
Realities: • World market dominated by six multinationals: Mars/Masterfoods, Nestlé, Hershey, Cadbury, Ferrero, Kraft Foods • Increasing concentration (Three companies dominates 70% of Norwegian market)
Realities: • World market dominated by six multinationals: Mars/Masterfoods, Nestlé, Hershey, Cadbury, Ferrero, Kraft Foods • Increasing concentration (Three companies dominates 70% of Norwegian market) • Enourmous profits (Three owners of Mars/Masterfoods all among the 25 richest persons in the world)
Questions of business ethics • Marketing to children
Questions of business ethics • Marketing to children • Industry’s role in the obesity epidemic
Questions of business ethics • Marketing to children • Industry’s role in the obesity epidemic • The power of the multinationals (Kraft Foods’ owner Philip Morris/Altria is an economy as big as Slovakia and Tunisia)
Questions of business ethics • Marketing to children • Industry’s role in the obesity epidemic • The power of the multinationals (Kraft Foods’ owner Philip Morris/Altria is an economy as big as Slovakia and Tunisia) • Corporations’ fortunes based on cocoa produced with child labour
Questions of business ethics • Marketing to children • Industry’s role in the obesity epidemic • The power of the multinationals (Kraft Foods’ owner Philip Morris/Altria is an economy as big as Slovakia and Tunisia) • Corporations’ fortunes based on cocoa produced with child labour
Squeeze on cocoa prices The tremendous power of the manufacturers enable them to “squeeze the prices in both ends of the production- and distribution-chain: the impoverished farmers who produce the commodity at one end, and consumers all over the world at the other end.”(French economist Frederic Clairmont)
Squeeze on cocoa prices “Continuing pressure on prices and structural changes in cocoa bean producing countries, such as liberalisation, have taken their toll on the quality of cocoa beans and on the geographic spread of cocoa bean production – only the low cost producers survived” (Rabobank International)
Leading producers: • Côte d’Ivoire 37% • Ghana 19% • Indonesia 14% • Nigeria 6% • Brasil 6% • Cameroon 5% (UNCTAD, 2003)
Leading producers: • Côte d’Ivoire 37% • Ghana 19% • Indonesia 14% • Nigeria 6% • Brasil 6% • Cameroon 5% (UNCTAD, 2003)
Cocoa farmers Income averages $ 829 per family (7-8 persons)
Côte d’Ivoire: • Living standards increase until 1985, then drop
Côte d’Ivoire: • Living standards increase until 1985, then drop • Life expectancy fall from 45 (1970-75) to 41 (2000-2005
Côte d’Ivoire: • Living standards increase until 1985, then drop • Life expectancy fall from 45 (1970-75) to 41 (2000-2005 • GDP per capita annual growth rate -2% (1975-2002)
Côte d’Ivoire: • Living standards increase until 1985, then drop • Life expectancy fall from 45 (1970-75) to 41 (2000-2005) • GDP per capita annual growth rate -2% (1975-2002) • Half the population live on less than $2 a day (1990s) (Source: UNDP)
Côte d’Ivoire: • Living standards increase until 1985, then drop • Life expectancy fall from 45 (1970-75) to 41 (2000-2005) • GDP per capita annual growth rate -2% (1975-2002) • Half the population live on less than $2 a day (1990s) • Civil war in Côte d’Ivoire affects immigrant farmers (driven off their land)
”The interviews with community leaders indicated that the greater employment of family labour was a common response to the recent drop in cocoa prices and the crisis in cocoa incomes” (IITA)
”Because of the weakness in commodity markets since the late 1980’s, farmers have been forced to cut costs by reducing expenditures and increasing the household labour including children” (IITA)
”Because of the weakness in commodity markets since the late 1980’s, farmers have been forced to cut costs by reducing expenditures and increasing the household labour including children” (IITA)
625100 children work on cocoa farms140800 of these are 6 to 9 years old(IITA estimates)
Hazardous work • Application of noxious pesticides
Hazardous work • Application of noxious pesticides • Working with machetes
Hazardous work • Application of noxious pesticides • Working with machetes • Transporting excessively heavy loads
1485 children could not leave their work without permission from adults