Commitment & Governance:
Hershey identifies forced labor as a priority issue and a key challenge for responsible sourcing. The company has a sustainable palm oil policy that requires suppliers to adhere to international labor and human rights laws and regulations, including forced labor. The implementation of Hershey's Supplier Code of Conduct, which prohibits the use of forced labor in its supply chain, is overseen by its Chief Supply Officer.
Hershey discloses in its Responsible Palm Oil Sourcing Policy that it aims to source "responsibly grown palm oil that does not contribute to the destruction of forests or the exploitation of workers and local communities." Further, the company is collaborating with local NGOs and suppliers to achieve its target of 100% traceability of its palm oil purchases to the plantation by the end of 2016. The company reports that it is sourcing cocoa from farmers in West Africa, including Côte D'Ivoire, Ghana, and Nigeria, and is committed to sourcing 100% sustainable cocoa by 2020.
Hershey's supply chain standards, which include forced labor and human trafficking, are integrated into supplier contracts, as the company states: "[B]y its acceptance of any purchase order from the Hershey Company, the supplier acknowledges its acceptance of the Code and intention to comply with its requirements." The company evaluates all suppliers' capacity constraints as part of its supplier selection process and discloses that it does not "knowingly engage" in purchasing practices that increase the risks of suppliers violating the Supplier Code of Conduct.