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Human Rights Group Submits Shareholder Resolution to Hershey, Requesting Report on the Company’s Cocoa Supply

Global Exchange is concerned about the rampant use of illegal child labor on cocoa farms

Global Exchange
October 24, 2005
CONTACT: Andrea Buffa (415) 575-5552
San Francisco, CA -- On Monday, October 24, San Francisco-based human rights group Global Exchange submitted a shareholders resolution to be considered at the Hershey Company's annual general meeting. The resolution calls on Hershey's management to report to shareholders on all the company's cocoa supply sources and aims to determine whether Hershey is purchasing cocoa from Cargill, Archer Daniels Midland, and Nestle, all of which are being sued for purchasing cocoa from farms that use forced labor.

"Illegal child labor is a major problem at cocoa farms in the Ivory Coast, which supplies forty percent of the world's cocoa. Global Exchange and other Hershey shareholders need to know if the company's cocoa is being purchased from these farms, and if Hershey is at risk of adverse publicity or lawsuits if there's a chance that illegal child or slave labor is involved" said Kirsten Moller, Global Exchange's executive director.

The resolution reads as follows:

THEREFORE, BE IT RESOLVED, that shareholders request that by July 15, 2006 management review and report to shareholders on all sources of cocoa supply purchased for manufacture of all company products, including a breakdown of percentage of total volume by supplying company or source. Furthermore, it is requested that this review and report to shareholders be conducted with a particular reference to potential financial and reputational risks incurred by the company as a result of its relationships with any of the companies named as defendants in the above-referenced lawsuit.

According to the International Labour Organization (ILO), US Department of State and UNICEF, thousands of children work on cocoa farms in West Africa, particularly in Ivory Coast. The US chocolate industry agreed to work toward ending illegal child labor on cocoa farms through a voluntary protocol called the Harkin-Engel Protocol. But that protocol expired on July 1, 2005, and the industry failed to come up with system for monitoring and certifying that US chocolate products aren't made using forced child labor.

Global Exchange has been urging Hershey, Nestle and other chocolate companies to address the problem of illegal child labor by buying their cocoa beans from farms that are Fair Trade certified. Fair Trade ensures that cocoa farmers receive a fair price for their harvest. Slave labor is strictly prohibited on Fair Trade farms, and farms are inspected to ensure that Fair Trade standards are being met.

Global Exchange is an international human rights organization dedicated to promoting social, economic, political and environmental justice around the world. Described as "the group that helped put labor rights on the human rights agenda" (Washington Post), and "angry and effective" (The Economist), Global Exchange is working for a global economy that puts people and the environment before corporate profits. Labeled a "respected human rights organization" by the Boston Globe, and ranked in the "Top 20 Most Trusted NGOs" by readers of the Wall Street Journal, GX is striving to ensure that U.S. taxpayers' dollars are not supporting abuse and oppression abroad.


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