Cost of coffee.indd - RISC

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glossary bluewash The ploy used by many TNCs with poor records on labour relations and environmental protection to try to improve their image through association with the United Nations. This UNbusiness Global Compact partnership, launched by UN Secretary General Kofi Annan in 1999, includes a commitment from participating companies to advance UN goals by promoting human rights, sustainable development etc, and establish partnerships, including donations, with UN agencies. www.unglobalcompact.org; www.corpwatch.org branding The identity of an organisation is summed up by its brand image – a combination of its name and reputation, often built up over many years, and the external appearance, eg logo, design of shops/product. A brand is a major asset – many resources are used to build and maintain a positive brand image through marketing and public relations. www.interbrand.com cause-related marketing The business practice of enhancing image through links with good causes, including sponsorship of arts and sport, and vouchers for school books and computers. codes of conduct and ethical sourcing A Code of Conduct is a statement about the ethical standards that a company claims to uphold, particularly regarding workers’ rights and environmental protection. These Codes are voluntary and are usually drawn up by the company itself. Supply chains are often very complex because of sub-contracting, so verification is difficult. Campaigners are trying to establish agreed international codes which include independent monitoring. www.labourbehindthelabel.org corporate social responsibility According to Business for Social Responsibility, CSR is “a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the company – wherever the company does business – and includes responsibility for current and past actions as well as future impacts… CSR typically includes issues related to: business ethics, community investment, environment, governance, human rights, marketplace and workplace.” www.bsr.org; www.core.org fair trade An alternative to conventional world trade. It is a partnership between producers and consumers, based on reciprocal benefit and mutual respect. Fair trade ensures producers in the South receive a fair price for the work they do, and gain better access to markets in the North. It aims to tackle the long-term problems of the South through sustainable development for excluded and disadvantaged producers. globalisation (economic) Process where barriers to international trade, eg taxes on foreign imports, subsidies for local producers, restrictions on foreign investment, have been progressively reduced, ie trade liberalisation. This has resulted in a more open global marketplace for commodities, manufactured goods, capital, labour and services. As a result, the volume of world trade has increased considerably, along with the number of transnational corporations (TNCs), who now have easier access to world markets – to buy and sell – and can increase profit margins by moving their manufacturing operations to lower-cost countries. greenwash The phenomenon of socially and environmentally destructive corporations attempting to preserve and expand their markets by posing as friends of the environment and leaders in the struggle to eradicate poverty. The advantages of an ethical image are well known, and public relations (PR) companies openly advise businesses facing criticism to aggressively advertise their links with good causes, in order to counteract bad publicity. www.corpwatch.org 4
lobbying The practice used by organisations trying to persuade policy makers to favour their interests. Both NGOs and TNCs lobby politicians and policy makers, but business has more resources at its disposal. Methods include making donations to political parties, setting up Business Interest NGOs (BINGOs), and employing professional lobbying consultants who have direct access to the corridors of power. Influential BINGOs include the International Chamber of Commerce (ICC) and the Business Council for Sustainable Development (BCSD). north, also known as developed countries Shorthand for the industrialised countries of Europe, North America and Japan. First used by the 1980 ‘Brandt Report’, which described the under-development of the poor countries (most found south of a line drawn across the globe) by the rich nations of the ‘North’. A new alliance of rapidly growing large economies is emerging, BRICS (Brazil, Russia, India, China, South Africa), which will be of increasing significance in the 21st century. public relations According to the British Institute of Public Relations, PR is: “… the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics” – customers, employees, investors, government etc. Methods include sponsorship of education, sports and the arts, contribution to charities, community organisations and other good causes. south, also known as third world, developing or underdeveloped countries Shorthand for the poorer countries of Africa, Asia, the Caribbean and Latin America. However, each collective term has its inadequacies – ‘South’ infers there is a geographical explanation for inequality, ‘Third World’ implies inferiority, ‘majority world’ is factually true, but not in widespread use, ‘developing’ assumes there is a natural path towards a western model of development, ‘underdeveloped’ suggests poverty is the result of a process. There are also differences between countries, so more specific terms are being used – emerging and transition economies, newly industrialising countries (NICs), least economically developed countries (LEDCs), highly indebted poor countries (HIPCs)… spin Putting a bias or slant on information, in order to create a favourable impression. First used in the US in late 1970s to describe the work of political press agents, but now used widely to describe ‘news management’ and PR generally. transnational corporation (TNC), also known as multinational corporation (MNC) Big businesses which have subsidiaries, investments or operations in more than one country. Annual turnover of some TNCs exceeds £60bn – their size and wealth gives them great power. In 2004 51 of the world’s 100 largest economies – including nations – were TNCs. triple bottom line Term used to describe how businesses attempt to expand the traditional company reporting framework to take into account environmental and social performance as well as financial outcomes. www.sustainability.com world bank (WB) & international monetary fund (IMF) Set up in 1944, these specialised financial agencies of the United Nations are part of a system which aimed to stabilise the world economy. The IMF promotes international monetary cooperation and the growth of world trade, and stabilises foreign exchange rates. The WB provides loans to countries for development projects. Since the 1970s, both organisations have enforced the move towards a more open, liberalised global economy. www.worldbank.org; www.imf.org world trade organisation (WTO) Set up in January 1995, the WTO took over from the General Agreement on Tariffs and Trade (GATT) as the forum where the universal rules governing a single, liberalised, global economy are written. Unlike the GATT, trade rules agreed in WTO negotiations, are legally binding and can be enforced by the threat of sanctions and compensation payments. www.wto.org 5
Page 2 and 3: credits devised, written and design
Page 4 and 5: “ A company that adopts and imple
Page 6 and 7: the instructions What you need - ge
Page 10 and 11: coffee file Coffee: adaptation of A
Page 12 and 13: 8 the story of coffee D the coffee
Page 14 and 15: wet method D requires the use of re
Page 16 and 17: 200 Robusta coffee market 1986-2005
Page 18 and 19: drinker roasted, ground, instant CO
Page 20 and 21: 16 key ideas ◆ ◆ ◆ ◆ ◆
Page 22 and 23: Profit margins are high - Nestlé h
Page 24 and 25: key ideas ◆ ◆ ◆ ◆ In respon
Page 26 and 27: • because of past price fluctuati
Page 28 and 29: aim a fair price? ◆ To analyse th
Page 30 and 31: ◆ Although in The coffee cycle Ne
Page 32 and 33: s Analyse the photos used and the o
Page 34 and 35: ◆ ◆ Real costs A supply and dem
Page 36 and 37: aim how fair’s fair? ◆ To explo
Page 38 and 39: actionpage: how fair’s fair? s Re
Page 40 and 41: 1990 european fair trade associatio
Page 42 and 43: Actionpage: Pros & cons 38 PROS Gua
Page 44 and 45: aim fair marketing ◆ To analyse t
Page 46: Actionpage: Logo ® 42
Page 49 and 50: actionpage: press release Statement
Page 51 and 52: appendix 1: the coffee crisis The I
Page 53 and 54: demand sides in which the coffee cr
Page 55 and 56: demonstrating that traditional shad
Page 57 and 58: appendix 4: co-op’s fairtrade cof
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appendix 5: mugged introduction The
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women earn less, work longer, have
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appendix 6: rescue plan A Coffee Re
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Consumer governments 1 Provide poli
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joining forces we believe that we w
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of shortfalls that occur (see Nestl
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appendix 8: robbing coffee’s crad
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appendix 9: behind the mask the rea
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• change the law to enable people
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Fair Trade in Action - KS 3-4 Fairt
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ackground reading* Behind the mask:
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useful contacts Anti-Slavery Intern
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International Coffee Organisation w
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isc Reading International Solidarit
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Cost of coffee.indd - RISC

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