The vital question for Hershey’s Executive Management is how to tackle the urgent problem of child labour and human exploitation in its cocoa supply chain, mainly in West Africa. The decision maker in this situation faces the challenge of fulfilling ethical imperatives with business sustenance and profitability.
Ethical Issues:
The critical element of the ethical dilemma is actual human rights violations and exploitation, such as child labour, human trafficking, and forced labour that can be found in Hershey’s cocoa supply chain (Ferrell et al., pg. 497). While these practices glaringly undermine Hershey’s declared principles of integrity and accountability, they also constitute ethical questions regarding the integrity of the business.
Facts:
Nearly 70% of the world’s cocoa supply is generated in West Africa, mainly from Ivory Coast and Ghana. “Surprisingly, more than 800,000 children, some as young as five years old, are expected to be exploited in the cocoa industry in Ivory Coast only(Ferrell et al., pg. 501). Such kids face terrible working conditions; some endure exposure to pesticides, and others are even trafficked from neighbouring countries to work on cocoa plantations.” Poverty and lack of choices are the main reasons why children often are forced into labour. Even with certified sourcing programs and farmer support, the company Hershey still needs to be criticized for lagging behind the competitors in the issue of injustice to farmers.
Stakeholders:
The primary stakeholders in this ethical controversy include cocoa workers and their families in West Africa, primarily the disadvantaged children, local communities stricken by poverty and lack of learning provisions, Hershey’s employees and management, conscientious consumers who are aware of supplies ethics, nonprofit advocacy groups that focus on human rights, the Milton Hershey Trust linked to the Hershey School.
Options:
- Maintain Current Programs and Incremental Improvement: Hershey can keep up its current efforts in sourcing certified and sustainable programs and increase funding for community programs in West Africa. The second option is to improve further and focus on the existing initiatives rather than restructuring them.
- Transition to Direct Sourcing with Stricter Auditing: Hershey may move to a 100% direct sourcing model with supplier auditing that promotes transparency and accountability (Ferrell et al., pg. 501). We would form direct linkages with the cocoa farmers throughout and implement a robust monitoring system to comply with ethical standards.
- Lead an Industry-wide Initiative and Coalition: Corporations like Hershey can lead an industry-wide initiative and coalition focused on identifying and tackling the root causes of child labour and worker exploitation in the cocoa supply chain. This option includes partnerships with competitors, governments, and advocacy groups to effect system-wide change.
Consequences:
- Maintain Current Programs and Incremental Improvement: This might be an immediate remedy to the suboptimal ethics in sourcing and community development in the cocoa-producing regions. On the other hand, we may need a faster process with limited effect on the targeted stakeholders during the first period.
- Transition to Direct Sourcing with Stricter Auditing: Direct sourcing, with a strict auditing process, can bring a lot of transparency and accountability in the cocoa supply chain. That may eventually result in better working conditions for cocoa farmers and less child labour and negligence (Ferrell et al., pg. 504). However, this could increase Hershey’s costs and cause interruptions to the supply chain.
- Lead an Industry-wide Initiative and Coalition: Through its industry coordination, Hershey would be an agent promoting system-wide issues of child labour and worker exploitation in the cocoa supply chain. This option can bring significant benefits to stakeholders such as cocoa workers, residents, and consumers by providing alternatives. On the other hand, this needs large-scale coordination and collaboration procedures, and its success may depend on the willingness of other industry players to participate.
Ethical Evaluation:
-Utilitarianism: Option 3, which involves heading a cross-human endeavour, will likely deliver the most significant overarching benefit by targeting the systemic issues and influencing a broad range of critical actors. Conversely, Option 2 may have unavoidable positive outcomes through which cocoa farmers’ conditions can be improved directly.
– Deontology: Option 3 brings all stakeholders to life, as it always addresses the fundamental issue of exploitation while promoting ethical sourcing practices. It is a rule of thumb for similar cases emphasizing protecting human rights and basic dignity.
– Justice: Choice 3 is more fair than the other options regarding collective effort and addressing systemic inequalities. It helps realize justice as it tries to give workers fair treatment and their surrounding communities.
Virtue Ethics: Just like option three, which reflects integrity and Social Responsibility, it shows Hershey’s commitment to ethics and leadership in social activities.
Recommendation
While the options have ethical merits, Option 3, heading an industry-wide initiative and coalition, is the most moral as it addresses the core causes of exploitation and facilitates environmental change. However, there are better choices from a business standpoint due to complexity and resource requirements. For option 2, the option of direct sourcing with stricter auditing is the best practical compromise between ethics and business considerations. It addresses the issue of worker exploitation and hence can be considered a measure to prevent disruptions in the supply chain. Therefore, the best option may be determined by Hershey’s specific priorities and restrictions, which are the company’s.
Work Cited
Ferrell, O. C., John Fraedrich, and Linda Ferrell. Business ethics: Ethical decision making and cases. Dreamtech Press, 2005.
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