As late as 2020, the supply chain of the global chocolate industry was characterized by modern slavery and child labour, poverty, dire living conditions and deforestation. While players in the cocoa industry had launched certification and in-house sustainability programmes, experts claimed that these have had limited impact. This failing prompted alternative efforts to change the sector from within. One of them, Tony's Chocolonely, a Dutch brand, set out to challenge the industry and demonstrate that cocoa could be sourced differently. Created in 2005 after an investigative journalist exposed the "dark side" of the industry, Tony's became one of the market leaders in the Netherlands. It operated a fully segregated supply chain "from bean to bar" for all cocoa components in its chocolate, and paid farmers in Africa a higher price for their cocoa beans to help them earn a living income. It described itself as "an impact company that sells chocolate; not a chocolate company trying to make an impact". Its vision - "a cocoa industry with 100% slave-free chocolate" - went beyond its own operations and applied to the global industry, urging the big chocolate players to take responsibility along the entire supply chain. The size of Tony's Chocolonely compared to the global chocolate industry brings an analogy to mind: Could this David defy Goliath? Could a start-up with a social mission change an entire industry from within? To achieve 100% slave-free chocolate meant tackling a host of strategic, tactical and operational issues, many linked with the UN Sustainable Development Goals.
Since its inception in 2015, the 2030 Agenda for the UN Sustainable Development Goals (SDG) has provided a blueprint for shared prosperity in a sustainable world - a world where all people live productive, vibrant, and peaceful lives on a healthy planet. With less than a decade to go, we need to ask if we are laying the right foundation to achieve the SDGs. How "SDG-smart" are we? How aware are we of the production, trade and financing of commodities that are widely consumed? This case provides an overview of the cocoa sector, its supply chain and structural abuses, challenging the audience to reflect upon their SDG awareness and how they - be they consumers or producers - can do better and how the leaders of tomorrow can bring about sustainable change. The case uses a novel format using a slide set only. The slide set has six parts, starting with introducing the cocoa sector and the issues of poverty, child labour and deforestation. It is followed by the current practices to tackle these issues, namely industry sustainability initiatives and third-party certification programs. It concludes with different components that allow for further in-depth discussion. The final discussion question is about what you as a leader of tomorrow would do differently to bring about true impact. This should prompt the audience to think critically about what they would do. Here, many different components can be considered and the case handles some of them: • Responsible consumption and production. • How can governments and legislation play a role? • How can emerging technologies help? • What role can be played by social impact companies? Can they drive change in the sector?