Responsible sourcing at Nestlé – BSL students learn first-hand about key elements of corporate sustainability

As all of us working in this field know, sustainability is highly complex, requiring an understanding of multiple disciplines, many of which rather technical. Additionally, there’s a big gap between theory and practice, especially when attempting to transform existing companies and systems that were not built with sustainability in mind.

In our case, after 5 classes of “Business Responsibility & Sustainability”, covering principles, natural and planetary boundaries, human dimensions, major programs like SDGs and MDGs, the role of businesses, stakeholder models and management, including role plays on how companies create conflict and how to resolve them – it was time to see how it all works in practice.

Early January, we were fortunate to be received by Dionys Forster (Sourcing specialist, department of corporate agriculture) and Diarmuid O’Connor (Global manager, agricultural raw materials) at the Nestlé HQ in Vevey.

Given the size and complexity of Nestlé (over 300k employees, 190 countries, thousand of brands and many more products), we had to focus, in the case of our visit on rural development and responsible sourcing of agricultural products, especially milk, cocoa, coffee. This of course means that many other topics with high sustainability relevance, such as processed food, added sugars, bottled water, palm oil, pesticides and many others, were not discussed during this visit.

What we saw and discussed was highly sophisticated, well designed and effectively implemented. Here are a few highlights:

  • Planetary boundaries and Terrestrial biodiversity were used to introduce the subject, similarly to how we started our own class two months ago.
  • Nestlé, with 1.7% world market share, is the biggest player in a highly distributed market, top 20 companies collectively accounting for only 9%. This means, to make a big difference, working with competitors is required.
  • Social media analysis reveals that people are concerned about food quality, climate change, packaging, animal welfare.
  • To make sourcing more responsible, Nestlé implemented Farmer Connect, directly sourcing from 760’000 farmers, ensuring almost total product traceability, offering training (400’000 farmers trained) and limiting price volatility (a major benefit for farmers, allowing them to better plan ahead).
  • A broad sustainable agriculture initiative (SAIN) aims to reduce waste and pollution, better use water, reduce greenhouse gases through technology dissemination, financial support for farmers, buying clubs, price stability, education, training, and advocacy.
  • RISE (Response-Inducing Sustainability Evaluation) is a questionnaire-based tool developed at the Bern University of Applied Sciences, rapidly identifying problem areas, allowing to better focus improvement efforts.
  • “Dairy for you” is an education program offering differentiated training for workers, specialists, managers, and graduates, by setting up a local institute or working with a local university.
  • At Nestlé Nutrition, baby food requires much lower limits of pesticide, lead, cadmium, mercury etc. residues – Nestlé applies the same (strictest) standards around the world, even in countries where not legally required.
  • In Ghana, to reach the majority of farmers who don’t read or write, a local theater play with characters representing good farmer / bad farmer is used to develop local community knowledge – and at the same time improve raw material quality and safety
  • A key issue in agriculture is succession – worldwide, the average farmer age is 60, in the US 65, in Japan 77; and specifically making farming attractive for the young generation. Nestlé has been working with many farmers for 2 or 3 generations, but the issue remains.

This reminds me of an excellent article published in the NYTimes “Don’t Let Your Children Grow Up to Be Farmers”, showing how the design of our food system, among many other issues, also makes farming unattractive for young generations.

Therefore we thank again Dionys Forster and Diarmuid O’Connor, not only for receiving us so well, but for doing so much to make sourcing more responsible.

Author: Sascha Nick, Associate Professor at BSL

Hacking for chocolate

“Chocothon” hits sweet spot of collaborative innovation in Ghana

Key question….what went on in Ghana last weekend that might have something to do with BSL’s vision and mission, and especially its three pillars of entrepreneurship, sustainability and responsible leadership in a context of collaborative learning?

The first Chocothon, that’s what! BSL has partnered with Google, the International Trade Center, the Future Food Institute, Crowdfooding and a host of other cool organizations to promote a “techno” focus on the sustainability and business threats around world cocoa supply. How? By holding a hackathon for chocolate (hence the term “Chocothon”). For those not yet in the know, a hackathon is an event, typically lasting a few days, in which groups of people meet to engage in collaborative computer programming. The idea of “hacking for chocolate” was born some two years ago at the Google Food Innovation Lab (where BSL partner and thought leader Dr. Aileen Ionescu-Somers is an expert participant). The first Chocothon in a series became reality in Accra, Ghana this weekend!

img_9925Threats…around chocolate? What? When you look at supermarket shop shelves today, it is hard to believe there is a problem. After all, we seem to have a plentiful supply of cheap, delicious chocolate treats. But don’t be fooled; our business system is overly short-term oriented. The economics barely work for now and benefit too few stakeholders. Long-term, if the crucial farmer producer of cocoa is not protected, then it’s a zero sum game. In other words, no supply = no business (so bad news for companies) = very expensive Easters, Christmases, Valentine’s days and Birthdays in the future (so terrible news for consumers).

Let’s focus on the challenges. Undercompensating farmers for quality cocoa ultimately leads to too low an income for farmers to bother staying in the business. It creates a rather vicious cycle: no money = low or no investment in new technologies, new trees or desperately needed training = increasingly lower yields and environmental degradation = lower quality cocoa = even less compensation. Then there are government policy threats, such as lack of knowledge and certainty about land rights and ownership leading to insecurity in land tenure. Macroeconomic issues such as inflation and defective exchange rate regimes also take their toll. So farmers in Ghana and Côte d’Ivoire and other cocoa producing countries are not only exiting cocoa farming and/or switching to other less challenging crops, but they do not want their children to stay in cocoa farming either.  Farming cocoa is a grueling task. If the economics do not work, it is even harder to make a business case to the increasingly literate children of farmers who, after all, may have other options.

So what does the Chocothon set out to do? Well, can the best of modern day high tech ingenuity contribute to resolving the problems around cocoa production? Can this be done in a context where illiteracy is widespread and access to Smartphones extremely limited? We agree…its a pretty tough call. But the technology landscape is changing rapidly. The Chocothon team figured that if we could get young Ghanaians excited about problems in their own country, through collaboration they could be empowered to focus their ingenuity on thinking forward and fixing them. After all, the problems we mention are man-made, so let’s get some man (and woman)-made solutions!

Need more convincing?  Well, if you get enough stakeholders together in one room with some hackers to work on a problem, you can literally start… hacking away at it.  So, for example, at the Chocothon, we invited government representatives to not only contribute their knowledge as “knowledge brokers” but to also raise awareness with them of the importance of increasing internet and Smart phone technology access, or of increasing institutional knowledge about land sizes, ownership and security. After all, knowing what you didn’t know makes for better decision-making. Looking forward, we can expect that young farmers in Ghana will be – as all young people are – ingenuous about assuring their own access to technology; every single trend in the world indicates that this is the case.

Therefore, the idea of designing collaborative platforms to share farming equipment or expertise to increase quality of work and efficiency and thus productivity, is not a pipe dream.  To set up systems empowering farmers to demand and get the best prices on the market is not a hallucination either. To enable mobile direct payments to farmers – faster cashless money transactions – coupled with now fast developing services like mobile insurance or other business transactions for tools or fertilizers are totally feasible future options for Africa, as they have been for other countries. Micro-financing of farmer investments, even by crowd-sourcing funds from all the chocolate lovers out there might be another possibility. Creating training platforms, or indeed tools that help young farmers with assessing soil fertility, tree age, crop diseases…all this is possible today. We can also look at optimizing transportation platforms to allow for better transport of cocoa beans – a big headache for Ghanaian farmers today. Get it? Good!

So from Saturday to Sunday 20-21 January, 2017 a group of young and talented hackers – IT developers and social innovators – got together with other stakeholders at the Impact Hub n Accra, Ghana. Representatives and knowledge brokers joined from multiple organizations such as the Ghanaian government, Google, Barry Callebaut (Swiss B2B cocoa supplier), the International Trade Center and the Future Food Institute. The Chocathon team assigned the hackers to working groups and provided food, drinks, and even mattresses (yes!) for the all night hack.

img_9852-2The teams had a task of building up a prototype and uploading deliverables step by step during the hackathon. Sounds familiar? It is pretty much the techie version of what the students of BSL did by designing start-ups to tackle social issues during the last Gap-Frame week last December… Yes, this kind of collaborative learning is taking hold in more sectors than one! The Ghanaian Chocothon hackers get tempting prizes to encourage innovation and even conversion of their prototypes into working businesses, such as a co-working space for one year at the Impact Hub or for six months at ISpace, or indeed a cash prize.

Watch this space for the next blog about the Chocothon where we will tell you about some of the cool ideas the hackers came up with. This is the first of a series of Chocothons that will ultimately contribute to saving YOUR treasured chocolate from gradual extinction. Tune in to #chocothon hashtag to find out more. Even better…how about supporting our next Chocothon? Here is our crowd-funding site link:  https://www.crowdfooding.co.uk/deal/188/Chocothon

Why should you get involved? Because YOUR chocolate needs YOU!

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Active in thought leadership, consulting, applied research, teaching and supervising DBA candidates in sustainability & responsibility.

African Handmade Shoes

African Handmade Shoes” is a start-up created by one young guy, Paul Burggraf, from Lugano in 2013.The company fairly employs thirty shoemakers from Cape Town, South Africa, to produce shoes (espadrilles) sold worldwide. It is an innovative project as well as a supportive business idea that creates a bridge between South Africa and Ticino, Switzerland.

The idea is very simple: producing handmade shoes in Africa and sell them online in Switzerland and worldwide. In addition, the project is characterized by an ethical attitude that provides fair wages and optimal operating conditions for the thirty artisans working in the Cape Town laboratory, differentiating it from other shoe manufacturers who exploit their workers through poor working conditions and with low wages. Nevertheless, “African Handmade Shoes” are fully aware of these problems and they are ready to make the difference.

In 2007, Paul Burggraf made his first of many trips to South Africa. Since then, he has fallen in love with South Africa – a colourful country, incredible, so full of potential.
The idea of “African Made Shoes” was born through meeting Arnold – a young South African craftsman who ran a small shoe shop. Paul was immediately interested and impressed by his work and his products. He realized there was serious potential for fashion export. Thus “African Handmade Shoes” was born.

student-blog

They started with a Facebook page collecting orders and received good feedback. They subsequently figured out the brilliance of their idea. They now have a thirty-man strong workshop in Cape Town, a website through which the product reaches around the world and a logistics base in Ticino: https://africanhandmadeshoes.com/.

The main sales channel is e-commerce, however, it is also possible to find temporary stores during festivals and events such as the “Locarno Film Festival” and so on. Currently there are a few stores in Ticino and Switzerland, it is even in the most prestigious Bahnhofstrasse in Zurich.

Transparency and fairness are very important; in spite of the few resources available,
social media has been key to make them known. Through these channels they have decided to completely document what was going on in the workshop of Cape Town. In short, the complete manufacturing process is documented for final consumers to see.
Pride in their craftsmanship, dignity and self-worth in their employees, respect for workers, earn a living wage, multicultural and happiness are values important for the brand. Workers are simply local people, they are friends and they are also neighbors.
Trusting workers is important to get maximum quality for the final product.
They have also helped to maintain a trade, that of the shoemaker, which globally is disappearing. Those who learn this profession with them can support themselves in the future. In the African social reality, in which education and apprenticeship training are lacking, giving people a future by learning a job is a huge added value.

Finally, they believe in African culture as well as the promotion and growth of the African economy. Therefore, the company is conducting a competition for local entrepreneurs called “Startaboom”: Three projects of local entrepreneurs are presented on the website of “African Handmade Shoes”. The public chooses what business will get financial support by voting on the website. The entrepreneur who receive the most votes will get the 10% of 2015 profit of “African Handmade Shoes” in order to help the project grow.

The success of “African handmade Shoes” is very simple: The colours and fabrics of these shoes make a product with a long cultural history, tradition known globally. Companies like these show us that business does not have to about profits only, but can be economically successful by helping to solve social problems and making people in Switzerland and South Africa proud of what they do.

Here a few links for more information:

Video presentation
Founder speech about local entrepreneurs (new start-up)
One of the three local entrepreneurs

Author: Riccardo Bonfitto, Master in International Business student, 2016

“Don’t Learn to Do, But Learn in Doing”

I was recently asked to speak at the Impact Hub Zurich’s event on the future of education: trends and opportunities. I am no educationalist but I am educator, so I decided to speak on what I was comfortable with, my own experience in teaching that I have worked out through trial and error over the last 10 years. I cut my teeth teaching in Singapore to Executive Masters students who would come in the evening for 3 hours of lecturing after a full day at work. They were understandably tired and so I peppered my lectures with as many case study examples as I could in order to demonstrate the real-life applications of corporate social responsibility and sustainable development, especially in a place and time when CSR and SD were still very much theoretical ideas and not a day to day reality.

And so to my current class of Masters students at BSL, I continue to try and make my lectures as relevant to real life as I can, knowing that business students need all the practical tools they can to be competitive when they head into the workplace.

This term I decided to use the theme of food and agriculture to discuss as many facets as possible of sustainability and business responsibility, and there is no shortage of material in this sector – from farming practices, (labour, pesticide use, GMOs, animal welfare), to processing (use of palm oil, high fructose corn syrup), transport (carbon footprint), marketing (obesity, fast food, veganism), to food distribution and scarcity.

To learn by doing, I asked my students to interview someone who had something, anything to do with the food sector and get their take on sustainability issues. It could be a restaurateur, it could be their uncle who likes cooking, a farmer, a winemaker, an eminent professor or their mate who likes eating…I look forwards to sharing some of these interviews with you which they have written up in blog form (of course, as the blog is another practical tool the students must master).

And how best for students to learn than to meet people who are “doing”, who can speak with confidence about their career paths and what it’s like to be at the coalface of an organisation. So we were privileged to have some time with Mr Diarmuid O’Connor (Global Agrimaterials Sourcing Manager at Nestlé Nutrition) who captivated us because he didn’t give us the blarney but told us what he did and why, and how sustainability made business sense and that he’d been working for over 20 years to support farmers in producing high quality materials for Nestlé.

I’m looking forwards to some more straight-talking guest speakers coming into the classroom over the coming weeks including Mme Isabelle Chevalley, conseillère nationale in the Swiss parliament who will speak to us about GMOs in Switzerland and Mr Sebastien Kulling who is working on a start-up in the food sector.

Prof. Marina CurranAuthor: Marina Martin Curran PhD,
Professor at BSL

The Panama Papers

If in the past two months you haven’t heard about the Panama Papers then you must have actually been living under a rock.

The Panama papers are the largest leak in the history of data journalism. 11.5 million documents, 2.6 terabytes of data, have been leaked to the journalists of Süddeutsche Zeitung, a German daily newspaper. There was so much data that the journalists shared the information with the ICIJ, the International Consortium of International Journalists, who in turn shared it with 400 journalists from 80 different countries. What is surprising is they managed to keep the information under raps for a whole year while they sifted through the data. Only in April did the first articles start being published regarding the Panama Papers. These documents exposed the rich and powerful who use an intricate network of offshore companies to hide their wealth from authorities and the public eye.

Almost everyone who is famous or powerful were implicated. From Lionel Messi to Putin, from European politicians to the Middle Eastern ruling class. Some of the most interesting stories don’t involve despots or dictators but democratically elected politicians from Europe. There is the case of David Cameron who owned shares in his late father’s offshore investment company or Sigmundur Gunnlaugsson the prime minister of Iceland who failed to disclose that his wife’s offshore company owns bonds from three defunct Icelandic Banks that his government is negotiating with, a clear conflict of interest. He was the first casualty of the leaks as he was forced to resign last month. There is now a famous interview of him walking out when a journalist asks him about his wife’s company.

Fans of Real Madrid can rejoice that at least their golden boy, Cristiano Ronaldo, wasn’t mentioned in the Panama Papers unlike his counterpart in Barcelona who has been mired in tax evasion court cases since last year. Messi was already in trouble with the Spanish tax authorities. He is accused of evading tax in the tune of 4.5 million Euros that he owes the Spanish Government. The Panama papers reveal just how he managed to hide his money. It was shown that from 2005 Messi sold his image rights to offshore companies situated in different South American countries. If any company is interested in using Messi in their advertising, then they will have to pay the fees to these offshore companies and the Spanish Government can only look on. Of course, Messi and members of his family own these offshore companies so essentially Messi sold his image rights to himself.

But some of the leaks show a very dark side to offshore companies. Documents showed that from 2011 to 2013 the Syrian government was using offshore companies, provided by Mossack Fonseca, to avoid sanctions and purchase fuel needed by the Syrian air force. Mossack Fonseca’s response “We did not know that Assad and his allies were using and abusing our services”. The Panama Papers also exposed a scheme by Heritage Oil Corp; a US based Oil Company, to avoid paying taxes to the Ugandan Government. In 2010 Heritage Oil sold 50% of its stake in Ugandan Oil fields to a local company for $1.5 billion. Under Ugandan tax law, Heritage Oil owes the Ugandan Government $400 million in Capital Gain tax. So what does Heritage Oil do? Thanks to Mossack Fonseca all it took to avoid paying its Capital Gain tax was the switch of an address from the Bahamas to Mauritius who does not have a capital gains tax. The Ugandan government has been in courts trying to force Heritage Oil to pay what its due ever since.

Will the Panama Papers spell the end of offshore tax heavens? Now don’t get me wrong, establishing an offshore company is a completely legal practice. But the leaks showed that 95% of Mossack Fonseca’s business was to help its clients hide assets from the tax collector.

If the subject interests you, I suggest visiting Sueddeutsche Zeitung and ICIJ’s website regarding the leak. If you enjoy reading spy thrillers, works of fiction or fantasy then the Panama Papers are for you. The Panama Papers expose CIA operation in the 80’s like the Contra affair where the CIA used offshore companies to sell weapons to the Iranian government.

Are you a football fan? Other than Messi the Panama Papers exposes even further misconduct by FIFA. One member of FIFA had established alone over 400 offshore companies.

Are you a World War II buff? The Panama Papers shed light on a painting that has been missing for 52 years since the Nazi occupation of Paris. Now it has surfaced right here in the dry-dock of Port Franc in Geneva Switzerland. The painting is being held there as the grandson of the original owner sues the current owner, Helly Nahmad, the famous American art dealer.

I can continue with the story for another 10 pages but I don’t want to rob you, the reader, from that “Ooooh!” moment. Truly the Panama Papers are stranger than a work of fiction.

Author: Abdullah Kaki, Master in International Business student, 2016

 

How to negotiate for Ethics in a Crisis: The Greenpeace-Nestlé case

In March 2010 food-giant Nestlé had to learn the hard way, how to (not) react to a hostile NGO attack: Greenpeace had released a video that made the link between palm oil used in Nestlé’s Billion-Dollar-Brand KitKat and the destruction of rain forests in Indonesia that kills Orangutans.

http://www.greenpeace.org/international/en/campaigns/climate-change/kitkat/

The video was shocking and went viral in no time. Nestlé’s first reaction was to prohibit Greenpeace to show the video on the internet. A bad move in the world of social media, because this even multiplied the interest in the video. This was probably even wanted by Greenpeace because consequently the campaign gained an unbelievable momentum: Internet users kept sharing the video and as a sign of solidarity even used the logo of the Greenpeace campaign (the KitKat brand logo modified into Killer) as their Facebook profile picture.

Of course, Nestlé did not actively kill orangutans, like the video suggested. The problem was created deep down in their supply chain. Palm oil is cultivated in South-East Asia and it is an ingredient of about 50% of all products that we buy on a daily basis: Shampoo, cookies, lipstick, ice-cream. It is virtually everywhere. It is cheap, it grows fast, it does not have a strong taste, it keeps chocolate solid at room temperature. One hectare of palm oil will give you six tons of oil. In comparison: one hectare of soy only generates a yield of one ton of oil. No wonder the world’s hunger for palm oil is ever increasing. Consequently, cultivators of palm oil actually do cut down rain forests in order to set up huge mono-cultural palm oil plantations, thereby destroying the habitat of orangutans. However, they also lift people out of poverty and build schools and hospitals. Palm oil and deforestation is a classical « wicked problem », i.e. it is complex, controversial, value driven, concerns many stakeholders and spans many domains (economic, social, political, legal, ethical). This is why such problems are very hard to solve.

In my class « Business Ethics and Negotiation » I confront my students with this case and then they need to figure out in a group work what had gone wrong in this case and develop a strategy for what Nestlé should do next. I ask them to imagine that they are the top-notch Ethics and CSR consultant and that they need to convince the Nestlé board.

This spring we had the great pleasure and privilege to actually receive the debriefing for the group work form the real-life world class CSR consultant who had helped Nestlé to cope with the KitKat crisis: Scott Poynton from The Forest Trust, a non-profit organization, that helps companies to improve their supply chains.

Guest-speaker Scott Poynton

Guest-speaker Scott Poynton

Scott is a hybrid between an activist and a consultant: He had realized that fighting deforestation and other sustainability disasters was more effective with companies than against them. Consequently, he became a “critical friend” to corporations in environmental trouble. Scott has helped some of the world’s leading companies to transform their supply chains for the better.

That made him the perfect mediator for Nestlé: He understood the problems multinationals have in keeping their supply chains out of trouble and he also is a trusted person at Greenpeace.

Scott shared with us that companies when being attacked by an NGO like Greenpeace often have trouble understanding the issues. This certainly was the case when Nestlé was attacked. The Nestlé top-management tried to explain to the Greenpeace spokesperson of the campaign on the phone that the company was doing a lot for the environment. Greenpeace campaigners know this kind of reaction and they usually react by saying: « They do not get it. They need more pain. » And they did get more pain, when Greenpeace campaigners dropped from the ceiling and unfolded banners during the Annual General Meeting.

This is why Scott’s first lesson for companies under NGO attack is to really understand what the issue is and what your responsibility is.

The Forest Trust helped Nestlé produce and implement « Responsible Sourcing Guidelines » with the objective to avoid sourcing palm oil that was linked to deforestation.

It turned out that many of my students’ good suggestions for change were too long-term to really help Nestlé out of the acute crises they faced: Reforestation, finding a substitute for palm oil are all good ideas, but they take too much time. Nestlé needed to get its valuable brand KitKat out of the negative headlines quickly and reach an agreement with Greenpeace that they would give them a break in the campaign.

In order to do this Scott’s second lesson is: Find common ground. This is easier said than done. The worlds and mind-sets of NGos and companies are often quite contrary. A company fighting to save the profits of very successful brands like KitKat notoriously have trouble seeing the ethical issue hidden somewhere in the product’s supply chain. At the same time, for NGO activists it is very hard to understand how you could not see it. This creates tensions. Then just throw in some pride and ego and the fact that in a corporation nobody wants to be blamed for these kinds of messes and you have an explosive mixture for a first negotiation meeting.

This is why, for Scott, one of the most important things (yes, this is lesson Nr. 3) in negotiating in heated situations is to start with the values of the persons involved. If you want to mediate between conflicting parties, you always need to genuinely believe that your negotiating partner is a reasonable, rational, and decent person. If you enter a sensitive negotiation already convinced that your counterpart is mean and evil, they will sense this instantly and the necessary basis of trust cannot even be started to be built.

Scott’s stories show very nicely that if you want to negotiate for issues around ethics and sustainability, you cannot use the standard “I win – you lose” approach to negotiation. In this approach, we only divide the cake and try to get the biggest piece of it. This does not work, when you are dealing with “wicked problems”. In these cases, concentrating on positions only leads to impasse, misunderstandings, blaming, and zero-sum games that nobody can win.

If you want to successfully negotiate conflicts around wicked problems, you need to concentrate on interests and try to create a larger cake for all parties involved. Nestlé was not interested in deforesting Indonesia and killing orangutans. They are interested in having a well functioning supply chain for good quality palm oil. In order to find out the interests of the other party, you have to stay open and not judge the other side. You have to ask the right questions to understand them, listen carefully and then you can find common ground.

Thank you, Scott, for bringing to life what my students have learned in theory and negotiation role plays in class in a way that they will remember every time they will eat a KitKat.

Prof.-Bettina-PalazzoDr. Bettina Palazzo
Professor at BSL

Enabling Inclusion in Business – Politicians and Business people need to talk!!

Getting ready for our Enabling inclusion in Business was a very interesting experience for me – it made me rethink the situation of women in business yet again!

Having been very involved in the area of women in politics in the Canton of Vaud for the last 10 months, you might like to have a  look at the initiative of the CLAFV (www.clafvd.ch) and ADF (www.adf-vaud.ch) where these 2 associations have worked together with the Bureau of Equality to encourage more women to go into Swiss politics (www.politiciennes.ch).

This interesting initiative made it very clear to me that there is very little contact between the women politicians I talk with regularly and the women in business in Switzerland today! And this is a big problem.

Have you seen the Economist gender gap index?  It is nothing short of horrifying. Switzerland performs very poorly in comparison with the OECD average and the 21 countries considered in this study.  One big problem is the cost of child care, over 40% of the revenue earned.  Is it worthwhile, one might ask to go back to work considering this high cost.

Looking forward to talking about this and lots more tomorrow in BSL.  Updates of that meeting to follow!

 

Author: Mary Mayenfisch-Tobin, BCL, LL.M, Solicitor
marymayenfish

Business as usual is dead

We see this statement becoming more and more popular amongst the community of emerging sustainable business leaders. However, it begs the question, if business as usual is dead, what is the new form of business that has been birthed in its place?

In the United States, a new legal classification of a corporation has emerged, the Benefit Corporation. In addition, a U.S. based non-profit has created a certification process that deems a corporation a B-Corp. The two, in tandem, have created a movement that is helping to transform business across the globe.

For BSL’s Ethics and Negotiations course for the M.A. in International Business the following presentation was given for the Business Ethics Case of the Week. The presentation outlines:

  • The prevailing legal definition and requirements of corporations (in the U.S.)
  • The negative externalities that these legal requirements have caused
  • A proposed solution to these problems (and how BSL’s mission is helping to facilitate the emergence of this solution)
  • The development of a certification for corporations, entitled B-Corp
  • The importance of this certification
  • The requirements and processes necessary to become a B-Corp, including attaining the legal status of a Benefit Corporation
  • The benefits of this certification from a legal and economic standpoint
  • A movement of prominent business leaders around the world working to help facilitate the aforementioned proposed solution
  • And finally a link to currently certified B-Corps around the world, for interested parties

B-Corp-Redefining Success in Business

Since November 2014, BSL has been an official representative of B-Corps in Switzerland. As an official representative, BSL supports the local community of B-Corps and helps new businesses to obtain the B-Corp certification. If your business would like to inquirer about becoming a B-Corp in Switzerland please contact: katrin.muff@bsl-lausanne.ch.

Business as usual IS dead. It’s time for something different, join us in our efforts to expedite the transformation of business across the globe.

Author: Michael Malara, BSL Student, Master in International Business 2015-16

Zara: It is time to detox!

The problem
Let’s talk about clothing. It is something essential, isn’t it? You could hate fashion and you would still need to buy and wear clothes. Who has not ever bought a piece of clothing from brands such as Nike, Adidas, Zara, H&M, Gap or Primark? Do you know that those clothes you have bought could contain toxic substances?

Indeed, yes, they might contain toxic substances. Substances that are thrown into the rivers close to the factories. The low prices that we usually pay for these clothes have an extra human cost paid by local citizens of the countries on where factories are settled. These chemicals are used to color clothes and have a huge impact on the environment and health through the whole supply chain. This happens because the chemicals are disposed into the rivers near the factories, but also when we buy and wash them, as the water used by the washing machine will drain polluted water to the environment.

The solution
Greenpeace was concerned with what it was happening with these chemicals and they launched a campaign called ‘Detox’ in 2011.

The first step was to do scientific research in order to be able to prove that they were right. They took small pieces of clothing from different brands from all over the world and analysed them in laboratories where they found out what different chemicals were inside these textiles.

Once they had the evidences, they started to put social pressure on the brands to join ‘Detox’.

If companies accepted to join the initiative to detox, several conditions had be fulfilled in order to become a detox leader:

  • They should have removed all the hazardous substances by 2020
  • Three fundamental principles should be followed:
    • Prevention and precaution: Taking precautionary action towards the elimination of dangerous chemicals.
    • Right to know: Total transparency between the brands and the consumers. Consumers have the right to know about the chemicals let off into their waterways.
    • Elimination: Eliminating those toxic substances and admitting that there are no environmentally safe levels for hazardous substances.

What happened with Zara?
Well, Zara was one of the first companies that Greenpeace started to attack. Why?

Zara belongs to the Inditex group, the biggest textile group in the world, and the usual strategy that Greenpeace adopts is to attack to the biggest prey, the one that can cause the biggest social impact. As soon as this prey is captured, the rest of the preys will tend to follow the biggest one. This is why Zara was the chosen as the first target of the campaign. Once Zara was convinced to join the Detox campaign, the rest of the brands were easier to convince.

How did they convince Zara to detox?
The only needed nine days of public pressure. Flash mobs, dressed in a very special way, made performances in front of the main boutiques of Zara all around the world. Social networks, bloggers and fashion lovers helped to increase public awareness about toxics in cloths.

Greenpeace also put a video clip on the topic in the social networks. This video imitates the style of a manga movie – a smart way to communicate to the young target group of Fast Fashion.

 

More brands involved in this campaign
After Zara accepted to detox, more brands started to join this campaign and others just did not want to follow this environmentally friendly change. This is why Greenpeace designed a special website in order to inform the consumer if the brands where they buy their clothes are detoxing or not.

Greenpeace distinguishes between three kinds of brands: detox leaders, green washers and detox losers. The first ones are the brands who are detoxing, the second ones are the brands that said they would detox but they are actually not doing anything and finally the third group is for the brands that have denied the propositions given by Greenpeace.

But, we can all be part of this, we can all chose to detox and buy clothes from the companies that take care of our environment and our health. It is also in our hands.

LET’S HELP THE WORLD, LETS DETOX!

Author: Miguel González López M.I.B. Student

Fashion Revolution: Call to Action!

Since the Fashion Revolution Collaboratory on 7th October, we’ve been working away on different ideas. We’ve decided to kick-start the social media campaign next Friday 13th November. The aim of this is to:

  • Increase the number of followers of Fashion Revolution Suisse on Twitter, Instagram and Facebook in order to get more critical mass for the big campaign next spring.
  • To increase our self-awareness and that of others when it comes to our clothing choices
  • To have fun!

What you have to do:

  • Take a selfie or a photo of an item of clothing
  • Post it on Twitter, Instagram or FB and use the following tags:
  • #fashfriday, #fashrev, #whomademyclothes and @Fash_Rev_Suisse for Instagram and @fash_RevSuisse for Twitter and @fashionrevolutionsuisse for Facebook
  • Comment on your photo – is it second hand, vintage, borrowed, upcycled. If you wear it a lot – #30wears  or comment on what it’s made from e.g. organic cotton, fair trade, wool, alpaca etc.

Feel free to encourage your friends to join in and let’s see if we can get Fashion Revolution Suisse around the world!

Fashion Revolution

Facebook.com/FashionRevolutionSuisse
Instagram: Fash_Rev_Suisse
Twitter @Fash_RevSuisse

Prof. Marina CurranAuthor: Marina Martin Curran PhD,
Professor at BSL