Stakeholders and Corporate Community Investment
A Cadbury Schweppes case study

Summary

Concepts:

Community, CTB, business, employees, Cadburys, education, support, contributions, responsibility, Corporate Community Investment, government, stakeholders, schools.

Summary:

Modern society depends on prosperous communities that care for all of their members. Business organisations can play an important role in creating and developing such communities.

This case study focuses on how Cadbury Trebor Bassett provides a positive role model and acts as a benchmark in how to exercise Corporate Community Investment (CCI).

Cadbury Trebor Bassett (CTB) is the UK confectionery division of Cadbury Schweppes, one of the world's leading manufacturers of soft drinks and confectionery e.g. sweets, chocolate.

Corporate Community Investment involves business organisations recognising that they have a responsibility both to their local areas and society in general.

For a company, being socially responsible means using its resources and its influence to shape the lives of fellow citizens for the better.

In 2001 CTB launched its Community -- "You Can Make A Difference" programme to maximise the impact of the business, its employees and community partners.

Cadbury Schweppes' core purpose is 'working together to create brands people love'. The success of the organisation in meeting this purpose can be measured in terms of the value created for shareholders.

However, this success is achievable only if the company respects its commitment to every one of its stakeholders.

The current UK government is promoting social inclusion and the part that businesses can play in bringing it about.

CTB's community contributions take many forms e.g. cash grants, sponsorship, donations in kind, as well as the time, effort and skills that CTB people put into the communities in which they live and work. In 2001 Cadbury Trebor Bassett and Cadbury Schweppes contributed £1.1m in cash to community projects in the UK

CTB is genuinely concerned with making a real difference and carries out evaluations to identify the effectiveness of its social reponsibility programmes.

CTB points many of its volunteers towards areas where the community can gain external matched funding.

CTB continually seeks new, improved ways of building stronger communities. It is that sort of company.

Learning outcomes:

As a result of carefully reading this case study, students should be able to:

  • explain what is meant by Corporate Community Investment (CCI)
  • give reasons why consumers, customers, suppliers, employees, government, investors and the community want companies to behave in socially responsible ways
  • explain why it is important for large business organisations to act as role models for CCI
  • know what is meant by social inclusion
  • describe community contributions - cash, gifts in kind
  • e.g. giving of time, effort, skills
  • list examples of benefits to the community resulting from CCI business activity
  • describe four major benefits that a company like Cadbury Trebor Bassett (CTB) receives from acting in a socially responsible way
  • briefly outline two ways of evaluating the effectiveness of Corporate Community Investment strategies.

Cadbury Schweppes | Stakeholders and Corporate Community Investment

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