Essay: Geographical Distance, Supply Chain, and Nestle's Kit Kat

This essay delves into the interconnectedness of people across geographical distances through the lens of Fast-Moving Consumer Goods (FMCG) products, specifically focusing on Nestle's Kit Kat chocolate. It examines the transformation of the business environment due to technological advancements and the globalization of businesses. The essay investigates Nestle's commitment to fair trade policies, social and environmental sustainability, and ethical sourcing practices, particularly concerning cocoa. It addresses challenges in the cocoa supply chain, such as low wages, child labor, and gender discrimination, and highlights Nestle's initiatives to improve farmer conditions and eliminate child labor through the Nestle Cocoa Plan and Child Labour Monitoring and Remediation System. The essay emphasizes the importance of consumer choices in promoting sustainability and the positive impact of Nestle's efforts in improving farmer lifestyles and reducing child labor in its supply chain.

Running head: ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
Essay on Geographical Distance & Role of Supply Chain
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1ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
This essay intends to examine how people are interdependent to other people of
distant places through the FMCG products that are being used daily. It is no secret that for the
last 50-60 years the business environment has been transforming at a large scale due to the
technological advancement. Every business has become global in terms of approach and
profit too. While executing business activities multinational food firms in one hand recruiting
a mass of people yet treating them poorly like slave labours. There are several range of
products, which are produced in Canada as well as are being imported to the country. These
products may be the reason behind environmental degradation and universal climate change
during processing.
The chosen product is Kit Kat chocolate from Nestle Company (Nestle.com, 2018).
This essay will try to find out if the company is maintaining their fair trade policy as per
commitment, in order to serve social and environmental sustainability purposes. Apart from
providing the workers a good work atmosphere, a company receives fair trade certification
only if they can prove that their commitments on selling foods and drinks are being
maintained and following a sustainable procedure. This information are important in terms of
choosing better products for consumption and creating a better world as well.
Consumer power is immense as far as choosing the right FMCG products is
concerned because it is a proven fact that consumer choices according to nutritional benefit
offered by the product, help to build a better world (Hersheys.com, 2018). While searching
for controversies against the fair production and marketing of this particular chocolate brand,
no such allegation can be identified. The company, Nestle is committed towards consumers
and stakeholders to provide necessary information of raw materials that are being used
through effective sourcing activities for ensuring integrity and both the social and
environmental sustainability for the organization (Sjauw‐Koen‐Fa, Omta & Blok, 2018).
There are several challenges while executing sourcing activities in a responsible way.

2ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
Working with global chain of farmers and ensuring long term, adequate supply of raw
materials is not a simple thing. The company’s sourcing complies with the criteria of
responsible sourcing standard. This guideline helps Nestle to focus on critical aspects of
social, environmental sustainability issues along with financial and animal welfare
challenges, which are closely related to supply of products, lifestyle and sustainability
practices (Mithöfer et al., 2017). In order to keep the sourcing programs responsible and
unique Nestle connects with the finest Cocoa agricultural land farmers directly and
establishes long-term supply commitment. It makes the supply chain strong and help to meet
with the requirements of social and environmental ethics. Farmers and land agricultural
activities receive a commercial platform and this raw material sourcing helps in sustainable
development of agriculture as well. Cocoa is one of the twelve raw materials, which Nestle
imports via souring activities.
As the objective is to comply with sustainability regulations, according to Deppeler,
Fromm and Aidoo (2014, June), Nestle needs to treat several serious challenges regarding
Cocoa supply chain. It includes low wages for farmers, child labour and gender
discrimination. As it is one of the most essential ingredient of Kit Kat chocolate, as argued by
Gockowski et al. (2013), Nestle has addressed these issues by implementing Nestle Cocoa
plan in supply chain. The cocoa plan targets to improve the condition of the farmers as most
of them are small landholders with both the low income and productivity. With the interest of
earning more money, they involve their children into tiring agricultural jobs, which work as
blockage in front of their physical and mental growth. Further, women receives low wages as
compared to male workers and evidently, they do not have any voice to raise against this
practice. With both the purpose of sourcing and sustainability, as per Otchere, Annan and
Quansah (2013), Nestle concentrates on two largest Cocoa producing countries, Côte d’Ivoire
and Ghana.

3ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
Nestle does not only focuses on better agricultural practices and adopting new
technologies to improve plantations but also is trying to develop the society’s mentality
towards women, empowering them with better wages and responsibility and opting for strict
company norms against child labour. Certified cocoa means those are not encouraging
deforestation or other anti-environmental activities. The company claims to eliminate child
labour from the entire supply chain of cocoa.
With the noble agenda of tracking and removing child labour in cocoa agricultural
system, the company has launched Child Labour Monitoring and Remediation System. As
reported by the company itself they have arranged educational fund and system, so that
children can avail basic literacy and competence in mathematics at community educational
centers. This information are well supported by several business journals and newspapers as
well that how Nestle is keeping their commitment of social and environmental sustainability
while sourcing cocoa for Kit Kat chocolates. After launching the child labour tracking
system, a gradual reduction of around 50% has been observed in child labour (Nestle.com,
2018). The lifestyle of the farmers has been improved as well in this due course.
It can be said that Nestle, as demanded, is capable of serving the community and
nature at the same time they are sourcing cocoa for organizational purpose. Kit Kat is much
appreciated and increasing consumer choice is dependable on Nestlé’s focus good quality.
Simultaneously, likewise, consumer preference is helping indirectly to think about
sustainability issues with more seriousness.

4ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
References
Deppeler, A., Fromm, I., & Aidoo, R. (2014, June). The Unmaking of the Cocoa Farmer:
Analysis of Benefits and Challenges of Third-Party Audited Certification Schemes for
Cocoa Producers and Laborers in Ghana. In International Food and Agribusiness
Management Association (IFAMA) 2014 Symposium, Cape Town, South Africa,
June (Vol. 16).
Gockowski, J., Afari-Sefa, V., Sarpong, D. B., Osei-Asare, Y. B., & Agyeman, N. F. (2013).
Improving the productivity and income of Ghanaian cocoa farmers while maintaining
environmental services: what role for certification?. International Journal of
Agricultural Sustainability, 11(4), 331-346.
Mithöfer, D., van Noordwijk, M., Leimona, B., & Cerutti, P. O. (2017). Certify and shift
blame, or resolve issues? Environmentally and socially responsible global trade and
production of timber and tree crops. International Journal of Biodiversity Science,
Ecosystem Services & Management, 13(1), 72-85.
Otchere, A. F., Annan, J., & Quansah, E. (2013). Assessing the challenges and
implementation of supply chain integration in the cocoa industry: a factor of cocoa
farmers in Ashanti region of Ghana. International Journal of Business and Social
Science, 4(5).
Sjauw‐Koen‐Fa, A. R., Omta, S. O., & Blok, V. (2018). Constructing a Multinationals’
Inclusive Sourcing Indicator for Impacting Farmer Business Models: Application in
Cocoa Cases. International Journal on Food System Dynamics, 9(3), 207-225.
Hersheys.com. (2018). EU Redirect. Retrieved from
https://www.hersheys.com/kitkat/en_us/products.html
Nestle.com. (2018). Retrieved from https://www.nestle.com/

5ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN