Will certifications save the world?
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Translated by Linus Atarah
Finnish people frequently buy products which are produced or cultivated under inhuman conditions in the developing countries. Different certifications, i.e., indications providing ethical guarantees may have their roles in halting the exploitation of workers.
In many developing countries there are good laws and regulations. The problem is that they are not being followed.
Developing countries are fighting over markets in developed countries at the expense of the environment and the health of workers.
For instance the most dangerous of the agricultural toxic products which have already been banned here are taken to the developing countries.
A report by UN organizations two years ago says 1 to 5 million agricultural workers annually get various degrees of poisoning from these products.
Free export zones are still being established in many places around the world where trade union activities are not allowed and where foreign companies are granted tax exemptions or lengthy tax holidays. While the pollution and the harm are left in the developing countries, the profits are repatriated to the industrialized countries.
It is considered that certification, independent inspection of factories, i.e., auditing and standardization is one way of rectifying the situation.
In Finland, the most well known certification is the fair trade label. A farmer is paid a guaranteed price for his products that is higher than the world market price. In addition to that the farmers and the working community are paid a fair trade bonus which goes into improving schools and wells and other related projects according to decisions taken by the communities. Trade union rights are respected, all kinds of discriminations are forbidden and the use of toxic chemicals are systematically reduced. The fair trade certification is provided by the Fair trade Labelling Orgainsation.
Fair trade is only one of the innumerable organizations and initiatives by which attempts are made to improve working conditions and protect the environment. But in Finland there is still a long way from inspecting of working conditions.
The Finnish public sector buys its products and clothing from wherever. No demands are placed on ethical standards. Textile retailers and importers of clothing as a rule do not take into consideration workers' situations and the situation of environmental protection in the producing countries. Consumers do not question about the origins of products. These were revealed in two reports by FinnWatch last year.
Certification is a "terrible jungle"
But does certification guide all activities of companies? What does certification guarantee in reality?
- Certifications are a difficult, tedious and expensive route, says David Seligson, researcher at the Chemical Workers' Union.
According to him the first problem is that they are a "terrible jungle".
- The guidelines of the companies' own social responsibility code of conduct are not helpful. Enron had excellent ethical guidelines. It did not prevent it from collapsing as the world's historical biggest corporate corpse.
- SA8000 is big and clumsy, even though good as such. BSCI is a watered-down version of SA and bad according to the trade union movement.
- The Chinese are trying to roll out their unique CSC 9000T guidelines which are BSCI without the freedom to organize and have a collective bargaining agreement.
It has to be remembered that according to some estimates, two-thirds of Chinese factories use a double working hour accounting system. In computers there is one programme for outsiders and auditors and another one for actually calculating the actual working hours.
In Seligson's opinion the ISO26000 produced among standardization organizers and coming into force in 2009 signifies a change.
- ISO system is so well known and so influential that it is really capable of standardizing guidelines. It will have influence on all others.
The small actors must continue with their co-operation
Trade has absolutely the most power to influence workers' conditions.
- Textile retail is centred on trade. The core problem is not the small sweatshops in Bangladesh, but rather the big brand names which use these sweat shops, Seligson says.
- Within a few years the import prices of textiles into the EU have fallen by about 20 per cent. Only in Britain have retail prices fallen, says Seligson.
EU consumers are being enticed to buy "European clothing" at exorbitant prices even though in reality they are manufactured in cheap exporting countries.
Seligson describes how all small actors - consumers, trade unions and other fair trade campaign activists should continue their co-operation so that giant transnational corporations could be brought to heel.
- International legislation is not capable of bringing them under control.
Business interests resist the suggestion that clothing into the European Union should be marked with place of origin even though United States and Japan already demand it. To producers this is not a technical problem even though business interests present it as an obstacle that cannot be overcome, says Seligson.
He also lashes out at Finnish consumers.
- Consumers have to ask about place of origin. Every consumer when going out for shopping should reflect on whether it is worth buying the ten-euro pair of trousers. How much of it could actually remain with the worker?
Seligson wonders why Finland in its EU policy resists the above-mentioned place of origin and slavishly follows every legislation on the EU's regulation policy to its minute detail.
In reality EU regulations allow quality and suitability and not just competition based on price. Finland's taking completion policy to its extreme competition takes away the possibility of long term development.
New certified coffee from Paulig
Last autumn Pauling began the wholesale of Utz Kapeh certified coffee which is portrayed as "responsibly cultivated". The certification name has now been changed to Utz Certified. Paulig launched the retailing of the coffee in May.
Managing director of Paulig Ltd. Pekka Pirinen points out that the company's biggest labels are made of mixed coffee beans from different countries and that is one reason why they have decided to use the Utz certification.
- Raw material can easily be procured from South America, Central America as well as Africa where we buy anyhow. Utz Certified certifies large and small scale land holdings. We are satisfied with the system. To us it is transparent. It is open to inspection by outsiders and independent parties.
Paulig purchases mostly Brazilian coffee. Other important producer countries for the company are Colombia, Nicaragua, Guatemala, Kenya and Ethiopia. For instance, Columbia has been continuously on the list of Amnesty International reports as among the most dangerous countries for trade union members. In 2005, 70 trade union activists were murdered in the country.
According to Pekka Pirinen, Paulig has long time trade business relationships with all the countries from which it purchases coffee. The company demands better worker treatment and environmental protection in accordance with its own ethical guidelines from its existing co-operating partners. Thus Utz Certified coffee audits production conditions, apart from that Paulig does not conduct independent inspections in the developing countries.
- We analyse the issue at regular intervals. We travel constantly to the producer countries and make observations. Now we know all the exporters and we are able to trace 86 per cent of production facilities and 36 of the farmers in the original countries.
Pirinen believes that developing farmers in countries can significantly raise their income by improving cultivation methods and by investing in productivity and quality.
"Consumer is king"
Paulig and other European roasting houses are at the moment protected by import tariffs
- It is 7.5 per cent and I don't think it is decisive, says Pirinen.
According to him, roasting houses of developing countries would not be capable of meeting the certainty in delivery or the freshness that shops and consumers in western countries demand. Also cost of logistics would rise if the quality demanded of mixes would be transported between different continents. Pirinen points out that certified and other special coffees retailed in Finland are still less than two per cent.
- Consumers eventually decide on these issues with the choices they make, he said.