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Are Uk Supermarkets Socially Responsible? a Case Study Analysis of Labour Codes of Conduct in a Global Banana Supply Chain

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Are Uk Supermarkets Socially Responsible? a Case Study Analysis of Labour Codes of Conduct in a Global Banana Supply Chain ARE UK SUPERMARKETS SOCIALLY RESPONSIBLE? A CASE STUDY ANALYSIS OF LABOUR CODES OF CONDUCT IN A GLOBAL BANANA SUPPLY CHAIN by Pamela Robinson Cardiff University This thesis is submitted to the University of Wales in fulfilment of the requirements for the degree of DOCTOR IN PHILOSOPHY February 2008 UMI Number: U584257 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U584257 Published by ProQuest LLC 2013. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 Declaration This work has not previously been accepted in substance for any degree and is not concurrently submitted in candidature for any degree. Signed ..................(candidate) Date:...... (.? . /<?.&.< ............................... STATEMENT 1 This thesis is being submitted in partial fulfilment of the requirements for the degree of PhD. Signed..7..^^...CT!?^^.f^ ..................(candidate) Date:...... ^ .: .9.1?...................................... STATEMENT 2 This thesis is the result of my own independent work/investigation, except where otherwise stated. Other sources are acknowledged by explicit references. A bibliography is appended. Signed. .. (candidate) Date:...... ................................................... STATEMENT 3 I hereby give my consent for my thesis, if accepted, to be available for photocopying and for the inter-library loan, and for the title and summary to be made available to outside organisations. S i g n e d . (candidate) Date:....... ................................................. Acknowledgments There are so many to thank for their guidance and assistance in the completion of this thesis, that I fear I could not do them justice in one page. I will therefore make my acknowledgments brief. Firstly, I wish to thank my informants, who gave of their time and contributed so much of the rich narrative in this study. The research would not have been possible without their commitment to participate and willingness to engage with the issues under discussion. Secondly, I wish to thank my supervisors Professor Peter Fairbrother and Professor Huw Beynon, who have supported me throughout, providing insight and encouragement. They have helped me to make sense of the research inquiry and to develop academically, and I am honoured to have worked with them both. Additional thanks go to faculty members Dr. Sara Delamont for her insights on conducting fieldwork in another culture and setting, and Liz Renton for keeping me focussed on the process. Thirdly, a special thank you to my family and friends who have been with me through the happy times and difficult moments, helping to maintain my motivation and spirit, you travelled with me on this most arduous and exciting journey, and I am forever grateful for your support and inspiration. Finally, I wish to thank the Economic and Social Research Council for their financial support in completing this research. Abstract This thesis examines the role of Corporate Social Responsibility (CSR) and voluntary labour initiatives (codes of conduct and standards) with special reference to banana production in Costa Rica. Costa Rica is the third biggest supplier of bananas to the United Kingdom (UK), but market access is determined by the major UK supermarket groups, and the terms and conditions dictated by these powerful actors impact the labour conditions on banana plantations. In this regard the banana supply chain is increasingly viewed as ‘buyer-driven’ and as such, the theoretical framework employed in the research is based on global commodity chain studies (Gereffi 1994, Gereffi et al. 2005). The thesis draws on interviews and focus groups organised with banana workers and their representatives over a two month period in 2006. However, the banana supply chain is not a simple linear model in terms of control and influence; there is a high degree of complexity regarding the social relations within it. The chain includes major transnational producers and trade unions, and an international framework agreement (IFA) is in place on some plantations, and there are also other interested parties - audit groups, NGOs and civil society groups - concerned with labour conditions on plantations. Interviews were conducted with these social actors both prior and following the period of fieldwork in Costa Rica. The thesis also reports on the Second International Banana Conference held in April 2005, a forum for the major players to debate the issues and conditions within the industry. The thesis shows that the leading supermarkets have considerable power over suppliers/producers. However, it is argued that the supermarkets’ professed desire to act socially responsibly to those workers employed on plantations is contradicted by the downward pressure exerted on the price of bananas and that this contributes to a downward spiral of labour conditions. Table of Contents Declaration 1 Acknowledgements ii Abstract iii Table of Contents iy List of Tables ix List of Diagrams ix List of Figures ix List of Plates ix List of Appendices x List of Abbreviations xi Chapter One: Introduction: The Beginning of a Research Study 1 Introduction 1 1.1 The International Banana Conference Forum 4 1.2 Research Themes 9 1.3 Approach 12 1.4 Structure 12 Chapter Two: Food Retailing in the United Kingdom 15 Introduction 15 2.1 Early Developments of Food Retailing in the UK 16 2.2 Food Retailing in Post-War Britain 20 2.3 Arrival of the Superstore and Ascendancy of the Supermarket Group 26 2.4 Power of the Supermarkets 37 2.5 Corporate Social Responsibility 40 2.6 Summary 43 Chapter Three: The Emergence and Development of the Banana Trade 44 Introduction 44 3.1 The History of the Banana 45 iv 3.2 The Evolution of the Banana Industry 48 3.2.1 The Banana Commodity Chain 49 3.2.2 Chiquita Brands International, Inc. 51 3.2.3 Dole Food Company, Inc. 54 3.2.4 Fresh Del Monte Produce, Inc. 56 3.2.5 FyffesPLC 58 3.3 Banana Trade in the Modem Era 60 3.3.1 Banana Dramas 61 3.3.2 The Market 64 3.4 The UK Supermarket Banana 67 3.5 Another Banana War? 69 3.6 Summary 70 Chapter Four: Global Supply Chains 72 Introduction 72 4.1 Commodity and Supply Chains 74 4.2 The Development of Governance in Global Supply Chains 84 4.3 Voluntary Codes and Standards 89 4.3.1 Corporate and Industry Codes 92 4.3.2 The Ethical Trading Initiative Base Code 93 4.3.3 Social Accounting 8000 Standard 94 4.4 International Framework Agreements 95 4.5 Conclusion 97 Chapter Five: Methodological Reflections 99 Introduction 99 5.1 Methods of Inquiry: the Procedural Pursuit 100 5.2 The Research Journey: Where to Begin? 101 5.2.1 The Second International Banana Conference 103 5.2.2 A Round o f Retail Interviews 105 5.2.3 The Case Study Location 105 5.3 Fieldwork - An Expedition 107 v 5.3.1 The Nature o f Fieldwork 108 5.3.2 Securing Access in the Field 110 5.3.3 iHable espahol? : Do you speak Spanish? 111 5.3.4 Interviewing 111 5.3.5 Focus Groups 113 5.3.6 Other Social Actors 114 5.3.7 Final Phase o f Data Collection 114 5.4 Analytical Criteria 115 5.4.1 Validity 117 5.4.2 Independence and Objectivity - the Reflexive Self 117 5.5 Ethics 120 5.6 Conclusion 121 Chapter Six: The Republic of Costa Rica 123 Introduction 123 6.1 The Birth of a Republic 125 6.2 The Beginnings of a Democracy 128 6.2.1 First Movement o f Economic and Social Reform 129 6.2.2 Second Movement o f Economic and Social Reform 129 6.2.3 Third Movement of Economic and Social Reform 133 6.3 The Emergence of a Modem Nation 135 6.4 The Neoliberal State 140 6.5 Conclusion 145 Chapter Seven: Plantation Production 147 Introduction 147 7.1 Plantation Agriculture 148 7.2 Work on Banana Farms 151 1.2.1 In the Field 153 7.2.2 In the Packhouse 168 7.3 The Employment Relation 173 7.3.1 The Work Contract 173 vi 13.2 The Working Day 175 13 3 Subcontracted Labour 176 7.3.4 Social Conditions on Farms 111 1A Conclusion 178 Chapter Eight: Labour Codes of Conduct: The Policy and Practice 180 Introduction 180 8.1 Codes of Conduct 182 8.1.1 Supermarket Retailers 183 8.1.2 Banana Producers 184 8.1.3 International Labour Standards 191 8.2 Codes, Standards... What are they? 192 8.3 The Realities of Employment 195 8.3.1 Safe and Hygienic Working Conditions 195 8.3.2 Employment is freely Chosen 196 8.3.3 Payment o f a Living Wage 199 8.3.4 Absence o f Discrimination 202 8.3.5 Freedom o f Association and the Right to Collective Bargaining 204 8.4 A Producer and Union Labour Initiative 210 8.5 Conclusion 214 Chapter Nine: Corporate Social Responsibility: The Reality 217 Introduction 217 9.1 Governance of the Banana Chain 218 9.1.1 Initiation and Implementation 221 9.1.2 Monitoring and Verification 222 9.2 The ‘Actors’ of Governance in Global Supply Chains 226 9.2.1 The Corporates (Supermarkets and Producers) 227 9.2.2 The Nation-State 230 9.2.3 Trade Unions 234 9.2.4 Non-Governmental Organisations 238 9.2.5 Consumers 240 vii 9.3 A Gathering of the ‘Actors’ of Governance 242 9.4 Conclusion 245 Chapter Ten: Discussion and Conclusion 248 Introduction 248 10.1 The Main Theme of the Thesis 248 10.2 Returning to the Research Questions
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