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Abstract: Child labor is a complex issue that deeply permeates cocoa production in West Africa. Multinational corporations, such as Hershey Company, are often in the best position to address child labor because these human rights violations occur within their own supply chains. The U.S. legislature can encourage multinational corporations to address child labor through mandatory public disclosure and due diligence. This mandatory disclosure may encourage multinational corporations to use fair trade certification or sponsorship programs-solutions that keep children away from hazardous occupations while still addressing the root cause of child labor, poverty.
INTRODUCTION
On October 31, 2012, American children filled Halloween bags with Hershey's Chocolate Kisses, Kit Kat Bars, and Reese's Peanut Butter Cups.1All of these Halloween staples originated from Hershey Company's (Hershey) expansive portfolio.2 Hershey is the leading chocolate manufacturer in North America, controlling 42 percent of the market for chocolate products in the United States and generating over $6 billion in annual revenues.3 Furthermore, Hershey is an American icon, frequently considered one of the country's favorite brands of chocolate.4
As American children enjoyed their Halloween treats, however, most did not know that the chocolate dissolving on their tongues was partially produced by other children laboring under difficult conditions in West Africa.5 The day after Halloween 2012, the Louisiana Municipal Police Employees' Retirement System, which owns 1,800 shares in Hershey, filed a complaint against the corporation in Delaware's Chancery Court.6 The shareholders sought to enforce their rights to inspect Hershey's corporate books7 in order to investigate whether Hershey's Board of Directors permitted the company to integrate illegal child labor into its business model.8 The shareholders argued that the Board's actions could damage Hershey's brand and reputation, and furthermore would breach the Board's fiduciary duties to Hershey and its shareholders.9 The shareholders also argued that an inspection of Hershey's books and records would help them decide whether to file a subsequent derivative suit on behalf of the company.10
This complaint arose more than a decade after the company signed a protocol pledging to terminate any use of slave and child labor by 2005.11 This lawsuit suggests that the voluntary agreement was insufficient to prevent a brand children love from exploiting children across theAtlantic Ocean.12 Hershey's struggle to meet these expectations also provides a vehicle...