Category Archives: Ético

Part of the Problem or the Cure?

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Graph courtesy of OXFAM

OXFAM recently published a report looking at the 10 biggest food and beverage companies climate practices called “Standing on the Sidelines”. The data collected from these ten companies reveal a threatening cycle of emissions and environmental damage – that while agricultural yields and prices are drastically affected by volatile climate crises, they are at the same time contributing to greenhouse gas emissions that create the volatile climate. This report shows that our food systems are ultimately flawed if they don’t take future production sustainability seriously and responsibly. Creating markets and incentives for sustainable food production is more important than ever to ensure that our food production is part of the problem rather than the solution. Ethical businesses that put sustainable values into practice like the cooperative-owned import company Ético, and the hundreds of companies that purchase from farmer cooperatives that practice reforestation, carbon sequestration, and soil conservation are actively working to reduce that blue slice above that represents industrial agricultural production emissions from the biggest ten food and beverage companies in the world. Studies such as the Rodale Institute’s paper on Regenerative Agriculture show there are concrete actions that farmers can take to reverse the negative impact of food production. What else can we do to build and support the supply chains that value regenerative farming practices to make them the leading examples in the food and beverage industries?

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The Wide World of Women in Agriculture

Women’s empowerment, gender equality, climate change, sustainable agriculture, and the future of our food systems are topics that deserve the increasing academic and media attention they are increasingly receiving.  For academics, ethical business entrepreneurs and development professionals this means a constant growth of new resources to track impact and share political, economic, and educational strategies that bring together our common goals.  A new collaboration between “Feed the Future,” the US Government’s Global Hunger and Food Security Initiative, USAID, the International Food Policy Research Institute, and the Oxford Poverty and Human Development Initiative has announced a new index that will add to the resources publicly available.

The Women’s Empowerment in Agriculture Index (WEAI) claims to track women’s engagement in agriculture in five areas, including relative empowerment to men in their households and communities:

  • Production
  • Resources
  • Income
  • Leadership
  • Time Use

The case studies for the base-line survey work for the index were conducted in Bangladesh, Guatemala and Uganda, and the brochure claims that 19 countries will initially be included in the index. Although it is great to see resources directed toward understanding and improving the role of Women in Agriculture by these development organizations, this is by no means a strictly developing world issue. As organizations such as the Women’s Food and Agriculture Network in the US and the Women’s Food and Farming Union in the UK demonstrate, women have been and remain a vital force in the success of food production around the world, and deserve recognition and equal resources for their work. The increasing attention on the role of women in agriculture will hopefully expand to include a look at the empowerment struggles of women world-wide as stewards of the land and essential contributors to the future of our food.

Roots in Revolution

Make sure to check out the Spring 2014 issue of the Fair World Project’s publication For a Better World.  It features an article by Social Business Network director Nick Hoskyns on the Roots of Revolution, and photos of the fantastic ladies of Wikilí, Achuapa and one of the first cupping labs build in the hands of coffee producers.  You can also read the article online, spread the word – the revolution for a better world continues!

Cooperative Africa

In January Social Business Network’s director Nick Hoskyns traveled to Uganda and Rwanda with the Thanksgiving Coffee Company to visit several coffee cooperatives.

Nick brought his expertise in cooperative development to help deepen the relationships between the coffee growers, cooperatives, and buyers and resolve some transparency issues. He reflects afterward on the relevancy of his years of experience in Latin America in other continent, showing the universalism of cooperative business model.  “Uganda and Rwanda are beautiful and fascinating in their own ways with a lot of potential and really wonderful people.”

You can read more extensively about the trip on Thanksgiving Coffee’s blog.

Ético: An Alternative Trading Company

In this guest blog Social Business Network/Ético intern Nora Burkey applies the frameworks outlined in a classic text used in many business and development schools to form an analysis of Ético’s business model: 

In their newly revised book “Reframing Organizations: Artistry, Choice, and Leadership,” Lee Bolman and Terrence Deal maintain that people live their day-to-day lives as parts of many complex organizations, from schools to sports teams, from families to the working world, and more.  Cooperativization in Nicaragua is a very clear example of how people commit to organizations, and likewise Ético: The Ethical Trading Company provides another example of organization in the workplace, as it is a company 100 percent owned by organizations who work together.  As a very innovative company that at its core is promoting a fairer model for international trade, how can Ético show that managing so many organizations and interests is not only possible, it is better?

As the United States has ruled that corporations may be considered people, at least symbolically, perhaps it is not so strange to consider Bolman and Deal’s point that companies or organizations need ethics, or a soul, to survive.  They need a sense of identity.  Bolman and Deal write,

Many would scoff at the notion that organizations can have soul, but there is growing evidence that it is a critical element in long-run success.  A dictionary definition of soul uses terms such as “animating force,” “immaterial essence,” and “spiritual nature.”  For an organization, group, or family, soul can be viewed as a bedrock sense of identity, a deep confidence about who we are, what we care about, and what we deeply believe in….Growing evidence suggests that tapping a deeper level of human energy pays off (p. 396).

Quite possibly it is the very soul of Ético that makes it function so well.  Ethics, and giving voice to more people within an organization is not only moral, it is equally if not more efficient than power concentrated in the hands of one leader or one owner.

In their book, Bolman and Deal present four frames with which to look at and understand organizations.  Their purpose in doing so is to help organizations better manage themselves, as “modern mythology promises organizations will work splendidly if well managed,” (p. 8).  Although, they say, there exists book after book on how best to manage a company or organization, very few people understand the importance of joining solutions together and understanding organizations through many different lenses.  This is critical, as organizations are made up of individuals who all see differently.  Viewing Ético and the cooperatives they work with in light of the four frames outlined by Bolman and Deal gives a better sense of their function, mission, and effectiveness.

The structural frame emphasizes goals and roles for a unified strategy that produces output. The workplace can be viewed as a factory, whereby “the ethical imperative of the factory is excellence: ensuring work is done as well and as efficiently as possible to ensure high-quality output” (p. 400).  There are many examples of high-quality, unique and individual output in the work of the cooperatives and Ético.  The Body Shop (TBS) buys quality sesame oil from one of Ético’s shareholding cooperatives, Juan Francisco Paz Silva (JFPS).  When the price of sesame rose in 2008, The Body Shop and the JFPS Coop renegotiated what the new price was going to mean, and in doing so authored the unique “Recognition of the Unpaid Work of Women.”  As an additional example, cooperative members have created their own unique products, from sesame candy to hibiscus wine, all of it at a level of quality that both The Body Shop and small farming communities can be proud of.

In the human resources frame, the organization can be viewed as a family.  Bolman and Deal write,

Caring—one person’s compassion and concern for another—is both the purpose and the ethical glue that holds a family together….A caring family or community requires servant leaders who serve the best interests of its members and stakeholders.  This implies a profound and challenging responsibility for leaders to understand the needs and concerns of community members so as to serve the best interests of individuals and the community as a whole.  The gift of the servant leader is love” (p. 402).

Both authors acknowledge that it seems strange to talk about love in terms of organizations, but maintain that a successful leader of an organization is truly a servant, and serves out of self-less love for the family or organization.  The very structure of Ético relies on servant leadership.  Historically, The Body Shop had been buying from the JFPS Cooperative before Ético existed.  In fact, Ético was born when L’oreal bought The Body Shop to preserve the direct relationship between the JFPS Cooperative and the renowned cosmetics line.  What this demonstrates is that Ético was born out of service to the cooperative when the farmers needed a new type of leadership to be able to continue working with a large multinational company.

In the political frame, the workplace can be seen as a jungle where there is a constant battle and the routine seeking-out of self-interested gains.  “In a world of competing interests and scarce resources, we are continually compelled to make trade-offs.  We cannot give everyone everything they want, but we can honor a value of fairness in making decisions about who gets what” (p. 403).  Bolman and Deal maintain that leaders can ensure this type of justice in the workplace by putting power in the hands of employees.  “People with a voice in key decisions are far more likely to feel a sense of justice than those with no seat at the table” (p. 403).  In the cooperative model, members gets one vote no matter how much land or money they have, and no matter how much they supply to the cooperative.  By working with cooperatives, Ético ensures that it works with the most marginalized groups, the smallest of farmers, giving them as much as say as those better off, creating a sense of justice in being a cooperative member.

Finally, in the symbolic frame , “An organization, like a temple, can be seen as a sacred place, an expression of human aspirations, and monument to faith in human possibility.  A temple is gathering place for a community of people with shared traditions, values, and beliefs” (p. 405).  Above all, workers must feel that the organization is doing something worth doing, that there is some significance to their work.  As the founder of Ético has been with the cooperatives from the beginning, instrumental in their creation, Ético is an outgrowth of the existing family.  Together, that family has many traditions.  For example, each year the cooperatives and Ético share traditions, such as putting on an annual music festival, and so far these traditions have not been broken.  There is a very real sense of community, and based on conversations with cooperative members, there is the belief that the cooperatives, as well as Ético, are there to help.  The cooperatives believe in what they do and therefore members believe in them too.

Source: Bolman, L. G. & Deal, T. E. (2003).  Reframing Organizations: Artistry, Choice, and Leadership.  San Francisco, CA: Jossey-Bass.

Nora Burkey is currently a candidate at SIT Graduate Institute for a Master’s in Sustainable Development.  She became involved with Social Business Network in August 2013 after connecting with Dean’s Beans Organic Coffee Company, a trading partner of ÉTICO.  She currently lives in León, Nicaragua, and plans to continue working with Dean’s Beans and Social Business Network on development projects into 2014.

Reclaiming Fair Trade – A Reflection

Presenting our first guest blog by Nora Burkey, who Social Business Network has the honor of hosting for her Master’s research in Sustainable Development: 

While fair trade enthusiasts are quickly dropping their affiliations with certifying bodies, explaining it is because they are still committed to original standards whereas new members are not, the confused reader, inundated with information about poor farmers just getting poorer—fair trade or not—might wonder why fair trade ought to be defended at all.  Remember that income accounting does not create the whole picture.  Fair trade has contributed to increased access to credit at lower interest rates, more childhood education, a greater degree of food-security, and more.  Fair trade premiums to cooperatives also benefit farming communities as a whole, such as greater access to healthcare for the whole village.  But fair trade wasn’t just about poverty, it was about revolution, and its successes and failures ought to be looked at in that light.

Fair Trade offered the cooperative structure as a solution to privately-owned farms that have an unfair system of wage labor.  This allows farmers ownership of their land, not just their labor, and provides a democratically governed body to oversee social projects and communicate with buyers without being owned by them, leaving decision-making with the farmer.  So when large coffee plantations can become certified as fair trade, as Fair Trade USA recently decided to allow—breaking off from Fair Trade International in order to do so—what we have is a private system that has nothing to do with what fair trade ever meant to imply, and what fair trade ends up meaning is something like minimum wage with a social premium benefit.  And whereas before 20% of a product had to be fair trade to receive the label, now just a mere 10% is required by Fair Trade USA, so it’s not even minimum wage for all.

Under current standards, to sell fair-trade certified products, only 5% of a company’s sales must be fair trade, and there is no obligation to increase this percentage over time.  Nor are large producers required to slowly become more cooperative in structure by giving each farmer a vote and ownership over their own production.  The presence of large multinationals and large plantations at the table only limits a small farmer’s access to the market and ensures the largest piece of the pie goes to the largest producer or buyer.

The most damaging of all is that the weakening of standards has forced the founders of fair trade out.  No longer do the truly committed want to be associated with the term they created, as to many consumers, it denotes something so tame the only impact it makes is a bad one.  It seems anyone can create their own label these days and certify it independently, allies and enemies alike.  Some have stricter standards and some have weaker, but if consumers are not educated, it is impossible to know which label is which.  And since fair trade depends on consumers rather than the state to ensure it continues to be a part of commerce—it only exists as long as people are willing to buy fair trade products—creating so many labels, and so much confusion, is a lot like playing with fire.

The struggle is whether to reclaim the name that has been co-opted or admit that it’s already been stolen.  In my own life I choose to reclaim it, because I believe it is important that people understand fair trade was and is not a failure, it can only be failed.  I choose not to be someone that fails it, to be someone who fails to support all that fair trade has done.  The commitment still feels pretty radical to me, in all senses of the word.

Nora Burkey is currently a candidate at SIT Graduate Institute for a Master’s in Sustainable Development.  She became involved with Social Business Network in August 2013 after connecting with Dean’s Beans Organic Coffee Company, a trading partner of ÉTICO.  She currently lives in León, Nicaragua, and plans to continue working with Dean’s Beans and Social Business Network on development projects into 2014.

Tecafé – a collaboration with Wales

The Wales Nicaragua Solidarity Campaign has partnered with Ético and Nicaraguan cooperatives SOPPEXCCA and CECOCAFEN to offer a fair trade women’s grown coffee in Wales, Tecafé.  While the name may be confusing for those who speak Spanish – Teacoffee? – they explain that Tecaf is the Welsh word for fair, and so the name really embodies the partnership created between Nicaragua and Wales through the purchase and sales of this coffee.  Read more about the good work of the Wales Nicaragua Solidarity Campaign and watch a short video about their new coffee brand on their blog.