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  • [CONTINUED]The tendency of corporations to adopt various codes is increasing, as public pressure for social and environmental accountability becomes greater. Supermarkets across Europe such as Carrefour, Sainsbury's, Tesco and Aldi have adopted codes of conduct in line with international labour standards and fair dealing principles. The Ethical Trading Initiative and SA8000 both reflect commitment to labour standards. Companies also claim to be dealing with suppliers that share their values, or encouraging them to do so. For example, the three dominant banana-exporting companies have adopted SA8000 and claim to support their suppliers to do the same. Unique to the UK is the recently introduced Grocery Supply Code of Practice 2010, which imposes legislation on supermarkets, to ensure fairer dealing with suppliers and replaced the Supermarket Code of Practice that was in place from 2002. An enforcement body, in the form of an ombudsman service, operates to ensure compliance with the code. The code applies to supermarkets with grocery turnover in excess of £1 billion per year.Now we move on to IFAs.
  • International Framework Agreements can be entered into by MNCs and Global Union Federations, like the IUF (International Union of Foodworkers). These agreements cover the same content as codes of conduct, i.e. the outcome components of workplace democracy, in addition to the process components, such as shared sovereignty and employee participation. (Hyllman and Egels-Zanden, 2007)  These IFAs presume the existence of trade unions, which are needed for the Agreements to take effect, so are not unilateral in nature, and can be legally enforced. Currently, with IFAs, unions and MNCs collaborate in their efforts to monitor implementation of the agreement. However, it can be argued that unions have limited resources, in terms of adequate experience of staff to effectively monitor compliance.
  • Moving on to the proposals for the medium term, the IUF will lobby the EU to introduce an EU-wide Grocery Supply Code of Practice, based on the current UK model. Given the limitations of codes of conduct and the advantages of the code of practice adopted in the UK, this seems more credible. It would apply to all European supermarkets with grocery turnover of over £1 billion, or equivalent.
  • One way to monitor compliance with the code, would be the introduction of a legal audit requirement. We suggest that the IUF should lobby the EU for this too. This would be more effective than the ombudsman service that currently enforces the code when dealing with disputes because this current system depends on suppliers voicing their concerns. They may choose to keep quiet for fear of losing business.
  • Since NGOs tend to have more resources than Union bodies, we propose this audit work could be carried out by NGOs willing to accept this work. Social Accountability International would be an ideal NGO to contact, as it audits compliance with social accountability standards, so has the necessary experience. Also, the European Banana Action Network, a body of 30 NGOs and trade unions. If audits reveal non-compliance the company would face criminal and civil sanctions, which would act as a deterrent. 
  • Increased public pressure from the short term proposal should enhance full compliance with GSCOP. This compliance will have knock on effects further down the supply chain, by increasing the price of bananas. We hope consumer awareness will influence consumer choice towards accepting higher priced bananas.

banana industry banana industry Presentation Transcript

  • 1
  • Contents
    Banana Industry
    Review
    Short
    term
    Proposal
    Medium term
    Proposal
    Long
    term
    Proposal
    Feasibility
    Analysis
    PESTLE
    Analysis
    6
    1
    2
    3
    4
    5
    2
  • Banana Industry Review
    1.
    Growers
    Packing
    Exporting
    Importing
    Trading Co.
    6
    2
    3
    4
    5
    Distribution
    Retail
    Supermarket
    Customer
    3
  • 4
    Banana Industry Review
    6
    2
    3
    4
    5
    Source: Banana Link
  • Banana Industry Review
    1.
    International Union of Food Workers
    Based in Geneva, Switzerland
    Member of Global Union Federation
    336 trade unions in 120 countries with membership of over 12 million workers.
    International labour unity principle
    About IUF
    6
    2
    3
    4
    5
    5
  • Banana Industry Review
    1.
    World
    Banana
    Forum
    • Aim to achieve fair and sustainable production and trade in bananas
    • Make Fruit Fair campaign
    • Launched in December 2009
    • Involves all stakeholders in banana supply chain
    • Best practices regarding workplace issues
    • A banana documentary film by Fredrik Gertten
    • About treatment of banana workers’ health and safety issues in the plantation
    6
    2
    3
    4
    5
    Banana
    Link
    Bananas!*
    Same objectives, different bodies
    6
  • Banana Industry Review
    1.
    Trading Co.
    6
    2
    4
    5
    3
    CODE of CONDUCT
    IFA &
    7
  • Banana Industry Review
    1.
    Codes
    Of
    Conduct
    TNCs
    NGOs
    Non legally enforceable
    Increased
    Adoption
    Grocery supply code of practice
    6
    3
    4
    5
    2
    CHIQUITA
    SA 8000
    Contents
    Unilateral
    ILO and UN Conventions
    8
  • Banana Industry Review
    1.
    Codes
    Of
    Conduct
    TNCs
    NGOs
    Non legally enforceable
    Monitoring by unions and MNCs
    Increased
    Adoption
    Grocery supply code of practice
    6
    3
    4
    5
    2
    Bi-
    lateral
    CHIQUITA
    SA 8000
    legally enforceable
    Contents
    Process
    Components
    Unilateral
    ILO and UN Conventions
    Presumption of trade union membership
    MNCs Global Union Federation
    International FrameworkAgreement
    Limited resources of unions
    9
  • Banana Industry Review
    1.
    REVIEW COMMITTEE
    ILO conventions: Labour Sstandards
    6
    2
    3
    4
    5
    EDUCATION OF WORKERS
    Health and Safety
    Public International Campaigns Banned
    **COLSIBA: Latin American Coordination of Banana Workers Unions
    10
  • 11
    Short term
    [1 year]
    Our proposal
    • supermarket pressure
    Med-term
    [2-5 years]
    • “The Banana Smile” Campaign
    Long term
    [> 5 years]
    • Balancing the Supply Chain
  • Short-term Proposal
    2.
    Objectives
    6
    1
    3
    4
    5
    ENSURE PUBLIC ACCOUNTABILITY
    INCREASE CONSUMER AWARENESS
    12
  • Short-term Proposal
    2.
    Objectives
    6
    1
    3
    4
    5
    ENSURE PUBLIC ACCOUNTABILITY
    INCREASE CONSUMER AWARENESS
    13
  • Short-term Proposal
    2.
    6
    1
    3
    4
    5
    14
  • 15
    Short-term Proposal
    2.
    6
    1
    3
    4
    5
  • Short-term Proposal
    2.
    • In 2008, 70% of UK population were aware about fair-trade mark whilst in 2010
    • Sale of fair-trade products soared by 40% despite economic downturn
    • FairTradeaddresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers.
    • FairTrade minimum and premium price
    6
    1
    3
    4
    5
    16
  • 17
    Short-term Proposal
    2.
    6
    1
    3
    4
    5
    • Gain access to more campaigns
    • Market the European market
    UK >>> France, Germany, Spain and Italy
    • Blueprinting successful model globally
  • 18
    Short-term Proposal
    2.
    6
    1
    3
    4
    5
    • Learn from on-going campaigns that educate consumers
    • Consumers are said to be king and retain the power to influence supermarkets to change.
    • Promote “FairTrade” bananas
    Customer
  • 19
    Short-term Proposal
    2.
    6
    1
    3
    4
    5
    +
  • 20
    Short-term Proposal
    2.
    6
    1
    3
    4
    5
    +
  • 3.
    Medium-term Proposal
    6
    1
    2
    4
    5
    IMPROVED REGULATION
    COMPLIANCE MONITORING
    21
  • 3.
    Medium-term Proposal
    Advantage!
    Disadvantage!
    • Not legally enforceable
    • Self-regulated/campaign activity
    • Poor monitoring mechanisms
    • Unilateral – CSR mechanism?
    • Content decided by company
    • Barriers to freedom of association
    • Extensive contents
    • Education of workers
    • GSCOP in the UK
    • Ombudsman to resolve disputes
    6
    1
    2
    4
    5
    22
  • 3.
    Medium-term Proposal
    Grocery Supply Code of Practice (GSCOP)
    6
    1
    2
    4
    5
    23
    • Innovative way to legislate
    • Fair dealing principle
    • Extensive content
  • 3.
    Medium-term Proposal
    Proposed Action
    Lobby the EU to introduce GSCOP
    • EU-wide Code of Practice, based on UK model
    • All European supermarkets
    • Turnover > £1bn or equivalent
    6
    1
    2
    4
    5
    24
  • 3.
    Medium-term Proposal
    Proposed Action
    Lobby for legal audit requirement of GSCOP
    • More effective compliance monitoring
    • Superior to UK ombudsman service
    6
    1
    2
    4
    5
    25
  • 3.
    Medium-term Proposal
    Proposed Action
    Role of NGOs
    NGOs carry out auditing – more resources
    • Social Accountability International
    Auditor of Social Accountability Standards
    Relevant experience
    • EUROBAN
    6
    1
    2
    4
    5
    26
  • 3.
    Medium-term Proposal
    Proposed Action
    Increased public pressure
    • Enhance compliance with code
    • Knock on effects on supply chain
    Higher prices of bananas
    • CSR as determinant of buying preference
    6
    1
    2
    4
    5
    27
  • 4.
    Long-term Proposal
    Objectives!
    1
    2
    3
    5
    6
    IFAS IMPROVEMENTS
    TRADE UNION INVOLVEMENT
    28
  • 4.
    Long-term Proposal
    1
    2
    3
    5
    6
    29
  • 4.
    Long-term Proposal
    1
    2
    3
    5
    6
    30
  • 5.
    Feasibility Analysis
    FUNDING
    Donations ; Sponsorships
    6
    1
    2
    3
    4
    31
    FAIRTRADE :
    Self-funding
    Sainsbury’s Fair Development Fund
    Pool resources with World Banana Forum & IFO - MAKEFAIR
  • 5.
    Feasibility Analysis
    Short-term
    Banana elasticity - 0.46, 0.6 for fresh fruit
    Compromise - less disposable income, does it become a luxury good – Sainsbury and Waitrose sales – CSR big issue
    6
    1
    2
    3
    4
    32
  • 5.
    Feasibility Analysis
    Medium-term
    No ongoing costs for the IUF.
    Cost of audit compliance borne by supermarkets.
    Heavy dependence on successful lobby outcome.
    Difficulty of lobbying for radical change.
    What is a fair price for suppliers
    6
    1
    2
    3
    4
    33
  • 5.
    Feasibility Analysis
    Long-term
    What’s a fair wage?
    EU first then USA, hard to implement global standards
    6
    1
    2
    3
    4
    34
  • 35
    • More effective relationships with trade unions
    • Ally with government to ensure enforcement of IFAs
    • Increased wages
    • Worker pensions
    6. PESTLE Analysis
    2
    3
    4
    5
    1
    • Improved health and safety standards
    • Fair Trade social projects
    • Fair trade funds to upgrade technology
    • Potential for technology sharing
    • Improved enforcement of workers’ rights
    • Monitored IFAs and trade union activity
    • Less agro-chemicals
    • More environmentally friendly pesticides
    • Proper waste disposal and recycling
  • Our proposal
    36
  • 37
  • 38
    Attendance record
  • 39
    Jade
  • 40
    Sha
  • 41
    Others