Reference no: EM133152031

Charlie Delano grew up working at his grandparents' choc- olate shop. He worked at the register every weekend, while leaving the artistry of candy making to the time-honed skill of his grandmother and grandfather. The two of them pre- pared the ingredients, Grandpa would fill the chocolates, and Grandma would decorate them with icing. Charlie was allowed to clean the mixing bowls. During high school, Charlie was "too cool" to work at the register of the old candy store. When he went away for college, he never thought he would work there again. It wasn't until he began his MBA program that he realized his family may be sitting on a gold mine in the form of a candy store. Using his hard-earned knowledge, the store's low operating costs and high profit margins could be scaled up for exponential growth. By the time Charlie finished his program, his grandparents were looking to retire and he was preparing to take over the chocolate company. After three years of sustained growth, Charlie opened new stores across the region and was looking to take the company public. It was about this time that a human rights organiza- tion called the Chocolate Crusaders visited Charlie's office at the mother-ship store to explain their cause. They were a shareholder activist group drawing attention to child labor in the chocolate supply chain, specifically at some cacao plantations in developing countries. Forty percent of the world's cocao is produced in the Ivory Coast where, according to the US Department of State, there are more than 109,000 children working under the worst forms of child labor, including 10,000 victims of human trafficking and slavery.61 Charlie listened attentively but denied any knowledge of the issue within his company. However, he knew that some of his cacao suppliers were from the same regions of concern to the Chocolate Crusaders, and that once his company was public, issues like this could create fallout with investors and customers.

Please read the paragraph above and answer the questions below

1. Why is the issue of child labor in the supply chain material, warranting disclosure to shareholders?

2. Develop sustainability metrics for Charlie's chocolate company. What kinds of issues should be included in the first sustainability report of Charlie's chocolate company?