Blog Archives - Fair World Project Tue, 06 Dec 2022 03:37:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://fairworldproject.org/wp-content/uploads/2018/04/cropped-favicon-32x32.png Blog Archives - Fair World Project 32 32 Looking Back, Looking Forward: Fair Trade Certification in 2022 https://fairworldproject.org/looking-back-looking-forward-fair-trade-certification-in-2022/ https://fairworldproject.org/looking-back-looking-forward-fair-trade-certification-in-2022/#respond Wed, 03 Aug 2022 20:51:03 +0000 https://fairworldproject.org/?p=19658 Fair trade certification has long straddled several contradictions within it. The question of whether fair trade was a movement or […]

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Fair trade certification has long straddled several contradictions within it. The question of whether fair trade was a movement or a market niche was hotly contested for many years. Is the goal of fair trade to upend trade imbalances rooted in colonization, or grow market share at a better price for small-scale farmers?

Yet as the fair trade world has discussed this question, certification has grown into something far more than a market niche.

In a new paper, we look at the current state of ethical certification, especially labels making fair trade claims. This paper looks at the latest research on the impacts of ethical certification, as well as changes in the food system over the past decades, including increasing corporate consolidation, and the impacts that has had on attempts at market-driven change.

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Ethical Certifications: Growing in Scope

Fair trade, and ethical certifications more broadly, have become enshrined in companies’ Corporate Social Responsibility Programs. Certifications have become a de facto benchmark for what’s fair, for pricing, baseline working conditions, and more. Certifications are used to guide billions in public procurement, and are being pointed to as possible partners for corporations in adhering to the European Union’s forthcoming mandatory due diligence legislation. From food safety to forced labor, certifications are promoted as a solution. Most recently, as Environmental, Social, and Governance (ESG) ratings grow as a hot trend in finance with over $35 trillion in global assets invested in funds that make claims around vetting companies on ESG principles, certifiers are promoting themselves as a solution there as well.

While many of us working for justice struggle to make legislative progress due to corporate capture of elected officials, certifications offer themselves as a solution to regulatory gaps and government failure to enforce basic rights. Yet these certifications, with rules written by corporate-friendly multi-stakeholder processes, offer an even more corporate-friendly form of soft law.

Thus, the broader movements for food justice, human and labor rights would do well to pay attention to ethical certifications – they’re definitely not just about choosing a chocolate bar these days.

We Urgently Need Real Corporate Accountability

As multinational corporations have adopted fair trade and other certifications to fulfill compliance requirements within their supply chains, the rules-based language of compliance has overtaken the initial purpose of the movement. At this point, fair trade labeling focuses more on prohibitions for those with least power in supply chains vs challenging the power of the biggest brands. There needs to be a reckoning with the scope of multinational corporations and their disproportionate market leverage to couple that with responsibility–and levers of power that are suited to holding them to account for the consequences of the decades, and centuries, of extractive purchasing practices that have left communities in poverty.

What comes next?

Fair trade certification reveals the complications and inherent flaws of looking to a market-based, voluntary system to address the fundamental injustices of our food and trade systems that are built on 500 years of colonization and extractive capitalism. Without a deliberate effort to recognize the power dynamics inherent in these relationships, too often certification has helped replicate, and even reinforce, the dynamics between worker and boss, and between the so-called Global South (producers) and Global North (purchasers).

The mechanics of exploitation rely on defining some people as expendable, putting their human rights and their humanity, below the goals of protecting profits and maintaining business as usual. Oppression based on race, gender, caste, national origin, and immigration status, to name just a few factors, helps to define these categories of marginalization. Adding more rules alone does not change the fundamental power dynamics.

Our new paper focuses on the flaws of certification, the critical weaknesses where well-intentioned programs are falling short, and even causing harm. Fundamental transformations are urgently needed to change our food, farming, trade, and economic systems to put food justice, racial justice, and climate justice at the center.

Transformation is urgently needed. Our new paper includes some suggestions for reforms that could help shift the balance of power within supply chains, using the levers of purchasing and certification systems as they currently exist.


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Looking Back, Looking Forward: Fair Trade Certification in 2022

 

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The B Corp Standard is at Risk https://fairworldproject.org/the-b-corp-standard-is-at-risk/ https://fairworldproject.org/the-b-corp-standard-is-at-risk/#comments Wed, 15 Jun 2022 22:47:23 +0000 https://fairworldproject.org/?p=19573 Concerned Certified B Corps are calling for stronger standards saying that the integrity and meaning of B Corp certified is at risk with Nespresso's certification.

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An open letter to B Lab Global – link to sign: https://forms.gle/wPZLGg1qVJUa5SKr6

We, the undersigned Certified B Corps have joined together—with the support of certification watchdog, Fair World Project —because we believe the very mission of B Lab and the integrity and relevance of B Corp Certification is at risk.

As brands, we are Certified as B Corps because progressive social impact and environmental stewardship are core to our approach to business. We believe that B Lab and the broader community of B Corp Certified brands are an important force in transitioning our economy away from extractive practices and towards economic models that truly benefit people and the planet. Because we value this community and deeply believe in what it means to be a Certified B Corp, it is imperative that we speak up now to protect the B Corp Certification and the movement it represents.

We are united in our concern about Nespresso’s recent Certification as a B Corp. Collectively, we envision a world where B Corp values can scale to include companies of any size, but this must not happen in a way that dilutes the integrity of the movement the certification stands for. Without a structurally higher certification bar and a mechanism for enforced accountability within the B Impact Assessment or certification process, we are concerned that corporations will do the bare minimum to ‘greenwash’ themselves as B Corps.

The fair trade movement was born decades ago to address the exploitative and unethical human rights abuses involved in coffee bean farming and coffee supply chains. While distinct from and broader than a fair trade certification, the B Corp Certification should nevertheless structurally build on the fair trade principle of centering human rights, and rule out historically exploitative companies who have not put remediation and restorative structures in place to benefit the people in their supply chains.

Although Nespresso has achieved the minimum currently required for certification, scoring 84 out of 200 points, Nespresso’s abysmal track record on human rights from child labor and wage theft to abuse of factory workers is well documented by the media and NGOs.  Indeed, Nespresso’s extractive business model is publicly known to be fundamentally at odds with the ethical and just future B Corps want to build and should have structurally been a barrier to Nespresso’s B Corp Certification. Structural barriers in the certification process could be improved through a more informed and thorough review of Risk Factors taking fair trade movement history and NGO expertise into account.

Nespresso’s size certainly provides additional complexity and challenges for traceability and transparency throughout its supply chains—but size must not be permission for potential child labor, worker abuse, or wage theft for large B Corps. Instead, the fact that Nespresso can achieve a score that allows them to be Certified as a B Corp and use the Certification to greenwash its business model and practices demonstrates that the B Impact Assessment scoring system and certification process is in serious need of repair.

As part of the certification announcement Nespresso expressed they intend “all viable farms to reach a living wage by 2030,” and to “improve our global approach on human rights due diligence and create a scalable Child Labour risk mapping and remediation process plan.”   However, there is currently no way for the B Impact Assessment (BIA) or certification process to measure or hold Nespresso to these self-imposed commitments. Thus, in addition to strengthening the minimum criteria for certification, B Lab must develop a protocol for holding B Corps to improve Risk Factor areas over time or face losing their B Corp Certification. 

Many of our brands have participated in the multi-year public feedback process B Lab has facilitated regarding potential updates to the B Corp Standard and voiced the need for changes. Yet we have not seen changes to the standard that sufficiently raises the bar, nor have we received a response to our suggestions or offers to engage more deeply.

Summarized here are key areas where we believe the B Impact Assessment and Certification process must improve if B Corp Certification is to maintain integrity and relevance going forward:

  • Rather than a minimum total score, there must be minimum scores per Impact Business Model and per applicable Score Area.
  • The B Corp Standard must center human rights in the Supply Chain Impact Business Model and reference the UN Guiding Principles on Business Human Rights framework, including a company’s responsibility to respect human rights and provide remedy and remediation for harms.
  • Unless there is demonstrated evidence of remedy and remediation for harms, and course correction to prevent future harm, human rights abuses should be a non-negotiable Disqualification Factor preventing certification.
  • Sourcing a majority of raw materials from non-fair trade certified supply chains, CAFOs, or industrial farming systems should be added as a Risk Factors for consumer goods companies, requiring documented improvement over time.
  • Risk Factors must be reflected in scores, monitored closely over time for required improvement, and re-certification should be contingent on demonstrated improvement. If Risk Factors are not corrected over time, re-certification should be withheld.

B Lab has said it is up to the “influential community” of consumers and companies like ours to hold other companies accountable. However, we could not prevent Nespresso from certifying, and we cannot take away Nespresso’s B Corp Certification if they fail to improve—only B Lab can do that, and only if the certification requirements and process change.

As businesses dedicated to social good, we stand in solidarity with social and environmental organizations and with those most negatively impacted by Nespresso. In the interest of the movement to ‘use business as a force for good,’ we hope to see these critical improvements to the B Impact Assessment and B Corp Certification process. In turn we hope these changes can help hold Nespresso and other companies—including ourselves—accountable over time as we build an economy that is inclusive, regenerative, and just for all.

Sincerely,

All Good Products
amamus Coffee
A Stellar Co
Better apc
c|change
Café Campesino
Cooperative Coffees
Dean’s Beans Organic Coffee Company
Dr. Bronner’s
Elvis & Kresse
Endiro Coffee
Exilior Coffee
Fair World Project
Food Freedom Radio – AM950
Green Element
Grove Collaborative
Happy Porch
KOA+ROY
LOACOM Social Purpose Corporation
LAUDE the Label
Lotus Foods, Inc.
Mightybytes
Modern Species
ØNSK ApS
Peace Coffee
Real Phat Foods
Rivanna Natural Designs, Inc.
Sweetwater Organic Coffee
Thanksgiving Coffee Company
thinkPARALLAX
Thread Coffee Roasters
Vianova
Wholegrain Digital

If your company is a Certified B Corp, add your name here to support this call for higher standards: https://forms.gle/wPZLGg1qVJUa5SKr6

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Child labor is on the rise. So are billionaires in the food system. https://fairworldproject.org/child-labor-is-on-the-rise-so-are-billionaires-in-the-food-system/ https://fairworldproject.org/child-labor-is-on-the-rise-so-are-billionaires-in-the-food-system/#comments Wed, 08 Jun 2022 13:00:09 +0000 https://fairworldproject.org/?p=19549 June 12th marks World Day Against Child Labor. The picture of a child, bent double under a heavy sack. A […]

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June 12th marks World Day Against Child Labor. The picture of a child, bent double under a heavy sack. A child wielding a sharp machete, or crawling down into a dirty dangerous mine. These images elicit an immediate response. Yet, despite that immediate, visceral reaction, progress to end child labor has been slow. And that’s because actually addressing child labor requires addressing the underlying factors in our food system that exploit the most vulnerable instead of protecting them.

Child Labor in 2022 – a grim reality

Last year was declared the International Year for the Elimination of Child Labor. But instead of progress towards that goal, the statistics are headed in the wrong direction. In 2020, the number of children in child labor rose to 160 million around the world. That’s the first increase in 20 years, and is based on research done before the beginning of the pandemic.

Child labor is concentrated in the food and farming sector, with approximately 70% of child labor occurring on farms and plantations. That’s an estimated 108 million children on the front lines of the harms of the industrial food system. We know that toxic chemicals and hazardous pesticides are increasing pollution and decreasing biodiversity. They’re also bad for workers, and especially young people, who may experience not just immediate illness but also long-term, chronic effects on their developing minds and bodies.

This injustice is further compounded by the injustices of our global food system. As a declaration from a recent gathering of human rights leaders notes, “To this day, children working in agriculture continue to be exposed to hazardous pesticides that are banned in the country of export, resulting in abhorrent double standards and discrimination.”

Billionaires are Getting Richer

Since the beginning of the Covid-19 pandemic, experts have warned that the global crisis could drive child labor. Factory shut-downs, school closures, illness and death all push more children and young people to work to support themselves and their families.

And with two plus years of perspective, there’s another troubling trend: massive growing inequality, both between people and between nations. As the Oxfam paper “Profiting from Pain” notes, “Before the pandemic, inequality between rich countries and lower-income countries was falling and had been for three decades. COVID-19 has reversed this trend. Low- and middle-income countries now face a lost decade while rich nations once again pull ahead.”

Around the globe, the pandemic has hit hardest those already impacted by the historical legacies of colonialism and slavery. And those existing inequities are being exacerbated by policy decisions in response to the pandemic. There’s a massive transfer of wealth going on, and it’s impacting people both at the geopolitical level and at the personal level.

Our Food System Prioritizes Profits over Feeding People

Just as child labor is concentrated in the food system, so too is this growing inequality. Billionaires making money off food and agribusiness have seen their collective wealth soar 45% in the past two years, an increase of $382 billion.

Global food giant Cargill is an excellent example. Cargill is one of four companies who control over 70% of the global market for agricultural commodities, including wheat, soy, and cocoa. Rising market prices and speculation, fueled in part by the invasion of Ukraine as well as the pandemic, have meant record profits for the Cargill family heirs who own the company. Their combined wealth has risen 65% since 2020, growing by almost $20 million per day to a whopping $42.9 billion.

While the Cargill family has gotten rich, the rest of the world has not been so fortunate. Global food prices have soared 33.6% in the past year and continue to rise. Oxfam estimates that 263 million people could be pushed into extreme poverty this year because of these intersecting crises. This shock impacts those who can least afford it. People in low-income countries spend more than twice as much of their income on food as do those in richer countries. And poor people everywhere spend a higher percentage of their income on food than richer people do.

Once again, it’s painfully clear that the industrial food system is built to funnel profits up to just a few billionaires instead of prioritizing feeding hungry families.

Extractive Business is a Root Cause of Child Labor

One of the crops where the Cargill heirs have made their billions trading is cocoa. Meanwhile, West African cocoa farming families earn, on average, less than $1 per day. The gap is tremendous. And the extreme unfairness isn’t just a coincidence. The profits of these billionaires are built on the backs of poor farmers and workers.

Fueled by the extreme poverty, child labor on cocoa farms is on the rise. Cargill has known about the issue for decades. It’s been over two decades since they were one of the big cocoa traders to pledge to take action. They’ve been the subject of multiple lawsuits over their use of child labor (for more, listen to Episodes 6 and 7 of our For a Better World podcast where we break down the issues of money and power at play in the issue of child labor in cocoa with some of the people working to hold corporations accountable).

Despite sustained attention, Cargill continues to drag their feet on taking real action to address child labor (Cargill is not alone in this, the big chocolate companies are also failing to act on child labor). Instead of committing to paying true living incomes to cocoa farmers, Cargill continues to make them subsidize their profits through low prices. Further, Cargill lags behind the industry on some of the basics. Just 30% of their cocoa is traceable to the farmer cooperative it came from, per the Cocoa Barometer – a failure to take the fundamental first steps required for addressing supply chain issues.

Progress towards Ending Child Labor is Hampered by False Solutions.

It’s been over 20 years since big chocolate companies signed the Harkin-Engel protocol committing to ending child labor, and all the deadlines they set themselves have long passed.

Yet the issue is much bigger than cocoa. Across our food and farming system, working people and their children continue to be exploited. And the powerful interests that protect industry profit block progress on protections. A bill to close loopholes that allow children as young as nine to work nearly unlimited hours on U.S. farms has been re-introduced in the U.S. House of Representatives without action since 2001. That’s just one example of the ways that real action is bypassed in favor of weaker voluntary solutions.

Instead, corporations continue to back voluntary initiatives that just serve to gloss over the exploitation that’s baked into their business model. There is a recurring theme from the empty promises of Nestle’s Responsible Sourcing Standards to the recent B Corp Certification of Nestle’s Nespresso (despite child labor and human rights issues). In each case, there’s a rush to put a positive spin on a business model that fails to address the root causes of child labor instead of committing to the fair livelihoods and dignified work for all people, regardless of age.

To End Child Labor We Need to Strengthen Community-Led Solutions

Child labor is a symptom of the fundamental problem: Our food and farming systems, and our global economy as a whole, is fundamentally extractive. A few billionaires reap outsized profits from the exploited labor of people worldwide.

Last month, leaders from around the globe convened in Durban, South Africa, in a conference where they agreed to 49 key measures to address child labor. Running through the call to action is a strong thread: to address child labor, we need to strengthen communities to advocate for their own well-being and push back on extractive, exploitative systems.

Some of those measures include:

  • Support for fundamental rights at work for all people of all ages, and ensuring that those rights are made real for those most likely to be excluded, including migrant workers, people discriminated against on the basis of race, caste, gender, etc.
  • Real living incomes that allow families to thrive.
  • Protections for the right to organize and collectively bargain as a bedrock for the guarantee of all other rights.
  • Elimination of piece-rate pay for workers, that is, payment per bucket picked instead of per hour worked.
  • Strengthening of cooperatives to build strong institutions for rural farmers and their families.
  • Addressing the ways that child labor intersects with the key issues and inequities of our global economy, including addressing the climate crisis, universal social protections and public education, war and imperialism, migration, and gender equality, to name a few.

In short, to end child labor means making a real commitment to end the exploitative conditions and inequities that give rise to the conditions where child labor happens. Child labor is most common in the places where adult workers have the fewest legal protections – basic rights for all working people protect children.

Our global industrial food system is designed to extract profits from communities around the globe to enrich just a few billionaires at the top. There’s no single silver-bullet solution to address the consequences of that exploitative system on families, children, or our planet. But one of the key threads throughout is the need to support community-led initiatives as they build power and push back. Whether that’s strong cooperatives for rural farmers, or farmworker organizing, these efforts are some of the strongest tools to protect the rights of the most vulnerable – and build a society where all of us can thrive.

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Nespresso: Known for Human Rights Violations, Now B Corp Certified https://fairworldproject.org/b-corp-nespresso-human-rights/ https://fairworldproject.org/b-corp-nespresso-human-rights/#comments Wed, 04 May 2022 16:20:05 +0000 https://fairworldproject.org/?p=19510 Nespresso, a subsidiary of Nestlé, is now a certified B Corporation. Nespresso is perhaps best known for using celebrity spokesman […]

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Nespresso, a subsidiary of Nestlé, is now a certified B Corporation. Nespresso is perhaps best known for using celebrity spokesman George Clooney to give a high-end cosmopolitan look to their single-serve coffee pods. Or perhaps they’re best known for a recent string of human rights violations on farms that grow their coffee, from child labor to wage theft and abuse of factory workers. Either way, the brand seems a surprising fit for B Corp’s claims to certify “Business as a Force for Good.”

This is not the first time that B Corp has been criticized for the gap between their marketing claims and the reality of their standards. But the moment offers an opportunity to evaluate what those standards are, and if they are a meaningful tool for addressing the exploitative norms under which businesses currently operate.

Nespresso Single-Use Coffee: Hardly a “Force for Good”

Nespresso is Nestlé’s single-serve coffee line, providing coffee capsules with high-end branding to coffee drinkers at home as well as in offices and hotels. Single-serve coffee as a product seems incompatible with a vision for business that’s good for people and the planet, as B Corp certification promotes, given the huge amount of waste created.

Nespresso’s actions over the years are a prime example of greenwashing. Instead of grappling with the actual sustainability of their single-serve product and business model, they have attempted to make the case that their capsules are more environmentally friendly. The plastic pods used by companies such as Keurig for their single-serve coffees have a dismal environmental profile, generating enough waste, by some accounts to circle the globe 14 times. But it’s hard to make a leap from there to being actively good for the planet just by substituting aluminium for plastic waste.

In their marketing, Nespresso has chosen to emphasize people’s personal responsibility for recycling their packaging, despite the fact that their capsules aren’t accepted by standard household recycling programs. Per Nespresso’s calculation, just 28% of Nespresso pods are currently recycled, with the rest ending up in landfills around the globe (others have questioned this number, calculating the likely recycling rate closer to 5%). An article in the Guardian newspaper calculated the impact this way:

“​​with a conservative estimate of 14 billion capsules being sold each year, and 0.9 grams of aluminium per capsule, that means 12,600 tonnes of Nespresso aluminium end up in landfill annually, enough for 60 Statues of Liberty.”

Waste disposal is not the only issue with single-use aluminium pods. Mining aluminium is a resource-intensive process with toxic by-products. In 2018, among plenty of fanfare, Nespresso partnered with Rio Tinto to launch Aluminium Stewardship Initiative ASI-Certified “sustainable aluminum” for their pods. Rio Tinto is a mining giant dubbed “a poster child for corporate malfeasance” for their lengthy rap sheet of environmental, labor and human rights violations as well as corruption and bribery. Despite the big announcement, buried in recent sustainability reporting, Nespresso has admitted that they did not achieve their target to source 100% ASI-Certified aluminum by the end of 2020. That’s yet another play from the corporate greenwashing playbook: Make a big announcement, then quietly fail to meet it.

Nespresso’s Record of Human Rights Violations

Nespresso’s parent company Nestlé has a long record of human rights violations, from their notorious formula debacles that have stretched over half a century to child labor, deforestation, land grabs, and more (for more on Nestlé’s business practices, listen to Season 1 of For a Better World podcast). Much reporting does not distinguish between Nespresso and Nestlé for sourcing data.

However, in just the last two years, since Nespresso began their path to B Corp Certification, there have been multiple investigations finding human rights violations in Nespresso’s supply chains. In 2020, investigative reporters found children as young as 8 picking coffee on seven Guatemalan farms selling to Nespresso. Then in 2021, Brazilian labor inspectors found multiple instances of wage theft on plantations selling to Nespresso, part of a pattern of violations and human rights abuses on certified farms.

Nespresso is part of the growing group of corporations developing their own Voluntary Sustainability Standards for themselves to meet, instead of opting to meet existing independent standards. Their Nespresso AAA Sustainable Quality™was developed with Rainforest Alliance, a certifier who has repeatedly been critiqued for low standards and for how they have backed multinationals in covering up abuses in their supply chains. Nespresso’s AAA program does not have publicly available standards available for analysis to define how they reach their three pillars, Quality, Productivity, and Environmental and Social Sustainability.

Their most recent sustainability reporting notes that “More than 93% of Nespresso permanent coffee is now sourced sustainably through its AAA Sustainable Quality™ Program, up from 84% in 2014, including 48% certified coffee, up by 9 points since 2014.” It is not clear from Nespresso’s reporting what portion of their coffee is part of that “permanent” lineup that meets their sustainability standards and which percentage is purchased on spot markets (for context, it is not uncommon in cocoa sourcing to see brands speaking of their child labor pledges for their “direct” supply chains, while omitting the crucial fact that these supply chains only account for a fraction of their sourcing). All in all, Nespresso has previously been noted for their lack of transparency in their operations, described by coffee industry expert James Hoffman as “a black box of a company.

And this is the business model that is now B Corp certified as “a force for good™.”

B-Corp Certified Falls Short of its Claims

The non-profit organization B-Lab established B-Corp certification to distinguish businesses using “business as a force for good.” They claim that “Certified B Corporations are leaders in the global movement for an inclusive, equitable, and regenerative economy. Unlike other certifications for businesses, B Lab is unique in our ability to measure a company’s entire social and environmental impact.”

Yet despite B Lab’s claim that their certification is “transforming the global economy to benefit all people, communities, and the planet,” their standards fall far short of that sort of transformational change. They also fall short of the basic principles laid out in the United Nations Guiding Principles on Business and Human Rights (UNGPs) , which spell out businesses’ fundamental responsibilities to prevent, address, and remedy human rights violations in their operations.

This is not a new critique. Indeed, advocates for business human rights have spent years underscoring the inadequacy of B Corp certification to address fundamental human rights. In the next section, this article will examine those standards and what that looks like in the context of Nespresso.

How B-Corp Standards Work

B-Corp certification scores companies based on a lengthy two-part self-assessment. The first part has a questionnaire evaluating companies on the following topics, each category worth approximately 40 points, with a total of 80 out of 200 required for certification.

  • Governance – includes governance structure, mission, corporate accountability, and transparency.
  • Workers – includes compensation and benefits, training and employee development, health and safety, job flexibility. There are questions on worker ownership, but no points given for union representation or freedom of association.
  • Community – covers a vast range of topics including job creation, diversity and inclusion, workforce development, employee volunteerism, local involvement and sourcing, suppliers and product sourcing, supply chain poverty alleviation (including fair trade certifications), and charitable giving.
  • Environment – encompasses overall environmental stewardship, including facilities, emissions, and supply chain and distribution where relevant.
  • Customers – evaluates companies whose products are designed to address a particular social problem, such as health or educational services.

The second part of the assessment is an unscored list of “Disclosures”, which arguably focus on the most important issues from a human rights perspective. The Yes/No questions in this section range from whether the company supports workers’ rights to organize and collectively bargain, uses child labor, violates Indigenous peoples’ rights, as well as land and environment based issues. There is also a section for disclosures on suppliers, featuring just four short questions, asking whether the multinational has suppliers who use child labor, prison labor, or forced labor; operate in conflict zones; have practices that have substantial negative impacts on human rights, labor conditions, or local communities; or negative environmental impacts. Surprisingly, given recent exposes on child labor, workers’ rights, and supplier Rio Tinto’s abysmal environmental record, Nespresso checks “no” on all points except the conflict zones topic.

As part of attaining B Corp certification, companies are required “Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available in their jurisdiction.” This legal commitment is promising–indeed, such a reconfiguration is essential to breaking free of the profit-driven, extractive capitalism that is harming people and the planet we inhabit. Yet so far, this aspiration has not held up to the realities of shareholder capitalism. Despite B Corp’s much touted “mission lock[1],” the CEO of B Corp Danone was forced out for focusing too much on sustainability and not enough on shareholder dividends.

Lastly, large multinationals such as Nespresso and those that are subsidiaries of other corporations have additional screening and transparency requirements. Setting a higher bar for bigger companies who have greater capacity to do harm is a good step. However, the process also underscores a fundamental issue with B Corp certification. The emphasis is on transparency. Yet,, as the Nespresso disclosures reveal, a company can deny recent violations, or mention them in the “Transparent Disclosures” document and still be certified.

Perhaps anticipating backlash, the B Corp blog post announcing Nespresso’s certification emphasizes continual improvement and evolution, both of certified companies and of standards themselves. Yet despite this aspirational theme, continued progress is not mandatory for certification and some companies’ scores have decreased over time without apparent consequences.

Human Rights Can’t Be an Afterthought

While an in-depth analysis of B Corp’s standards are beyond the scope of this piece, there is a disturbing thread that runs throughout. B Corp’s model fails to meaningfully center human rights, both in the framing of their questions and in the ways in which scores are weighted throughout the assessment questionnaire.

An incisive article in the Stanford Social Innovation Review observes that,

While a number of human rights-related metrics are implicit in the [B-Corp Assessment], its overall tenor rewards companies for positive social behavior rather than requiring them to respect human rights, as the UNGPs assert. For example, where disclosure on corporate lobbying is solicited in the weighted part of the assessment, it mentions only positive lobbying—for example, to persuade the state to deliver on the provision of goods such as health and education. It does not mention the potential negative effects of corporate influence on politics that can undermine rights, such as pushing for the relaxation of worker protections.”

Further, the weighting of the scores tends to prioritize the nice-to-have elements of a good work environment without putting emphasis on the fundamental human rights that should be protected for all working people.

An employee handbook is as close as many workers in the U.S. come to having a contract that spells out their working conditions. Yet this question is only worth 0.28 points. B Corp standards allow Nespresso to get full points for this category without critical provisions such as grievance processes or statements regarding the fundamental, internationally recognized right to bargain collectively and freedom of association.

 

By comparison, employee health and wellness initiatives are worth 0.95 points–weighting health assessments, programs to get people counting their steps, and other nice-to-have perks above fundamental rights.

The distribution of points is even more concerning when one looks across categories. As the screenshot from Nespresso’s Assessment shows, verifying that their supply chain is in compliance with local law, international human rights and environmental standards, is not a priority. And it does not need to be. These critical supply chain accountability measures count for less than employee wellness programs.

Other assessment questions assign just 0.21 points to having a supply chain code of conduct for suppliers and 0.35 points for having a stakeholder grievance process – other fundamentals that are once again acutely undervalued.

B Corp Certified: Accountability or Greenwashing?

After the Nespresso announcement, a small coffee company expressed concern on Twitter about what it meant to have a multinational with Nespresso’s social and environmental profile B Corp certified. B Corp responded, “Becoming a B Corp means Nespresso now has both a verified framework & an influential community holding them accountable to continue to improve their social and environmental performance & be transparent about progress. Find out more about efforts so far: https://bit.ly/3ELLJjm.” Yet both this accountability and progress are to be questioned. As the previous section made clear, B Corp’s standards do not adequately reflect the sort of human rights focused criteria that would mean true improvement in what’s being referred to as “social performance” here. Instead, it’s far more likely that B Corp would help them fairwash and greenwash their business model–there is no minimum requirement for scores per category nor mandatory areas for high scores. A company could improve scores and ostensibly make progress without addressing core human rights issues – or supply chain abuses.

Further, there is no requirement that companies improve progress over time. For example, grocery store New Seasons Market’s score has declined 33% over the time they have been a B Corp. The company’s union-busting made headlines in 2018 and garnered five complaints to the National Labor Relations Board. Yet the B Corp response to activity which is in contradiction to labor law, as well as international labor standards is to have the company state their own case in a disclosure buried deep in their assessment profile. There is transparency on paper, but no requirement to address or remediate the harms caused.

In the last year, several other high profile cases have seen certified B Corps acting at odds with the commitment to put people and the planet ahead of profit. And it seemed that the “influential community” was strikingly silent, despite concerns and complaints of workers, farmers, and advocates for fair food. In 2021, certified B Corp Danone announced that they were dropping the contracts of 89 organic farmers in New England, citing the inefficiencies of incorporating these small farmers into an increasingly consolidated supply chain. Advocates raised complaints with B Corp, who responded with a statement making clear that consideration for the livelihoods of these farmers was a matter of “supply chain selection” that B Corp did not intervene in. It is a decision that is very much in line with the last 50 years of U.S. agriculture policy that has pushed farmers to “get big or get out,” putting profit and efficiency first–and a decision that hardly seems in line with the rhetoric of transformation that B Corp puts forth.

In 2022, certified B Corp Amy’s Kitchen came under fire with a boycott led by food advocacy organizations due to the company’s union busting. Workers at Amy’s are organizing given a long string of health and safety issues. The Teamsters’ submitted a formal complaint, challenging Amy’s Kitchen’s certification and calling on B Corp to include workers in the resolution of the complaint:

It is impossible for B Lab to know from a checklist and a company’s own self-assessment what conditions are really like for workers. I hope your investigation will consider the experiences of Cecilia and her co-workers and not just rely on the company’s account.

As of this writing, B Corp has yet to respond, although they granted the certification in the midst of the workers’ public union campaign. However, the company’s statements make clear the value of B Corp certification to a company in presenting its values–and how readily the certification can be used to redirect and mislead those who might be concerned about human rights and labor violations. Further, it raises a large question regarding the role of workers in the accountability mechanisms of B Corp certification.

Will the B Corp Community Rise to this Challenge?

B Corp points to the existence of an “influential community” that will be instrumental in holding companies accountable. So far, we have not seen companies taking public stands to uphold the integrity that B Corp claims to stand for, or to hold other companies to the transformational standards they put forth. Some companies who count themselves as part of organic and fair trade movements have been outspoken in their concerns about the influence of multinational corporations and the status quo on those standards.

Does such a movement exist for B Corp as well?

It remains to be seen. However the certification of Nespresso, despite their strong association with multiple corporations with atrocious human rights abuses, and a product that’s inherently wasteful seems like a strong test case for peer accountability.


[1] B Corp assessments denote the legal commitment required as “Mission Locked” on a company’s profile, describing it as ” A company with an Impact Business Model is intentionally designed to create a specific positive outcome for one of its stakeholders – such as workers, community, environment, or customers.”

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Naturland Farmer Member Organizes a Large-Scale Relief Operation Amid Russian Invasion of Ukraine https://fairworldproject.org/naturland-farmer-relief-russia-invasion-ukraine/ https://fairworldproject.org/naturland-farmer-relief-russia-invasion-ukraine/#respond Tue, 26 Apr 2022 21:30:00 +0000 https://fairworldproject.org/?p=19488 Russian Invasion of Ukraine Sparks Questions of a Global Food Shortage All eyes have been on Ukraine as the Russian […]

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Russian Invasion of Ukraine Sparks Questions of a Global Food Shortage

All eyes have been on Ukraine as the Russian invasion has caused immense suffering. Behind the headlines of war and troop movements is a conflict that has huge consequences for our food system. Reuters reported1 that the Russian invasion of Ukraine could fuel a global food shortage. Millions of people around the globe depend on Ukraine’s wheat production, and due to the conflict Ukrainian farmers are not able to tend to their crops. This comes on the heels of increasing food prices due to global supply chain challenges connected to the COVID-19 pandemic. The United Nations is saying that food prices could rise by 20% as a direct result of the Russian invasion.

Naturland Farmer Member Working to Keep People Fed During the War

Fair World Project has been in contact with Naturland, the farmer-owned organic certification and association that was started out of Germany in the 1980s. In 2011 the farmers’ association created Naturland Fair which combines organic and fair trade under one logo that is applied to products from both the Global North and the Global South. Currently they have over 65,000 farmers, bee-keepers, fish farmers and fishermen in 58 countries managing some 440,000 hectares. It’s an organization uniquely positioned to highlight the role of global solidarity in our food system – at the macro level and in small acts of everyday resistance.

Naturland’s headquarters in Germany shared with us the story of how one of their farmer members, Martin Ritter, is working to keep people fed. To date they have delivered 18 truckloads of products to the Ukraine border and they are not stopping there. We wanted to share one man’s story with you of how he is helping people through war and tragedy.

March 25, 2022

When war broke out in Ukraine on 24 February, Martin Ritter knew at once that it was time to act quickly. The German Naturland farmer has close ties to the Eastern European country. In addition to his family farm in Ostheim, Germany, Ritter has been building up a second Naturland farm in western Ukraine since 2015, in the Rivne region, a good 300 kilometres west of Kiev.

Days before the war breaks out, Martin Ritter is in a frenzy at home. He constantly follows the news, in which the US government warns more and more urgently of an expected Russian invasion. Again and again he makes phone calls to his people at the Ukrainian farm, but no one there can imagine that war will really break out. “They almost laughed at me. They were sure that the Russians wouldn’t come,” he says.

When the war does break out, everything happens very quickly. That same evening, employees on the Ukrainian farm pack their wives and children into the car and set off for the Polish border. There, on the other side, in Dorohusk, Poland, Martin Ritter is waiting with three friends to receive the families and bring them safely to Germany. Because of the huge rush, it takes almost three days before nine women with eleven children between the ages of 2 and 16 finally cross the border. The fathers of the families are left behind because men of military age are not allowed to leave the country. The mood on the journey to Germany is correspondingly desperate. “You could see what the people were going through. It was really tough,” Ritter reports.

Escape from Rivne to Ostheim

“When I woke up on 24 February, my husband told me that an attack had started during the night. That was a shock! We never thought that the Russian army would really do that,” says Oxana Mykhailiuk, who works as an interpreter in the administration of the Ukrainian Naturland farm. In the course of the day, she and her husband decided that they had to leave the country with their two three-year-old twins. They went by car to the border, where the queue already started 15 kilometres before the crossing.

In Ostheim, the families – 1,500 kilometres from home – moved into a holiday home provided by the city. After a second evacuation trip by Ritter, 32 people from Rivne, 13 women and 19 children, now live there. Oxana Mykhailiuk has taken on the role of spokesperson for the group because of her knowledge of German. Three weeks after the flight, she sounds composed, almost cheerful when she speaks. “When I speak to you, it sounds like everything is OK, but inside I am not calm,” she says.

Her husband Yuri, together with the other men, is still in Rivne. “They are supporting refugees inside the country, they have organised shelters on the farm. And they support our forces, bringining them food,” Oxana Mykhailiuk describes the situation. At night, the men sometimes also went on patrol. Most of the younger ones in particular had been drafted by the Ukrainian army, she says. Two of the company’s workers, aged 22 and 24, have not shown any sign of life since the first days of the war.

The town of Ostheim helps

Meanwhile, Martin Ritter begins to set up a large-scale relief operation within a few days of returning to Ostheim with the first group of refugees. The Naturland farmer can count on the support of the town and a large regional network. A truck manufacturer provides vehicles for the convoy, food producers deliver pallets of basic foodstuffs, which are packed and loaded at a wholesale company in Ostheim. A local aid organisation collects donations.

More than 30 helpers are working in Ostheim to load nine trucks with a total of more than 450 pallets of relief supplies. From Ostheim, the goods are taken to Wroclaw in Poland, where they are reloaded. Ukrainian trucks then take the relief goods to Rivne, where further distribution is organised through the district administration. “We control the transport at all stages. This is how we ensure that the donations arrive,” Martin Ritter emphasises.

The fact that Ritter is so closely connected to Ukraine at all is ultimately also connected to his hometown of Ostheim – or more precisely: to a local company for whose sodas the Naturland farmer grows elderberry, among other things. “At first, it was really only about organic beet sugar, which was still very scarce in Germany at the time. And from then on, it developed further and further,” he says. In the meantime, Ritter mainly grows soya, sunflowers, oats and maize in Ukraine, as well as special crops such as raspberries and strawberries.

Whether there will be anything to harvest in 2022, however, is more than uncertain. “I don’t know what to expect. We are planning from day to day,” says Ritter. It is mid-March, the trucks with the relief goods are successfully on their way and Ritter finally has time to take care of his farm in Germany. But he does not want to give up hope for the cultivation in Ukraine either. The Ukrainian government has instructed the farms in the country to sow spring wheat, spring barley and oats in order to secure the food situation in the country in the medium term. So Ritter’s Ukrainian employees are now driving out to fields that were recently hit by two missiles. The uncertain future depresses everyone – in Rivne as well as in Ostheim. “We feel good here,” says Oxana Mykhailiuk, immediately adding: “But we want to go home again.”

For more information on Naturland and the Naturland Farmer-led aid campaign for Ukraine click here.


Sources:

1https://www.reuters.com/world/ukraines-farmers-stalled-fueling-fears-global-food-shortages-2022-03-11/

2http://wdc.org.ua/en/node/29

3https://today.tamu.edu/2022/03/07/conflict-in-ukraine-fuels-uncertainty-for-agriculture/

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This Easter, Let’s Take Collective Action Towards a Fair Chocolate Industry https://fairworldproject.org/easter-action-fair-chocolate/ https://fairworldproject.org/easter-action-fair-chocolate/#respond Tue, 12 Apr 2022 16:02:12 +0000 https://fairworldproject.org/?p=19477 With Easter right around the corner, there are new reports of child labor in cocoa. This time it was documented […]

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With Easter right around the corner, there are new reports of child labor in cocoa. This time it was documented in the supply chain of one of the very companies who claims to not use child labor: Cadbury. In Channel4’s Dispatches investigation, children in Ghana as young as 10 were documented harvesting cocoa pods and handling sharp machetes. In Ghana, the world’s second largest cocoa producer after neighboring country Cote d’Ivoire, it is illegal for anyone under 18 to engage in hazardous work. And, specifically, it is illegal for children under the age of 13 to work on cocoa farms.

Cocoa Made Right? – Cadbury’s Child Labor Commitments are Words not Action

Cadbury is owned by the U.S. food giant Mondelēz International (formerly Kraft Foods), who made over 3.6 billion dollars in profits last year. You probably know Cadbury’s chocolate. Every spring, bags of their Cadbury eggs line grocery store shelves – those creamy chocolate eggs with the pastel-colored crunchy sugar coating – an Easter and springtime staple. They used to be a favorite of mine as a kid – probably when I was around the same age as the children found harvesting cocoa in West Africa. I’d try to savor the bag of Cadbury Eggs I’d find in my Easter basket, but inevitably I’d polish them off pretty quickly and would be left looking forward to the next year’s supply.

But the story behind those tasty Easter chocolates isn’t sweet at all, and you won’t find that out just by reading the Cadbury packaging or even by visiting their website. In fact, you’ll find quite the opposite story. Front and center on their website reads “100% sustainably sourced cocoa – 100% better for cocoa farmers and communities.” This is all part of their Cocoa Life program they claim ensures their cocoa is “made right.” The Cocoa Life mission states:

We have a vision to make cocoa right. That’s why our mission is to lead cocoa sector transformation by driving holistic solutions that address root causes and create systemic, lasting change. We do this by implementing our own holistic program in partnership with others, sharing what we’ve learned on the journey, and by advocating for policy change. 

This sounds nice. But here’s the problem: big chocolate companies have been making nice-sounding declarations for decades and still child labor continues.

Child Labor is a Symptom of Big Chocolate’s Exploitative Business Model

Two decades ago, after an earlier BBC expose of child labor in the chocolate industry led to intense pressure, leaders in the chocolate industry pledged to end child labor in cocoa supply chains in Ghana and Cote d’Ivoire. This commitment was made under the 2001 Hankin-Engel Protocol and was renewed again with the 2010 Framework of Action. But we’ve arrived at that twenty year mark, only to find child labor to be on the rise. In fact, a report commissioned by the U.S. Department of Labor found the rate of child labor in cocoa in agricultural households in Cote d’Ivoire and Ghana increased between 2008/2009 and 2018/2019.

Not only have rates of child labor in those two countries increased, but the conditions under which many of these children work have become increasingly dangerous with the use of pesticides and chemical inputs. We’ve known what the chocolate industry pledged to accomplish and we’ve been calling out their utter failure to do so.

Child labor is a symptom of a much larger problem: the systemic exploitation of cocoa farming families by big chocolate companies. Even as chocolate companies make billions, many cocoa farmers live on just $1 per day. Instead of launching more PR campaigns and corporate initiatives, it’s high time companies pay cocoa farmers a real living income for their crops.

Add your name to the petition calling on cocoa companies to take meaningful action to end child labor

Big Chocolate Failing to Act on Child Labor

Last year should have been a landmark year in the fight against child labor in cocoa. Instead, the cocoa sector as a whole remained suspiciously quiet as the benchmark year for eliminating child labor came and went.

The recent documentation of child labor in Cadbury’s supply chain sadly doesn’t come as a surprise. After all, even Tony’s Chocolonely – which boasts the motto of “Let’s make chocolate 100 per cent slave-free” – came under scrutiny when it was revealed earlier this year that 1,700 child workers were found in their supply chain.

From reports of child labor in the supply chains of “ethical” brands like Tony’s Chocolonely to chocolate giants like Cadbury, it’s clear that exploitation is baked into the conventional chocolate business model.

Support Companies Building a Fair Chocolate Industry

But thankfully there are brands who are committed to building a different kind of chocolate industry – one based on supporting fair livelihoods for chocolate farming families and supporting people instead of big payouts for shareholders.

  • Dr. Bronner’s Magic All-One Chocolate
  • AlterEco
  • Equal Exchange

You can find our full list of Mission Driven chocolate brands on our website, too.

Hear More About the Bitter Truths Behind Big Chocolate

Lastly, whether you’ve been with us in our fight against child labor in cocoa for awhile or whether you’re just learning about this work, don’t forget we have an entire podcast season exposing the bitter truths behind the ingredients in Nestle’s KitKat bar. The latest reports of chid labor in cocoa may be in Mondelēz International’s supply chain, but the reality is that the story shared in our “Nestle’s KitKat Unwrapped” series covers many of systemic issues and market forces that fuel the dependence on child labor across many of the biggest chocolate brands.

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Fair Trade Dairy at One Year: Labor Abuses, Low Standards, and Misleading Labels https://fairworldproject.org/fair-trade-dairy-chobani-labor-abuses/ https://fairworldproject.org/fair-trade-dairy-chobani-labor-abuses/#comments Tue, 29 Mar 2022 08:00:28 +0000 https://fairworldproject.org/?p=19400 It’s been a year since Fair Trade USA’s “fair trade dairy” label started appearing on tubs of Chobani yogurt. And […]

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It’s been a year since Fair Trade USA’s “fair trade dairy” label started appearing on tubs of Chobani yogurt. And it’s been over two years since the plan to develop the standard was announced, in early summer 2019. In that time, Fair World Project has repeatedly expressed concerns about the fair trade dairy program, based on over a decade of work as a watchdog of ethical labels.

Unfortunately, our warnings about the risks of developing a program without the involvement of farmworker organizers, as well as our specific critiques of the standards are being born out by what we are hearing from frontline organizers.

In May 2021, Fair World Project published the report Label before Labor: Fair Trade USA’s Dairy Label Fails Workers . Since then, that subheading has become an even grimmer reality. The report was published when Chobani yogurt bearing a fair trade label was available on store shelves but before the final standards were released in July of 2021. This article will review the updates made to the standard after the release of the report, and will also document what we know about the implementation of the standard.

The Label Before Labor report focused on 3 key areas of Fair Trade USA’s dairy label, as well as reviewing current research pointing to what would make for a more effective standard. Those areas of focus were:

  • Inadequate standards development process
  • Standards that are not fit for purpose
  • Lack of enforcement mechanisms

This article will review updates in those three areas, with a focus on implementation included under the topic of enforcement mechanisms.

Fair Trade Dairy Standards Process Out of Touch with Research and Workers

The development of Fair Trade USA’s dairy program was decried in a statement by 30+ labor, food justice, and human rights groups, including Fair World Project, calling it “a sham process” and “an exercise that doesn’t reflect the needs and values of workers.” The “ Summary of Feedback and Response” published by Fair Trade USA after the release of the final standard confirms that assessment. The majority of the feedback summarized comes from farm owners and industry. Much of that feedback focuses on the costs involved in improving wages and working conditions.

The absence of organized farmworker voices and their advocates is clear. The summary of worker perspectives is “Overall, the dairy workers that we spoke to reported feeling happy and satisfied with their current work and living situation at their respective farms.” That assessment is dangerously out of touch with current research on farmworkers both in New York State and nationally, and the voices of worker advocates. Instead, it points to the ways that Fair Trade USA’s program continues to fail to address the power imbalances between farm managers and workers.

Finally, the Label before Labor report details concerns regarding stakeholder participation and how Fair Trade USA’s process was at odds with the best practices laid out by ISEAL, the global governance body for standards-setting. Still more concerning is that while the process was explicitly a pilot of standards for the dairy industry, the resulting standard was issued as an amendment to the Agricultural Production Standard that will be applied to all farms in the U.S. That’s vastly different in scope from what was announced. It seems reasonable to assume that far more people would have wanted to weigh in on the definition of fair work and “worker wellbeing” in the United States had it been clear that was what was at stake.

Fair Trade USA’s Standards Fail to Fill Regulatory Gaps

Redefining what is “fair” to match U.S. law that is grounded in injustice certainly doesn’t sound like it’s in line with fair trade principles.

Unsurprisingly, a standard development process that does not include workers is skewed against them, yielding a standard that fails to adequately address key labor and human rights issues.

Ethical certifications have long claimed to fill a regulatory gap that exists between local law and best practices or international norms. And there are large gaps in U.S. labor law, especially as it applies to farmworkers. In the United States, farmworkers are exempt from:

  • Aspects of the Fair Labor Standards Act (FLSA), including overtime pay and child labor protections;
  • National Labor Relations Act (NLRA), which forbids employers from firing a worker for joining, organizing, or supporting a labor union.
  • Farms employing 10 or fewer workers are exempt from enforcement actions by the Occupational Health and Safety Administration (OSHA).
  • Further, the U.S. has ratified just two of the eight core International Labor Organization (ILO) conventions, abstaining from committing to issues including the Right to Organise and Collective Bargaining, Forced Labor, Equal Pay, and Minimum Wages, as well as conventions on working hours.1

Yet Fair Trade USA’s standards development process did little to bridge these gaps. Instead, the result of the dairy pilot has actually weakened the standards for workers on U.S. farms below the bar set for international production.  The stated reason? To “streamline” their standards and have them match “the unique legal definitions and operating context in the United States.” It’s worth noting the conditions that gave rise to that context in the United States.  Farmworker exemptions from standard labor law date back to a New Deal-era compromise with Southern legislators which was, in the words of one researcher, ” well-known to be a race-neutral cover for maintaining the domination of white supremacy in the South and excluding Black workers from labor law’s protection.” Redefining what is “fair” to match U.S. law that is grounded in injustice certainly doesn’t sound like it’s in line with fair trade principles.

Fair Trade USA’s Standards Continue Racist Double Standard for Farmworker Work Hours and Pay

One clear example of this is the issue of working hours. Like most fair trade certifications, Fair Trade USA had previously followed the ILO conventions on hours of work in their standards, limiting the regular workweek to 48 hours. In the revised standards for the United States, Fair Trade USA made major changes to their work week, as detailed in the side-by-side comparison in the box (emphasis added).

Fair Trade USA Standards – International Fair Trade USA Standards – NEW United States
Work Week Workers do not work longer than 48 regular hours per week, the level agreed to in applicable Collective Bargaining Agreements, or the legal limit, whichever is less. (FTUSA A.P.S. 3.4.1.a) Workers do not work longer than 60 hours per week regularly, the level agreed to in applicable Collective Bargaining Agreements, or the legal limit, whichever is less (FTUSA A.P.S. USA Amendment 3.4.1.a).
Overtime Overtime does not exceed 12 hours per week or the legal limit, whichever is less. If workers agree in writing and if legally permitted, this limit can be increased up to a maximum of 72 total working hours per week for up to four non-consecutive weeks per year (FTUSA A.P.S. 3.4.2.c). If total working hours per week exceed 60, it is limited to a maximum of 72 total working hours per week for up to 12 weeks per year, and is only done if workers agree in writing and if legally permitted
(FTUSA A.P.S. USA Amendment 3.4.2.c).

Overtime rules also got a significant overhaul. Thus farmworkers in the U.S. have both a higher cap for working hours and much more liberal guidance for how often their hours can exceed that cap (three months per year, or much of a harvest season, vs. four non-consecutive weeks).

In addition to appealing to “the unique legal definitions and operating context in the United States,” the feedback document from the standards development process highlights that workers *want* to work long hours. Such a  statement speaks to just how far removed from farmworker organizing the Fair Trade USA standards development process has been, as was also pointed out by researchers cited in a recent article in Jacobin Magazine.

“The FTUSA’s characterization of contented workers contradicts much of the scholarly research done on farmworkers in New York State and nationwide. Over the past twenty years, we have interviewed hundreds of New York farmworkers and found that workers’ desperate need for income drives their decisions — often at the expense of their personal well-being. Our research has revealed that farmworkers tend to be unaware of their rights. They are especially vulnerable to exploitation — often due to their immigration status — and the extreme power dynamic that exists between them and their employers.”

Failing to address that power dynamic between worker and employers means that workers’ voices are not meaningfully included, as researcher Margaret Gray has written of elsewhere on farmworker pay equity. Without the voices of organized workers and worker advocates in the process, the results are skewed against workers.

Standards Fail to Address Root Causes of Low Wages

Ultimately, people work in order to get paid. If wages are low, people will want more hours to make ends meet. Yet by framing the issue of working hours as whether or not workers want to work long hours, Fair Trade USA’s “Summary of Feedback and Response” sidesteps that fundamental reality. While the section on working hours is long, the section on living wages is comparatively short. It notes that, “Dairy pilot participants also expressed support for living wage in concept but were concerned with their ability to close the gap without support from their buyer.” This is a reasonable concern. Dairy farmers are subject to low and volatile prices. Meanwhile, end buyers like Chobani stand to benefit from “fair trade” marketing. Yet instead of leveraging that brand benefit, Fair Trade USA opts not to include any requirement for brands to support farmworkers’ progress towards living wages. Fair World Project has previously criticized Fair Trade USA for placing all their emphasis on “awareness” of living wages without including timebound requirements for progress, and this standard continues that trend.2

This is not just a procedural issue. Instead, it undermines a key area where Fair Trade USA’s program falls short.  Academic researcher Elizabeth Bennett has noted that the strongest thing that voluntary sustainability standards such as Fair Trade USA can do to improve workers’ livelihoods is to require living wages and support the worker organizing that allows them to negotiate Collective Bargaining Agreements (CBAs) for better wages.

Worker Leadership + Brand Participation Supports Fair Livelihoods

It is worth noting that solutions to this living wage gap for farmworkers exist. In fact, they are currently being implemented in the dairy industry by the worker-driven Milk with Dignity program. The Label Before Labor report provides an in-depth comparison of this program with Fair Trade USA’s dairy label, so this will exclusively focus on wages.

Under the Milk with Dignity program, buyers are required to pay premium funds to support farms in complying with their binding Code of Conduct. The Code requires that workers on participating farms are paid at least the prevailing local minimum wage. This is significant given that farmworkers are exempt from many state minimum wages (and on smaller farms, from federal minimum wage requirements as well). Premium funds from brands are required to be used to get workers’ earnings to the locally benchmarked Rural Livable Wage. The Milk with Dignity Code of Conduct clearly spells out how they calculate the wage adjustment to incorporate health insurance and employer-provided housing. According to Milk with Dignity calculations, about 50% of Vermont dairy workers outside the Program make below the minimum wage. Meanwhile, workers on participating farms have seen wages rise so that most are now earning living wages.

Fair livelihoods for farmworkers are placed at the center of the standard, with a clearly articulated plan to transfer money from the brand at the top of the supply chain, who has most money and power, to the worker at the end of the chain. Instead of pitting farmworker against farmer in an effort to make ends meet, or laying the responsibility for making the food system profitable upon farmworkers’ shoulders, this addresses the root causes of the issue.

Fair Trade USA Going Against Trend of Farmworker Overtime, Rights and Dignity

Lastly, it is worth noting that the changes to the work week in Fair Trade USA’s updated Agricultural Production Standard (A.P.S.) for the United States are going against the current trend of farmworker organizing. There is growing recognition that the exclusion of farmworkers from getting the same overtime pay as other workers is rooted in racism and injustice . California and Washington State have recently been joined by New York State, Colorado, and Oregon in requiring overtime pay for farmworkers. While timelines for implementation vary, as do thresholds for hours worked, the trend is clear. By increasing the standard work week, Fair Trade USA chooses a side against those working for worker justice and fair livelihoods – as well as stepping out of line with international guidelines and recommendations from researchers.

Implementation of Fair Trade Dairy in Chobani’s Supply Chains

The Label Before Labor report detailed several key issues with Fair Trade USA’s dairy program based on an analysis of the standards. Several key issues highlighted included the explicit addition of at-will employment to the standard, that is, the right to fire workers for no cause, reinforcing a condition that labor advocates have pointed to as an obstacle to workers’ organizing. The report also underlined the limited scope of “know-your-rights” training requirements, lack of accessibility for reporting issues, and the standard’s reliance on annual audits to protect workers’ rights. This section of the report concludes:

“There’s a fundamental difference between envisioning people as rightsholders or as beneficiaries of a company’s corporate social responsibility programming. Workers’ rights are essential, while corporate social responsibility puts the focus on the company doing good—and hopefully some of those benefits trickling down to the people they employ. But rights can’t be an afterthought. Workers’ rights, and their vision and experience, must be central to the development of any programming intended to benefit them.”

Unfortunately, nearly one year after Chobani’s yogurt with Fair Trade USA’s “fair trade dairy” label appeared on the shelves, what we’re hearing from organizers underlines just how important it is to center workers—and the dire consequences that can come from implementing a program without their organizing.

Workers Don’t Know What “Fair Trade” is

Fair World Project remains in contact with organizers at the Workers Central of Central New York (WCCNY), who organize with farmworkers, including those on farms selling to Chobani and participating in the fair trade dairy program. These updates draw on conversations with those organizers, and many of the key points are also captured on our For a Better World podcast.

Chobani announced the pilot project with participating farms nearly three years ago and has been selling yogurt as “fair trade” for nearly a year. Yet what we hear from worker organizers is that overwhelmingly, workers on participating farms don’t know what “fair trade” is. That’s not just a semantic problem. If workers don’t know what fair trade is, it’s almost impossible for them to meaningfully claim the protections they are supposedly entitled to, or to meaningfully comment on what is happening in their workplaces.

Fair Trade Committees: Misrepresented and Disempowering

In episode 7 of For a Better World podcast, WCCNY organizer Crispin Hernandez explains “workers are told they are supposed to form a ‘fair trade committee.’ But the workers don’t know how to and they don’t give them this information to form a committee.” These “committees” are a critical aspect of many fair trade programs. In their standards, Fair Trade USA describes their purpose:

“One way that a standard can drive collective empowerment is through establishing groups that foster communication and collaboration on important issues such as health and safety, community investments or working conditions.

…The Fair Trade Committee’s main responsibility is to manage the use of the Fair Trade Premium, which is one of the unique aspects of the Fair Trade model. The Fair Trade Premium is an extra sum paid to workers and small producers above the cost of the Fair Trade product.

…In Fair Trade, the workers and producers decide together as Premium Participants how the Fair Trade Premium will be used to meet their individual and collective needs, as well as the needs of their communities and environment. They elect a Fair Trade Committee that is responsible for managing, investing, and spending the Fair Trade Premium on behalf of the workers and producers, as well as tracking and informing them about Premium projects and Premium accounting.”

The fair trade committees are key to Fair Trade USA’s claims to “empower” workers. But reports from the dairy barns of New York don’t sound very empowering. Instead, worker organizers report that not only do workers not know what they’re supposed to be doing with their new mandate, the process is being run by Chobani and/or by farm managers. Once again, Fair Trade USA is putting marketing before substance. In a recent article, Fair Trade USA’s Producer Services Manager Jamie Padilla describes the Fair Trade Committees, saying, “The members are democratically elected by all workers. It’s a huge responsibility and, honestly, one of the most empowering things I’ve seen.” This statement misrepresents both the experience of worker organizers in Chobani’s supply chain and the actual process on paper in Fair Trade USA’s standards.

Module One of Fair Trade USA’s Agricultural Production Standard describes the formation of the Fair Trade Committee (FTC in the illustration), how members are to be chosen as well as a timeline for the activities.

Table

In this example, Premium Participants would be farmworkers on participating farms, and could also include farm managers and small and mid-sized traders or facility managers who help to get the product to the Certificate Holder (Dairy Farmers of America or Cayuga Marketing, in this case). These participants are supposed to “understand fair trade,”  elect their own representatives, and have conducted and communicated a needs assessment on a clear timeline: “Before Fair Trade Premium is spent, or Year One at the latest.” That work has barely begun.

“Sign This Paper and You Can Get Money”

It remains unclear whether premium funds have been spent yet. Another troubling revelation in an interview for our For a Better World podcast describes funds going to workers (emphasis added):

“The workers I talked to told me that they give them a paper that they have to sign to say they agree with what Chobani is doing. But in reality, many don’t understand it but many go along and sign because they think their other coworkers have already signed it. And because what Chobani has said is that if you agree, sign this paper, and what this paper means is that they’re going to give them some resources. For example at the end of last year, they gave them a card for $500 to buy the things they need like boots or their food.

The deal stated there “sign this paper and you can get money” does not sound democratic or empowering. Instead, it sounds rather coercive. More investigation is needed to understand how widespread such arrangements are. Yet overall, this anecdote underlines the risks of creating a Fair Trade Committee in the absence of worker-led organizing. Without clear structures for participatory democratic decision-making, premium allocations, especially direct payments to workers, fail to empower workers and can instead be used to prop up existing power structures, as has been previously noted by researchers.3

Dire Consequences of Fair Trade without Organized Workers

Research, including MSI Integrity’s definitive report Not Fit for Purpose, has pointed to just how essential it is that workers are involved in both the development and implementation of standards intended to benefit them.  Fair World Project’s ” Reference Guide to Fair Trade and Labor Justice Programs” has previously summarized that topic as “Formal Participation of the Intended Beneficiary.” The formal language may obscure the urgency, and the dire consequences that can result from this omission. But without the involvement – and leadership – of organized workers, programs repeatedly fail to protect workers’ rights, including their most basic safety needs.

Conversations with organizers in Chobani’s supply chains and efforts to learn where workers are participating in fair trade programs underline just how opaque these supply chains are, even to the people who labor in them. This fall, a person known to WCCNY to be working on a farm selling to Chobani and participating in the fair trade program was seriously injured. The account of his injury is captured in episode 7 of For a Better World podcast. The grim injury and its aftermath highlight the insurmountable challenges of trying to navigate Fair Trade USA’s standards as a tool for supporting someone in urgent need. Without clear guidance coming through fair trade programming, the next obvious place to turn would be the Fair Trade USA website.  In the Label Before Labor report, we highlighted how Fair Trade USA’s website is focused on the needs of consumers and businesses. Now, that lack of focus on worker accessibility comes into focus not just as a hypothetical failing, but as a grim reality. The site remains solely in English, the “Report an Issue” option is not even available from a mobile device (when viewing the page on desktop, it’s buried at the bottom). Ultimately, the takeaway is that the fair trade dairy program is not making these opaque supply chains any more transparent or accessible to the people who work in them.

Fear of Retaliation Remains Under Fair Trade Dairy Program

The “empowerment” that’s sold on fair trade packaging does not extend to the workplaces. Instead, the power dynamics that keep workers silent continue.

Fear of reprisal is a thread that has run throughout discussion of the fair trade dairy program. A definitive piece of research on conditions where the fair trade program was piloted is the report Milked: Immigrant Dairy Farmworkers in New York State, authored by the Workers’ Center of Central New York and the Workers’ Justice Center of New York. The report details an environment that is dangerous (two-thirds of workers surveyed had been injured on the job) and one where fear of retaliation is high.

Fear of reprisal—including the very real possibility of deportation—prevents people from raising concerns about pay, conditions, or even getting care for a serious injury.

Now, nearly one year after the launch of the fair trade dairy program, we continue to hear from organizers that those fears continue. Without the participation of organized workers or the robust engagement of worker advocates, there is little to combat that fear of reprisal. Workers have not spoken out publicly about the fair trade program – or the continued issues on participating farms—not only because they do not know about the fair trade program, but because the fair trade program has failed to change their realities. The “empowerment” that’s sold on fair trade packaging does not extend to the workplaces. Instead, the power dynamics that keep workers silent continue.

Fair Trade Dairy Fails Farmers Too

One critique was over-estimated in the Labor before Label report: the participation of small-scale farms. Small-scale dairy farmers have been hard hit by low prices, corporate consolidation, and U.S. policy that has overall been geared towards pushing them to “get big or get out.” Farmers are increasingly losing their farms and livelihoods–it would seem like these smallest farmers would be the logical target of a fair trade program for dairy.
Thus, when assessing the standards, as well as the average sizes of dairy farms in New York state and the size of their workforces among those surveyed for the Milked report, our assumption had been that there would be more small farms involved. The Label before Labor report detailed the many exemptions for farms with fewer than 6 employees– including the fact that many of the safety and basic trainings and workers’ rights standards in Fair Trade USA’s standard are marked as “Best Practice” not mandatory requirements for such farms. Instead, as we have learned the names of farms participating in the fair trade program, they are milking 2000-3000+ cows – much larger farms than initially expected, with workforces who should in fact be covered by the standards. While it’s good news that fewer workers will fall through the non-mandatory “Best Practice” loophole in theory, in practice, workers still don’t know what fair trade is.

Fair Trade Partner Dairy Farmers of America has Long Record of Unfair Business Practices

There’s a bigger issue at stake here as well. These large-scale dairies are part of the problem with the industrial food system. From small-scale farmers to workers to the climate crisis, this model has been linked to harm and, quite literally, un fair trade. The latter is not just a theoretical assertion. One of the “fair trade partners” listed on Fair Trade USA’s website for dairy is the mega-cooperative Dairy Farmers of America (DFA). While the traditional fair trade story has focused on small-scale farmers and their cooperatives as an engine of economic growth and fair livelihoods, Dairy Farmers of America has been cited and even sued multiple times for acting against their farmer-members’ interests. Over the years they have settled multiple lawsuits charging price fixing, as well as one that is currently ongoing . They’ve also been subject to charges of conspiring with other agribusinesses to drive down prices to farmers as well as using their market power to retaliate against any members who speak out.

Both dairy farmers and analysts alike have specifically pointed to DFA’s business practices as a key factor driving small-scale farmers out of the dairy business. In Episode 5 of For a Better World podcast, Claire Kelloway of Open Markets Institute sums up the issue:

“…DFA ha[s] a proven history of making decisions that are counter to the interest of their farmers and focusing on processing profits at the expense of farmers. And so not sharing wealth down the chain in that way.

But also farmers having a huge history of labor violations and really horrid working conditions on these dairy farms. So yeah, all the entities involved have a history of poor conduct. And I’m not sure how this label affects the democracy issues within the dairy farmers’ cooperative or how it affects the democracy issue with workers on farms and workers not having a lot of power on these farms.”

Kelloway’s assessment takes a high-level perspective, naming the “democracy issue,” and questioning how the fair trade dairy standard addresses the issues with DFA. Fair Trade USA’s Agricultural Production Standard does not address key issues named in previous farmer suits: the concept of price fixing is wholly absent from the standards. The section on pricing (Objectives 5.2.2 – 5.2.3)4 is not scaled to an organization that controls one-third of the United States’ milk supply and is involved at all steps of processing and distribution.5 In this way, the diagnosis as a “democracy issue” is prescient. The key issue at play is, just as it is with workers, a failure to address the power imbalances at stake in the supply chain.

Conclusion

Fair Trade USA rolled out their “fair trade dairy” label in concert with Chobani in spring 2021 – amid a long campaign for Chobani to negotiate directly with the farmworkers in their supply chains.  The weaknesses in the standards highlighted in the Label before Labor report are having grimly predictable consequences as they are implemented.

Fair Trade USA’s standards development process was decried from the start as “an exercise that doesn’t reflect the needs and values of workers.” The resulting process gathered feedback that focuses on farm owner and brand input, and is dangerously out of step with the findings of researchers and farmworker advocates. Fair Trade USA’s new amendment to their Agricultural Production Standard for farms in the United States increases working hours. That’s a move that mirrors the United States’ long exemption for farmworkers from many workplace protections, an exemption grounded in racist discrimination–hardly the grounds for a standard that dubs itself “fair.”

Fair Trade USA’s standards don’t live up to the language of fairness that they sell. Further, the implementation of the dairy program is failing at even the most basic steps: too many farmworkers do not even know that their workplace is participating in a fair trade program. Further, we have heard troubling stories of what sound like coercive practices (signing a paper that says you agree with Chobani to get a bonus); bad living conditions, including bed bugs and cockroaches; and consistent fear of retaliation.

Frequently when Fair World Project critiques an ethical standard or program, the response is “But isn’t it better than nothing?” That’s not a choice that needs to be made here. Multiple other choices exist, and the workers in Chobani’s supply chains have made clear their demands – they are calling on Chobani to negotiate with them and have repeatedly made clear that a fair trade label does not address their calls for justice. Further, it’s worth noting that before partnering with Fair Trade USA to pilot the fair trade dairy label, Chobani met with members of the worker-driven human rights program Milk with Dignity. Per Milk with Dignity participants, “…instead of joining [the Milk with Dignity program], the company [Chobani] decided it was easier to put a label on their product.” It’s clearly not easy to partner with Fair Trade USA to pilot a label not developed for the dairy industry. Instead, the “easy” here speaks to the worker-driven, enforceable standards and binding contracts of the Milk with Dignity program–a far cry from the marketing-driven Fair Trade USA dairy label.

Options exist to meaningfully address the concentration of power in the dairy industry that is hurting both workers *and* farmers. But instead, Fair Trade USA has put their seal of approval on the very model that is driving the crisis in dairy – without meaningful mechanisms to address the power imbalances.

Having a fair trade dairy label that neither supports workers’ own demands for justice nor provides meaningful protections is not better than nothing. A fair trade label papers over the exploitative status quo with a thin veneer of “empowering” marketing. As more and more people become aware of the working conditions of the people who work in the fields and barns, they want to support something better. Instead, they’re being misled.


1 ILO conventions represent the global consensus around fair labor. Conventions are not legally binding in themselves; countries who ratify them then pass laws to make them enforceable within their own countries. For a full list of ILO conventions that the U.S. has not ratified, see this list. The U.S. has declined to ratify these conventions because they are incompatible with existing U.S. labor law, including the exemptions for farmworkers cited above, and concerns that they may conflict with the ability of the private sector to profit from prison labor, as detailed in this policy brief from the U.S. Council for International Business.

2 In the Feedback and Summary document, the response on living wage continues, “Fair Trade USA also plans to continue to create resources for supporting conversations between Certificate Holders and buyers to support living wage improvement, and in the future consider requirements to be included in the Trade Standard for buyers.” Such consideration would be welcome – and represent a shift from all Fair Trade USA’s current standards.

3 Sarah Besky has covered this issue in her research into fair trade tea plantations in India, https://www.sarahbesky.com/uploads/3/4/6/0/34604216/awr.pdf. Further, a study sponsored by Fairtrade International into premium usage found direct payments to workers covered by their Hired Labor standard to be a less effective use of premium funds https://hal.archives-ouvertes.fr/hal-02048855/document. This study also highlights the importance of the decision-making process in premium fund allocation to achieving stated goals around “empowerment.”  See: Allison Marie Loconto, Laura Silva-Castaneda, Nadine Arnold, Alejandra Jimenez. Participatory Analysis of the Use and Impact of the Fairtrade Premium. [Technical Report] Inconnu. 2019. ffhal02048855

4 Fair Trade USA’s Agricultural Production Standard  Objective 5.2.2: “The Certificate Holder has a written contract in place with all farmers and facility owners included in the scope of the Certificate regarding how prices will be paid and calculated and how conflicts will be resolved. The contract is followed.” Objectives 5.2.2a-c spell out what must be included in a contract between farmers and their cooperative as well as a definition of market prices—but says nothing about the larger issue, if the cooperative is large enough and fully integrated enough to have massive influence over those market prices.  https://www.fairtradecertified.org/sites/default/files/standards/documents/FTUSA_STD_APSUSAmendment_EN_1.0.0_0.pdf

5 Dairy Farmers of America is categorized as a “Producer” on Fair Trade USA’s website, thus their certification falls under the Agricultural Production Standard. While many coffee cooperatives are also tagged as “Traders,” Dairy Farmers of America is not, thus implying that they are not held to the separate Trade Standard. The Trade Standard includes some more relevant standards, although still falls short of clear pathways to remedy or enforcement. Traders only engage in fair and transparent trading practices.

Standard 2.5.1.a reads “There is no indication that traders engage in unfair trading practices that clearly damage the capacity for producers to compete or the capacity of producers to comply with Fair Trade USA production standards,” with the further clarification that “Unfair trading practices are ‘practices that grossly deviate from good commercial conduct and are contrary to good faith and fair dealing’ and are unilaterally imposed by one trading partner on another.”

 

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Ethical Holiday Gifts? There’s a List for That https://fairworldproject.org/ethical-holiday-gifts-theres-a-list-for-that/ https://fairworldproject.org/ethical-holiday-gifts-theres-a-list-for-that/#respond Thu, 18 Nov 2021 19:18:22 +0000 https://fairworldproject.org/?p=19177 From seasonal candy to chocolate treats to gifts for family and friends, there’s a lot of shopping going on. And, […]

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From seasonal candy to chocolate treats to gifts for family and friends, there’s a lot of shopping going on. And, because exploitation is baked into so much of our global economy, there are lots of questions about how to choose ethical holiday gifts – or at least support exploitation as little as possible. As watchdogs of “fair trade” and similar labeling claims, now is the prime season for our work.

We’re not going to add another gift guide to the mix. Instead, our offering is a few suggestions on how to read those scorecards and best brands lists. There’s no one single way to make your values match your purchases – after all, they are *your* values. But each list is shaped by its own values and choices too.

What does “Slave-Free Chocolate” Mean?

SlaveFreeChocolate.org is both a list and an advocacy organization by the same name. One thing that’s important to note: “Slave-free Chocolate” is their vision, not a guarantee.
Their criteria includes, but is not limited to, certifications and the answers to three questions:

  • Where do you source 100% of your cocoa?
  • Do you have something on your website to spread awareness?
  • Do you have initiatives that are either beneficial to the farmers or the environment?

Slave Free Chocolate made waves in the chocolate industry earlier this year when they removed Tony’s Chocolonely from their list. The reason? Despite their vision for “100% slave free chocolate,” Tony’s chocolate is made by Barry Callebaut, one of the major chocolate companies currently being sued for child labor in their supply chains. Those ties “[allow] them to produce chocolate cheaper than those who do everything ethically from soup-to-nuts,” Slave Free Chocolate’s director said in an interview.

What does Vegan Chocolate Mean?

Food Empowerment Project is a vegan advocacy group that has a chocolate list “To help people buy chocolate that does not involve the exploitation of human (children or adults) or non-human animals (such as cows and goats)”. Their criteria for inclusion on their list includes whether the chocolate is vegan as well as the answer to the questions:

  • What countries of origin does your cocoa come from?
  • What countries are your vegan products sold in?

Food Empowerment Project’s list does not rely on certification as they, rightfully, point out that certification does not guarantee that a product is free from child or forced labor (for more on this, see our podcast episode with Charity Ryerson of Corporate Accountability Lab). Instead, they focus on excluding chocolate produced in Western Africa or Brazil. While there is more evidence of forced labor being found in these locations, Food Empowerment Project’s standards focus on a broad geographical definition instead of looking at supply chains or business models.

What does Union-Made Mean?

AFL-CIO, the largest federation of unions in the U.S., maintains a list of union-made products on their site. Their criteria is simple: is it made in a union factory in the United States? Their list is quite useful when looking for anything from appliances to restaurants. They also have a chocolate list – but what their list doesn’t contain is any criteria for ingredients such as cocoa, sugar, or palm oil, all of which are likely grown outside the United States. The AFL-CIO also maintains a database where one can check on current boycotts called by workers on brands.

What’s in a Scorecard?

Green America is part of a coalition that releases a Chocolate Scorecard ranking the largest chocolate companies on their policies relating to a range of human rights and environmental policies. The scorecard explicitly ranks companies on “company commitments and policies. It does not assess effectiveness or implementation.” Big chocolate companies’ collectively have a bad track record on following through on commitments—that’s how a company like Nestle can get a top mark on child labor, despite being sued over their failure to address child labor in their supply chains.
The stated goal of the scorecard is to make companies’ commitments public, and potentially shame the big chocolate companies into doing better.

What’s that Label Mean?

Finally, Fair World Project has two resources we make available. There’s a list of “Mission-Driven Brands” which focuses on companies whose business models are focused on original fair trade principles and benefit to small-scale farmers and artisans. The criteria are focused on business models instead of individual products, and lean heavily on membership in trade justice-focused organizations instead of certifications. The criteria also require that brands are not supporting or lobbying for harmful policies such as free trade deals.

We also have a “Reference Guide” to labels that you may see in the store. The criteria rank certifications on their standards—not their implementation. Scores are for topics that certifiers can take action on, including building in participation of the people they’re supposed to benefit (those are the “intended beneficiaries” mentioned) as well as things that companies and certifiers alike make a lot of claims about, such as fair wages and prices. It’s important to note what’s not here: there are no guarantees that the presence of these labels, especially the most common ones, offer any guarantees of human rights, unfortunately. Research and too many exposés have shown that a certifiers’ annual audit alone is inadequate to protect workers’ and human rights. Finally, some of the strongest protections for workers’ rights don’t have any label on the package to let you know they exist, for example, the Milk with Dignity Program.

Ethical Holiday Gifts – And Beyond

Zooming out from the details of all these criteria for a moment, one thing is clear. Our global economy is built on extraction and exploitation. And the same corporations that are doing a lot of the exploitation tend to have the biggest budgets to market their goods to us as in some way “ethical.” There’s no doubt that there’s a lot of noise to cut through.

And, too often, in the name of simplicity, a lot of nuance gets omitted. People are organizing and doing good, ethical work even in countries with high rates of child labor. Instead of casting blame based on geography, we can keep our focus pointed on the corporations whose buying practices are driving exploitation.

Sign up for our newsletter for ways to keep holding those corporations accountable, advocating for better policies, and backing the work of people around the globe building a better world every day.

 

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The Climate Crisis, COP26 and Small-Farmer Solutions https://fairworldproject.org/the-climate-crisis-cop26-and-small-farmer-solutions/ https://fairworldproject.org/the-climate-crisis-cop26-and-small-farmer-solutions/#respond Mon, 25 Oct 2021 22:34:08 +0000 https://fairworldproject.org/?p=19111 The Climate Crisis, which sits at the intersection of many social and environmental justice issues, is one of the biggest […]

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The Climate Crisis, which sits at the intersection of many social and environmental justice issues, is one of the biggest issues facing the world today. As the United Nations Climate Change Conference (COP26) gears up to start in Glasgow on October 31st, there is still a large gap in the conversations about the role food and agriculture play in the climate crisis. It is calculated that agriculture, forestry and land use account for approximately 24% of greenhouse gas emissions. But this analysis is incomplete, as it focuses primarily on emissions generated on the farm and does not include ongoing land conversion, agricultural driven deforestation, food waste, input production (fertilizers and pesticides) and the global transportation network that facilitates industrial agriculture.

How Did We Get Here?

Small farmers, including fishers, pastoralists and indigenous people and farmworkers are on the frontlines of the climate crisis. Agriculture has a long history of negative social and ecological impacts, from forced labor and slavery, Indigenous land theft, and colonialism to the destructive nature of rapid industrialization. Modern industrial agriculture is rooted in colonial models, where intensive plantation economies were set up with the goal to extract as much wealth and resources as quickly as possible, relying on slave labor theft of Indigenous land and draining natural resources.

The 1950s and 60s began a period of industrialization of agriculture around the world by developing high-yielding varieties of cereal grains that are grown with modern scientific methods of utilizing synthetic fertilizers, agrochemicals, and pesticides. This period, dubbed as the Green Revolution, was often promoted under the guise of poverty and hunger reduction but despite creating huge surpluses, hunger actually increased, genetic diversity declined, and farmers were further impoverished. Largely due to the monopolies and control of agricultural mega corporations like Monsanto (now Bayer), peasant farmers and social movements have resisted the Green Revolution’s advance since its inception, most recently with the massive 2020 Farmer Protest in India.

Agriculture as Extraction

The expansion of the global agricultural footprint is the cornerstone of extractive agricultural practices. Agriculture land becomes increasingly degraded due to industrial practices, threatening the global insect population and destroying biodiverse ecosystems. As land gets degraded, those profiting continually look to convert more productive land through deforestation and burning, displacing local, Indigenous and rural communities.

Built upon years of exploitation, agriculture’s legacy is one of deep structural human rights abuses. Farmworkers and workers across the food system are saddled with low wages, lack legal protections, retaliation for organizing and unionizing, health hazards due to pesticides and fertilizers and exacerbated dangers from climate change effects of high heats, massive flooding and hazardous air quality. Women farmers are regularly excluded from holding land rights and accessing credit, limiting their agency over their livelihoods, children and homes. Farmers and indigenous people are stripped of land and territory rights and those who fight against extraction are targeted and killed, with 227 Land Defenders killed in 2020. The symptoms of the extractive model are visible  on the farm and plantation–and they extend the conversion of national agricultural economies to export-led growth, trapping poor countries in an underdevelopment cycle.

Former colonies have remained trapped in cycles of dependence to rich countries, replicating colonial economic structures, including forced and child labor, poverty wages and unfair payments farmers’ production. Unequal free trade agreements, gutting of local and regional economies and production, transnational corporation control and exploitative development policies shackles former-colonies to global systems dominated by wealthy countries.

Agroecology and Climate Change

Although the pressure from the Green Revolution models of thinking and global capitalist economies in market and policy pushes agriculture towards monocultures and large farms, small farmers continue to feed the majority of the world. Known as the “productivity paradox,” small farmers produce more food on less land with small farmers feeding 70% of the world using only 25% of the agricultural resources.

Small, peasant and indigenous farmers practicing agroecology are building off of traditional knowledge, protecting biodiversity, and farming in ways that mimic natural land. All this while feeding the world. Agroecology is an integrated approach to integrate relationships between plants, animals, humans and the environment while taking into consideration the social aspects that need to create a sustainable and fair food system.  Unlike other concepts like “sustainable” and “organic,” which focus exclusively on practices and prohibitions, agroecology is a holistic approach that combines indigenous knowledge with academic research, farmer livelihoods and economic & social components to address the root causes of problems and seek long-term solutions.

While agroecology is highly specific to localized contexts, the various practices of agroecology (such as intercropping, traditional fishing and mobile pastoralism, integrating crops, trees, livestock and fish, manuring, compost, local seeds and animal breeds, etc.) are grounded in the same ecological principles of managing biodiversity, building life and nutrients in the soil, restoration of water, and energy conservation.

False Promises and Corporate Capture

Corporations and institutions are working to greenwash conventional agriculture as “regenerative” or “climate-smart” or “carbon farming”, all while ignoring the power inequity in the food system and the material conditions of farmers, farmworkers and other workers from the global majority. “Carbon Markets” are emerging in the agriculture sector as dirty industries look to “offset” their greenhouse gas (GHG) emissions through schemes that purport to enhance agricultural soil’s capacity to sequester carbon. Commoditizing carbon only enriches wealthy landowners, all while incentivizing and rewarding activities that violate human rights, like land grabbing and displacing Indigenous, rural and forest communities from their land.

Despite consensus on the destructive impacts of industrial agriculture, the Food and Agriculture Organization (FAO) and other bodies of the United Nations continue to prioritize the interests of transnational corporations and agribusiness over significantly investing in community-driven agroecological solutions.

Peasant and Farmer Movement Solutions

Global movements of peasants, smallholder farmers, Indigenous people and farmworkers are not just pushing back on the industrialized food system that is fueling the climate crisis, destroying local ecosystems and biodiversity and violating human rights. Instead, they are actively putting into practice a vision that supports people and the planet.

 La Via Campesina, a movement of  millions of peasants, small and medium-size farmers, landless people, women farmers, indigenous people, migrants and agricultural workers, has been organizing for food sovereignty since the 1990s. Food sovereignty is defined as “the right to healthy and culturally appropriate food produced through sustainable methods and their right to define their own food and agriculture systems. It is based on a model of small-scale sustainable production benefiting communities and the environment. It includes the struggle for land and genuine agrarian reform that ensures that the rights to use and manage lands, territories, water, seeds, livestock and biodiversity are in the hands of those who produce food and not of the corporate sector.” Smallholder farmers and peasant communities are already building off of a strong history of practicing alternatives to our industrial, corporate dominated food system that prioritize life over profits.

Seed Sovereignty in Puerto Rico

Cleaning Seeds
Samantha Maria, El Departamento de la Comida. CREDIT: Adnelly Marichel

A large component of the fight for agroecology and food sovereignty is the fight for seed sovereignty. Restoring biodiversity to our food system and our planet is critical to adapt agricultural systems to climate change. According to the United Nations, 75 percent of crop diversity has been lost over the past century, largely due to corporate control of seeds, Green Revolution-era seed laws, intellectual property claims and gene modification.

Puerto Rico is one of the world’s largest GMO seed producers (Genetically Modified Organism), with Monsanto and Bayer producing the majority of soybean and cottonseed used in the United States on the island. El Departamento de la Comida, a grassroots collective in San Juan, Puerto Rico, and many other grassroots organizations, are creating alternatives to federal agencies and multinational corporations for food and farming through seed-saving and food sovereignty. Seed sovereignty is about more than just preserving biodiversity but also allows Puerto Ricans, like other communities, to reclaim an identity that has for many generations been an object of attack, colonization, and erasure. Seed saving is an ancient, ancestral practice and communities are continually fighting for seed sovereignty and against the industrialization and privatization of seed.

Agroforestry in Peru

Cooperativa Agraria Cafetalera Pangoa (CAC Pangoa) is a cooperative of 691 farmers and families growing coffee and cacao in San Martin de Pangoa, Peru. CAC Pangoa is focusing on growing coffee and cocoa diversified agroforestry systems to continue to improve soil health, provide shade to cocoa and coffee, and provide timber and fuel wood. Working to produce locally made organic inputs to avoid the pollution caused by transporting it over long distances, Pangoa produces kobashi organic fertilizer for cooperative members. José Luis Arroyo Unchupaico from CAC Pangoa notes that Climate change has created more pests and diseases for cocoa farmers in the region, organic farming and agroforestry have helped manage and reduce these pests and disease threats.

Finca Biodinámica in Honduras

Fredy Alexander Perez Zelaya

Café Orgánico Marcala (COMSA) and the ‘Finca Biodinámica’, Biodynamic Farm, is based on an organic agricultural system that is fundamentally oriented to life, maintaining the health of the soils, the ecosystems that surround it and the people who are in relation to it. COMSA is a leader in organic, biodynamic and agroecological practices of protecting soil with organic material, providing the necessary nutrients for crops using soil microorganisms, implementing diverse agroforestry practices and planting according to natural cycles. The ‘Finca Biodynámica’ is about more than soil, carbon sequestration and crops, but focuses on developing a conscious connection with local ecosystems, communities and Mother Earth.

Food sovereignty and agroecology is rooted around the sharing of rural, local and Indigenous knowledge. COMSA focuses on sharing knowledge and community with future generations through the COMSA International School, where the cooperative has created a schooling system rooted in respect and care for the environment, for oneself and for the community. ‘To survive we must think and act differently than the conventional [agriculture] systems, to evolve with a view on the long-term, diversifying, working with our children’

Farmworker Organizing in Honduras

Iris Munguia

The Honduran farm worker union STAS (El Sindicato de Trabajadores de la Agroindustria y Similares) has been at the forefront of organizing and representing farmworkers in Honduras. Honduras is one of leading exporters of winter fresh produce destined for the US market. Honduras also has a long history of corrupt US-backed governments and abysmal working conditions. In recent years, Honduras has witnessed the deadly combination of eroding human rights conditions and supercharged climatic disasters, including massive flooding.

According to STAS organizer, Ahrax Mayorga, “Honduras is a classic ‘Banana Republic’ with a history of over 100 years of banana production…causing a blight on the landscape, converting natural land and small farms to disasters.” Multinational corporations, like Fyffes’ and their local subsidiaries have continued a model of exploitation of Honduran works and environment alike. Farmworker unions, like STAS, have played a key role in advocating for workers’ rights across the globe. In addition to advocating for essential rights, like collective bargaining agreements, farmworker unions are on the frontlines of the climate crisis, fighting for worker health safety. “Chemical agriculture, along with heat stress, has created a health crisis for farmworkers, happening at the exact time that agriculture corporations are eliminating health benefits and protections for workers and COVID is hitting the countryside,” said Mayorga.

Fair Trade and Food Sovereignty in Nicaragua

Santos Melvin Sanchez Ramirez de la cooperativa 15 de septiembre, comunidad San José del Ojoche, San Juan del Río Coco Madriz, Nicaragua.

Fair trade’s roots are deep in Nicaragua. PRODECOOP, a secondary coffee cooperative in Nicaragua has been at the center of the fair trade movement for almost 30 years. PRODECOOP not only facilitates the export of fair trade coffee for some 38 village-level cooperatives, but provides ongoing farmer extension, training and credit services. These services are particularly critical in the context of coffee in Central America, as coffee farmers have confronted the ongoing coffee pricing crisis, coupled with climate change driven pests and diseases, like “La Roya.”

Key to PRODECOOP’s efforts in recent years has been a focus on agroecology and diversification for food sovereignty. According to Rosalba Gonzalez Baquedano, “We cannot confront climate change, take care of the environment and produce coffee organically without fair trade. Fair trade is our way to have a dignified life and a healthy community.” However, to address the climate crisis in rural Nicaragua is not cheap. As Gonzalez Baquedana mentions, “Adapting to climate change is very expensive for farmers. It requires additional labor, investing in resilient species and improving soil health. Farmers must be paid fairly for the investment we are making in producing health and organic crops.”

Movement of Rural Landless Workers Brazil

The Movement of Rural Landless Workers (MST) is a peasant social movement fighting for land, agrarian reform, food sovereignty and social justice in alignment with la Via Campesina  in Brazil. MST has launched a National Plan to Plant Trees and Produce Healthy Food initiative to plant 100 million trees and promote community-led agroforestry in response to the record deforestation and fires as well as the policies of the Bolsonaro government.

The goal is to recover degraded areas through the implementation of agroforestry and promotion of food sovereignty. Alongside this, they fight environmental destruction from agribusiness and mining. MST builds upon traditional, indigenous and peasant knowledge through Campesinas a Campesinas (Farmer-to-Farmer) trainings where peasants come together and share knowledge and organize around agro-ecological practices. MST is actively organizing for Popular Agrarian Reform that aims to redistribute land, produce healthy food for the Brazilian people, preserve the environment (water, land, biodiversity and air), confront all forms of violence and create new social relationships that prioritize people and the planet.

Taking Action for Food Justice & Climate Justice

In order to combat climate change we need strong, multi-faceted climate action. Achieving true climate justice requires systemic change at policy level, divestment from fossil fuels, overhaul of the big-agriculture industry, ensuring human rights and land rights for indigenous communities along with a disruption of all systems of inequality. The solutions to our food system, and its impact on the planet, already exist. Small-scale farmers practicing agroecology and food sovereignty are tackling the root causes of the climate crisis, hunger and poverty. Yet, there are still huge barriers for farmers looking to transition to agroecological practices, from lack of access to financial support, corporate control of seeds and resources to structural barriers like World Trade Organization (WTO), which prioritizes corporate profit, implements policies that human rights and destroy the environment and massively invests in food and farming systems.


We demand that leaders at COP26 divest from false solutions and invest in grassroots-led initiatives to create a food system and world that confronts power inequity, democratizes the control of land, water and knowledge, revitalizes biodiversity and ensures rights and dignity for people and communities.  

Take Action for Climate Justice and a Fair Food System:

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