Economic Social Ethical and Environmental
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......Industry Value Chain Analysis
Using the value chain framework (Porter, Millar, 1985) as defined by Dr. Michael Porter, the chocolate industry is analyzed in the context of its interrelationships of support activities and primary activities. Figure 1, Chocolate Industry Value Chain provides an analysis of this industrys interrelationships according to the model. The primary activities of Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales, and After Sales Service are supported by the Firm Infrastructure that is typical throughout this industry, which is by nature oligopolistic
Figure 1: Chocolate Industry Value Chain
Sources: Based on analysis of (Delfosse, 2009) (Doherty, 2009) (Hildebrandt,2009) (Monotti, 2008) (Sridharan, Caines, Patterson, 2005) (Tirone, 2008)
Next, the Human Resources practices of the industry are evaluated, which in the case of the chocolate industry have a high level of duality associated with them. On the one hand there is wage equality and fair trade which means the payment of market-based wages. On the other, especially in the more impoverished regions of Africa and throughout Southeast Asia, wages are more often seen as predatory and unethical. This has forced the entire industry to adopt a more thoroughly defined Corporate Social Responsibility (CSR) framework that can provide for greater
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