Supply chains in commodity industries are often characterized by social and environmental abuse. In the cocoa industry, for example, the average farmer cultivates between three and five hectares to earn less than two dollars a day. It is an environment rife with social and environmental abuse. In this article, the authors look at the experience of Tony’s Chocolonely, a Dutch chocolate brand founded in 2005, which set itself a mission to sell 100% slavery-free chocolate. They show how Tony’s brought its supply chain partners together to create an altogether new paradigm in which all actors take responsibility for social impact. And it really works: Tony’s profitably sells around $130 million worth of slavery-free chocolate bars in Western Europe and the U.S.
detected cases of child labor at just 4.4% of Tony’s co-ops’ member farms, compared to instances at 52.8% of member farms in co-ops not partnering with Tony’s, while the average income for farmers that have been in Tony’s co-ops for three years more than doubled.
Sharing data and examples with both internal and external stakeholders reduces both these risks. Together, they help the different supply chain players efficiently work together and feel connected to Tony’s, to each other, and to the shared goal of eradicating child labor and reducing poverty. are examples of children who are doing well at school and families who are now able to install basic sanitation in their homes.Traditionally, business prospers when companies compete — and businesses aren’t sustainable unless they can compete effectively. But competition doesn’t work so well for challenges like child labor or CO2 reduction.
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