Hanesh

Business Ethics
Slavery in the chocolate Industry

Hanesh kumar
20191-25961
Background and introduction
 The Chocolate manufacturers association
(CMA) which includes four major chocolate
industries which are Hershey, M and M,
Nestle and Kraft Foods.
 This organization comprises of chocolate
manufactures who used tainted beans to

product it.
 Organization was made so that they can
speak up for their rights and unethical

practices done against them.
Type of business
 The CMA uses cocoa beans produced by child slaves (kidnapped
from surrounding nations by traffickers) in the farms of Ivory Coast
while knowing about the situation.
 Even there are manufacturers such as cloud nine which don't use
these beans and use untainted beans to produce organic chocolate
 They were also manipulating farmers by buying from them at
cheaper prices and pressurizing them reduce cost which result in
child slavery.
 By buying at cheaper prices they were selling chocolate higher prices
and earning a hefty amount of profit.
Unethical practices and concepts
Adam Smith, the father of capitalism would here argue his concept of the
Invisible hand by stating that in a free market economy where profit seeking is
the
top priority will ultimately benefit society thus in this case, the chocolate
industries
are ultimately fulfilling the sweet cravings of the society through selling
chocolates.
Modern right based ethics where every one is entitled to rights which are
natural
And conventional. Here they are not giving those children their right as by
kidnapping them and using them as slaves.
Ethical egoism where they are just pursing their own interest rather than other
So by using kids as slaves to cut their cost and increase profits.
Unethical practices and concept
Utilitarianism can also be applied here as consequential theorists would argue that “ends
justify
the means”. Bentham would argue that these chocolate industries are providing “the greatest
amount of pleasure for the greatest number” by selling chocolates on a global level to satisfy
the
taste buds of billions regardless of the means. they would argue that this is a pleasure
maximizing
action by the chocolate industries rather than a pain maximizing one, hence this is the right
course
of action.
Modern right based ethics where every one is entitled to rights which are natural and
conventional. Here they are not giving those children their right as by kidnapping them and
using
them as slaves.
Ethical egoism where they are just pursing their own interest rather than other so by using
kids as
slaves to cut their cost and increase profits.
Unethical practices and concept
 Deontological ethical theorist would argue as he is against the
concept of “ends justifying the means” and would analyze the
action in itself rather than the consequence and would say “treat
other people as ends in themselves, never as means to an end”
similar to how the chocolate industries were treating the child
slaves as means to an end.
 CSR types
 They were following the economic where reducing cost to increase
their profits.
 They were not following the legal one where they had to comply
with the rules of the good corporate governance.
 Voluntarily they were not giving something to society, they were
taking from it.
 Ethically they did know it was wrong to buy from where slavery is
being conducted still they did it.
Impact and reaction of the
stakeholders
 When CMA was asked about the slavery of children done by farmers
CMA said that they did know about it.
 Media did a very good work by bringing the reality In front the world
regarding the slavery and false promises of CMA.
 Before advertising research was conducted thoroughly by the
university.
 The International police organization raided these farms to find out
that hundreds and thousands of children were enslaved.
 Different human rights activist did campaign against them
What efforts/changes were made to control the damage and recover
The CMA rejected a bill in 2001 which proposed a labelling

system os slave free which would ensure which chocolate
products are slave free. CMA argued that that the labeling
system would not only reduce their sales but reduce sales of
Ivory Coast farmers which would in turn re-pressurize them to
use child slaves to cut down costs.
The CMA proposed a certification system in 2002 (Harkin
Engel Protocol) which would ensure slave free products and
educate the Ivory Coast farmers about slavery. Unfortunately, a
civil war between the rebel groups and the government started
in the Ivory Coast between 2002 and 2007 but it turned out,
these wars were funded by the CMA so that they can use this
as an excuse to delay the deadline of the certification system
they had promised by the end of 2005 while they still received
enough cocoa beans to keep their factories running. The CMA
extended the deadline of the certification system by 2010 and
according to them, they invested several million dollars in
setting up a foundation which would tackle the issues of child
Recommendations
 farmers who use these child slavery should be put behind bars
 Government should makes sure that no child is being employed by these
farmer who are using them as slave.
 Government should take strict action against CMA by putting them behind bar
as they are also using those tainted beans and intentionally manipulating
consumers.
 Government should make awareness campaigns where famers who should
know about the earnings of these factories who are buying beans from them at
a cheaper price and child slavery is not a ethical way to reduce their cost.
 Government should also help farmers understand new innovative ways to
produce beans using technology.
 Government should penalize these CMA firms and give that money to those
children who were kept as slaves.
 Government should pass new bill regarding the age of employment , rights of
employment and child slavery where people who don't follow these rules , a
strict action should be taken against them
 Small companies like cloud nine and cliff bar should be appreciated for using
untainted beans and not buying from those farmers who use child labor.
 Awareness campaigns should be done for consumer so that they don't buy

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Business Ethics

Slavery in the chocolate Industry

manufactures who used tainted beans to

speak up for their rights and unethical

The CMA rejected a bill in 2001 which proposed a labelling

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