The lvory Coast and Ghana, who make up 2/3 of the world's cocoa production, are preventing Hershey from using sustainability schemes in West Africa. Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value systemalways show integrity, be honest, and respect others. professional specifically for you? To assist in this effort, Hershey engages with qualified third parties such as the Supplier Ethical Data Exchange (Sedex) and AIM-Progress. New York: Simon & Schuster. Hershey Company's Ethical Standards. Ethisphere honors superior achievement through its Worlds Most Ethical Such can be achieved through careful documentation of transactions and proper record keeping (Carroll, 2009). HERSHEY, PA. "A chocolate lover's dream" is how The Hershey Co. describes its latest product launch, an extension of the successful Hershey's Cookie Layer Crunch line, which in its . Our Code of Conduct also states that employees should not engage in human rights abuses or conduct business with those who do. leadership, innovation and reputation (10%). Entry Level. corporate ethics and compliance programs. If an article tilts in favor of their own party, they tend to see it as unbiased. Hershey has developed a comprehensive code of ethical conduct to adhere to these rules. ethical business practice and improved company performance. Company Address: The Hershey Company 19 East Chocolate Avenue Hershey, PA 17033USA Annual revenue: 6,200,000,000 Website: https://www.thehersheycompany.com Associated brands Hershey's Ownership structure Dagoba Ethical stories Environment You are missing out The stories for this company are only available to subscribers. The company, which has more On June 7, 2019, another consumer . good in society and we are honored that this core part of who we are as It depicted the company as a profit oriented entity. HERSHEY, Pa., March 9, 2014 /3BL Media/ The Hershey Company (NYSE: HSY) announced today that it has been recognized as a 2015 World's Most Ethical Company by the Ethisphere Institute.. Furthermore, the company has diversified its brand to appeal to a wide range of customers. Composed of key business leaders and ESG subject matter experts, this cross-functional group meets bimonthly to evaluate ESG strategy effectiveness and interdependencies, provides input on investments to support ESG program deliverables and reviews progress toward goals and key performance indicators (KPIs) relevant to our global ESG and sustainability programs. The company's commitment to workforce diversity is revealed in its vision of "Great People Building Great Brands". They need to ask suppliers to end child labor practices throughout their supply chain, and notify them that they will only be using suppliers that are verified for not using child or forced labor. Cadburys and Nestle stand to benefit by maintaining their commitment to the market, customers, and stakeholders. Web. Hershey needs to practice more ethical behavior when it comes to choosing their suppliers. Web. From the deontological position, child labor is wrong regardless of how much profits are earned, and action needs to be taken to ensure that child labor is no longer used in chocolate production. Hersheys code of conduct indicates that the entity pays attention to the marketplace. First Ranking on 2015 Most Ethical Company List. Hersheys Commitment to Bringing Goodness to the World Results in IvyPanda. The Hershey Company ("Hershey" or "Company") sets high ethical standards for the Company and our directors, officers and employees. In spite of efforts to embrace technology, Hershey is likely to face a number of challenges that need to be addressed urgently. Introduction Chocolate is enjoyed by millions, mainly in decadent desserts, candies, and drinks. Defying a reputational crisis- Cadburys salmonella scare: Why are customers willing to forgive and forget?. . character, marketplace trust and business success. (Queerest, 2008) Alternatives need to be used to make certain that chocolate is no longer harvested by children in companies such as Hershey. The potential class action lawsuit states that Hershey "has taken affirmative steps for consumers to mistakenly believe the products contain white chocolate and has intentionally failed to correct the misimpressions.". In 2007, Hershey, together with other members of the US Chocolate Manufacturers Association, lobbied the FDA to allow them substitute cocoa butter with partially hydrogenated vegetable oils (Newman & OConnell, 2011). Elimination of child labor, including the worst forms such as forced and slave labor: Hershey is expanding its Child Labor Monitoring and Remediation Systems to assess more than 125,000 children and provide any remediation that is necessary, such as providing birth certificates so children can stay in school. Despite Hershey, Nestl and Cadbury publicly addressing the sustainability and ethical issues of harvesting cacao from these areasincluding signing the Harkin-Engel Protocol, an agreement that aims to "eliminate child slavery on West African cocoa plantations"child labor is still used to make mass-market chocolate. business standards and practices ensuring long-term value to key focused on growing its presence in key international markets while Worldwide, millions of children are working in hazardous conditions that affect their health, safety, and their basic right to enjoy their lives as children. Hershey's internal and external stakeholders are encouraged to raise ethical concerns and ask questions through our reporting channels when they see or experience something that doesnt follow our ethical business practices. The Global Sustainability team communicates regularly with external stakeholders who provide valuable perspectives on our program decisions and focus. match. The organization deals with a wide range of products targeted at the diverse market segment of the entity. HERSHEY, Pa.--(BUSINESS WIRE)--The Hershey Company (NYSE: HSY) announced today that it has been The children who attend the school receive education, Currently, Hershey is engaged in a number of activities aimed at effectively managing environmental issues. In this paper, it was established that Hershey is a successful entity in the chocolate industry. These children do not receive the basic right to an education; instead they have a tortured life of abuse and daily beatings all so people can have a candy bar. The Code details Hersheys approach to anti-corruption, antitrustand whistleblower protection,and is published in 10 languages. 3 billion. We utilize security vendors that protect and Companies recognition program, provides a community of Ethisphere InstituteClea Nabozny, 480-397-2658Clea.Nabozny@ethisphere.com. 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. Although the African government created an audit system to monitor child labor, it's not easy to prosecute offenders offenders like the Hershey Company. consistent and standardized way. Brenner, J. There are still 1. continuing to build its competitive advantage in North America. (2014). A Part-Time role as a Territory Sales Associate (TSA) is a great way for a relationship-oriented person to flex their selling skills while representing some of the biggest and most exciting brands in America! They include, among others, internationalization and global production. They are exposed to pesticides, they work with dangerous machinery and tools, they have a lack of clean water, and washing facilities, and toilets and they often must carry heavy loads that are twice their weight. If not, what could they do to improve? 4) Sprinkle some finishing salt over it. On a societal level the issues that need to be addressed are the fact that child labor is illegal, the fact that it applies to . These parent companies own many popular chocolate brands, including Cadbury's, Milka, Aero, Galaxy, and Hershey's. Unsurprisingly, all of these brands are listed in the red section of our Ethical Chocolate table. Hershey Company is one of the leading chocolate producers in the world. Santa Monica, CA: General Publishers Group. Erblich. While the industry as a whole has not yet met ambitious goals to completely eradicate child labor in cocoa, Hershey is taking steps and attempting to make progress with respect to responsible sourcing and management of human rights risks, and Tri-CRI is engaging the company to encourage meaningful implementation of human rights commitments. Heresys Coca continues to purchase its cocoa from supply chains in West Africa despite the fact that these suppliers are accused of child labor, trafficking, and forced labor. On an organizational level the issues that need to be addressed are Heresys responsibility to the children and what they need to start doing to ensure that their products are not being supplied by children forced into child labor. Hershey has more than 22,000 employees around the world who work every Worlds Most Ethical Company by the Ethisphere Institute. The committee reviews and provides input on key decisions related to our global ESG and sustainability programs, including review of enhanced disclosures and policy changes. The effect child labor has on children is detrimental to their health and safety. The Worlds Most Ethical Companies designation recognizes those You may use it as a guide or sample for The Hershey CompanyLaura Renaud, 717-534-7641lrenaud@hersheys.comorThe Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value systemalways show integrity, be honest, and respect others. Accountability for managing sustainability across the enterprise sits with the Vice President of Corporate Communications and Global Sustainability, who reports to our Chief Supply Chain Officer. Our CEO and her direct reports conduct at least quarterly reviews of our Shared Goodness Promise strategy, data and progress against our commitments and targets, as well as emerging ESG and sustainability challenges and opportunities. That means that much of these companies' products . Part Time. Magazine and The Worlds Most Ethical Companies Executive Briefing. revenues, includes such iconic brand names as Hershey's, Reese's, Our constitution strongly prohibits child labor by mandating that children receive a proper education and the right to live as children. Hershey disregarded the adverse effects that the products they were suggesting could have on the health of the consumers (Carroll, 2009). Hersheys products are packaged in colorful synthetic material. Child laborers are subject to harmful health risks from working long hours in unhealthy conditions and this treatment of children is not only unethical it is wrong. Hershey's Persistence. Hershey has distinguished itself in recent years for its achievements in Another action that needs to be taken by Hershey is to identify its suppliers so that outside observers can verify conditions on the farm. 8 million children working in the West African cocoa sector, and there continues to be an urgent need for programs to immediately withdraw child victims from labor and provide them with remediation and an education. need. The Hershey Company, celebrating its 125th anniversary in 2019, is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people . The Hershey Co., the Kellogg Co. and PepsiCo have been recognized as three of the World's Most Ethical Companies for 2015 by the Ethisphere Institute. than 80 brands around the world that drive over $7.4 billion in annual Hershey can adopt two techniques to make sure that its code of conduct remains relevant in the face of economic, political, social, cultural, and technical changes. According to the International Institute for Tropical Agriculture, over of child laborers are under the age of fourteen and work over twelve hours a day, filling and lifting fifty pound bags of beans. McMahon, J. D. (1998). Identify the ethical issues within the case. Lawrence, A., & Weber, J. Hershey's Part-Time Territory Sales Associate (Downtown Boise, ID) The Hershey Company. (Roger, Ingratiate, Busters, Roasts, 2007) Working conditions that are safe and healthy for adults may not be safe and healthy for children because of hysterical differences. The Ethics of Chocolate As it is the key ingredient in chocolate, most of this guide focuses on the cocoa industry. Hershey Company's Ethical Standards. Moreover, it is a societal problem because our society rejects child labor, yet its condition persists. established in 1909 by the company's founder and administered by Hershey This essay on Hershey Companys Ethical Standards was written and submitted by your fellow stakeholders including customers, employees, suppliers, regulators and HERSHEY, Pa. -- The Hershey Co. has announced that it has been selected again to both the Dow Jones Sustainability World and North America Indices. Hershey needs to practice more ethical behavior when it comes to choosing their suppliers. Pharapreising and interpretation due to major educational standards released by a particular educational institution as well as tailored to your educational institution if different; The Hershey Company Laura Renaud, 717-534-7641 lrenaud@hersheys.com or The Ethisphere Institute Clea Nabozny, 480-397-2658 Clea.Nabozny@ethisphere.com Release Summary Hershey is one of only. This work is never finishedbest practices always evolve, and we are continually strengthening our approach and exploring leading standards to ensure that Hershey keeps pace. The firm filed a $550-million class action lawsuit against the Hershey Company in December alleging that the child labour and slavery prevalent in the company's supply chain "are so abhorrent,. Ethisphere can be found at: http://ethisphere.com. global workforce from the top down. Copyright 2022 service.graduateway.com. For the world's biggest chocolate makers Hershey, Nestle, and Mars account for more than 35 percent of global chocolate production practices like child slave labor, rainforest demolition, and. As such, demand will decline significantly. Integrity is one of our core values and is central to what we stand for. Hershey operates in the rather sensitive food and beverages industry. The strategy is effective in the conservation of the environment (DAntonio, 2007). Our Code of Conduct(Code) guides our approach to ethical issues and our commitment to complying with relevant local and international regulations and policies. Hershey said it's expecting to face a number of challenges as a result of the current COVID-19 global pandemic, including a reduced demand for products, reduced availability of its products, and issues with the supply chain, among other things. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. Risks may be greater for children at various stages of development and may have long term effects. In addition, extensive market research is needed. Although Hershey anticipates a stable sales trend in majority of its markets in 2021, the speed and magnitude of recovery is uncertain in the segment. 3. Hershey Company Ethical Issues 1. To improve the efficiency of its code of ethical conduct over time, Hershey should formulate this document in a way that allows for revisions to accommodate future changes. With more than $7.7 billion in annual sales, the Hershey Company is one of the worlds largest producers of chocolate and candy products. The Hershey Companys first appearance on the Worlds Most Ethical Web. Established in 2021, this group of executive team members and senior leaders meets bimonthly to review ESG strategic direction and delivery, governance and proposed ESG-related investments. ESG-related oversight responsibilities are divided among the Boards committees, with oversight for ESG governance residing with the Governance Committee. How did you get here? Concern Line phone numbers are available on the website. The remainder of the paper is structured as follows: Section 1 provides an overview of the concept of ethical consumerism, major issues, and the benefits organizations gain from it; Section 2 provides a brief overview of the Hershey Company followed with the analysis of the company's ethical business activity and its Corporate Social . It also means that the organization is able to audit its activities in an efficient manner (Lawrence & Weber, 2014). In addition, the companies tried to convince the agency to change its legal definition of chocolate. As such, obsolete technology needs regular upgrades and replacements, which increase costs of production (DAntonio, 2007). Training on the Code is held biannually, with certification taking place in years where no training takes place. organizations that have had a material impact on the way business is Over the years, the company has made major improvements on its brands, its products, and its management strategies. Sales will plummet and products will be poorly priced. The expansion means that the company is able to meet the needs of its customers in the global market. Second, the switch from labor intensive manufacturing to capital dependent methods is quite expensive. Abstract. There are actions that Hershey can take to stop the use of child labor. Ethisphere has deep Dark chocolate, chocolate with at least 70 percent cocoa, is known for its health benefits, such as reducing blood pressure, improving blood flow, and increasing good cholesterol. Using this strategy, the company is able to reach out to a wide range of customers in the market (Newman & OConnell, 2011). The Ethisphere Institute is a global leader in defining and advancing . The element is critical to the success of the company given the important role played by consumers in any business organization. "Hershey Company's Ethical Standards." Threats Mint element of the product may not capture certain market segment that dispels it on health grounds such as obesity which is becoming an epidemic in Hershey's . Hershey and its employees benefit in many ways from its strong . Hershey Company has been in existence for over a century now. $48k-66k yearly est. Its brands are available in different parts of the world. New York: Random House. The two global citizenship strategies will help Hershey to meet its long and short term sustainable development goals. In addition, the move has enabled Hershey to diversify its products to fit the needs of different customers around the globe (DAntonio, 2007). Web. Supplemental understanding of the topic including revealing main issues described in the particular theme; Trying to sign you in. Privacy & cookies. On an individual level the issues that need to be addressed are he childrens right to an education, health and safety. The ethical issues here are the effects the forced labor has on childrens health, the conditions in which these children are forced to work, as well as how many hours of work are forced pond the children. Led by our Vice President of Global Sustainability and Corporate Communications, this team is composed of ESG experts and leaders from across the business who manage the strategy, implementation and reporting of our global ESG and sustainability initiatives. Write your thoughts on Earth in the Balance into a paragraph (150 words). requirements? Hershey's Kisses, Jolly Rancher, Ice Breakers and Brookside. It did not comment about the beans that the cocoa regulators accused it of buying on the exchange. Hershey is committed to bringing goodness to the world, whether its It is associated with some of the most popular chocolate brands in the world. The companies will also have a steady flow of money. Internet Explorer presents a security risk. New York: McGraw-Hill. The report reflects increasing transparency on its sustainability work and showcases Hershey's progress to date in key areas of focus, such as sustainable cocoa, responsible sourcing, climate change and human rights. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. The emperors of chocolate: Inside the secret world of Hershey and Mars. Business and society: Stakeholders, ethics, public policy (14th ed.). Every production process leads to the generation of different categories of wastes. 5% of the chocolate market, contain uses to use supply chains that use forced labor and child labor. Some of its products include M&Ms, Payday, Reeses, and Almond Joy (Brenner, 1999). It's also a place with a proud history and legacy of exceptional service and generous philanthropy installed by the man who built two great companies and began a dream that is alive and thriving today in Hershey The Sweetest Place On Earth ! 3. The Concern Line is available 24/7, operates in more than 60 countries and has toll-free numbers available in each of our locations. Hershey Entertainment & Resorts is a world-class entertainment and leisure company that honors Milton S. Hershey's legacy by giving back to Milton Hershey School and the communities where our team members live. Hershey can overcome these challenges by updating the technology department. Hershey is one of only 13 companies from the food, beverage and tobacco industry in the World Index and ranked in the 93 percentile overall. Pressure for companies to soon:e child labor free cocoa is mounting, both from consumers and legislators. The Ethisphere Institute is the global leader in defining and advancing Ethisphere is also the leading provider of independent verification of Need a custom essay sample written specially to meet your Criteria that must be met include the establishment of a just price that is carefully calculated to cover the costs of sustainTABLE production, direct trade, and contact with farmers; the development of marketing co-ops with the foundation of democratic decision making; and the payment of a premium that gets directed to the co-pop community. In light of this, the company needs to invest in a legal team that will effectively interpret new laws and help revise the code of conduct where necessary (DAntonio, 2007). This isn't the first time The Hershey Co. has been sued over "white chocolate.". The company maintains a recognizable market presence with such brands as KitKat. 2. They need to begin by tracing their supply chain back to the farm level, sourcing only from farmers who can show through independent verification that they do not use arced or child labor. The full list of the 2015 World's Most Ethical Companies can be found at http://ethisphere.com/worlds-most-ethical/wme-honorees/. Hershey has undertaken a number of global corporate citizenship initiatives. These (Ten Years, Little Progress, 2011) Senator Harkin and Representative Engel, working with he U. S. Department of Labor, have played an important role in seeking to ensure that programs to help the victims of child labor are financially supported. Browse and sort by content type, industry, or by a specific Epiq service. Newman, T., & OConnell, E. (2011). The element enhances proper management of records. The scenario illustrates the similarity between Hershey and Cadburys in relation to their code of standards (DAntonio, 2007). In addition, it engages in ethical marketing strategies (Newman & OConnell, 2011). As far as commitment to the market is concerned, Cadburys engages in fair business activity that is generally acceptable in the market (Newman & OConnell, 2011). Hershey Company for this extraordinary achievement.. However, the management should continue working hard to maintain the entitys position in the market. Management and ESG leaders typically provide deep dives on ESG issues for the full Board at least once a year, with relevant committee updates occurring frequently throughout the year. DAntonio, M. (2007). Heresy's Coca continues to purchase its cocoa from supply chains in West Africa despite the fact that these suppliers are accused of child labor, trafficking, and forced labor. Changes in the business environment lead to the formulation of legislations to manage the process. On a societal level the issues that need to be addressed are the fact that child labor is illegal, the fact that it applies to a large number of people, and also that child labor elicits norm violations in our society. As a matter of fact, only particular people are gifted with a talent for writing. Hershey confirmed Monday that it will pay farmers the $400 LID in the future. Profits will also rise because the companies will diversify their products to fit the interests of a wide range of customers. Hershey needs to have third party verification by the Fair Trade Label, identify its suppliers so they can be verified, trace its supply chain to the farm level; only sourcing from farmers who can prove they do not used forced child labor, and ask suppliers to end child labor practices throughout their supply chain. The technologically savvy communication channels improve customers experience (Lawrence & Weber, 2014). our iconic products or how we operate our business, said J.P. Bilbrey, These schemes allow brands to market their product (in this case chocolate) as fair-trade, ethical, etc. In 2021, Hershey expanded its Disclosure Committee to include the Vice President of Global Sustainability and Corporate Communications to ensure consistent disclosures across the companys financial and ESG reporting. Social Media Specialist Job, Remote or Hershey, PA. Summary: The Social Media Engagement Specialist will be an integral part of the Global Consumer Relations Team and will be the voice of The Hershey Company to consumers, fans, and brands. With regards to its obligations to the stakeholders, Cadburys has effectively managed its records and official documents in a bid to maintain transparency. The database is updated daily, so anyone can easily find a relevant essay example. (1999). Hershey did not address the specifics of the case but said it has "no tolerance for illegal practices, including children used as forced labor in cocoa farming." Mars did not respond to our. Choose skilled expert on your subject and get original paper with free plagiarism Only five companies were . Moreover, Hershey needs to embrace the strongest system of certification, the Fair Trade Label. Quotient (EQ) framework developed over years of research to provide By continuing well 16 June. They are working long hours in unsafe and unsanitary conditions. There are clear guidelines governing the management of such waste. expertise in measuring and defining core ethics standards using From the teleological position, the use of child labor permits the achievement of profits desired. They need to take Steps to ensure that child labor is not used in their supply chains. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. These issues have included child labor. Retrieved from https://ivypanda.com/essays/hershey-companys-ethical-standards/. European invaders added sugar to it, and it was first made into a solid in Britain at the end of the nineteenth century. That's according to a Securities Exchange Commision report the company filed publicly on March 25. conducted by fostering a culture of ethics and transparency at every The four entail the companys commitment to its stakeholders, who include the employees, customers, and suppliers (DAntonio, 2007). June 16, 2020. https://ivypanda.com/essays/hershey-companys-ethical-standards/. the standards of ethical business practices. Hershey Medical Center; however, in West Africa, where most of their cocoa is harvested, child labor and forced labor are common, and Hershey is one of the few chocolate companies who has not embraced free trade. Learn More. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues. This essay was written by a fellow student. We are committed to excellence in corporate . Trust Company. cite it correctly. Companies list underscores the companys commitment to leading ethical All these changes are geared at improving the competitiveness of the firm in the industry. The strategy is effective as it enhances the companys responsibility with regards to the environment (Brenner, 1999). But Hershey's labor issues haven't been confined to cocoa farms. 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