From Bean to Bar An assessment of chocolate producing companies advancements towards closing the living income gap of smallholder cocoa farmers

Abstract

This thesis explores how chocolate producing companies address the lacking living income of cocoa smallholder farmers by means of their corporate social responsibility (CSR) strategies. Using data from nine small to medium-sized and nine multinational firms competing in the chocolate market, this paper uses an in-depth multiple case study research design to investigate how well company strategies ensure a living income and hence a decent standard of living to smallholders. For this purpose, five interconnected variables, namely Climate Change, Sustainable Agriculture, Gender Equality, Market Factors and Transparency and Accountability, were developed to evaluate the case companies. The findings demonstrate that all small to medium-sized chocolate producing companies portrayed provide a living income to cocoa smallholders, distinguishing themselves from the presented multinational corporations. None of the latter companies performs well enough on the variables to be considered successful in closing the living income gap. This study’s contribution is two-fold. Firstly, it contributes to academic theory, adding to the still scarce literature on living income in the cocoa industry and beyond. Secondly, this study aids the practical implementation and evaluation of companies’ CSR strategies concerning a living income. By comparing the approaches of differently sized market players with diverging CSR strategies, a contrast in impacts on living income is revealed, providing an essential base for adopting best practices. This provides an essential base for adopting best practices. The study demonstrates that with a changed market model, based on direct trade and transparency, the provision of a living income to farmers can be achieved.