-By Larry Graham

Larry Graham was named President of the National Confectioners Association (NCA) in 1992. In 2000, he founded the World Cocoa Foundation, a nonprofit farmer outreach organization, and currently holds a seat on the board. Additionally, Graham served as President of the Chocolate Manufacturers Association from 1992 to 2003.

Q. Before we begin, tell us a little about the confectionery industry as whole…
A. In the U.S., the confectionery industry is big business, generating over $29 billion a year in sales. As a testament to that, chocolate, candy and gum are the third largest food product category in the food, drug and mass channels.

Many factors feed into the healthy sales confectionery manufacturers have grown accustomed to over the years. Many do not realize that beyond front-end and candy aisle sales, seasonal product sales driven by Halloween, Christmas, Easter and Valentine's Day contribute to annual sales by nearly 30 percent. Even more important are innovative and new products within our industry. They are one of the main lifelines in confectionery with over 3,200 new products released in 2007; new products within the confectionery industry make up about 25 percent of total sales. The tricky part is to find what new and returning products out there will work best to increase retail profits. That's why the NCA-sponsored ALL CANDY EXPO® is so important to our industry since it's the only show in the U.S. that represents all of the major distribution and trade channels for confectionery and snacks in one location.

In addition, our confectionery community has always been a socially responsible group that strives to promote voluntary corporate initiatives like responsible marketing to children in advertising as well as health and education issues in cocoa farming communities.

Q. So how did the decision come about to develop a Corporate Social Responsibility (CSR) program at the NCA?
A. About half of the NCA's members are already engaged in at least some type of social responsibility program or are attempting to develop a comprehensive CSR strategy for their own company. The NCA would like to place a special new focus on this initiative to serve as our members' and the industry's premier forum to facilitate new ideas and share best practices on CSR and sustainability across the spectrum of industry activities.

Q. How does the NCA define Corporate Social Responsibility?
A. CSR can be defined many different ways, but at its base includes a commitment to support community well-being through innovative business practices and community involvement. It also involves taking responsibility for the impact of your activities on customers, suppliers, employees and other stakeholders, as well as the environment. This initiative extends beyond the statutory commitment to comply with legislation and motivates organizations voluntarily taking additional steps to improve the quality of life for employees, members, the local community and society at large.

In addition to driving innovation, this focus would help the NCA communicate the industry's on-going and new achievements in this area to key stakeholders including Congress, the regulatory agencies, and consumers. With educated consumers' increasing interest in socially responsible business, coupled with a Democrat-controlled Congress into the foreseeable future, it is more critical than ever to be able to communicate positively and broadly about our industry and what corporate social responsibility means to us.

Q. Describe the NCA's philosophy for this new program.
A. We view CSR on two distinct levels. One, the Association, just like any other business, plays a constructive role in the community, and as part of a global community, we are sensitive to issues like sourcing, manufacturing and public policy and how they play out in an increasingly international context. Second, since the Association is a place where NCA members come together to exchange ideas, foster innovation and explore best practices, it also serves a special role as a forum and a catalyst for new thinking on social responsibility and sustainability, whether it's offering a course to our members on green manufacturing, or gathering industry resources to fund sustainable development projects in countries around the world that grow cocoa beans.

Q. What steps has the NCA taken to begin a CSR program?
A. Our first step is to form an NCA Foundation which will come together to work on many projects, with one of them focusing on CSR. Areas of CSR interest under the Foundation would include philanthropy, education, research and other industry-wide initiatives.

Examples of CSR initiatives that the NCA has already spearheaded include:

Cause-related marketing and promotion: The NCA's support for the Ad Council's Childhood Obesity Prevention campaign featuring Shrek and players from the NFL. Sustainable business practices. This spring, the NCA hosted a session at the State of the Industry Conference on green manufacturing; in addition, the 2008 ALL CANDY EXPO education program featured a session on Confectionery and Snack Sustainability. Corporate philanthropy. The NCA partners with Family Health International through the World Cocoa Foundation to bring malaria/AIDS health services to communities in Ghana, West Africa. Community volunteering. We actively support the Boys and Girls Club of the Metropolitan Washington area and the National Institute of Health's Children's Inn in addition to the Boo at The Zoo program.
This spring, we welcomed Melane Rose Boyce into the role of vice president of public policy and corporate social responsibility. She is the perfect fit for this role since she brings with her a wealth of knowledge and contacts within the federal affairs arena. Her recent fellowship with USAID, along with her extensive training in social policy work, will help mold the NCA's social responsibility initiatives.

Q. What are some of the key CSR initiatives that the NCA plans to focus on?
A. After the Foundation is in place, an initial though not exclusive focus would begin on projects related to children, including children and physical fitness, and child nutrition and well-being.