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banana industry

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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.
  • Transcript

    • 1. 1<br />
    • 2. Contents<br />Banana Industry <br />Review<br />Short<br />term<br />Proposal<br />Medium term<br />Proposal<br />Long<br />term<br />Proposal<br />Feasibility<br />Analysis<br />PESTLE<br />Analysis<br />6<br />1<br />2<br />3<br />4<br />5<br />2<br />
    • 3. Banana Industry Review<br />1.<br />Growers<br />Packing<br />Exporting<br />Importing<br />Trading Co.<br />6<br />2<br />3<br />4<br />5<br />Distribution<br />Retail<br />Supermarket<br />Customer<br />3<br />
    • 4. 4<br />Banana Industry Review<br />6<br />2<br />3<br />4<br />5<br />Source: Banana Link<br />
    • 5. Banana Industry Review<br />1.<br /> International Union of Food Workers <br /> Based in Geneva, Switzerland<br /> Member of Global Union Federation<br /> 336 trade unions in 120 countries with membership of over 12 million workers.<br /> International labour unity principle<br />About IUF<br />6<br />2<br />3<br />4<br />5<br />5<br />
    • 6. Banana Industry Review<br />1.<br />World<br />Banana<br />Forum<br /><ul><li> Aim to achieve fair and sustainable production and trade in bananas
    • 7. Make Fruit Fair campaign
    • 8. Launched in December 2009
    • 9. Involves all stakeholders in banana supply chain
    • 10. Best practices regarding workplace issues
    • 11. A banana documentary film by Fredrik Gertten
    • 12. About treatment of banana workers’ health and safety issues in the plantation</li></ul>6<br />2<br />3<br />4<br />5<br />Banana<br />Link<br />Bananas!*<br />Same objectives, different bodies<br />6<br />
    • 13. Banana Industry Review<br />1.<br />Trading Co. <br />6<br />2<br />4<br />5<br />3<br />CODE of CONDUCT<br />IFA &amp; <br />7<br />
    • 14. Banana Industry Review<br />1.<br />Codes<br />Of<br />Conduct<br />TNCs <br /> NGOs<br />Non legally enforceable<br />Increased <br />Adoption<br />Grocery supply code of practice<br />6<br />3<br />4<br />5<br />2<br />CHIQUITA <br /> SA 8000<br />Contents<br />Unilateral<br />ILO and UN Conventions<br />8<br />
    • 15. Banana Industry Review<br />1.<br />Codes<br />Of<br />Conduct<br />TNCs <br /> NGOs<br />Non legally enforceable<br />Monitoring by unions and MNCs<br />Increased <br />Adoption<br />Grocery supply code of practice<br />6<br />3<br />4<br />5<br />2<br />Bi-<br />lateral<br />CHIQUITA <br /> SA 8000<br />legally enforceable<br />Contents<br />Process <br />Components<br />Unilateral<br />ILO and UN Conventions<br />Presumption of trade union membership<br />MNCs Global Union Federation<br />International FrameworkAgreement<br />Limited resources of unions<br />9<br />
    • 16. Banana Industry Review<br />1.<br />REVIEW COMMITTEE<br /> ILO conventions: Labour Sstandards<br />6<br />2<br />3<br />4<br />5<br />EDUCATION OF WORKERS<br /> Health and Safety<br /> Public International Campaigns Banned<br />**COLSIBA: Latin American Coordination of Banana Workers Unions <br />10<br />
    • 17. 11<br />Short term<br /> [1 year]<br />Our proposal<br /><ul><li>supermarket pressure</li></ul>Med-term<br />[2-5 years]<br /><ul><li>“The Banana Smile” Campaign</li></ul>Long term<br />[&gt; 5 years]<br /><ul><li>Balancing the Supply Chain</li></li></ul><li>Short-term Proposal<br />2.<br />Objectives<br />6<br />1<br />3<br />4<br />5<br />ENSURE PUBLIC ACCOUNTABILITY<br />INCREASE CONSUMER AWARENESS<br />12<br />
    • 18. Short-term Proposal<br />2.<br />Objectives<br />6<br />1<br />3<br />4<br />5<br />ENSURE PUBLIC ACCOUNTABILITY<br />INCREASE CONSUMER AWARENESS<br />13<br />
    • 19. Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br />14<br />
    • 20. 15<br />Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br />
    • 21. Short-term Proposal<br />2.<br /><ul><li>In 2008, 70% of UK population were aware about fair-trade mark whilst in 2010
    • 22. Sale of fair-trade products soared by 40% despite economic downturn
    • 23. FairTradeaddresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers.
    • 24. FairTrade minimum and premium price</li></ul>6<br />1<br />3<br />4<br />5<br />16<br />
    • 25. 17<br />Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br /><ul><li> Gain access to more campaigns
    • 26. Market the European market </li></ul> UK &gt;&gt;&gt; France, Germany, Spain and Italy <br /><ul><li> Blueprinting successful model globally</li></li></ul><li>18<br />Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br /><ul><li> Learn from on-going campaigns that educate consumers
    • 27. Consumers are said to be king and retain the power to influence supermarkets to change.
    • 28. Promote “FairTrade” bananas</li></ul>Customer<br />
    • 29. 19<br />Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br />+<br />
    • 30. 20<br />Short-term Proposal<br />2.<br />6<br />1<br />3<br />4<br />5<br />+<br />
    • 31. 3.<br />Medium-term Proposal<br />6<br />1<br />2<br />4<br />5<br /> IMPROVED REGULATION<br /> COMPLIANCE MONITORING <br />21<br />
    • 32. 3.<br />Medium-term Proposal<br />Advantage!<br />Disadvantage!<br /><ul><li>Not legally enforceable
    • 33. Self-regulated/campaign activity
    • 34. Poor monitoring mechanisms
    • 35. Unilateral – CSR mechanism?
    • 36. Content decided by company
    • 37. Barriers to freedom of association
    • 38. Extensive contents
    • 39. Education of workers
    • 40. GSCOP in the UK
    • 41. Ombudsman to resolve disputes</li></ul>6<br />1<br />2<br />4<br />5<br />22<br />
    • 42. 3.<br />Medium-term Proposal<br />Grocery Supply Code of Practice (GSCOP)<br />6<br />1<br />2<br />4<br />5<br />23<br /><ul><li> Innovative way to legislate
    • 43. Fair dealing principle
    • 44. Extensive content</li></li></ul><li>3.<br />Medium-term Proposal<br />Proposed Action<br />Lobby the EU to introduce GSCOP<br /><ul><li>EU-wide Code of Practice, based on UK model
    • 45. All European supermarkets
    • 46. Turnover &gt; £1bn or equivalent</li></ul>6<br />1<br />2<br />4<br />5<br />24<br />
    • 47. 3.<br />Medium-term Proposal<br />Proposed Action<br />Lobby for legal audit requirement of GSCOP<br /><ul><li>More effective compliance monitoring
    • 48. Superior to UK ombudsman service</li></ul>6<br />1<br />2<br />4<br />5<br />25<br />
    • 49. 3.<br />Medium-term Proposal<br />Proposed Action<br />Role of NGOs<br />NGOs carry out auditing – more resources<br /><ul><li>Social Accountability International</li></ul> Auditor of Social Accountability Standards<br />Relevant experience<br /><ul><li>EUROBAN</li></ul>6<br />1<br />2<br />4<br />5<br />26<br />
    • 50. 3.<br />Medium-term Proposal<br />Proposed Action<br />Increased public pressure<br /><ul><li>Enhance compliance with code
    • 51. Knock on effects on supply chain</li></ul> Higher prices of bananas<br /><ul><li>CSR as determinant of buying preference</li></ul>6<br />1<br />2<br />4<br />5<br />27<br />
    • 52. 4.<br />Long-term Proposal<br />Objectives!<br />1<br />2<br />3<br />5<br />6<br /> IFAS IMPROVEMENTS<br /> TRADE UNION INVOLVEMENT<br />28<br />
    • 53. 4.<br />Long-term Proposal<br />1<br />2<br />3<br />5<br />6<br />29<br />
    • 54. 4.<br />Long-term Proposal<br />1<br />2<br />3<br />5<br />6<br />30<br />
    • 55. 5.<br />Feasibility Analysis<br />FUNDING<br />Donations ; Sponsorships<br />6<br />1<br />2<br />3<br />4<br />31<br />FAIRTRADE :<br />Self-funding<br />Sainsbury’s Fair Development Fund<br />Pool resources with World Banana Forum &amp; IFO - MAKEFAIR<br />
    • 56. 5.<br />Feasibility Analysis<br />Short-term<br />Banana elasticity - 0.46, 0.6 for fresh fruit <br />Compromise - less disposable income, does it become a luxury good – Sainsbury and Waitrose sales – CSR big issue<br />6<br />1<br />2<br />3<br />4<br />32<br />
    • 57. 5.<br />Feasibility Analysis<br />Medium-term<br />No ongoing costs for the IUF.<br />Cost of audit compliance borne by supermarkets.<br />Heavy dependence on successful lobby outcome.<br />Difficulty of lobbying for radical change.<br />What is a fair price for suppliers<br />6<br />1<br />2<br />3<br />4<br />33<br />
    • 58. 5.<br />Feasibility Analysis<br />Long-term<br />What’s a fair wage?<br />EU first then USA, hard to implement global standards<br />6<br />1<br />2<br />3<br />4<br />34<br />
    • 59. 35<br /><ul><li> More effective relationships with trade unions
    • 60. Ally with government to ensure enforcement of IFAs
    • 61. Increased wages
    • 62. Worker pensions</li></ul>6. PESTLE Analysis<br />2<br />3<br />4<br />5<br />1<br /><ul><li> Improved health and safety standards
    • 63. Fair Trade social projects
    • 64. Fair trade funds to upgrade technology
    • 65. Potential for technology sharing
    • 66. Improved enforcement of workers’ rights
    • 67. Monitored IFAs and trade union activity
    • 68. Less agro-chemicals
    • 69. More environmentally friendly pesticides
    • 70. Proper waste disposal and recycling</li></li></ul><li>Our proposal<br />36<br />
    • 71. 37<br />
    • 72. 38<br />Attendance record<br />
    • 73. 39<br />Jade<br />
    • 74. 40<br />Sha<br />
    • 75. 41<br />Others<br />

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