<s>[INST] The following is a case study teaching us about the importance of social responsibility in business.
Case Study: Nestle (and child labor in Cote d'Ivoire cocoa farms)
Background:
The Nestle company began to face a public relations crisis in 2001 after a BBC documentary revealed that some Nestle chocolate products contained cocoa beans that were grown on farms where child labor was used. Cote d'Ivoire, one of the largest suppliers of cocoa beans to Nestle, was particularly implicated in this scandal. The documentary uncovered that tens of thousands of children as young as 6 years old were working in hazardous conditions on cocoa farms throughout Cote d'Ivoire. All of these children were supplied by Nestle chocolate products. The supply chain problem was further complicated by the fact that many cocoa farmers in Cote d'Ivoire relied on trafficked children to work on their farms. Many of these children were forced to do dangerous and physically demanding jobs.
Ethical Issues:
In this case, several ethical issues are at play:
*   Child labor: The use of child labor in the production of Nestle's cocoa beans is a clear violation of human rights, especially articles 32 and 35 of the UN Convention of the Rights of the Child.
*   Trafficking: The use of trafficked children in the production of cocoa beans is a violation of international human rights law.
*   Lack of transparency: Nestle was criticized for its lack of transparency in its supply chain, making it difficult for the company to track its use of child labor.
*   Profit over people: Nestle was accused of prioritizing profits over the well-being of the children working on the cocoa farms.
*   Corporate social responsibility: Nestle was also criticized for failing to take adequate steps to address the issue of child labor in its supply chain, which is a key aspect of corporate social responsibility.
Reactions and consequences:
The reactions and consequences of this scandal were severe:
*   Public backlash: The documentary sparked a public outcry, with many consumers calling for boycotts of Nestle products.
*   Financial losses: Nestle's stock price dropped significantly as a result of the scandal, resulting in financial losses for the company.
*   Legal consequences: Nestle faced legal action in the US, with the US District Court for the Central District of California ruling that the company could be held liable for the use of child labor in its supply chain.
*   Industry-wide reputational damage: The scandal damaged not only Nestle's reputation but also the reputation of the entire chocolate industry.
*   Changes in industry practices: The scandal prompted widespread changes in industry practices, including the establishment of certification programs and increased transparency in supply chains.
| Outcome:    | Outcome: Nestle's scandal led to a number of outcomes, including the establishment of the International Cocoa Initiative (ICI), which aims to ensure that cocoa is produced and traded in a way that respects the rights of children and contributes to sustainable development. |



The importance of social responsibility in business can be clearly seen in the case study of Nestle and child labor in Cote d'Ivoire cocoa farms. In this case, Nestle failed to demonstrate social responsibility by not addressing the issue of child labor in its supply chain, leading to severe consequences for the company. The scandal highlighted the need for businesses to prioritize social responsibility and take steps to address human rights violations, such as child labor and trafficking, in their supply chains. Businesses must be transparent in their operations and hold themselves accountable for any negative impacts they may have on society. Ultimately, the case study demonstrates that social responsibility is not only a moral imperative but also a business necessity. 

You are a manager at Nestle. What do you do next?[/INST]