Chapter 01: Ethics and Social Responsibility—Theo Chocolate

Summary

Theo Chocolate's founders, Joe and Deborah, share their journey from chocolate enthusiasts to pioneers in ethical chocolate production. They discuss the social and environmental challenges in the cocoa industry and their mission to create positive change through vertical integration, organic fair trade practices, and Fair for Life certification. Emphasizing the importance of fair trade for cocoa farmers, they highlight the need for a holistic approach to business that benefits people, the planet, and profits. As the only organic fair trade certified Bean to Bar factory in the US, Theo Chocolate exemplifies enlightened capitalism, striving for a triple bottom line and advocating for industry-wide change.

Takeaways

• 🍫 The founder of Theo Chocolate fell in love with chocolate from a young age and later became a conservation volunteer, working with indigenous cocoa farmers in Central America.
• 🌍 The founder recognized social and environmental degradation as business problems and aimed to address them through chocolate production.
• 🌱 Theo Chocolate is committed to organic and fair trade practices, focusing on the entire supply chain's integrity from bean to bar.
• 🚀 Theo Chocolate is a vertically integrated business, which allows for greater control over the manufacturing process and the ability to create lasting change.
• 🏭 The barriers to entry in the chocolate industry are high, with only a few large companies controlling most of the market.
• 🌿 Theo Chocolate emphasizes the interconnectedness of life and the importance of health and well-being for consumers, farmers, and the planet.
• 📜 Fair trade certification, specifically Fair for Life, is crucial for Theo Chocolate to build consumer trust and ensure economic and social integrity throughout the supply chain.
• 💰 The cocoa industry often leaves farmers with little to no options, leading to oppressive practices and low incomes, which fair trade aims to address.
• 🏡 Fair trade provides a transparent negotiating system for cocoa farmers, allowing them to improve quality and receive better prices for their products.
• 🌟 Theo Chocolate is an example of 'enlightened capitalism,' being the only organic fair trade certified Bean to Bar factory in the United States.
• 🌐 Theo Chocolate holds itself accountable to fair trade standards, even certifying its own factory to ensure ethical treatment of employees and transparency.

Q & A

What sparked Joe's interest in chocolate?

Joe's interest in chocolate was sparked as a child due to his love for Halloween candy, but it wasn't until he was a young adult and volunteered as a conservation volunteer in Central America that his curiosity about the origins of chocolate deepened.

What is the significance of the rainforest adventure in Joe's journey?

The rainforest adventure was significant as it not only involved working with Kechi and Mopän Mayan indigenous cocoa farmers but also heightened Joe's curiosity about chocolate, leading him to understand the social and environmental issues surrounding it.

Why did Joe decide to start his own chocolate company?

Joe decided to start his own chocolate company to address social and environmental degradation in the cocoa industry by creating a vertically integrated business that could control the entire supply chain from bean to finished product.

What challenges did Joe face in entering the chocolate industry?

Joe faced high barriers to entry in the chocolate industry, which is dominated by about 12 large companies that control manufacturing and distribution, making it difficult for smaller players to compete.

What is the role of fair trade certification in Theo Chocolate's business model?

Fair trade certification plays a crucial role in Theo Chocolate's business model by ensuring the economic and social integrity of the entire supply chain, from cocoa farmers to factory operations, and building trust with consumers.

How does fair trade benefit cocoa farmers according to the transcript?

Fair trade provides a transparent negotiating system that allows cocoa farmers to improve the quality of their beans, which in turn delivers a better price for them, offering an alternative to oppressive industry practices.

What is the 'triple bottom line' approach that Theo Chocolate adopts?

Theo Chocolate adopts a 'triple bottom line' approach, valuing people, the planet, and profit equally, ensuring that none of these aspects suffer at the expense of the others.

Why did Theo Chocolate undergo IMO certification for its own factory?

Theo Chocolate underwent IMO certification for its own factory to hold itself accountable to the same fair trade standards that its farmers undergo, demonstrating a commitment to transparency and embodying its values within the company.

What does being the only organic fair trade certified Bean to Bar Chocolate Factory in the United States mean for Theo Chocolate?

Being the only organic fair trade certified Bean to Bar Chocolate Factory in the United States signifies that Theo Chocolate is unique in its commitment to artisanal chocolate making combined with sustainable practices, setting it apart in the industry.

How does Theo Chocolate view its role in the industry?

Theo Chocolate sees itself as a voice for change within the industry, using its loyal following and credibility to advocate for necessary changes and share its story and work in meaningful ways.

What is the concept of 'enlightened capitalism' as envisioned by Joe and Deborah?

The concept of 'enlightened capitalism' as envisioned by Joe and Deborah involves running a business that is profitable while also having a beneficial social and environmental impact, aligning with the principles of sustainable and ethical practices.

Outlines

00:00

🍫 Theo Chocolate's Ethical Journey

The paragraph introduces Joe and Deborah, the founder and vice president of Theo Chocolate, respectively. They share their personal stories of how they became passionate about chocolate and its origins. Joe's experience as a conservation volunteer in Central America with indigenous cocoa farmers sparked his curiosity and led him to establish Theo Chocolate. Deborah, a lifelong chocolate enthusiast, joined Joe to understand the deeper story behind chocolate, including its social and environmental impacts. They discuss the importance of controlling the entire supply chain, from bean to bar, to ensure ethical practices. The paragraph also highlights the challenges of entering the chocolate industry due to its complexity and the dominance of a few large companies. Theo Chocolate aims to be a vertically integrated business to create lasting change and was one of the first to produce organic fair trade chocolate, addressing the high barriers to entry in the industry.

05:03

🌿 Commitment to Fair Trade and Social Responsibility

This paragraph delves into Theo Chocolate's commitment to fair trade and social responsibility. The company emphasizes the importance of fair trade certification to build trust with consumers and ensure the economic and social integrity of their entire supply chain. They choose IMO Fair for Life certification to guarantee this. The paragraph discusses the plight of cocoa farmers who often earn less than a dollar a day and are trapped in an oppressive industry. Fair trade provides a transparent system that allows farmers to improve their quality and receive a better price for their crops. Theo Chocolate sees this as a holistic approach to business, benefiting both the company and the planet. The paragraph also touches on the concept of 'enlightened capitalism' and Theo Chocolate's status as the only organic fair trade certified Bean to Bar Chocolate Factory in the United States. The company values people, the planet, and profit equally, striving to do good while doing well.

🏭 Employee Well-being and Accountability

The final paragraph discusses Theo Chocolate's commitment to transparency and fair treatment of their own employees. The company recently underwent IMO certification for their factory, holding themselves to the same fair trade standards as their farmers. This demonstrates their dedication to integrity throughout the entire supply chain. The paragraph highlights the ongoing challenge of embodying their values within the company and maintaining good relationships with their employees. As Theo Chocolate grows, they are becoming a voice for change, using their loyal customer base and the credibility earned through their work in developing countries to advocate for necessary changes in the industry. The company's growth and the platforms they have to share their message are sources of excitement for Deborah, as it allows them to influence meaningful change.

Keywords

💡Chocolate

Chocolate is a food product made from cocoa beans, often sweetened and flavored. In the video, chocolate is the central product around which the business model of Theo Chocolate is built. The founders' love for chocolate and their desire to make it in a socially and environmentally responsible way is the driving force behind the company's mission.

💡Conservation Volunteer

A conservation volunteer is someone who works to protect and preserve natural resources, often in collaboration with local communities. In the script, the founder's experience as a conservation volunteer in Central America with indigenous cocoa farmers sparked their interest in the origins of chocolate and led to the creation of Theo Chocolate.

💡Social and Environmental Degradation

Social and environmental degradation refers to the deterioration of social conditions and natural environments. The video discusses how these issues are intrinsically linked to business practices in the chocolate industry, particularly in cocoa farming, which can lead to oppressive conditions for farmers and environmental harm.

💡Vertically Integrated Business

A vertically integrated business is one that controls all stages of the production process, from raw materials to the finished product. The founder of Theo Chocolate emphasizes the importance of vertical integration to ensure ethical and sustainable practices throughout the supply chain, from the cocoa bean to the final chocolate product.

💡Organic

Organic refers to products that are grown and processed without the use of synthetic chemicals, such as pesticides and fertilizers. The video highlights that Theo Chocolate produces organic chocolate, which is part of their commitment to sustainable and healthy food production.

💡Fair Trade

Fair Trade is a certification and trading system designed to ensure that producers receive fair prices for their goods, promoting better working conditions and sustainable farming practices. Theo Chocolate uses Fair Trade certification as a way to build trust with consumers and ensure that their cocoa farmers are treated fairly.

💡Fair for Life

Fair for Life is a specific Fair Trade certification that ensures the economic and social integrity of the entire supply chain. The video mentions that Theo Chocolate has chosen Fair for Life certification to demonstrate their commitment to ethical business practices from the farmers to the factory operations.

💡Enlightened Capitalism

Enlightened capitalism is a business philosophy that seeks to balance profit with social and environmental responsibility. The video describes Theo Chocolate's approach as an example of enlightened capitalism, where they aim to create a profitable business that also benefits people and the planet.

💡Triple Bottom Line

The triple bottom line is a framework for measuring a company's performance in three areas: people, planet, and profit. Theo Chocolate is described as a triple bottom line company, valuing the well-being of people, the health of the environment, and financial success equally.

💡Artisan World-Class Chocolate Making

Artisan chocolate making refers to the craft of producing high-quality chocolate using traditional methods and premium ingredients. The video positions Theo Chocolate as a company that combines this artisan approach with sustainable practices to create a unique and ethical product.

💡Accountability

Accountability in the context of the video means being responsible for one's actions and holding oneself to high standards. Theo Chocolate underwent Fair Trade certification for their factory to ensure they treat their employees fairly, demonstrating their commitment to transparency and ethical practices throughout their operations.

Highlights

Founder Joe's childhood love for chocolate led to a deeper interest in its origins.

Joe's volunteer work in Central America sparked a curiosity about chocolate production.

Deborah's realization of the social and environmental impact of chocolate production.

Theo Chocolate's mission to create positive change through the chocolate industry.

The importance of controlling the entire supply chain from bean to bar.

The barriers to entry in the chocolate industry are high, with only a few large companies dominating.

Theo Chocolate's focus on organic and fair trade practices to ensure ethical production.

Fair trade certification as a way to build trust with consumers.

Fair for Life certification ensures the economic and social integrity of the entire supply chain.

The plight of cocoa farmers earning less than a dollar a day and the oppressive industry practices.

Fair trade's role in providing a transparent negotiating system for better prices for cocoa farmers.

Theo Chocolate's vision of enlightened capitalism balancing people, planet, and profit.

Theo being the only organic fair trade certified Bean to Bar Chocolate Factory in the United States.

Theo's commitment to artisanal chocolate making combined with sustainable practices.

Theo's triple bottom line approach valuing people, planet, and profit equally.

Theo's IMO certification for their own factory to ensure fair trade standards for employees.

Theo's role as a voice for change in the chocolate industry.

Theo's growth and the impact of their story and work in the developing world.

Transcripts

[Music]

I fell in love with chocolate originally

as a kid I loved Halloween candy but up

until I was a young adult I didn't know

where chocolate came from and so I

volunteered as a conservation volunteer

working with Kechi and mopen Mayan

indigenous cocoa farmers and there were

howler monkeys and we had this whole

Adventure in the rainforest my curiosity

was

off the hook I'm Joe founder and CEO of

Theo Chocolate I'm Deborah vice

president of sales and marketing for

Theo Chocolate

my entire life I've been a daily

chocolate eater but I think it really

was until I get I got to know Joe that I

started to understand

the the depths of the story of chocolate

and all the the social and environmental

issues surrounding chocolate I think it

has special powers

after my experience in Central America I

saw that social and environmental

degradation were really business

problems and I wanted to help save the

world by making chocolate and I got into

the cocoa industry importing cocoa beans

and then working with manufacturers to

make chocolate and we were doing organic

chocolate here in the United States and

in Europe but after doing that for

several years I saw that if that it was

most important to control the brand and

the message controlled the manufacturing

from the the bean all the way to the

finished product and the supply chain

because if I if I was a vert could build

a vertically integrated business I had

the best opportunity to affect every

part of the business and really create

lasting change

[Music]

there were no other companies producing

organic fair trade chocolate because the

barriers to entry are so high in this

industry if you want to go into the

coffee business all you need to do is

buy a roaster and put it in your garage

and you're done chocolate is a very

complicated product to make so the

majority of chocolate is made by only

about 12 companies in the whole country

and they're doing such large volume that

they control not only the manufacturing

but distribution and they have extreme

leverage on the producers

uh you know we're really interested and

care deeply about where all of our

ingredients come from our business ethic

is informed by our belief that all life

on the planet is interconnected that we

need consumers to be healthy and well

our Farmers to be healthy and well in

the entire planet to be healthy and well

in order for us to be successful and

profitable fair trade certification is

important for us to build trust with our

consumers that we do what we say we're

going to do and we choose IMO fair for

life is our certification for fair trade

what's great about fair for life is that

it is a certification that ensures the

economic and social Integrity of our

entire supply chain from the cocoa

Farmers that we work with all the way

through to our own Factory operations

I don't consider I don't consider myself

a whistleblower as much as well in

Fitness way the industry considers me a

nuisance what really we're doing is

trying to give an alternative to

practices that have contributed to

social economic and environmental

degradation

the average cocoa farmer earns less than

a dollar a day for their entire family

and they have very little options in

Cocoa growing regions to sell other cash

crops and as a result they're beholden

to an industry that is very oppressive

the cocoa price has been so low compared

to the costs of their production that in

West Africa cocoa Farmers have had to

resort to slavery

one of the benefits of fair trade for

Cocoa Farmers is that there it's a

transparent negotiating system that

allows the farmers to improve the

quality which in turn delivers a much

better price to them on the farm so we

see this as a truly holistic approach to

not only the products that we make or

accessing certain kinds of customers but

really being creating a profitable

business model that is having a

beneficial plan impact on us and the

planet

Theo Theo for me is an example of what

what Joe and I Envision as enlightened

capitalism

we're the only organic fair trade

certified Bean to Bar Chocolate Factory

in the United States which is pretty

exciting so I like to say that we're

we're trying to define the intersection

of artisan world-class chocolate making

with sustainable practices

I like to say it's doing good while

doing well and so what that means is

that we see ourselves as a triple bottom

line company which means we value people

the planet and profit in equal measure

and none of those things suffer at the

expense of something else

one of the most important steps that

we've taken to hold ourselves

accountable in terms of the way that we

treat our own employees is we recently

underwent

IMO certification for our own Factory so

what that means is that we hold

ourselves accountable to the same fair

trade standards that are that our

Farmers undergo so we're subject to the

same kind of scrutiny but the reason

that's so important to us is because

we're very committed to transparency at

every level of our supply chain and so

if if we don't fulfill our own and and

embody our own values here within the

company within our own relationships

with our own employees then it's really

meaningless so and that's an ongoing

challenge for us

by far the most exciting thing about

Theo as we grow is that we've really

begun to be a voice for change as we've

developed a really loyal

following for our products and and the

story and the work that we're doing in

the developing world it's given us a

certain amount of credibility in terms

of what we think is necessary for Change

and finding platforms to share that with

people in really meaningful ways for me

that's really really exciting