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Natural Resources and Ethical Trade Program - Assignment Example

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This paper "Natural Resources and Ethical Trade Program" undertakes a critical analysis of the issues that affect the ethics of the business, child labor, and trafficking, and explore aspects tied with the cocoa industry, assesses the environment and commercial needs of the suppliers and farmers. …
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Natural Resources and Ethical Trade Program
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Download file to see previous pages In order to meet the growing demand, it is of importance to maintain ethical sourcing and trading in the cocoa beans production. It is worth mentioning that the production of cocoa beans is largely dominated by the West African countries including Ghana which are economically not strong. Therefore, there is high possibility of the people to get involved into the unethical aspects of trading and sourcing. The ethical process of production and supply chain is important to maintain a stable market and price in the market. The cocoa industry has always been volatile as it depends on various factors of ethical sourcing and trading. The figure below demonstrates the variation in the price of the beans due to the influence of the ethical sourcing and trading.
The volatility in the cocoa industry is more due to the alterations in supply along with demand, instability and speculation in the market affecting the ethical trading. Moreover, the conflict amid the countries giving rise to the civil war is restricting the ethical trading and supplies.
The cocoa beans are traded physically and also in the commodity market. The futures market, speculation and hedging in the market affects the price of the products. The trading initiated in a transparent manner leads to ethical environment. Conversely, if integrity is not maintained in the production, it might lead to the unethical practices hampering the decision making process of the people indulged in the industry causing volatility.  
It is observed that the chocolate industry practices unethical means in order to gain profit by not only exploiting the labour but also paying less price to the farmers. The labourers are forced to work for hours and are also paid less. Besides, the ethically certified cocoa supplied is less than 5% which reflects the fact that the unethical practices are high in the processing and supply chain of the cocoa beans (World Vision, “Chocolate Scorecard”).   ...Download file to see next pagesRead More
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