Question

Chocolate is enjoyed by millions, mainly in decadent desserts, candies, and drinks. Demand for dark chocolate, chocolate with at least 70 percent cocoa, has grown due to its health benefits, such as reducing blood pressure, improving blood flow, and increasing good cholesterol. Developing countries are discovering that cocoa beans improve their sweet treats and candies, thus creating even greater worldwide demand. Cocoa beans grow mostly in tropical climates, mainly in West Africa, Asia, and Latin America, with the largest exporters being Ghana and the Ivory Coast.

With more than $8 billion in annual sales, the Hershey Company is one of the world's largest producers of chocolate and candy products. Hershey's products are sold in more than 70 countries and include Hershey's Kisses and Hershey's Milk Chocolate Bars, as well as brands such as Reese's, Whoppers, Almond Joy, and Twizzlers. Although Hershey strives to be a model company and has several philanthropic, social, and environmental programs, the company has struggled with ethical problems related to labor issues, such as child labor, in West African cocoa communities. Hershey has developed several initiatives to improve the lives of West African cocoa workers and supports a number of organizations that are involved in cocoa communities. However, critics argue that Hershey is not doing enough to stop labor exploitation on cocoa plantations. This case examines some of the issues related to the Hershey Chocolate Company and West African cocoa communities.
This case should be an interesting as it demonstrates the importance of monitoring an organization's supply chain for ethical conduct. People should realize that although a firm might be ethical in its own operations, the suppliers that supply the firm with the materials needed to make a product might be an entirely different matter. This is why many firms develop, implement, and enforce a supplier code of conduct. It is important to monitor and weigh the risks of third-party suppliers and/or business partners since a company can be damaged by misconduct that occurs in the supply chain.
This case is also important to show that most firms are not totally ethical or unethical. Many firms have social responsibility programs in place but may still require significant improvement in other areas. This is particularly true for large companies with operations in many countries. This case should demonstrate the complexities as well as the importance of monitoring a firm's supply chain.

Should Hershey be held ethically responsible for child labor conditions in the West African cocoa communities?

Answer 1

The question of Hershey's ethical responsibility for child labor in West African cocoa communities is complex. Hershey has a duty to ensure ethically sourced materials and has initiated improvements but faces criticism for insufficient efforts. The case highlights the broader challenge of ethical supply chain management in multinational corporations.

Step-by-step explanation:

The ethics of large corporations and their responsibilities towards their supply chains, particularly regarding West African cocoa communities, are complex and multifaceted. When examining whether Hershey should be held ethically responsible for child labor conditions in West African cocoa communities, one must consider the entire supply chain and the impact of Hershey's current initiatives to mitigate these ethical issues. As one of the world's largest producers of chocolate, with significant influence and resources, Hershey might hold some level of accountability for ensuring their supply chains are free from labor exploitation, particularly when related to the sourcing of crucial raw materials like cocoa from regions known for such ethical concerns. Hershey has indeed implemented various programs to improve the situation, but critics claim that these efforts are insufficient. Companies with a significant presence in the global market, like Hershey, face a continuous challenge to balance ethical practices with business operations, especially when it involves monitoring distant suppliers. The case of Hershey illustrates the significance of not only enforcing a supplier code of conduct but also actively engaging in improving the conditions of workers in the supply chain.