Interesting examples and exchange also in the ‘Inclusive Business Action Network’ (iBAN), a global initiative (https://www.inclusivebusiness.net/)) funded by the BMZ and the European Union
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· Through our “Valuing Respect Project”, Shift is conducting research on the elements of business models that embed risks to people. We have developed a resource – the Business Model Red Flag Indicators – now in BETA, that will help businesses and their stakeholders identify human rights risks associated with their business models. The research will also include various mitigation examples and examples of alternative business models.
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I’ve noticed some moves away from Fairtrade recently, some to in-house accreditation schemes, and a couple to Rainforest Alliance, which as I understand it does NOT look at the social / human side of the equation as strongly…
@Flynn_Lebus
Have you seen any business making special efforts to improve working conditions of their workers?
A1. CDC recently invested in a company called iMerit in India which breaks two models - firstly it is creating jobs in the AI sector, the company does data labeling to for example teach self driving car algorithms to recognise images. Secondly, rather than locating itself in urban centres with lots of qualified tech workers, they have located themselves primarily in rural India, and they employ over 50% women from low income backgrounds and train them up. They have shown that empowering people with few opportunities, and training them up, creates a stable and motivated workforce.
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Thanks Richard, that is a helpful analysis and findings we would echo. Our farmers are often in the position where they are disproportionately shouldering the risks within a supply chain, with little resources (insurance etc) to offset this risk. This can become a disincentive to investment, which only reinforces their vulnerability. COVID 19 has really underscored this, with farmers having an excess of produce they cannot sell through not fault of their own.
Agree - certification is limited to some degree as the small holder model in some ways perpetuates poverty as no one farmer can scale. Hence why many companies are shifting away from certification.
Hi - we have a partnership with Primark and we see that livelihoods of farmers at the beginning of their cotton supply chain are important to the business from the CEO and the buying team.
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@MarkHauser what do you see as the main risks of moving to in-house schemes? And what are the advantages?
Nestle is making efforts towards making sourced raw materials more traceable and transparent. This year, they decided to disclose the list of suppliers, which is the first disclosure of its kind in the industry and aims at increasing transparency in the agri-food sector. Do you think all companies should do this? Any other effective measures you have seen being put in place by large companies?
We are supporting a wide range of firms striving to improve their hiring and retention of young talent over the past few years: https://www.talentrewire.org/
Thanks, Flynn! Will check it out
Hi Alison - In your work with major brands - are you seeing much evidence of them being more prepared to commit to longer-term contracts with their suppliers to encourage them to invest more in decent work and share commercial risks?
Question two today:
Q2. What are some of the challenges lead firms face in promoting business models for decent work?
Also, we are seeing agriculture firms seeking with work with organisation’s like Rainforest Alliance to try and boost sustainable farmers (e.g. fruit growers in LatAm)
In many cases “certification” of labour and environmental conditions (and support for suppliers to get there!) can work. So this in many cases can provide a model. A tricky issue is that bigger businesses might be scared away from doing more about addressing poverty in their supply chain if conditions are difficult. This “scaring away” can be driven by “compliance driven models” as well (like based on audits and certifications)
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A2: As I highlighted earlier, we’ve seen some great business models for decent work start to emerge over the last few years. But the scale of the challenge is huge, something coronavirus has forcefully brought home. Informal workers are the breadwinners for 80 percent of rural African households, and even firms proactively working with immediate suppliers to ensure adequate pay and working standards will have little visibility at every stage of their supply chain.
Hi Alison, you may also be interested in this example: IRC and Olam/ SECO have partnered on the following programme – Pro Jeunes In the rural Tchologo region of Ivory Coast IRC partners with Olam/SECO to work with young agriculturalists over the course of four years to integrate them into the company’s cotton supply chain. You can find further information here on page 8: https://www.rescue-uk.org/sites/default/files/document/2136/privatesectorbrief091219.pdf