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The Dark Side of Chocolate – child labor and trafficking -discuss the ethical issue of cocoa production as it relates to CSR

Watch the video, (The Dark side of Chocolate) read the article, and discuss. How do you ensure that your company is not complicit (involved with others in an illegal activity or wrongdoing) in these types of CSR issues? Will Hershey’s actions actually be helpful? Co. is spending $500 million in the hopes of producing its iconic chocolate Kisses from more sustainable cocoa. By BLOOMBERG APRIL 3, 2018 7:30 AM Hershey Co. is spending $500 million in the hopes of producing its iconic chocolate Kisses from more sustainable cocoa. Through its Cocoa for Good program, the company will invest the funds through 2030 to support four key areas: nourishing children, empowering youth, building prosperous communities and preserving natural ecosystems. The initiative’s goals include eliminating child labor and increasing shade-grown cocoa, which can be productive for as much as 15 years longer than plants grown in full sun. World cocoa supplies are tightening following a price plunge that hurt global farmers and forced lower production, eroding a global surplus. The shifting supply outlook caused a whipsaw in the market. Through Monday, futures in New York had surged 39% this year after tumbling 41% over the prior two. Though recent “extreme” price volatility is typical of agricultural commodity markets, “we fully appreciate the complexity of addressing some of the challenges” for grower communities, Susanna Zhu, the company’s chief procurement officer, said in a telephone interview from Abidjan, the commercial capital of Ivory Coast. “That’s why we are committing significant resources for the next decade.” Consumer-focused companies from Unilever to McDonald’s Corp. have invested more in sustainable sourcing as customers increasingly look for those credentials before spending their dollars. Starbucks has raised about $1.3 billion from the public markets over the last two years to fund its ethical coffee farming initiatives through sustainability bonds. The Hershey, Pa., chocolate giant has increased its buying of certified and sustainable cocoa, which accounted for more than 75% of its total cocoa purchases last year. The company has said it remains on track to reach 100% by 2020. The company’s new program will start with a focus on Ivory Coast and Ghana, the world’s top cocoa producers. Hershey is seeking “a holistic” approach to sustainability and has plans to reach other producing areas in the future, including in South America, Zhu said. She and other company executives have met with Ivorian government officials, private-sector executives and small farmers to discuss the project.

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