Photo: Shutterstock

Are you planning on handing out M&Ms, Snickers or Twix this Halloween? If so, there's a chance the sweet goodies were made by child laborers halfway around the world, according to a nonprofit organization that rates major candy companies on social and environmental practices.

Although Mars Inc., the maker of these chocolate candies, received a C+ on Green America's chocolate scorecard, the company has implemented programs to address other underlying issues of child labor, the report notes. For years the major global chocolate companies have faced criticism, including litigation, for their use of child labor in Cote d'Ivoire and Ghana, where most of the world's cocoa is produced.

But it's not just chocolate and candy companies that should be aware of potential problems, from human trafficking to so-called “land grabbing” from indigenous people, that may lurk in their global supply chains, said Sarah Rathke, a partner at Squire Patton Boggs.

“Any company that makes things is, on some level, taking something out of the earth, often in far-flung places,” she said.

Rathke and Matthew Kirk, international affairs adviser at the firm, said that adopting a policy of “aggressive transparency” can be an effective way to learn about and stop these issues in the supply chain. But it may be a hard sell for the business side, since aggressive transparency involves taking a hard look at your supply chain practices and, when feasible, disclosing what you have found, even if harmful.

“You have to frame and approach things very deliberately because so often when companies get in trouble, it's because they've tried to conceal” the problem, Rathke said.

But once you've done the internal digging and confronted the potentially damaging side of your practices, you can start articulating benchmarks that will lead to improvement, added Kirk, who was a former external affairs director at Vodafone, where he was tasked with defending the British telecommunications company against reputational harm.

“There are very powerful tools to help you gradually move away from business models that look damaging without having major disruptions in service,” he said.

Companies also should consider working closely with nongovernmental organizations that monitor these practices, Kirk said. Not only does working with serious groups challenge you to further improve your practices, but it also serves as a “fantastic defense” should you face the firestorm of media and other scrutiny, he added.

“Responsible corporations should not fear working hand-in-hand with NGOs and being allies in the efforts,” Rathke agreed.

Corporate Counsel reached out to Mars for comments or a statement about its scorecard rating but did not hear back by deadline.