| Hershey's |
Scope & Status of Rating | |||
Scope | |||
| Rating applies to these products/ lines: | All | ||
| Rating based on assessment of: | The Hershey Company | ||
| Industries: | Chocolate | ||
Status | |||
| Date Rating Published: | 10/21/2011 | ||
| Company Response: | Company Non-Responsive | ||
| Score improved in last 12 months? | N/A | ||
Scorecard
Policies | |||
Code of Conduct | |||
| Does the brand have a Code of Conduct for suppliers ("Code") that addresses labor standards? | Yes | ||
| Link to Code | http://www.thehersheycompany.com/assets/pdfs/he... | ||
| Code includes elimination of child labor? | Yes | ||
| Code includes abolition of forced and compulsory labor? | Yes | ||
| Code includes freedom of association? | Yes | ||
| Code includes rights to collective bargaining? | Yes | ||
| Code prohibits discrimation on the basis of personal attributes, tenants or affiliations? | Yes | ||
| Code prohibits the use of regular and excessive overtime? | No | ||
| Links/ Info: | |||
| Are suppliers required to ensure freedom of movement for employees and their right to enter and leave employment willingly and voluntarily (For example, are suppliers prohibited from withholding employee identity documents, including passports)? | Yes | ||
| Links/Info | |||
| Are suppliers prohibited from using recruitment fees? | No | ||
| Links/Info: | |||
| Does the Code apply to multiple levels of the supply chain including the raw materials level? | No | ||
| Is the Code included in supplier contracts? | Yes | ||
| Links/ Info: | |||
Policies | |||
| Does the brand have a policy of non-interference toward trade unions and worker organizing? | Yes | ||
| Links/Info: | http://www.thehersheycompany.com/assets/pdfs/he... | ||
| Does brand participate in any multi-stakeholder initiative (MSI)? | Yes | ||
| Name of MSI(s)/Info: | AIM-PROGRESS, International Cocoa Initiative, World Cocoa Foundation, Harkin Engel Protocol - http://www.thehersheycompany.com/social-respons... | ||
| Has the brand taken steps to use responsible purchasing practices? (This does not include auditing improvements; it refers to managing sampling, order timelines or prices to enable factories to provide decent working conditions.) | No | ||
| Describe program and goals: | |||
| Does brand have a policy that addresses subcontracting in the supply chain (including homework where applicable)? (Policy must include either a plan to prevent subcontracting or else a plan to ensure Code standards are met in subcontracting arrangments). | No | ||
| Describe policy briefly: | |||
| Additional info on Code & Policies: | |||
Transparency & Traceability | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| In the following levels of the supply chain, select one key production process that the brand has traced or has begun to trace: (Traced= brand has a direct knowledge of some suppliers or countries of production.) | |||
| Specify: | |||
| Approximately how many suppliers produce for the brand in total, including subcontractors and untraced producers (if known)? | Unknown or Non-public | Unknown or Non-public | Unknown or Non-public |
| Approximately how many suppliers has the brand traced? Traced = brand has a direct knowledge of a supplier including name and location. | Significant portion: See notes | 0 | Some portion: See notes |
| Links/info on the above: | http://www.thehersheycompany.com/about-hershey/... Stage: Owned facilities (according to Hershey's 10-K) : In addition to the locations in the US and Mexico, the company also owns or leases several other properties and buildings worldwide which are used for manufacturing, sales, distribution and administrative functions. The locations and the amont of firms the company subcontracts is not released. Pg.15: http://phx.corporate-ir.net/External.File?item=... | ||
| Is the brand involved in a tracing project to identifiy the location of unknown producers? | No | No | No |
| Links / Info on the above: | |||
| Is there a public list of countries in which suppiers are located? | Partial | No | Partial |
| Location / Link: | "Where some of the | Pg.5:http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODQ3MzR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 | |
| List top five countries in which production takes place. Or, if top five is confidential information: List the five countries with the highest risk of child or forced labor according to the DOL List and the GTIP Trafficking in Persons Report. | No disclosure | No disclosure | No disclosure |
| Is there a public list of suppliers (must include names and addresses)? | No | No | No |
| Location / Link: | |||
| Does the brand require and keep record of information from direct suppliers on every subcontractor and subcontract? | No | No | No |
| Links / Info: | |||
| Does brand track suppliers' use of temporary or contract work? | No | No | No |
| Links / Info: | |||
| Additional info on Transparency & Traceability: | |||
Monitoring & Training | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
Monitoring | |||
| % of suppliers internally monitored per year: | 0% | 0% | 0% |
| % of suppliers monitored by a third party with labor-standards accredidation: | 0% | 0% | 0% |
| Name of third party & info: | |||
| % of suppiers monitored with unannouced visits or off-site worker interviews per year: | 0% | 0% | 0% |
| % of suppliers having publicly shared audit reports and corrective action plans: | 0% | 0% | 0% |
| Links to public audit reports & corrective action plans: | |||
| TOTAL % of traced suppliers monitored per year: | 0% | 0% | 0% |
| Links/Info on Monitoring Stats | |||
| Are monitoring benchmarks vetted by an outside organization? | No | No | No |
| Name of organization, links/info: | |||
| Are suppliers monitored for their use of labor brokers? | No | No | No |
| Are broad monitoring results shared publicly? | No | No | No |
| Links / info: | |||
| Has the brand identified higher risk countries where it conducts more in-depth monitoring? | No | No | No |
| List of countries under higher-risk monitoring programs: | |||
| Are all of these suppliers independently monitored with unannounced visits or off-site worker interviews at least once a year? | No | No | No |
| Links/Info on monitoring | |||
Training | |||
| Are both auditors and factory managers trained to identify human trafficking, child labor, and forced labor? | Yes | No | No |
| Links/Info | |||
| Does the brand invest in suppliers' compliance implementation through training or other financial support? | No | No | No |
| Links/info: | |||
Worker Rights | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
Wages & Sourcing | |||
| Do workers make a living wage? | No | No | No |
| Links/info including wage formulas | |||
| Is a stable price guaranteed to suppliers regardless of world price fluctuation? | No | No | No |
| Links / info including price formulas: | |||
| Does the brand have a system for basing sourcing descisions on supplier labor conditions? (Examples: a) Brand has peferred supplier program, b) Brand can demonstrate that suppliers' labor conditions have as a group improved over time) | No | No | No |
| Links/info: | |||
| For companies more than 10 years old: From how many suppliers has the brand sourced for at least 5 years? | 0 | 0 | 0 |
| Links/info: | |||
| If brand ends its relationship with a supplier, does it have a program to ensure that workers are fully paid for hours worked? | No | No | No |
| Links/info: | |||
Co-Operatives | |||
| Are there any democratically run co-ops or employee-owned firms at this level of the supply chain? (IF "NO" SKIP SECTION) | No | No | No |
| Do workers or their appointees either serve on the Board of Directors of the co-op or company, or else have access to financial information about the performance of the business including management salaries? | No | No | No |
| Do workers own either 50% or more of the co-operative(s) or 25% or more of the brand? | No | No | No |
| Link(s) to information on co-ops: | |||
Unions | |||
| Do any suppliers employ hired workers (including contract and permanent workers) at this level of the supply chain? | Yes | Yes | Yes |
| How many suppliers are known to have independent democratically elected trade unions? | Some portion: See notes | 0 | 0 |
| List the suppliers: | 2-9: BCTGM Locals: http://www.bctgm.org/buybctgm/hershey.html | ||
| How many suppliers are known to have collective bargaining agreements in place? | Some portion: See notes | 0 | 0 |
| List the suppliers / unions: | 1: BCTGM: http://www.thefreelibrary.com/BCTGM+Internation... | ||
| Links/Info on Unions | |||
Grievance Mechanisms | |||
| Does brand have a functioning grievance mechanism? (Brand must do more than hear complaints; must include investigation and efforts to address grievance) | No | No | No |
| Does brand have a functioning dispute resolution mechanism? | No | No | No |
| Links/Info on Dispute Resolution Mechanism | |||
| Can workers submit complaints annonymously? | No | No | No |
| Can organizations submit complaints on behalf of workers? | No | No | No |
| Are the resolutions publicly disclosed? | No | No | No |
| Links / Info: | |||
Child & Forced Labor Remediation | |||
| Does the brand have local partnerships in place in high-risk areas to rehabilitate child or forced laborers when found? | No | No | Yes |
| List of partner organizations: | ICI in Ghana and Cote D'Ivore | ||
| When child or forced labor is removed from the workplace, is it later verified by unannounced monitoring or off-site worker interviews? | No | No | No |
| If child labor is discovered, does the brand find a way to provide for the child's education and replace the lost income to the family? | No | No | No |
| If forced labor is discovered, does the brand facilitate the individual's reintegration into the labour market and transition to decent work? | No | No | No |
| Where appropriate will the brand cooperate with local authorities, government, law enforcement, victim service providers and others to ensure full protection of trafficking, forced and/or child laborer(s)? | No | No | No |
| Links / info on Remediation Plan: | |||
Supplementary Risk Data | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| Does any independent third party (aside from the DOL List of Goods Produced by Child Labor or Forced Labor) report a risk of child or forced labor in any of the above sectors? | No | No | No |
| Name/link of report, countries/sectors reported & type of risk: | |||
Reported Issues | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| Are there any reports of unadressed child labor in the brand's supply chain? | No | No | Yes |
| List third party report, site and location: | "Major Rally in Times Square Calls on Hershey Co. to Stop Using Child Labor Chocolate": http://www.laborrights.org/stop-child-forced-la... | ||
| Are there any reports of unadressed forced labor in the brand's supply chain? | No | No | No |
| List third party report, site and location: | |||
| Are there any reports of retaliation against employees who attempted to organize in the brand's supply chain? | No | No | No |
| List third party report, site and location: | |||
A company's risk levels indicate the prevalence of child and forced labor in the particular production process and countries in which it is operating. A company can still receive an A if it is operating in HIGH RISK situations. A company operating in HIGH RISK areas must take more precautions to ensure against abuses than one operating in LOW RISK areas; thus, Free2Work grades such a company on a more rigorous scale.
Free2Work draws country and industry risk data from the U.S. Department of Labor's List of Goods Produced With Child Labor or Forced Labor and from the Trafficking in Persons Report "Tier Placements" put out by the U.S. Department of State Office to Monitor and Combat Trafficking in Persons. We also draw data where applicable from other expert reports and relevant news articles. In some cases there are specific allegations of abuse in a company's supply chain; in these circumstances we incorporate this information in the risk analysis as well.
Free2Work draws country and industry risk data primarily from the U.S. Department of Labor's List of Goods Produced With Child Labor or Forced Labor and from the Trafficking in Persons Report "Tier Placements" put out by the U.S. Department of State Office to Monitor and Combat Trafficking in Persons. The questions in this category serve to supplement this data.