An introduction for stakeholders in the Costa Rican banana industry
September 1999
What is the Ethical Trading Initiative?
The ETI is an alliance of companies, NGOs and trade unions operating in the UK, whose aim is to improve labour conditions in the global supply chains which produce goods for the UK market. The desire to improve labour conditions reflects a concern for basic human rights and an intention to contribute to a reduction in global income disparities.
ETI was formed in 1997/98 and has been fully-operational since mid-1998. It is funded by membership fees paid by its company and NGO members and by a grant from the international development budget of the British Government's Department for International Development.
ETI is not linked to the European Union market-access issue. It is a civil society initiative focused on human rights in the workplace.
How did ETI come about?
The ETI was an initiative taken by key people in the company, NGO and trade union sectors, with British government support, to see whether a co-operative approach to improving labour conditions in the supply chain could be taken. It is an alternative to an approach based on campaigns and boycotts on one side, and company resistance on the other.
All sides felt that in the changing political and economic climate of the late 1990s a space had opened up for a more co-operative approach that would yield genuine improvements in working conditions, while satisfying the companies' desire to maintain brand values and the NGO and union desire to see the benefits of economic activity more evenly shared.
ETI is part of a wider contemporary movement towards codes of conduct and multi-stakeholder approaches, evident in Europe, the USA, Canada and Australasia, as well as in the UK.
What labour standards does ETI seek to uphold?
ETI has drawn up a nine-point code covering: no forced labour; freedom of association and the right to collective bargaining; safe and hygienic working conditions; no use of child labour; living wages; limits to working hours; no discrimination; regularity of employment; no harsh or inhumane treatment. This is known as the "ETI Base Code", available on this website in English and Spanish
The ETI Base Code reflects the core labour standards of the International Labour Organisation, which is the pre-eminent authority in global labour standards.
Why is ETI concerned about labour standards in countries which export to the UK?
During the 1990s, consumers in Britain have shown an increasing interest in the conditions under which the products they buy are made. It's no longer just a matter of the size, shape, taste or functional characteristics of the consumer goods they buy. Many consumers also want to know that the food that they're eating and the clothes they're wearing have been produced in conditions where workers and the environment have been treated fairly. The international media and global electronic communications are bringing UK and European consumers much more information about labour conditions in the countries from which they import. Companies have observed market resistance to products produced under adverse labour and environmental conditions, when such conditions have been exposed by the media.
Companies are also concerned to protect their reputations and brand values, and this extends to the brand values of suppliers who have internationally-recognised names and logos.
The NGO members of ETI aim to promote a fairer form of economic development around the world. The trade union members of ETI have a direct interest in improving global labour standards.
What activities is ETI undertaking?
As a condition of membership, ETI member companies have undertaken to apply the ETI Base Code to their international supply chains. This means identifying suppliers, discussing the Code and its context with suppliers, carrying out audits, negotiating improvement plans and monitoring progress. The emphasis is on maintaining supply from existing suppliers and developing productive long-term relationships. Only in extreme cases of persistent non-compliance would the companies terminate their supply relationships.
Further, ETI members have embarked on a number of Pilot Projects to test methods of monitoring and verification (against the ETI Base Code) in supplier countries. The first three Pilots involve horticulture in Zimbabwe, wine in South Africa and clothing in China. It is expected that the pilot phase will last another year. An interim review is being undertaken at the present time and it is expected that a report on the lessons learned to date will be available by the end of 1999.
A fourth Pilot Project - relating to bananas in Costa Rica - has just been initiated by ETI members.
ETI also organises seminars for its members, and other interested parties, on issues relating to international labour standards.
Who are ETI's members?
ETI has three categories of members: company, NGO and trade union
ETI's membership is representative of the NGO and trade union sectors in the UK, and ETI company members have a very large presence in UK retailing. ETI member companies have a combined annual turnover of over £50 billion (US$80billion) and many thousands of supplier-partners around the world.
Click for Full
List of Members.
(Also available in
Spanish.)
What are the statistics for exports of Costa Rican bananas into the UK market?
In 1998, the value of banana exports from Costa Rica direct to the UK was US$42.7 million (Trade Statistics of the UK), 7.2% of total UK banana imports.
Costa Rica was the third largest supplier of bananas into the UK from countries outside the European Union.
How significant are ETI members in the sale of bananas in the UK?
Nearly all the major supermarket chains in the UK are either members of ETI or close to ETI. ETI's supermarket members are:
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