An investor letter by the non-profit organization Investor Advocates for Social Justice (IASJ) has called on international chocolate companies to end exploitative purchasing practices and commit to providing all cocoa farmers with a living income by the end of 2025. The letter emphasizes the urgent need to boost farmer incomes to address systemic poverty and child labour in Ghana and Côte d’Ivoire.
Market Trends
Demand for Ethical Practices: IASJ demands that chocolate companies support cocoa farmer resilience and security by establishing long-term working contracts and paying sustainability premiums on top of government-set prices. This initiative aims to leverage the purchasing power of chocolate companies to ensure cocoa farmers receive a living income.
Living Income for Farmers: The call to action highlights the necessity for chocolate companies to commit to providing a living income to all cocoa farmers by the end of 2025. This commitment is seen as a crucial step in addressing systemic poverty and child labour in cocoa-producing regions.
Sustainable Purchasing Practices: By adopting sustainable and ethical purchasing practices, chocolate companies can improve productivity, reduce systemic poverty, and enhance corporate social responsibility. This approach not only benefits farmers but also bolsters the public image of the companies involved.
Strategic Actions
Commit to Providing a Living Income: Exporters should align their purchasing practices with sustainability and ethical standards by committing to providing cocoa farmers with a living income by the end of 2025. This commitment will address systemic poverty and improve the livelihoods of farmers.
Establish Long-Term Contracts: Establishing long-term working contracts with cocoa farmers can ensure stability and security for both farmers and companies. These contracts can foster strong supplier relationships and ensure a stable supply chain.
Pay Sustainability Premiums: Paying sustainability premiums on top of government-set prices can directly benefit cocoa farmers. These premiums can boost farmer incomes, improve productivity, and reduce the prevalence of child labour in cocoa-producing regions.
Enhance Brand Reputation: By addressing systemic poverty and child labour, companies can enhance their brand reputation and gain consumer trust. Ethical practices in the supply chain can differentiate brands in a competitive market and attract socially conscious consumers.
The call to action by IASJ underscores the importance of ethical and sustainable purchasing practices in the cocoa industry. By committing to providing a living income, establishing long-term contracts, and paying sustainability premiums, chocolate companies can significantly improve the resilience and security of cocoa farmers, address systemic poverty, and enhance their corporate social responsibility and public image. Exporters can benefit by aligning their practices with these standards, ensuring a stable supply chain, and building a reputable and trusted brand.
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