PowerPointPrsentation

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A Growing Responsibility
presented by Zoe Anderson, Amrit Chaggar, Nico
Streuber, Eveline van Drielen, Julian von
Bismarck aka 5plus consulting
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A Growing Responsibility
presented by Zoe Anderson, Amrit Chaggar, Nico
Streuber, Eveline van Drielen, Julian von
Bismarck aka 5plus consulting
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Presentation Structure

• Current Statistics on Horticulture in Kenya
• Ethical Issues
• Codes of Practice
• Issues concerning Supermarkets
• Intermediaries
• Stakeholders
• Recommendations

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Statistics on Kenya

• Population 31.6 million
• GDP per capita 1020
• Population below poverty
• Labour force by occupation
• - 75-80 agriculture
• Major industries
• Small-scale consumer goods
• Agricultural products processing
• Oil refining

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Current Statistics on Horticulture in Kenya
Def. the science and art of growing fruits,
vegetables, flowers, or ornamental plants

• Production 38,000 tons (2002)
• Turnover 110 mn
• Employees 100,000 in the flower production
• Estimated Export to EU 94
• 75 of exported flowers are grown by 24 large
  growers

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Major Ethical Issue

• Use of pesticides and resulting working
  conditions

There is a growing concern among consumers that
the goods they buy should be produced in
conditions that are safe and decent and which
enable working people to maintain their dignity
and a reasonable standard of living. (Mick
Blowfield, 2001)
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Effects of pesticides on employees health
Reasons for poor working conditions
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Legislation Regulative Associations
Codes of practice

• Multiple retailers (Tesco, Sainsburys, etc.)
• Industry associations (Kenya Flower Council,
  etc...)
• Independent bodies (UN, FAO,etc...)
• Two different types of code

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Kenya Flower Council

• Mission Statement
• foster the responsible safe production of cut
  flowers in Kenya, while protecting the natural
  environment and benefiting the welfare of all
  farm staff
• Member requirements
• Problems with Codes of Practice

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Supermarkets / Mission statement

• Socialy responsible sourcing
• Member of Ethical Trading Initiative(ETI)
•  
• Tesco does not buy directly from any primary
  producers
• Acting responsibly wherever we operate
• Member of Ethical Trading Initiative(ETI)
•  
• We work hard to meet social,environmental and
  ethical responsibilities
• Member of Ethical Trading Initiative(ETI)

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What is the ETI?

• The Ethical Trading Initiative is
• an alliance of companies
• non-governmental organisations
• trade union organisations
• primarily exists to implement international
  labour standards in international supply chains
• ETI members commit to adopt ETI Base Code
• Exist since 1998

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Activities of the ETI

•  
• Longer Term Activities
• ETI has three objectives for the period 2004,
  namely
• good practice in the implementation of codes of
  labour practice
• support the existing members
• building strategic alliances and relationships
  with other organisations
•  
• The key ways to meet objectives are
• Pilot projects
• Capturing and disseminating Learning
• Events
• Research
•  
• MEMBERS
•  
• Sainsburys, Tesco, ASDA, Marks Spencers, BBC
• International Confederation of Free Trade Unions,
  TUC
• Africa Now, Freetrade Foundation,.

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Use of the media for positive coverage

• Involvement
• Pesticides action network
• Friends of the Earth
• Greenpeace
• ETI

 Ethical projects

• Projects with farms
• Providing of protective clothing and equipment
• Ensure high enough wages

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Role of Intermediaries

• Help over come discrepancy of assortment by
  reducing number of contacts between suppliers and
  end customers
• More and more tasks passed through intermediaries
  lose control and power over its products and
  how they are sold
• Buyers have the greatest degree of influence over
  the behaviour of other parties

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Supply chain for the growing of horticulture in
Kenya
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Supply chain continued

• Becoming more complex and difficult to manage
• Socially responsible supply chain is the
  well-being of producers and workers within the
  chain
• Well-being identified as governance, good work
  practices, health and safety, compensation and
  investment
• ETI encourages the use of a widely endorsed set
  of standards to improve labour standards around
  the world

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Who are the stakeholders in this issue?

• The Kenyan Government
• Income for the country
• Tax
• Farmers
• Jobs
• Money
• Customers / Consumers
• Health issues
• Environmental Issues

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Who are the stakeholders in this issue?

• Shareholders of the supermarkets
• Low cost -gt high margins
• NGOs and other organisations
• Oxfam
• Brot für die Welt
• International Union of Food and Agricultural
  Workers
• Terre des Femmes

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As a supermarket chain what should you consider
when importing flowers from Kenya?
Two opposing strategies for the marketing
department
The Ethical Way
The Business Way
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The Business Way
The Ethical Way

• Monitoring supply
• Insist on ethical policy
• Membership ETI
• Marketing Campaign

• Denial of all responsibility
• dont ask dont tell policy
• Strategic approach

Recommended Action
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Any Questions?