Motelewski

Hershey, Nestle and Mars: Child Slave Labor Used to Make Your Candy Bar
Background:
Hershey, Nestle and Mars are the top three companies responsible for making
chocolate candy. A crucial ingredient used to make chocolate is the cocoa bean. West
Africa alone produces 60 percent of the cocoa beans used in the companies chocolate,
which is a $90 billion dollar industry.
An investigative report by the BBC in 2000 revealed that Hershey, Nestle and Mars had
been doing business with a cocoa distributor that used child labor to harvest and
process cocoa beans. These children ranged from ages 12-14 years old and worked as
many as 100 hours per week. After U.S. legislation demanded that the FDA require
slave free labeling on chocolate, the chocolate companies promised to end child
slavery by 2005, which halted the Senate vote of the legislation.
On July 30, 2015, the Payson Center for International Development of Tulane University
found a 51 percent increase in child labor in the cocoa industry. Since these chocolate
companies did not keep their promise of ending child labor, three California residents
have filed a lawsuit regarding false advertising with failing to disclose the use of child
labor on their packaging. The argument states that customers are unknowingly
supporting child slave labor since the labor is not labeled.
PR Implications:
If Hershey, Nestle, and Mars continue doing business with the growers and distributor
that uses child slave labor, they will most likely have to disclose that information on
packaging, which might lead to declining sales. Another possible scenario is to do
business with a new third-party cocoa vendor. In this case production costs may
increase, and force the price of candy bars to rise. There are two possible implications
for this: customers will no longer want to buy a candy bar for over $2, or companies will
have to reduce the size of their products to maintain their profit margin.
SWOT:
Strengths
The chocolate industry is worth
$90 billion.
Hershey has spent $2 million on
funding for anti-poverty projects
in West Africa, while Nestle has
spent $11.3 million.
o This shows corporate
social responsibility
toward ending child labor.
The companies have a strong
brand name.
Opportunities

Weaknesses
Little Company oversight of the
work environment and hiring
practices in West Africa.
Corporate headquarters are
located in U.S., so they are
removed from the growing area.
U.S. standards for the work
environment are different when
compared to the standards in
other countries.
Threats

Expand dark chocolate/sugarfree products to make healthier

options.
Produce cocoa in a new
location.
Tap into international markets.

Motelewski 2

Hershey, Nestle and Mars are

competitors.
These companies may have to
increase prices or adjust
products if they do business with
a new cocoa distributor.
Labeling child slave labor on
products may create a decline in
sales.

Recommendation:
Hershey, Nestle, and Mars must be cautious about how they will handle this sensitive
case. The companies need to be transparent about the child slave labor at the cocoa
farm in West Africa.
The first step to settling the issue should be a press conference to answer questions
from the media. The press conference needs to have a panel consisting of the
presidents from the companies, along with anyone who is involved with the cocoa farm
in West Africa. A press conference will give the companies a chance to apologize for
their wrongdoing and talk about their plans moving forward. Following the press
conference, each company needs to send monthly updates informing the public of the
steps they have taken to end child labor in the chocolate industry.
If Hershey, Nestle and Mars decide not to end their relationship with the cocoa
distributor, the companies should then post an independent poll asking consumers how
revealing the use of child labor on packaging would affect their purchasing power. They
will need to disclose that label on their packaging to stay honest with the public. It is
important that the companies are as transparent as possible throughout the process.

Motelewski 3

Works Cited
Hershey, Nestle and Mars Use Child Slaves To Make Your Chocolate. (2015, October 18).
Retrieved October 24, 2015, from http://thespiritscience.net/2015/10/18/hersheynestle-and-mars-use-child-slaves-to-make-your-chocolate/
Robbins, J. (2011). The Good, the Bad and the Savory. Retrieved October 24, 2015,
from http://www.globalexchange.org/news/good-bad-and-savory
Haglage, A. (2015, September 30). Lawsuit: Your Candy Bar Was Made By Child
Slaves. Retrieved October 24, 2015, from
http://www.thedailybeast.com/articles/2015/09/30/lawsuit-your-candy-bar-wasmade-by-child-slaves.html
Chocolate Company Commitments to Ending Abuses in Cocoa Productions in West
Africa. (2012, September 1). Retrieved October 24, 2015, from
http://laborrights.org/sites/default/files/publications-and-resources/Chocolate
Company Commitments.pdf
International Cocoa Organization. September 2006. A Study on the Market for Organic
Cocoa. http://www.icco.org/about-us/international-cocoaagreements/cat_view/30-related-documents/37-fair-trade-organic-cocoa.html.
(2/27/14)
http://www.bloomberg.com/news/articles/2014-07-17/nestle-s-u-s-chocolate-ambitionsmelted-by-lindt-deal