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Global Compact International Yearbook 2009

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “ Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “

Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

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Best Practice<br />

Human Rights<br />

The project has already made a difference<br />

for thousands of children in Ghana and<br />

at the same time has been an important<br />

learning process for Toms. This project<br />

in Ghana was a first for Toms. It has<br />

given Toms hands-on experience from<br />

the supply chain and, at the same time,<br />

spread a sense of satisfaction amongst<br />

the company’s employees about this<br />

corporate responsibility initiative.<br />

Toms has always sourced most of its<br />

cocoa from Ghana. Although Toms<br />

is the largest confectionery manufacturer<br />

in Denmark, its cocoa purchase<br />

is equivalent to less than one percent<br />

of Ghana's total cocoa export. Though<br />

Toms is a somewhat small player in the<br />

international cocoa market, the company<br />

decided to make a commitment to the<br />

Ghanaian cocoa producers corresponding<br />

to the size of its purchases. The education<br />

project is one expression of this<br />

commitment.<br />

One of the biggest issues to consider<br />

when buying cocoa from Ghana is the<br />

issue of child labour. Due to its commitment<br />

to the <strong>Global</strong> <strong>Compact</strong>, Toms<br />

wishes to dissociate itself from all cases<br />

of child labour. However, the issue of<br />

child labour in the cocoa supply chain<br />

is complicated, as it is intertwined with<br />

poverty and cultural traditions.<br />

Cocoa in Ghana is produced by approximately<br />

850,000 small family farms. Many<br />

of these families are very poor and have<br />

their children assist them to generate<br />

more income. How best to be a cocoa<br />

farmer is traditionally passed on from<br />

generation to generation, and it is therefore<br />

very important to the parents to<br />

make sure that their children will be<br />

able to take over the farm one day.<br />

The problem is not that children help<br />

their parents farm cocoa. But when helping<br />

the parents prevents the child from<br />

attending school, or when it harms the<br />

child physiologically or mentally, it is<br />

considered to be child labour.<br />

The project that Toms has embarked<br />

upon addresses the goal of protecting<br />

children, and consists of several components.<br />

The project seeks not only to ensure<br />

that children attend school; it also seeks<br />

to ensure that they stay in school. The<br />

quality of education in rural schools is<br />

often so poor that it demotivates both<br />

children and parents, who are unsure<br />

what good will come out of attending<br />

school. The poor quality stems from<br />

both outdated teacher education and,<br />

more commonly, a basic lack of teachers.<br />

Very few teachers wish to work in<br />

remote areas, like the cocoa producing<br />

areas, and so teaching in village schools<br />

is often undertaken by young boys or<br />

girls with no formal training. Though<br />

the young untrained teacher’s efforts<br />

are an attempt to give the children some<br />

kind of education, the quality is often so<br />

poor that parents choose to keep their<br />

children at home.<br />

As a result of this vicious circle, the main<br />

component of the project addresses the<br />

teachers. The Ghanaian Government<br />

already has an education system set up<br />

in these areas but is faced with many<br />

challenges, among other things due to<br />

a lack of resources. The project therefore<br />

feeds into the existing governmental<br />

structure.<br />

In the districts encompassed by the<br />

project, about 400 trained teachers and<br />

350 untrained teachers have been supported,<br />

either by updating their teaching<br />

capabilities or providing actual teacher<br />

training.<br />

So far, the outcome of the training as well<br />

as the commitment from the teachers<br />

has been overwhelming. For example,<br />

the untrained teachers spend almost<br />

all their spare time and vacations at<br />

the training college, overjoyed in their<br />

eagerness to receive formal training.<br />

Most importantly, the feedback from<br />

the teachers themselves shows that the<br />

project benefits the children in more<br />

than only academic ways. One of the<br />

teachers reported no longer hitting the<br />

children, as his training has equipped<br />

him pedagogically to refrain from corporal<br />

punishment when situations arise<br />

in the classroom. The same teacher also<br />

explained how the children now confide<br />

in him, because he has realized that his<br />

responsibility is not only to teach but also<br />

help the children and prepare them for<br />

a future outside of school.<br />

As in many places in Africa, the schools<br />

have no or only very few educational<br />

materials. As part of the project and as<br />

a way of supporting the teachers, the<br />

project also supplies such materials to<br />

the schools.<br />

The project takes a holistic approach.<br />

Accordingly, it not only focuses on the<br />

teachers but also the parents. As a result,<br />

a local NGO has been engaged in the<br />

project to support existing or start up<br />

new Parent Teacher Associations (PTAs)<br />

as a means of involving the parents in<br />

their children’s education and as a way<br />

of addressing the issue of child labour.<br />

Furthermore, radio programmes have<br />

been produced and broadcasted locally.<br />

The programmes are primarily addressed<br />

at the parents and are yet another way<br />

of engaging parents on the issues and<br />

dilemmas also discussed in the PTAs.<br />

In addition to the actual project in Ghana,<br />

Toms has decided to share the experience<br />

from the project with Danish students.<br />

Every year, approximately 15,000 students<br />

visit Toms to gain an insight into<br />

the company and chocolate production.<br />

Toms wishes to use this opportunity to<br />

communicate with the visitors about<br />

the company and its supply chain. The<br />

students will therefore be introduced to<br />

the way of life and challenges of children<br />

in the cocoa producing areas.<br />

The education project has enjoyed success<br />

and strives to ensure that all children<br />

in the cocoa supply chain are treated<br />

properly. Similarly, Toms’ engagement<br />

in the cocoa supply chain is a sign of its<br />

commitment to responsible and proper<br />

management.<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong> 75

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