Quaker Capitalism: Insights from the “Chocolate War” of the 1800s and Today

This essay is by Marina McPhail.

Marina is Georgetown student who served as an intern to FGC in 2024. This essay shows the opinions of the author only. It does not represent view of FGC or Georgetown University.

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Quaker business ethics, rooted in the religious principles of the Quaker community, have played a role in shaping ethical business practices at some moments in history. The 19th century, marked by the industrial revolution and the rise of capitalism, witnessed not only the emergence of new industries but also a profound transformation in business practices. Among the various sectors experiencing rapid growth, the chocolate industry stood out as an example of fierce competition, conflicting business ethos, and the aforementioned societal change. The Chocolate War of the 1800s is notable for the significant influence of Quaker ideals on the ethical turn taken by specific Quaker businessmen1. The nascent industry was shaped by intense competition for market dominance and was guided, at least in part, by the moral principles of notable Quaker businessmen. The “Chocolate War,” a rivalry between chocolate companies, represents an interesting case study. It shows the intersection of business motives and spiritual values in a high-stakes environment where only the most cutthroat survive.

The following historical example explores how prominent Quaker entrepreneurs engaged in the Chocolate War of the 1800s, and how they came to simultaneously satisfy two potentially contradictory outcomes: immense business prosperity and spiritual integrity2. Driven by their religious principles, the Quakers’ conduct shaped the contemporary business environment and set a distinctive tone in a time of economic transformation. Drawing insights from both historical and contemporary perspectives, the following contemporary analysis highlights the unique contributions of Quaker business ethics to the broader discourse on integrity and social responsibility in business. It is my hope that by recognizing the uncompromised integrity, honesty, and steadfast commitment to values and human dignity demonstrated by prolific Quaker businesspeople, that this new age of rapid innovation, technology, and growth can be guided by morality, dignity, and thoughtful consideration of humanity.

Historical Case Study: The Quaker Chocolate Dynasties of the 1800s

The 1800s witnessed the birth and astonishing boom of the nascent chocolate manufacturing industry as entrepreneurs sought to capitalize on the growing demand for a newly accessible treat: cocoa-based confectionery. Quakers, recognizing both the economic potential and the moral responsibility inherent in business, entered the market with a unique perspective shaped by their religious ideals3. Early Quaker thinkers were notably wary of the potential struggles between the faith’s ideals and capitalist business incentives. In “The Reputation of a Quaker Businessman”, Robert Davison wrote of the Quakers’ “consistent tendency to single out one occupational group – the merchants – for special warning against conduct not in strict accord with the good order prevailing among Friends.”4 This hypervigilance was echoed by other notable early Quakers. William Penn, who came to found the Province of Pennsylvania, warned of merchants and businesspeople when he spoke of their “immoderate pursuit of the world”5. In an early attempt to prevent these misgivings about merchants and other business people from coming to fruition, Friends were advised at a Quaker meeting in 1675 not to “trade beyond their ability, nor stretch beyond their compass.”6 The Quaker entrepreneurs of the Chocolate War heeded this advice, and entered a fiercely competitive industry with faith values top of mind. In analyzing the Chocolate War of the 1800s and its aftermath, one can witness the struggles of ethics, faith, and business that are as important today as they were in the 19th century.

Two notable Quaker business people involved in the Chocolate War of the 1800s were Joseph Fry and George Cadbury. Joseph Fry was a pioneering Quaker businessman who played a significant role in the chocolate industry during the 19th century. He was the owner of Fry & Sons, a British chocolate company that was one of the early innovators in cocoa-based confectionery7. Fry’s commitment to ethical business practices included advocating for the ethical sourcing of ingredients8. He sought to ensure that cocoa and other raw materials used in his chocolate production were obtained through fair and humane practices. Ultimately, Fry was absorbed by Cadbury, another highly successful Quaker-owned chocolate manufacturer. Under the leadership of Quaker George Cadbury, the Cadbury chocolate company played a critical role in the development of the British chocolate industry. The brand became known for its commitment to quality and innovation9. Cadbury Co. introduced new products and pioneered marketing strategies that ultimately resulted in massive business success. In addition to demonstrating astonishing business acumen, George Cadbury was an advocate for fair treatment of workers. In an era when labor practices were often exploitative, Cadbury stood out by providing better working conditions, fair wages, and reasonable working hours for employees.10 The Chocolate War of the 1800s presented a set of unprecedented innovations and challenges that came at unprecedented speed. As industrialization swept through the business landscape, Quaker ideals faced the risk of compromise. The delicate balance between pursuing profit and maintaining ethical standards presented a considerable challenge for Quaker entrepreneurs like Fry and Cadbury, but, ultimately, the two men proved that financial success and strong social ethics did not have to be mutually exclusive. Navigating a rapidly changing technological and ideological landscape required a nuanced approach to business that respected both economic viability and ethical principles. Cadbury and Fry’s contributions shaped the trajectory of the chocolate industry and left an impressive legacy in terms of ethical business practices and social responsibility.

Applications for Quaker Business Ethics Today

Fry and Cadbury may have lived in the 1800s, but their vision of values-driven business practices carries on to this day. While their stories alone cannot encapsulate all that Quaker ethics can bring to business, both men are examples of strong faith leaders and successful entrepreneurs. The nexus point of faith values and business strategy that they were able to straddle should remain the prime objective of the moral entrepreneur today as the world enters again into a period of rapid growth and innovation, not dissimilar in magnitude to the industrial revolution of Fry and Cadbury’s day. The contemporary economic revolution is marked by climate disaster, geopolitical unrest, artificial intelligence, and a radical overhaul of existing supply chains to support a transition away from nonrenewable resources. I argue that there has never been a more pressing time in economic history to recommit to Quaker ethics in business. In the face of extreme social and environmental stresses, the timeless principles of Quaker business ethics offer a valuable framework for responsible and sustainable business conduct. To support a future that values the environment, sustainability, and human dignity, Quaker values of integrity, simplicity, and social responsibility can and should be used to guide business operations worldwide.

Quaker ethics place a strong emphasis on environmental stewardship, which is an undeniably important priority considering the rapidly accelerating climate change of this era.11 The Quaker commitment to simplicity and integrity provides a foundation for businesses to prioritize eco-friendly operations and reduce their environmental footprint. Unilever, a multinational consumer goods company, serves as a contemporary example of applying Quaker values to address climate change through sustainable sourcing initiatives. Unilever has committed to sourcing raw materials ethically and sustainably, focusing on responsible agricultural practices and reducing its environmental impact12. The Unilever case demonstrates that prioritizing ethics and supply chain transparency is not a mutually exclusive outcome contradicting business success. In fact, committing to sustainable sourcing practices may actually be the most savvy business decision in an age of climate uncertainty and increasingly extreme weather patterns.

The acute effects of climate change are not the only factors accelerating this current upheaval of the business landscape. Artificial intelligence has become highly accessible in the past few years and is here to stay. Quaker business ethics, with their emphasis on honesty and values-driven decision-making, can offer guidance in navigating the ethical concerns surrounding the development and use of artificial intelligence. By applying the advice of Quaker leaders, who likely never imagined something as novel as ChatGPT, today’s dominant tech voices can work to ensure that AI’s extraordinary potential does not perpetuate or worsen existing injustices. The integration of Quaker values encourages businesses to prioritize ethical considerations in AI applications, promoting transparency and accountability. IBM, a global technology company, exemplifies how Quaker values can be applied in the realm of artificial intelligence through its adoption of ethical AI principles. IBM emphasizes transparency, fairness, and accountability in AI development, aligning with Quaker principles of ethical decision-making13. While it’s challenging, if not impossible, to try to imagine how the pioneering Quaker thinkers would address something as unprecedented as AI, analyzing historical case studies and reviewing Quaker texts can give some guidance about how faithful Friends would respond to these times of rapid social and technological change.

Quaker business ethics, rooted in principles of integrity, simplicity, and social responsibility, provide a timeless guide for contemporary businesses facing challenges such as climate change, artificial intelligence, and the green transition. In order to promote a global system that is environmentally sustainable and socially equitable, it is imperative that business leaders implement the values of Quaker entrepreneurs of the past, like George Cadbury and Joseph Fry. By aligning contemporary business practices with the values promoted by those prominent Quakers, companies can contribute to positive social and environmental outcomes. In addition to the positive social benefits, those companies can ensure the long term health and sustainability of their supply chains, productive forces, and stakeholders–both consumers and producers. Contemporary examples, such as Unilever, IBM, and Interface, showcase how businesses can apply Quaker values to address contemporary challenges responsibly. As we navigate the complexities of the modern business landscape, Quaker business ethics offer a thoughtful and values-driven approach to building a sustainable and ethical future climate change, artificial intelligence, and the green transition. In order to promote a global system that is environmentally sustainable and socially equitable, it is imperative that business leaders implement the values of Quaker entrepreneurs of the past, like George Cadbury and Joseph Fry. By aligning contemporary business practices with the values promoted by those prominent Quakers, companies can contribute to positive social and environmental outcomes. In addition to the positive social externalities, those companies can ensure the long term health and sustainability of their supply chains, productive forces, and stakeholders–both consumers and producers. Contemporary examples, such as Unilever, IBM, and Interface, showcase how businesses can apply Quaker values to address contemporary challenges responsibly. As we navigate the complexities of the modern business landscape, Quaker business ethics offer a thoughtful and values-driven approach to building a sustainable and ethical future.

Works Cited

Boatright, J. R. (2017). “Ethics in Finance.” John Wiley & Sons.

Cadbury, D. (2010). “Chocolate Wars: The 150-Year Rivalry Between the World’s Greatest Chocolate Makers.” PublicAffairs.

Chandler, A. D. (1977). “The Visible Hand: The Managerial Revolution in American Business.” Harvard University Press.

Coe, S. D., & Coe, M. D. (2013). “The True History of Chocolate.” Thames & Hudson.

Dandelion, P. (2007). “An Introduction to Quaker Testimonies.” Cambridge University Press. Davison, Robert. (1958) “THE REPUTATION OF A QUAKER BUSINESSMAN.” Bulletin of

Friends Historical Association, vol. 47, no. 2, pp. 73–79.

Fry, J. (2000). “Quaker Business Man: The Life of Joseph Rowntree.” Kessinger Publishing. IBM. (2022). “Ethical AI Principles.” https://www.ibm.com/cloud/learn/ethical-ai-principles

Microsoft. (2021). “Responsible AI Principles.” https://www.microsoft.com/en-us/ai/responsible-ai

Oliver, J. (1997). “Business Ethics: The Handbook of Quaker Business Practice.” Friends United Press.

Penn, William. (1792) “Fruits of Solitude, in Reflections and Maxims Relating to the Conduct of Human Life.” Evans Early American Imprint Collection.

Rosenblith, J. (2006). “Chocolate: A Bittersweet Saga of Dark and Light.” North Point Press. Stephen, R. (2018). “Quakerism and Business Ethics: A Historical Analysis.” Springer.

Unilever. (2022). “Sustainable Sourcing.”

https://www.unilever.com/sustainable-living/the-sustainable-living-plan/sustainable-sourcing/ Velasquez, M. (2006). “Business Ethics: Concepts and Cases.” Pearson.

Footnotes

  1. Cadbury, D. (2010). “Chocolate Wars: The 150-Year Rivalry Between the World’s Greatest Chocolate Makers.” PublicAffairs. ↩︎
  2. Ibid. ↩︎
  3. Rosenblith, J. (2006). “Chocolate: A Bittersweet Saga of Dark and Light.” North Point Press. ↩︎
  4. Davison, Robert. (1958) “THE REPUTATION OF A QUAKER BUSINESSMAN.” Bulletin of Friends Historical Association, vol. 47, no. 2, 1958, pp. 73–79. ↩︎
  5. Penn, William. (1792) “Fruits of Solitude, in Reflections and Maxims Relating to the Conduct of Human Life.” Evans Early American Imprint Collection. ↩︎
  6. Davison, Robert. (1958) “THE REPUTATION OF A QUAKER BUSINESSMAN.” Bulletin of Friends Historical Association, vol. 47, no. 2, 1958, pp. 73–79. ↩︎
  7. Fry, J. (2000). “Quaker Business Man: The Life of Joseph Rowntree.” Kessinger Publishing. ↩︎
  8. Rosenblith, J. (2006). “Chocolate: A Bittersweet Saga of Dark and Light.” North Point Press. ↩︎
  9. Cadbury, D. (2010). “Chocolate Wars: The 150-Year Rivalry Between the World’s Greatest Chocolate Makers.” PublicAffairs.. ↩︎
  10. Ibid. ↩︎
  11. Dandelion, P. (2007). “An Introduction to Quaker Testimonies.” Cambridge University Press. ↩︎
  12. Unilever. (2022). “Sustainable Sourcing.” https://www.unilever.com/sustainable-living/the-sustainable-living-plan/sustainable-sourcing ↩︎
  13. IBM. (2022). “Ethical AI Principles.” https://www.ibm.com/cloud/learn/ethical-ai-principles ↩︎
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