Championing EDI and ESG While Using Child Labour: The Hershey Paradox

As she prepared for the Hershey Company Investor Day, CEO Michele Buck knew the importance of equity, diversity and inclusion (EDI); the importance of environmental, social, and governance (ESG) practices; and that EDI within corporate social responsibility (CSR) was key to Hershey’s valuable brand image, engaged employees, and effective business relationships. “Children’s wellbeing is at the heart of who we are as a company. This goes back to our founder, Milton S. Hershey, who cared deeply about children.” However, the company depended on cocoa beans from West Africa and had not yet honoured a 2001 industry-wide pledge to uproot child labour in global supply chains. Hershey was committed to improved practices but had not yet reached its goals. What if Hershey’s largest customer in its largest market decided to drop Hershey products? What if socially conscious institutional investors decided to sell their shares? How could the CEO avoid these disastrous scenarios and reassure both customers and investors?