On Tuesday, April 18, at the Hershey Company's annual general meeting, shareholders will consider a resolution calling on Hershey's management to report on all the company's cocoa supply sources. The resolution, which was introduced by the human rights group Global Exchange, 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 Global Exchange resolution calls upon the Hershey Company to report to its shareholders potential liabilities and risks related to its sourcing relationship with cocoa importing corporations that are currently the subject of litigation. The litigation and related media stories allege that these cocoa suppliers are profiting from the use of forced child labor. The resolution asks the company to review and report to shareholders on all sources of cocoa supply purchased for manufacture of all company products, including a breakdown percentage of total volume by supplying company or source. This review would enable shareholders to determine the extent to which their engagement with corporations accused of using forced child labor might affect the actual liability or pose a reputational risk to the Hershey Company.

"It is clear that, despite the actions taken to date, the problem of child labor in cocoa harvesting continues. The Hershey Company will continue to be questioned by media and by its consumers about any profits it may be making from cocoa produced by forced child labor. It may be the case in future that Hershey management and shareholders decide that participating in joint initiatives is not enough. However to fairly determine the best steps both to protect Hershey's reputation, and to end abusive child labor, the company management and shareholders need further information. This resolution is a simple first step, asking for identification of sourcing relationships. Transparency and information can only assist us in any efforts we make in future to protect ourselves and to make progress on this issue. Therefore we at Global Exchange ask you to vote FOR this resolution for the company to report to shareholders on cocoa suppliers," said Bama Athreya, a Global Exchange board member who will be representing the organization at the April 18th shareholders meeting.

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 a 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.