October 18th, 2010

TRM 409.01

BUSINESS ETHICS

Case Study:

“Slavery in the Chocolate Industry”

Instructor: Perran AkanStudent: Neşe RomanStudent ID: 2006104603

1. What are the systemic, corporate and individual ethical issues raised by this case?

Slavery in the chocolate industry case has systemic, corporate and individual ethical issues.

Firstly, from the point of systemic ethical issue, economic systems should be taken into

consideration. Between 1996 and 2000, cocoa bean prices had declined. The decline was

dictated by the global forces over which farmers had no control. With low prices, farmers

turned to slavery to try to cut labor cost for their survival in this situation. There is another

systemic issue relates to the legal aspect of slavery in the chocolate industry. Actually, slavery

on farms is illegal in the Ivory Coast but the law is rarely enforced. Open borders, a shortage

of enforcement officers, and the willingness of local officials to accept bribes from members

of the slave trade all contribute to the problem.

Secondly, corporate ethical issue raised by the case. Middlemen who grind and process

cocoa beans they acquire from the Ivory Coast and sell the product to manufacturers. So

middlemen aware of the slavery labor problem. After the media attention and antislavery

group activities, U.S. Senator Tom Harkin and U.S. Representative Eliot Engel, the members

of the Chocolate Manufacturers Association and the World Cocoa Foundation, together with

several human rights groups and the Ivory Coast. signed Memorandum of Cooperation. They

also agreed to establish a system of certification. But the problem is, they can not control over

anything. Because there are 1 million cocoa farms, most of them family farms and they

located in remote rural regions.

Lastly, there are some individual ethical issues in the case. Cocoa farmers are at the center of

the issue. Because, it is illegal to use child slavery labor. Also it is immorally wrong to take

someone unwillingly. The second issue is the consumers who knows the problem, company

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names and continues to consumer their products. Consumers should not ignore it, because

with every chocolate they buy, they contribute the continuation of the slavery in chocolate

industry.

2. In your view, is the kind of child slavery discussed in this case absolutely wrong no

matter what, or is it only relatively wrong, i.e., if one happens to live in a society (like

ours) that disapproves of slavery?

I think the answer varies in culture to culture. But in my opinion, there is no way to accept

child slavery. Children are kidnapped, sold and forced into harvesting. Farmers are beating

them. From may point of view, children should not be used for labor. They should have a

right to choose their lifestyle. They should have education and then contribute the country’s

economy and welfare. Regardless of the society one may live in, I think child labor is

absolutely wrong.

3. Who shares in the moral responsibility for the slavery occurring in the chocolate

industry: African farmers? African governments? American chocolate companies like

Hershey, Mars, Nestle and Kraft foods? Distributors like Archer Daniels Midland Co.,

Barry Callebaut, and Cargill Inc? Consumers like you and I who know about the

situation but continue to purchase tainted chocolate?

I believe, African Farmers, African governments, American chocolate companies,

distributors, consumers and people who know the situation, shares in the moral responsibility

for the slavery occurring in the chocolate industry. African farmers use child slavery labor.

African government do not control over the rules. Middlemen buys cocoa beans from farmers

who use slavery labor. American chocolate companies know farmers use slavery labor and

they continue to work them. If we know the company names and continue to buy chocolate

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from them, we are also morally responsible for the child slavery labor. As a result, all actors

in the industry are responsible.

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