The Great Leader Series No. 28 - Cadbury

Cadbury’s has been in the news recently, having been the target of a hostile takeover by the American giant Kraft to the consternation of many, including the man in the street who fears the loss of a traditional British company and the unique taste of the chocolate it produces.

The Cadbury family has been involved in the chocolate trade since the mid 19th century, but the story also includes a philanthropic method of “getting the best from their people” at a time when many workers “worked ‘til they dropped.”

The Cadbury family, John and Candia were prominent Quakers in Birmingham. John ran a tea and coffee business and ventured into the cocoa trade. Sadly Candia did not enjoy good health and she died, whilst still young, in 1855, leaving seven children.  At the age of twenty two George and his brother, Richard took control of the company. 

Five years later they became the first company in Britain to sell cocoa, using roasted cocoa beans.

The company was now doing well but George was still concerned enough to give much of his spare time to helping people less privileged than himself. Every Sunday morning George taught classes at Birmingham Adult School. Sundays and evenings [after a long day at work] the only time poorer people could extend their education and, thus, better their situation.

In 1879 when further expansion of the business became necessary, a new fifteen acre site, four miles outside Birmingham was chosen for a new factory. The new building was called Bournville after the name a small stream that ran through the site. Being an attractive area Bournville became known the “factory in the garden”.

Few factory owners in the 19th century considered the conditions in which their workers lived. Tied cottages were provided by some landowners in order to house their land workers if their land was in a remote area. Sadly when the workers lost their jobs or became too old or infirm to work, they also lost their homes. Richard Arkwright, in the 18th century, had provided cottages in Cromford in this way.

The Cadburys went further than this. When their new factory was built twenty four cottages were built to house their key workers. Later they added to this number by building three hundred more houses to make Bournville village. These houses were better the normal working class homes of the time. The rooms were larger and there were good sized gardens. The houses were grouped around gardens or cul-de-sacs.  A school, a hospital, reading rooms and wash houses were also built to be used by the villagers.

The Cadburys’ reputation as good employers was further enhanced by the introduction half day working on Saturdays and Bank Holiday closing. Later the Cadburys introduced sporting and recreational facilities, a kitchen for heating up food, the latter was later turned into a works canteen. Indeed, eventually the company also provided medical and dental care.

Whilst this was happening, the Cadbury business was also going from strength to strength. They introduced milk chocolate. Milk chocolate was already being imported from Switzerland and at first Cadbury’s milk chocolate looked very similar but later the company started to use full cream milk to give the chocolate a lighter, less bitter, taste. This chocolate became known as Cadbury’s Dairy Milk and is still well loved today. George Cadbury was a firm supporter of the old Liberal Party but disagreed with the Boer war; he became a pacifist He served on the city and county councils. In 1901 George bought the Daily News and used it as a vehicle to campaign against sweated labour and for old age pensions and. indeed, in 1906 he paid £60,000 into a pension for his employees.

Early in the 20th century, George Cadbury had a building put in the grounds of his home. Each year, in the summer months, he provided food and entertainment for about 25,000 children from the deprived areas of Birmingham [infant mortality rate 1905 UK approx. 6.3%: 2010 UK approx 0.5%. CIA World Fact book]. His paternal attitude was much appreciated but would it be today?

Cadbury strongly believed that if you look after your employees they will look after your business. By providing a good environment for people to enjoy Cadbury ensured he had a motivated and highly productive work force.

Facilities were continually added to. These included a swimming pool, bowling greens, a fishing lake and sports playing fields. There was a non-conformist church and, eventually, infant and junior schools.

Life within the Cadbury Organisation has continued with the Cadbury ethos of a caring society: truly paternalistic. Respect for the care that Cadbury workers enjoy has meant that the company has been held in high esteem by the general public, but how is this over protective attitude perceived in the 21st century? How would people react now? Would employees respond positively?

 
Recently Cadbury’s has been bought out by the American giant, Kraft. Gasps of horror were heard around the country as Cadbury’s “is British”.

The quotes that follow are taken from the BBC internet news on 19 January 2010

 
DAVIC DUSAN, 84, from Kings Norton
Mr Dusan worked at the Bournville factory for 35 years from 1949, after arriving in England from the former Yugoslavia. He was employed in a variety of roles from a cleaner to a shift supervisor. The firm paid for his son Andrew's studies.
He said: "It's a disgrace. Unbelievable.  It’s British heritage and history, and the Cadbury family - there's nothing to touch them."They are not a factory, they are a family. I am sad, and my family is sad."

ALAN GARDNER, 70, from Bournville
Mr Gardner has family connections to Cadbury going back to 1908 when his grandfather, Arthur Robins, began working there. Since then, his father-in-law and mother have both worked at the factory.
He said: "I just think it's so sad that such a successful company is sold down the river.
"There's a strong emotional link, I was born and brought up with it. The Cadbury family built the village (Bournville) so that the people of Birmingham could have better health. A very sad day."

KIRAN AMBEKAR, 35, Cadbury IT contractor
Mr Ambekar came to work for Cadbury from Mumbai, India, and is worried how the Kraft bid will affect his job. He said: "I remember Cadbury as a name growing up. It hurts - it's a heritage company for the country.
"The question is, how long am I going to stay? Everyone is worried about the future, even us contractors." 
  

ALAN SHRIMPTON, 62, from Redditch
Both Mr Shrimpton's father and grandfather worked at Cadbury. He lives in Redditch but gives history tours around Bournville.
He said: "We are talking about a firm that has been in Birmingham for 186 years. This is a brand we have grown up with and loved."
"It's another iconic British firm going to American hands. It does seem a shame that we cannot run our own businesses anymore.
"I am sorry but on the other hand...it's entirely possible that Kraft will grow the business. There's a market for our chocolate in America. It could be good news."

 These responses show that there is still a huge appreciation of the way Cadbury’s still look after its people.

I recently spoke to someone who works at Cadbury’s. She told me that the shock was easing and that the general feeling of optimism is returning and with it a determination to continue to keep Cadbury’s at the top.

 But how do good managers command such loyalty in other businesses which do not have this historical past.

 Good managers and leaders empathise with their people, understanding that they have needs and problems of their own. An employer pays salaries for time and labour but has to earn respect.

 So what will happen to Kraft/Cadbury’s now? Kraft is a global organisation but with cultural differences. An article in HR Magazine suggests that the way forward is for Kraft to continue with Cadbury’s brand organisation for the time being

[www.hrmagazine.co.uk] .

 But George Cadbury will go down in history as an employer who realised that looking after employees and treating them with respect produces a well motivated team.

 Bibliography

www.birminghamuk.com/georgecadbury.htm
www.biography.com/articles/George-Cadbury-9234198
www.cadbury.co.uk
www.cadburyinvestors.com

Story By: Anne Walker

Date : 31-05-2010