Theo Chocolate--Doing Well by Doing Good

Abstract

This descriptive case was designed for use in an undergraduate course in social entrepreneurship, corporate social responsibility, or business ethics. It summarizes the founding of Theo
Chocolate, the first organic, Fair Trade certified, bean-to-bar chocolate company in the United States. Founder Joe Whinney created Theo Chocolate as a for-profit business to address social
and environmental problems in the cocoa industry. The case provides information about the horrendous conditions some cocoa farmers face in West Africa and the negative environmental impacts of cocoa bean farming. The applied case was designed to help students understand the theoretical concept of shared value and to apply this concept to a new business. The case provides data for students to consider when assessing whether the company could be considered a firm committed to the principle of shared value in that it generated economic as well as societal value.