Open-ended intergovernmental working group on transnational corporations and other business enterprises with respect to human rights

Second session, 24 – 28 October 2016

FORM for NGOs and other relevant stakeholders submitting a written contribution

Please note that the written contribution is formatted and issued, unedited, in the language(s) received from the submitting organization (it should be submitted in one of the official UN languages).

In order for your contribution to be published on the OEIWG web page prior to the session, the deadline for submission is 30 September 2016. All submissions are final.

Please fill out this FORM and CHECKLIST to submit your written contribution and send it to the address indicated below. Your information goes after each arrow.

1. Please indicate the contact information for the representative submitting the written contribution (i.e. name, mobile, email) here:

Colleen J. Brisport59 Joy StreetBoston, Massachusetts 02114Mobile: 518-209-6592

2. (a) If this is an individual contribution, please indicate here your organization's name (kindly state in brackets whether your organization has ECOSOC consultative status (i.e. General, Special, or Roster).

I am an individual Business and Human Rights Free-Lance Consultantor,

2. (b) If this is a joint contribution including ECOSOC NGO(s), list here the co-sponsoring ECOSOC NGO(s) as they appear in the ECOSOC database and their status (in brackets): Group all General NGOs first, group the Special second, group the Roster third.

3. Indicate here any non-ECOSOC NGO(s) supporting the joint contribution (they will appear as a footnote to the title – unless it is a joint contribution from non-ECOSOC stakeholders only):

4. Indicate the TITLE for the written contribution (in original language) here:

The duty of corporations to honour the culturally specific means of production and seek opportunities to align their ethical, sustainable and fair production practices with the cultural and economic values and practices of the communities in which they operate.

Please make sure that:

X The written contribution is in MS WORD document format (Font Times New Roman 10; no bold; no underline; no italics).

X Please use the Spell/grammar check on your text. (Go to Tools, Spelling & Grammar)

N/A Different language versions of one statement should be sent in the same email, but using a separate form for each.

X Email the document to: igwg-tncs@ohchr.org

PLEASE PASTE THE FINAL TEXT BELOW:

The race to the bottom has physically killed workers. It has also decreased the

quality of goods for consumers. Corporations must re-envision their strategy for

meeting their profit goals. Instead of searching for countries where wages are low and

regulations are absent; companies should search for communities that share the values

that they espouse. Many communities have cultures that are intricately connected to

minerals, vegetables, fruits, and other commodities that they produce. At the same

time many companies also take pride in producing superior products made from the

best materials. Finally, there is an increasing consumer demand for ethically sourced,

organic and sustainable products. Corporations should identify communities

domestically and internationally that have the expertise of producing raw materials

that corporations need to make their products. Communities and corporations should

strive to create a mutually beneficial partnership. As a result, corporations will gain

valuable knowledge in the production and sourcing of raw materials and the

communities will have increased jobs and incomes leading to long term economic

development for the community. The following is a case study of the community of

Tarrazú, Costa Rica that I visited in 2012.

Aligning Corporate and Community Culture- The Starbucks Strategy

For the community of San Marcos de Tarrazú coffee production is an

important part of their identity, history and a key aspect of improving their personal

lives and community. The county of San Marcos de Tarrazú is committed to

environmentalism and social justice. This is demonstrated in their creation of the

Human Development Plan. The plan was developed from a collaboration of 238

citizens from the local government, public institutions, community organizations,

social groups, and women and youth organizations. Each group had the opportunity to

express their wishes, desires, expectations and needs for the future of Tarrazú

(Municipalidad de Tarrazú 9).

The county of Tarrazú has created a very specific vision for their community.

This “vision is intended to represent the expectation of citizens, about the characteristics most important in the county … Tarrazú is dedicated mainly to agriculture, trade, micro-enterprises, which are organized in a participatory way to [allow] better educational opportunities, health, tourism, with priority for the protection of the environment, with opportunities for work, …All this led by the communal organization and with the support of private enterprise and public [institutions], to achieve local human development, and thus improve the quality of life of ‘the inhabitants of our [county].” [Translated] (Municipalidad de Tarrazú 26)

The vision that Tarrazú has created for itself demonstrates that they believe

that both public and private institutions are important for the welfare of the people and

the realization of codified rights such as education, health, and work. It is clear that

the environmentalism and coffee production are a key part of their identity as Tarrazú

citizens and as Costa Ricans. It is a vital part of their history and heritage and

therefore, it is important to regard their relationship with coffee cultivation as more

than a livelihood, but a core part of their culture and identity.

The people of Tarrazú have a statement of purpose that distinguishes one

canton from another, "Tarrazú is a country leader in coffee production, is a green

county, mountain area and a great variety of flora and fauna, water sources, good road

infrastructure, health care, education and power coverage power.” [Translated]

(Municipalidad de Tarrazú 26) It is clear from the purpose statement that the

production of coffee is linked to the Tarrazu’s value of their physical and natural

community.

Starbucks has also developed a corporate mission related to coffee production

and social justice. The coffee company has its own internal strategy for ensuring

equity, environmentalism and the cultivation of high quality coffee. They have titled

this system of benchmarks and standards Coffee and Farmer Equity Practices or

C.A.F.E practices. The Starbucks office in San Jose, Costa Rica monitors the C.A.F.E

practice system for all participating farms globally. The relationship between

Coopetarrazú and Starbucks has existed since the 70s, but C.A.F.E practices were

launched in the community in 1996. The representatives of this office describe

C.A.F.E practices as a program to help farmers maintain their livelihood by paying a

premium, buying their coffee and assisting the coffee farmers on implementing

sustainable growing techniques (Starbucks Representative). The Starbucks

representatives are aware that the protection of human rights and sustainable

agriculture are necessary to improve the lives of coffee farmers. In recognition of this,

Starbucks has a zero-tolerance policy against all forms of child and slave labor,

complies with local labor laws, and requires a minimum wage (Starbucks

Representative).

It is important to recognize that Starbucks explicitly mentions human rights in

their C.A.F.E practices principles. This demonstrates that at the very least there is a

specific recognition of human rights in the company. C.A.F.É. practices were

developed through a partnership with Conservation International and are guidelines to

help farmers grow coffee, “in a way that’s better for both people and the planet”

(Starbucks Coffee Company). There are four main focus areas for CAFÉ practices

including (1) product quality (2) economic accountability (3) social responsibility and

(4) environmental leadership (C.A.F.E Practices).

“We believe that conducting business responsibly benefits society as well as

our various stakeholders, including employees, customers, suppliers, investors and

community members.” (Starbucks Representative) Starbucks notes that since it

conducts business with many countries of diverse cultural, social and economic

circumstances they want to ensure that their distant suppliers “are committed to our

universal principles of operating their business in a responsible and ethical manner…

[are] respecting the rights of individuals, and helping to protect the environment”

(C.A.F.E Practices). As a result, all Starbucks suppliers are required to sign an

agreement that pledges compliance with the Starbucks Supplier Code of Conduct,

which demonstrates commitment to the following principles:

(1) Demonstrating commitment to the welfare, economic improvement and sustainability of the people and places that produce our products and services

(2) Adherence to local laws and international standards regarding human rights, workplace safety, and worker compensation and treatment

(3) Meeting or exceeding national laws and international standards for environmental protection, and minimizing negative environmental impacts of suppliers’ operations (4) Commitment to measuring, monitoring, reporting and verification of compliance to this code

(5) Pursuing continuous improvement of these social and environmental principles

I asked the Starbucks representative in the San Jose, Costa Rica office why

she believed that the program was successful. Her response was that Costa Rican laws

for the environment and coffee farming are similar to the standards set in C.A.F.E

practices and as a result, C.A.F.E practices have been more successful in Costa Rica

than other countries that do not have the institutional support, such as Nicaragua.

Additionally, the representative stated that a long history of amicable relations in

Costa Rica has made it very easy to implement the practices successfully. The

Starbucks Representative also attributed the success of C.A.F.E. practices to its focus

on maintaining an open and transparent relationship with Coopetarrazú (Starbucks

Representative).

The Coffee Farmer I spoke to stated that Starbucks is the most important buyer

and largest buyer of Coopetarrazú coffee. Ninety-eight percent of the coffee Tarrazú

produces is exported and 45% of the exported coffee is sold to Starbucks (Coffee

Farmer). Therefore, Starbucks and their C.A.F.E practices is key to the success of the

Coopetarrazú coffee cooperative and its member farmers.

Non-Profit Alliances- Starbucks Partnership with The Costa Rica Coffee Institute (ICAFE)

Starbucks has partnered with The Costa Rican Coffee Institute (ICAFE).

ICAFE is a key organization in promoting; preserving and protecting the coffee

culture that Costa Ricans value by advocating for the rights of coffee producers. It is

non-governmental institution established in 1933 to promote national coffee growing

activity in Costa Rica. The primary purpose of this organization is to enforce Law

#2762. This law (1) promotes an ethical and unique production model for national

coffee growers, millers, roasters and exporters (2) supports national coffee production

and milling, as well as national and international coffee marketing (3) promote

national and international consumption of Costa Rican coffee and (4) research and

develop farming and industrial technology. Finally, ICAFE is responsible for setting

and maintaining a fair and ethical minimum price for Costa Rica coffee (ICAFE

Representative). The coffee farmers are subject to ICAFE regulations such as the

prohibition of 34 different chemicals used in coffee farming, which cause

environmental degradation. Also, ICAFE conducts research on how to combat

diseases that kill coffee plants, which is a primary concern for the farmers (ICAFE

representative).

Starbucks and ICAFE have partnered on a project called precision agriculture.

The precision agriculture project investigates which coffee plants grow best in the

various climates where Starbucks sources its coffee. Additionally, the Costa Rican

government pays Starbucks to conduct analysis of the Tarrazú coffee farmers’

agricultural practices. Starbucks investigates their practices and then provides

feedback to the farmers on how to improve (Starbucks Representative).

I suggest that the international binding treaty on Business and Human Rights

incorporate the duty of corporations to honour the culturally specific means of

production and seek opportunities to align their ethical, sustainable and fair

production practices with the cultural and economic values and practices of the

communities in which they operate. The corporate, community, non-profit partnership

between Starbucks and the town of Tarrazú, Costa Rica exemplifies this duty.