Bitter Chocolate: Child Labor in Cocoa IndustryDo CSR practices of Chocolate companies provide enough support to eliminate child labor?

Who are responsible for eliminating child labor in the industry?

Abstract Child labor in cocoa industry is a very sensitive problem in world’s business practices. It has been existed

since long time without having many efforts to know how these children are suffering everyday and becoming

older with bad memories of the childhood which will ruin their future as well as the future of the country. It

has been identified that the long and complex supply chain of the cocoa industry reflects that all stakeholders

are responsible for the problem and CSR initiatives taken by key players in manufacturing is inadequate.

High involvement in government with ethical leaderships is a key issue to solve the problem.

1.1 IntroductionChocolate and children has a sweet relationship as they love the delicious taste of chocolate. However, at

the other side of the coin, chocolate is bitter for many children. Who made that difference? What is the real

story behind that? The documentary film directed by Miki Mistrati & U. Roberto Romano and produced by

Helle Faber (team of Denmark journalists) is an eye opening work about child slavery and child abuse in

cocoa industry. (The-Dark-Side-of-Chocolate, 2010).

According to www.fairtrade.com web site, more than one million children work in cocoa farming sector in

West Africa (majority in Ghana and Ivory Coast). Between 200,000 and 800,000 of less than 18 age children

are trafficked in each year in this region (Tackling Child Labour in the Chocolate Industry – What Role Can

Fairtrade Play?). Studies shows that most children were being purchased from their parents and forced to

work without pay for weekly working hours from 80 to 100 and even proper food. They work under hazardous

environment and carrying heavy loads (Schrage & Ewind, 2005). Both child trafficking and child labor in

cocoa growing countries becomes two sides of the same problem.

Children are the future of the world. Can cocoa industry differentiate the child rights between the children

engaged in cocoa industry and the children who eat delicious chocolate in the rest of the world? It is not a

secret that all industries work on their supply chains to reduce their unit cost of productions to gain more

profit. However, if the product comes along with this kind of ethical issues, consumers should think twice

before buying. Media and several NGOs have done a great work to increase awareness and the need of

ethical trade in coca industry. It has been identified that primary growers are not concerned much in recent

ethical trade practices (Blowfield, 2003). Who is responsible for child trafficking and child labor in coca

industry? Is it chocolate manufacturers, cocoa growers, government, parents of children, consumers or

somebody else? However, definitely it is not an invisible hand.

This paper discusses the issue with reference to following research questions.

Do CSR practices of Chocolate companies provide enough support to eliminate child labor?

Who are responsible for eliminating child labor in the industry?

1.2 Discussion All industries nowadays are interested in Corporate Social Responsibility (CSR) and this is not new in cocoa

growing industry. By the influence of NGOs who engaged in the child labor issue of cocoa industry, most

world famous chocolate manufacturers started CSR practices related to child labor. Following information

shows some evidences of CSR practices by them and the rate of success in their CSR in eliminating child

labor.

1. Hershey – Hershey is one of the pioneers in socially responsible cocoa farming. Hershey initiated its

CSR by supporting farmer field schools program to support farmers to improve income though improved

farming practice. They also signed the Harkin-Engel protocol to eliminate child labor in the industry

(Chocolate Industry, 2008). However, reports of the "Raise the Bar Hershey” campaign proves that

Hershey has not been able to source 100% fair trade certified cocoa beans (The Real Corporate Social

Responsibility Report for the Hershey Company, 2011) .

2. Mars – Mars is also engaged in sustainable cocoa farming by helping farmers to improve the quality of

cocoa beans and increasing their net income by providing technical knowledge in farming. They

believed the improvement of livelihood will decrease child labor in farming. They also work with the

organizations such as ICI, USAID and ILO to reduce child labor within the industry. (Chocolate Industry,

2008)

3. Cadbury Schweppers – Cadbury also established programs same as Mars and Hershey. They also

have a goal to achieve 100% fair trade certified cocoa beans. They participated in organizations such as

ICI to promote child labor free cocoa beans.

Most of those manufacturers believe that the only way to eliminate child labor is the participation through

public-private partnership among chocolate industry, government, international donor and development

organizations, NGO’s and Cocoa farmers (Chocolate Industry, 2008).

“Coca sold under the Fair Trade label captures only 0.1 percent of the cocoa market share”

(Child_labour_in_the_cocoa_supply_chain_Sustainalytics.pdf, 2010)

There is a progress in reducing child labor with the efforts taken by major players in the industry; however it

is still inadequate (Child_labour_in_the_cocoa_supply_chain_Sustainalytics.pdf, 2010). Child slavery still

exists, proving that those efforts are not enough to eliminate child labor in the industry and opening eyes for

the need of more efforts for the success.

As indicated by the documentary “The Dark Side of the Chocolate” and several other sources, the critical

issue of the complex supply chain seems to be a big problem in this regard. It is clear that nobody takes the

responsibility of the problem. The documentary shows that how most of stakeholders react in the situation,

as highlighted by the CEO of the biggest cocoa bean manufacturer in Ivory Coast refused the comment on

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child labor practices and the Chief Secretary of the Department of Child Labor foolishly saying those

trafficked children are children who came to the area for their vacations. International Labor Organization’s

report mentioned that chocolate manufacturers or cocoa bean manufacturers do not have direct control over

the plantation, so that they cannot be directly responsible for the matter.

Major concerns in the child labor in cocoa industry can be presented as follows.

1. Violations of Human Rights

Prohibited child labor, forced labor and trafficking are critical problems which need the active participation of

government and cocoa industry participants. Industry participants can’t protect human rights without the

involvement of government. Below mentioned issues needs high involvement of the government.

Prohibited Child Labor:- The differences between international laws and country laws make conflicts in

elimination of child labor.

Forced Labor:- Employing them without the consent of employees is another serious human right issue

violated by cocoa plantations.

Trafficking:- Trafficking takes place due to poverty, poor education and weak or non-existence laws against

trafficking.

2. Industry Involvement in child labor issue

Industry itself did not take initiatives until media attention took place and influenced them to eliminate child

labor. Cocoa industry protocol came to effect as their first initiative and then expanded with information

gathering by surveys to find out the actual situation followed by the establishment of international Cocoa

Initiative.

3. Insufficient consumer pressure

Consumer pressure on the child labor matter was not too high. However, the loss of reputation for the

business is a major issue for key players to engage in activities against child labor. (Schrage & Ewind, 2005)

Who is responsible?

As indicated by several studies the major cause happened due to the complex supply chain of cocoa

industry which includes many intermediaries between consumer and supplier. All stakeholders within the

supply chain are responsible for the child labor in cocoa industry. Everybody has their own responsibility to

support by putting efforts for the reduction of child labor.

According to the analysis of the situation following suggestions can be made for the future success in the

effort to eliminate child labor in cocoa industry.

1. Active participation of all stakeholders in eliminating child labor is needed.

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2. Geographic Concentration of supply chain and putting more efforts on the high potential areas like

Ivory Coast and Ghana is also a key factor for success.

3. Intervention of government is key factor as the industry can’t directly involve in setting up and

maintaining standards of regulations. It should not be just a participation of the government, but an

active participation through setting up policies, monitoring and controlling. Ethical leadership and

integrity is a key issue in that regard. As poverty and poor education are major social problems which

increases child labor, making awareness of parents and provide support to overcome financial

problems could be an initiative by the government which can be further supported by the industry.

4. Private public partnership will also allow industry to discuss the issues openly with the government

and seek help in regulatory and other issues. Participation of other organizations such as NGOs will

also provide benefits by keeping the transparency and helping to solve social and cultural problems.

5. Detailed analysis of cocoa supply chain and identify the most responsible groups and the reasons for

doing so will also benefit. Acton to be taken should be determined with clearly for each group. As an

example, everybody knows that child labor occurred in the farming level. The reason for doing that to

make more profits by reducing cost. Farmers have been given low prices when compare with the final

product. Changes in price settings can also contribute in solving the problem.

Recent Developments

Nestle, as the first chocolate company joined with the Fair Labor Association (FLA), started working with

them to investigate about child workers in cocoa farming. FLA is a non-profit multi stakeholder organization

which helps companies to improve work conditions within their supply chain to assure sustainable products.

It seems a quite reasonable way to address the problem as the FLA investigates where child labor is

practicing and identifies the root causes. FLA advices Nestle how to address the problem.

1.3 ConclusionEliminating child labor in cocoa industry cannot be done by one stakeholder during a short period of time. As

it is engaged in a long and complex global supply chain all stakeholders within the supply chain is

responsible to solve the problem. Government regulations, human rights, poverty and poor education are

related to the problem. Government intervention through an ethical leadership is strongly needed. Private

public partnership can be considered as a key success factor and also involvement of non-profit

organizations and media is necessary to keep transparency.

Children are in the both supplier and consumer ends of the supply chain. All adults who are seeking profits or

reputation or whatever it is have to ensure a safe future to children all over the world by practicing ethics in

business. That is everybody’s responsibility to the world.

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