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Cadbury’s Ethics and the Spirit of Corporate Social Responsibility

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Quakers, Business and Corporate Responsibility

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

The relationship between ethical values and economic behaviour was popularised by Max Weber: proposing a connection between successful capitalism and the asceticism of the Protestant tradition in his ‘Protestant Ethic and the Spirit of Capitalism’, he suggested that worldly success was held to be a symbol of salvation. A contemporary of Weber, George Cadbury, may yet remain the pre-eminent example of commercial Quaker faith in action: as a notable Protestant, recognised for his business success and other worldly achievements, Cadbury might be cited in support of Weber’s argument.

This argument rejects any such resemblance as superficial. It suggests that The Religious Society of Friends, the discipline of which shaped the ethical values of several generations of the Cadbury family, at no point subscribed to a soteriology as simplistic as Weber’s. For them, as a sect dismissing the authority of dogma, and seeking to avoid doctrine, both the responsibility and authority for salvation remained at all times within the individual.

This chapter examines the extent to which Cadbury deserves his reputation for singularity in business, and attempts an assessment of the evidence that he be considered the originator of what is now termed Corporate Social Responsibility. Perhaps of equal importance, it raises the question as to whether the man himself would have wished for such a label.

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Notes

  1. 1.

    A late acquaintance of the author described how they used cultural icons to assist audit work during the 1980s: “Company flag flying, Bentley in the car park, fish tank in reception = nothing in the bank…”.

  2. 2.

    A review of the qualitative data provided in the study also suggests that experience of being ‘driven’ by a ‘vision’ clearly overlaps with the concept of ‘Leadership Effectiveness’ (see Appendix).

  3. 3.

    Thomas M. Jones, Will Felps and Gregory A. Bigley (2007) Ethical Theory and Stakeholder-Related Decisions: The Role of Stakeholder Culture, The Academy of Management Review, Vol. 32, No. 1 (Jan., 2007) 137–155.

  4. 4.

    The contemporary value of this amount, some £8000 to £10,000, is between £840,000 (Real Prices) to £6.5 million (Labour Value). It remains a significant sum, by either count.

  5. 5.

    The detailed volume of reports by Hassall also includes some retractions by the Commission, as in the case of Fry’s who challenge the analysis. A useful set of references for those interested in Food Law can be found online at www.artisanfoodlaw.co.uk

  6. 6.

    See Eric Hobsbawm & Terence Ranger, ed. (1983). The Invention of Tradition. Cambridge University Press. Curiously, the recently-appointed Professor Rowlinson has excluded this paper from his extensive publications list.

  7. 7.

    The book reached its 42nd edition by 1878.

  8. 8.

    It would worthwhile to research what proportion of these firms or brands are still operating: the impression from reading is a surprisingly high percentage.

  9. 9.

    The Bournville Musical Theatre company lives on today, although not in the original concert hall, now a corporate training facility.

  10. 10.

    See correspondence between Cadbury Bros and Pearson dated 12Nov1878 and 7mo.31 1879, (Carrington 31, 34).

  11. 11.

    N.C.R. showed commercial acumen by first inventing an internal ‘suggestion’ duplicating machine, then marketing it.

  12. 12.

    Of significance here are the additions: the chapter runs to 6 pages in the third edition compared with 2 in the second, with 12 advices rather than 6.

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Author information

Authors and Affiliations

  1. University of Birmingham, Birmingham, UK

    Andrew Fincham

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  1. Andrew Fincham
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Correspondence to Andrew Fincham .

Editor information

Editors and Affiliations

  1. Newcastle Business School, Northumbria University, Newcastle, UK

    Nicholas Burton

  2. Centre of Markets, Enterprise & Ethics, Oxford, UK

    Richard Turnbull

Appendix

Appendix

1.1 Qualitative Statements Forming Basis for Clusters

  • Reproduction of Table III (p. 448)

  • Alexandre Ardichvili, James A. Mitchell and Douglas Jondle (2009) Characteristics of Ethical Business Cultures Journal of Business Ethics, Vol. 85, No. 4 (Apr., 2009)

The illustrative phrases used in the cluster on Mission- & Values-, are uniformly coupled with some active notion: of being ‘driven’, clearly communicated, reflected in behaviour, part of relationships, and even ‘elimination’. These would all appear to be aspects of what might better be labelled ‘value leadership’ thereby merging the two clusters. This removes the question begged by the research—HOW is the ‘strong culture’ manifested if not through the values leadership exemplified in (ethical) decision making.

Mission- and Values-Driven

  • “Clarity of mission and values, reflected in ethical guidelines and behavior”

  • “Institutionalizes ethical values”

  • “Build relationships of trust and respect”

  • “Strong culture that actively eliminates people who don’t share the values”

  • “Corporate values are sustained over long periods of time”

Leadership Effectiveness

  • “Ethical culture starts at the top and is conveyed by example”

  • “Senior management demands ethical conduct at every level of the company”

  • “CEO and senior management live their lives with great personal integrity”

  • “When ethical issues arise, CEO does not ‘shoot the messenger’/but gathers facts and takes action”

  • “Do what they say they’re going to do”

Stakeholder Balance

  • “Balance all stakeholders (e.g., customers, employees, owners and community) in all their decision-making, consistently” “Deal with all stakeholders on a consistently ethical and value-oriented basis” “Good balance of customer value and profit” “Giving back to the community in which the company does business” “Work to be a good corporate citizen in a global economy” “Respectful treatment and fair compensation for employees at all levels”

Process Integrity

  • “Dedication to Quality and Fairness in its people, processes, and products” “Invest in ongoing ethics training and communication throughout the organization” “Values are reinforced in performance appraisals and promotions” “Values are reinforced in every-day execution” “Excellent corporate governance processes, supported by Board quality and independence” “Noble mission is internalized in company processes and behavior” “Transparent decision-making by the people closest to the question”

Long-Term Perspective

  • “Place mission above profit and long-term over short-term” “Acting in the best interests of customers, over the longer term” “Board takes long view in managing shareholder value” “Connect environmental sustainability, social responsibility, and profit” “CEO says he’s building an institution that he hopes will be here in 50 years

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Fincham, A. (2019). Cadbury’s Ethics and the Spirit of Corporate Social Responsibility. In: Burton, N., Turnbull, R. (eds) Quakers, Business and Corporate Responsibility. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-04034-5_4

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