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Global Business Strategy ProjectStephanie Chapman🔴Estefanie
Lopez🔴Derek Mitchell🔴Chapman Parker
Policy & Strategy Atlanta Module Summer 2012
SUSTAINABILITY
Global Business Strategy Project
Environmental Demand• Pollutes air, water, and land • Produced on large scale – Up to 100 square kilometer plantation – Deforestation
• Soil quickly depleted – No natural leaf litter –More land expansion – Soil erosion – Runoff causes frequent flooding
Monoculture• 300 species of banana – Cavendish is only grown for
international trade • All bananas are genetically identical • Increases susceptibility to single
pest, fungi or disease • Increases pesticide use • 30 kilograms of pesticides per
hectare
Pesticides• Bananas are judged on aesthetic standards • 400 types of agrochemicals –More chemicals used than any other crop
except cotton • Insects become resistant – Stronger, more toxic pesticides are needed
• Affects mammals, birds, and plants – Biodiversity disappears – Destroys pioneer plant species
Waste• Banana industry produces most waste • Two tons of waster per ton of bananas • Types of wastes – Plastic bags – Containers – Banana trees – 30 to 40 percent discarded –Waste is contaminated with pesticides
Dole Sustainability
• Water management
• Carbon footprint
• Soil conservation
• Packaging
Global Business Strategy Project
Dole Latin American Operations
Certified Sustainable
Dole Latin American Operations
Latin America-Caribbean (LAC) Urbanization
• 28% increase in urban population between 2007-2025 (127 million people)
• Agriculture share of GPD declines as manufacturing increases – Major city share of national income (World Bank) • 55% for low income countries • 73% for middle income countries • 85% for high income countries
• Over 78% of LAC population lived in urban areas as of 2007 – More highly urbanized than Asia, Europe or Africa
• 67 cities with populations over 1 million – 46% of population living in these
cities • 4 of world’s 19 mega cities (10
million inhabitants)
Latin America-Caribbean (LAC) Urbanization
LAC Urbanization Breakdown• South America: 81.8% – Projected (2015:85.2%) (2025%:86.4%)
• Central America: 71.7% – Projected (2015:73.25) (2025:76.2%)
• Caribbean 64.3% – Projected (2015:69.3%) (2025:73.6%)
• Costa Rica 64.3% • Ecuador 66.9% • Honduras 48.8%
Urbanization Trends• Rural to urban migration for economic
opportunities reason for early urbanization • Rural migrants now more educated
including a disproportionate share of women
• Migration trends have shifted to more intra-metropolitan migration
Urbanization Effects• Fosters aggregate economic growth – Made little impact on urban poverty – Increased urban poor population – Decreased rural poor population
• Majority of poor in LAC in urban areas (2002) – 59% living on less than$1 day – 65% living on less than $2 day
• Relocation of poverty – Migrant concentration in outer edges of cities, inner
suburbs and center cities – Weak migrant integration into health and education
systems
Dole Rural Incentives• Workers – Health & safety – Training programs – Wages, working hours & social benefits – Labor organizations
• Community – Medical programs – Housing & community programs – Drinking water – Education programs
Dole Rural Incentives
• Costa Rica –Mobile medical units – Bananito - Costa Rican farm
providing nurturing work environment and benefits
• Ecuador – Health & medical programs – Paved road projects – HIV/AIDS prevention programs
• Honduras – Hospital Vicente d’Antoni
Urbanization MatrixWhere we produce Where we sell
Supply ChainProducts
Labor shortage Need to provide community infrastructure
Banana is convenience food Goes along with urban lifestyle
Migratory people will recognize their rural foodstuffs
Urbanization corollary with natural
More centralized distribution
Generation gaps occur where people have enjoyed the rural banana People will be more accepting of cavendish variety
Dole Rural Incentive Project Map
o
o
o
o
o
o
Mobile Medical Units
BananitoHospital Vincente d'Antoni
Paved Road ProjectsHIV/AIDS Prevention Programs
People
SUSTAINABILITY MEASURES
Profit
Planet
Global Business Strategy Project
Sustainability Measures
• Dole Sustainability Measures • Sustainability Benchmarking:
Indicator use
DOLE SUSTAINABILITY MEASURES
Certifications Carbon footprint assessment Water assessment Social Indicators
Certifications
ISO 14001• Standard for environmental
management systems • Areas of focus – Waste management – Practices to avoid adverse
changes in air, water and land quality
• All banana farms certified (except Sri Lanka, Vietnam, Malaysia and Indonesia)
Global G.A.P.• Standard designed to
reassure consumers of environmental impact minimizing production techniques
• Reducing chemical inputs • Responsible approach to
worker health & safety • Certification adopted to
satisfy European customer demands
Certifications
SA 8000• Monitors and evaluates the social
accountability of companies • Areas of focus
– Child labor – Forced labor – Health and safety – Freedom of association – Discrimination – Disciplinary practices – Working hours – Remuneration – Effective management implementation
• Dole is the first agricultural company to receive certification
Organics• Organic operations certified
by accredited independent agencies
• Accrediting agencies – USDA – National Organic Program – European Union
• Areas of focus – Use of environmentally
sensitive and natural remedies instead of pesticides
Certifications
Rainforest Alliance• Conserve biodiversity and
ensure sustainable livelihoods • Areas of focus
– Reforming land-use practices, business practices and consumer behavior
• Three pillars – Social equity – Environment protection – Economic viability
• Consists of ISO 140001 standards – Certification trademarked seal
appeals to European and American consumers
FAIRTRADE• Movement seeking to improve
trade terms for farmers • Ensures market prices covers
costs of sustainable practices, acceptable working conditions and longer trade relationships
• Consumers pay premium for FAIRTRADE marked products that is reinvested into economic and social development for producers
Carbon Footprint Assessment• Calculated carbon footprint of bananas produced in
Costa Rica and distributed in Germany • Areas of focus – Cradle to grate approach • Raw materials to retail shelf
– Defines sources of greenhouse gas during various supply chain stages
• Results – The carbon footprint of Dole bananas amounts to 1124 kg
CO2e per ton of bananas. – The majority of emissions are related to overseas
transportation. – Emissions related to fertilizer use have a significant impact on
the total carbon footprint of Dole bananas.
Water Assessment• Conducted water footprint study on Costa Rica and Honduras
facilities including independent grower’s farm Dole purchases from • Water footprint measures human demand of freshwater
– Measures water consumption by source and polluted volumes • Areas of focus
– Analyze impact of different watering methods • Costa Rica-rain-fed crops • Honduras-irrigation systems
– Analyze impact of packing facilities • Results
– The water footprint of handling bananas and pineapples (packing facility phase) is much smaller than the water footprint of growing them (farm phase).
– In Costa Rica, the blue water footprint of both pineapples and bananas is zero due to the fact that farmers feed their crops via rain rather than irrigation systems.
– The water footprint of growing pineapples is lower than that of bananas. – Growing bananas (blue and green water footprint) on Dole’s banana farm
(Guanacaste) versus growing them on the individual grower’s farm (Casmul) – both in Honduras – yield similar water footprints.
Social Indicators• HIV/AIDS prevention program – Developed alliance with CARE and UNIVIDA – Served over 85,000 people through: • Educational talks • Home visits • Counseling • Screening test
• Medical records – Dale Medical Record Program – Obtain data on health conditions of Ecuadorian communities to
identify prevalent illnesses and ailments • Mobile clinics – 61,000 patients in Ecuador in 2009 – Expanded medical services by 25% in same year
Dole Sustainability Model
Dole Sustainability
Water Assessment
Carbon Footprint
Assessment
Certifications
Social Indicators
Dole Sustainability Model
SUSTAINABILITY BENCHMARKING
Sustainability Definition EU Sustainable Development Focus 25 Sustainability Indicators Sustainable Community Model
Generic Definition“Sustainable is a community that meets the diverse needs of existing and future residents, their children and other users, contributes to a quality of life and provides opportunity and choice. They achieve this in ways that makes effective use on natural resources, enhances the environment, promotes social cohesion & inclusion, protects the human rights and strengths economic prosperity” (Eagan-review UK, 2004)
EU Sustainable Development Indicator
• Areas of focus – Address issues of Greece, Tunisia, Italy, Palestine &
Jordan as pilot for Mediterranean area – Fair trade driven local economy based on olive oil
production and exporting to U.S. and EU markets • Sustainable community model indicators – Governance – Economics – Social & cultural – Environmental – Labor capital – Quality – Global partnerships
25 Indicators• Governance – Provide continuous process of
participation – Establish means for continuous
monitoring – Promote local community
resiliency • Economics – Optimize benefits to households – Optimize direct consumer and
producer linkage – Emphasize social and
environmental business models – Invest in local capital
• Social and cultural – Ensure adequate local olive oil (banana)
supply – Reverse rural abandonment – Promote education and cross
communication – Provide equitable returns – Respect cultural and legal norms – Protect heritage and enhance
community resiliency – Promote family identity and wellbeing – Special attention to non-native workers – Opportunities for women/youth
*all of these may not apply to Dole and banana industry but I think it’s relevant for the most part
25 Indicators• Environment
– Environmentally friendly process – Practice regenerative agriculture – Increase resiliency to hazards
• Quality – Establish traceability – Implement best practices
• Labor – Fair wage and protection of workers – Non-exploitive relations
• Global partnerships – Understanding diversity and commonality among partners – Cross-cultural connection among consumers and producers
Sustainable Community Model
Sustainable Community
ModelEconomics
Labor Capital
Governance
Environmental
Global Partnerships
Social & CulturalQuality
Global Business Strategy Project
Thank youContact info. Derek Mitchell
[email protected] www.linkedin.com/in/dereklmitchell