35 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Engaging With The surveys covered topics such as the Ensuring Responsible Recruitment Rightsholders recruitment process, contract transparency, and Preventing Forced Labor working hours, wages, discrimination and Hershey recognizes the importance of harassment, freedom of movement, grievance Our Approach Our Achievements engaging with those who are impacted by our mechanisms and overall well-being. We’re building the capacity of labor agencies • Completed due diligence on 68 labor work — from farmers and their communities to In India, we found that a small group of workers to strengthen management systems that agencies in Brazil, Canada, India, Malaysia, our employees, consumers and others. We have had paid nominal fees for their uniforms — these promote responsible recruitment. This Mexico and the U.S. identified vulnerable stakeholders and tailor our were immediately repaid. New controls were includes labor agency completion of a methods and frequency of engagement to their put in place to ensure that this practice is not Self-Assessment Questionnaire (SAQ) and • Conducted human rights assessments individual needs to maximize our impact. used again by any of the recruitment agencies Hershey desktop verification of their policies and Sedex Members Ethical Trade We partner with suppliers and multiple NGOs we work with. Additionally, we implemented and procedures to understand how our Audit (SMETA) 2-Pillar audits on our on issues such as deforestation and child labor. a new electronic badging system to ensure expectations are being upheld. labor agencies in Malaysia to identify In addition, we participate in several industry that contract workers always maintain improvement opportunities. forums to promote dialogue and help drive the possession of their identity documents while We developed guidance training that we • Remediated 86% of the findings identified uptake of best practices. still being able to meet the facility’s food safety shared with smaller agencies to help them in desktop due diligence, with the quality requirements. identify root causes of nonconformities and remainder in progress. Our Hershey team members, suppliers and implement effective corrective actions. NGO partners also conduct regular visits In India, we also implemented new training We continue to offer all labor agencies in the We Support: with cocoa farmers and their communities for agency workers on the Hershey’s Concern program access to RLI’s E-Learning Academy. throughout the year. Hershey maintains Line — and raised awareness of it through more • The Employer Pays Principle ongoing investment in sustainability programs, on-site posters — and trained agencies on • The Consumer Goods Forum’s Priority including CLMRS and other initiatives under Hershey’s grievance procedures. Industry Principles our Cocoa For Good program. We engage workers and farmers directly Our Commitments: through on-site and mobile surveys. To obtain • Responsible Recruiting & direct feedback from our employees on their Employment Policy working experience, we hold regular town halls and conduct quarterly pulse surveys. • Supplier Code of Conduct (SCOC) Direct Worker Engagement Our Engagement: “Worker Voice” • The Responsible Labor Initiative (RLI) Hershey recognizes the importance of tools 712 that directly engage workers and farmers on contract and temporary workers For a summary of our goals their experience. In 2021, we piloted three and farmers shared their experience and KPIs on responsible worker engagement surveys in India, Malaysia of being part of Hershey’s recruitment, see page 43. and Côte d’Ivoire that empowered more than supply chain 712 contract, temporary workers and farmers to share their experience of being part of Hershey’s supply chain.