Upcycled by Jake: 2011

Wednesday, November 30, 2011

Is Fair Trade Fair?

I feel the point of the question has been missed. Fair Trade is not meant as a means to handicap the farmer with additional labor or keep human capital in the fields. These criticisms miss the point and minimize the social benefits that Fair Trade practices have provided to so many poor third world farmers.

Fair trade stands for a market based approach that helps to create a better work standard while promoting sustainability for those producers of goods in developing countries. The Fair Trade movement advocates the payment of higher prices to those producers. It focuses on exports from developing countries to developed countries. Products included are handicrafts, coffee, cocoa, sugar, tea, bananas amongst In 2008, products certified with FLO International's Fair Trade certification
amounted to approximately US$5.8BB worldwide in 2 Although, this is a small fraction of the total world trade, it is significant when you consider that fair trade products now account for 20-50% of all sales in their product categories in some individual countries.

I think it is safe to say that Fair Trade is not only Fair but is a rather impressive scale of accomplishments for a Global NGO that collaborates with a myriad of countries, governments, cultures, farmers, consumers and multi national business enterprises. The accomplishments of Fair Trade practices to date far out way these problems raised and have helped improve the lives and the environments that lie beyond the scope and capabilities of most third world governments and their citizens.

Like any social movement, Fair Trade has its detractors from all points on the political and social spectrum. Some feel it is a subsidy that impedes economic growth, others feel it is a tax on consumers and raises prices while others see it as a form of green washing for global brands. In all these cases they are probably right in some respect because there will always be companies that do not align their CSR activities to improve social welfare while meeting their strategic objectives. Instead, they see Fair-Trade as a means to meet their economic objectives with no interest in long term social effectiveness, resulting in Fair Trade that is not Fair.

Last week, Fair Trade USA, the movement’s leading advocate in the United States,
announced that it would cut its ties at the end of this year with the international fair trade group. It is their intent to make far-reaching changes in the sorts of products that get the Fair Trade USA seal of approval. These changes include giving the fair trade designation to coffee from large plantations, which were previously barred in favor of small farmers. They are also proposing to place their seal on products with as little as 10 percent fair trade ingredients, compared with a minimum of 20 percent required in now globally. The group says the changes will benefit more poor farmers and farm workers around the world and make it easier for large corporations to sell fair trade products.

Most fair trade programs around the world already allow bananas, tea and flowers to be grown on large farms. But traditionally, fair trade coffee and cocoa has come from small farms organized into cooperatives. These farmers once were isolated from the markets in the developed world but now receive a premium for their crops. Fair trade organizations have helped them improve product quality and, most important, give them access to a world market.

Do you think the changes planned by Fair Trade USA are fair, and if so fair to which stakeholders?

A. Large Multi National corporations

B. The farmers

C. The End Consumers

D. The Local Governments

E. Fair Trade USA

F. Fair Trade International

http://en.wikipedia.org/wiki/Fair_trade

http://www.nytimes.com/2011/11/24/business/as-fair-trade-movement-grows-a-dispute-over-its-direction.html?emc=eta1&pagewanted=all

Wednesday, October 26, 2011

Upcycled by Jake:

http://www.quora.com/What-are-the-benefits-for-both-the-earths-ecosystem-and-business-in-embracing-Natural-Capitalism

            The earth's continued ability to sustain life, and future economic activity, is threatened more than ever today by the way our industry’s continue to extract, process, transport, and dispose of our natural resources. Much of the worlds businesses continue to run their companies based on old business models of wasting natural resources and not trying to boost resource productivity. By embedding into their business strategy some very simple changes to the way they conduct their business processes they would yield startling results for their stakeholders but also for the earth’s climate, biosphere (natural capital) and for all future generations to come.

            Anything less setting a business strategy that embraces the four major business practices proposed in “The Road Map for Natural Capitalism” by; 1) Dramatically increasing the productivity of our natural resources, 2) Shifting to a biologically inspired production model, 3) Move to a solutions-based business model and 4) Re-invest in Natural Capital is not true sustainability (Lovins, Lovins and Hawken, 1999, P.146-148). I am not saying a company has to do an immediate change in its practices but it needs to set a strategy based on these principals and work consistently towards their implementation.

            The key to society successfully employing these practices requires our
companies and governments to start placing a value on our earth’s ecosystem services or natural capital. Simply put our economy is dependent and fed by the earths natural environment and for most of these services there are no replacements. By quantifying the costs of the ecosystem and including them in their business balance sheets, industries can begin to reduce their wasteful depletion of our resources and finally seek ways to make changes in their design and production processes that will result in stretching these resources further than ever imagined. The shift to this new paradigm will not only give them a competitive edge in their industry, but will lower expenses, increase their bottom line and help to begin to stabilize the earth’s climate while beginning to replenish the earth’s biosphere. A win win for both the human kind and our natural capital we call earth.

Bibliography

Lovins, Amory B., L. Hunter Lovins, and Paul Hawken. "Road Map for Natural Capitalism (HBR Classic) - Harvard Business Review." Harvard Business Review Case Studies, Articles, Books. Web. 26 Oct. 2011. <http://hbr.org/product/a-road-map-for-natural-capitalism/an/R0707P-PDF-ENG>.

Friday, September 16, 2011

Upcycled by Jake: Going Green????

Upcycled by Jake: Going Green????: A couple of days ago I entered a discussion in a Green group on LinkedIn that was started by a someone whose company had "gone green" but wa...

Going Green????

A couple of days ago I entered a discussion in a Green group on LinkedIn that was started by a someone whose company had "gone green" but was having a lot of problems with getting buy in from their employees. It seems that they could not get their

employees to place their dirty dishes, bowls, utensils in their new dishwasher and instead were placing them in the sink waiting for someone else to wash them for them.

Initially, I addressed this as a single issue but now having read both the recent and previous comments on the problem, I have to say this appears to be more a result of the company's failure to properly execute their plan to go green. I was also quite surprised at the amount of energy being expounded by others in posting comments and suggested solutions to resolve the "dirt dish issue". There appeared to be a lack of broader comments on the company's need to embrace a strong all encompassing CSR and Sustainability strategy. Green best practices need to be part of a larger strategy and are a result of embedding social and environmental best practices across the total company, its culture and with all their stakeholders not just the office workers.

A well thought out and implemented CSR strategy also requires Top Management Leadership to achieve lasting stakeholder buy in. We're talking cultural change from the top down. So the idea of going green and the problem with the dishes is due to the lack of buy-in across the entire company. It is also a symptom of bigger issues the company has and was exemplified by the CFO's solution to the problem when he threw out the dishes found in the sink. Intimidation, punishment or fines is not going to bring employee change or cooperation. Green has to be embraced by all as a benefit not just to the company, the workers but to all the stakeholders that are affected by all the company's actions.

Monday, August 8, 2011

Upcycled by Jake: Sustainability???

Upcycled by Jake: Sustainability???: "Since completing my MBA at Pepperdine in April, I have begun the process of transitioning from my consulting work in Global Sourcing to the..."

Sustainability???

Since completing my MBA at Pepperdine in April, I have begun the process of transitioning from my consulting work in Global Sourcing to the fields of Green Marketing and Sustainability. Although many University's are offering certificates and degrees in "Sustainability" it is still a relatively new field. The best way to immerse one self in this new "Sustainability" is through self-knowledge and on hand experience.

The true goal of any person working in Sustainability is to link business strategy to Customer Social Responsibility (CSR) resulting in true green sustainable business practices, differentiation and profits that improve both the social environment for the company's stakeholders. These stake holders are both current and future generations to come. They are not just the company's customers but also their suppliers, vendors, employees and all those in the general arena affected by them. Company's need to establish an ecological ethic for managing & preserving the environment, the environmental Eco system through business practices that meet the needs of the present without compromising the ability of future generations.
Achieving Sustainability depends on the company being open & well positioned to alternative business models, strategies and change. Sustainability does not start with the consultant it starts with a strong commitment from CEO and Top Management on down and without said commitment the consultant will not succeed.
People think that saving energy or water is sustainability but it is only one aspect of a sustainability strategy. For a company's product or business strategy to be sustainable it needs to be linked to the social and environmental benefit of the community and shareholders that they serve. The shareholder is the one that judges the results and votes on the brands success or failure. Thus companies wanting to move beyond the traditional business categories of project management, finance, manufacturing and marketing need to create unique business strategies that will improve their "sustainability". One way to do this is to make Green Marketing, Sustainability, Eco- innovation and Upcycling all part of their business strategy. Doing so will allow them to ultimately develop new processes, products and uses for their materials and waste and which will allow them to close the recycling loop. Thus a company embracing sustainability and Eco-innovation can get ahead of the curve and benefit from a first-mover advantage resulting in better brand image and profits.

The same same goes for any individual seeking to practice sustainability in their individual lives. They must first focus on making the commitment to change both theirs and their families daily practices as they affect everyone. Once committed they can start with small green acts or changes in behavior such as recycling paper or cans or glass, air drying clothes or dishes, composting food waste and shutting off lights. Simple daily actions will lead to larger ones along with the feeling of being in control of ones immediate environment. http://earth911.com/news/2009/08/31/cheat-sheet-composting/?fb_comment_id=fbc_10150144727897465_16707323_10150205528002465
Sustainability is not a simple practice that you do in order to "claim" that you or your company is sustainable. You have to be willing to change your company or family culture and DNA, and with hard work sustainable practices will take root. Sustainability is the umbrella under which all the other practices can be gathered and organized. By that definition, energy or water is a component of a sustainability platform that also contains many other practices, the sum total of which leads to a better present and a better future for all of us.

Tuesday, May 3, 2011

Upcycled by Jake: Time to Recycle My Self!

Upcycled by Jake: Time to Recycle My Self!: "Time sure flies by quickly when you are trying to finish up your graduate degree. Not an excuse, just the facts as to where I have been la..."

Friday, February 25, 2011

Upcycling & You!

Upcycling is becoming an increasingly popular way of taking an item that you would otherwise throw out and finding a way to make it into something else or changing it’s appearance to suit your home. A couple of years ago it was second nature for us to just discard items we no longer wanted in our homes by having a garage sale, giving them away to friends or donating them to a thrift store or charity. Now as part of the environmental movement there is a new movement of people taking cast off items repurposing them and selling them. A whole new form of retailing is emerging both on line and through the opening of retail shops that have jointed the market selling upcycled items. This movement is inspiring many of us to rethink what we do with our old clothing and household items and also offers us an alternative to buying something brand new.

So the next time you are going out shopping think twice about going to the mall and try searching for shops that are offering upcycled or even recycled clothing or home furnishings. Think of it a way to help both our environment and your local economy and some new business entrepreneur.

Another way to have some fun and also help the environment is to do what I call travel upcycling. The next time you take a weekend trip or vacation take along only your personal items, accessories, shoes, socks, underwear and sleepwear. When you reach your destination grab a yellow pages and than head for the local thrift stores where you can buy from these local recyclers all the clothes you need for your stay. By wearing these clothes you are upcycling them while away and than you can re-donate them when you get home. I would not be surprised to find that you decided to keep some of your newly acquired wardrobe as part of what I call Upcycled Chic!

Tuesday, January 25, 2011

Is Refurbishing Upcycling?

In reading an article in the January 24, 2011 edition of the Wall Street Journal by James R.Hagerty and Paul Glader about US manufacturers refurbishing used maufactured goods I wondered is this a form of Upcycling?

Here's a little background on refurbishing:
It is estimated that a $100 billion of remanufactured goods are sold each year in the U.S. and more than 500,000 people are employed in the industry, according to Nabil Nasr, who heads the Center for Remanufacturing at the Rochester Institute of Technology, Rochester, N.Y. For many years the auto parts have been rebuilt and resold, along with various kinds of machinery parts and motors. But manufacturers are now now extending remanufacturing to a wide list of used items, including computers and home appliances.

The firms involved in remanufacturing say it is a highly profitable business that affords customers lower costs products and helps the environment by reducing waste, energy, the use of new materials and creates jobs. The article quotes Trent Simpson, a product manager at Caterpillar, the construction and mining-equipment company which remanufactures engines and parts for a variety of machines."Customers, business and the environment all win," Mr. Simpson said.
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Remanufacturing also makes sense economically since it is a processes that extend the life of raw materials such as copper, steel and other commodities.This process also helps enforce environmental legislation requiring companies to seek production methods that use less energy and leave less waste. In fact, many U.S. states have passed or are considering legislation requiring manufacturers of electronic equipment to take used goods back for recycling or other kinds or reuse. Those laws facilitate remanufacturing because they create more reliable ways of gathering used products, which otherwise might be dispersed in landfills. They also address the shortages of rare earth minerals due to the Chinese Governments control and quotas on exports of these minerals. Remanufacturing could also help companies meet any future limits on their emissions of so-called greenhouse gases.

I think the bottom line is not whether or not remanufacturing is Upcycling but that any nurturing of the "Industry of the Used" is a win/win for everyone economically, environmentally and sustainably!

I look forward to your comments on my posting,

For more on remanufacturing please read the original article at WSJ.com - From Trash Heap to Store Shelf*
This article will be available to non-subscribers of the Online Journal for up to seven days after it is e-mailed.