This move by Mars is important to more companies and more industries out there than folks realize. It is by no means just about chocolate or cocoa farmers. And if you think so you and your industry might be find yourselves unprepared.

The take away is that even in oligopolistic industries like cocoa/chocolate (where a handful of firms like Mars, Hershey’s, Cargill and ADM dominate) firms can only resist calls for reform for so long before they have to clean up their act – be it environmentally, socially or both.

You see, with all due respect to Sarah, on this issue Mars has proved to be far from a “responsible and forward-thinking company”, and what they are offering now is long overdue and comes only after _eight_ years of demands from not only a global coalition of activists and faith-based groups but even from the U.S. Congress.

I’ll spare you the details (you can read a little about that eight year fight at http://www.equalexchange.coop/child-labor-in-the-cocoa-industry ) but suffice it to say that when you look at this closely as a case study you’ll see that the big companies, including Mars, deployed all manner of stalling tactics but eventually had to give ground. And when they did they – in my opinion – did not look to solving the problems as much as finding the least expensive fix that would relieve the public pressure they were under.

For example, Mars is _not_ in fact adopting Fair Trade, even in part. Rather, they will begin selling – in 2010 and only in the UK/Ireland market – a chocolate bar that uses Rainforest Alliance certified cocoa. Unlike Fair Trade the Rainforest certification notably does not guarantee any kind of higher price for the cocoa farmers – making it the cheaper alternative for Mars, and less meaningful for the farmers.

As with many industries, especially those operating in poorer nations, the cocoa trade has a deep ugly side that the major players have resisted fixing – even while they manufacture a glossy face for the North American and European public. The book “Bitter Chocolate” by Carole Off paints a disturbing picture, and still only describes a portion of what’s wrong. The International Labor Rights Forum (www.ilrf.org ) and Global Witness help to fill out the picture. The issues include price-fixing, complicity with corrupt African governments and rebel groups, repeated efforts to drive down cocoa prices, and years of outright rejection of some of the reforms they are now begrudgingly adopting.

But, while these recent announcements amount to less than they would want you to think, they do still indicate that the world of commerce continues to _slowly_ , very slowly bend towards a kind of basic decency, so you better try to stay ahead of the curve.

~ Rodney North, spokeperson for Equal Exchange, www.equalexchange.coop

Sarah, thanks for calling attention to the problems in the cocoa industry and the move toward more sustainable sourcing practices.

Rodney is right on with his comment above. It's important to remember that companies like Equal Exchange, Divine Chocolate and Sweet Earth Organic Chocolates had led the way in committing to higher ethical and environmental standards for years. It's also important to note (as Rodney did) that Rainforest Alliance certification is NOT the strongest available certification system available. Please see this press release from the International Labor Rights Forum about Mars' announcement which explains why Mars' commitment is important, but also why it's not enough: http://www.laborrights.org/stop-child-labor/cocoa-campaign/2010. You can also check out ILRF's chocolate company scorecard that ranks companies based on their labor practices here: http://www.laborrights.org/stop-child-labor/cocoa-campaign/resources/1942

These recent announcements are directly linked to the years of pressure from consumers and governments both in cocoa-producing and cocoa-consuming nations. In these times of economic crisis and CEO excess, let's remember that the farmers and workers who produce the products we buy deserve to be able to live a decent life and have their basic rights respected. Cadbury and Mars are taking a step in the right direction (Cadbury a MUCH bigger step because Fair Trade is a stronger system) and other companies like Hershey and Nestle SHOULD follow suit.

Sarah,
I am pleased to hear that about our products, and I did not think you thought of Mars as a l'eader'. I only meant to challenge the image of them as "responsible and forward-thinking". If one has to be prodded and pulled into action after 8 years one is not acting responsibly.

Regardless, I really think there is much more here than the media realizes. These recent steps by the industry are almost invariably viewed in isolation, and without any awareness of the backstory or how it fits in with the bigger picture (be that the historical trajectory or the wider global economy).

Consequently the public sees a few announcements or an ad campaign and go "oh cool - look at what XYZ corp is doing. That's nice" all the time completely unaware of what led to that moment.

Right now similar stories are playing out quietly with tea, bananas, textiles (an issue that has faded from the headlines even while the problems remain) and many other areas - both abroad and inside of wealthy nations like the US.