Private codes of conduct in the banana industry

Corporate Social Responsibility (CSR) is defined by the United Nations Industrial Development Organization (UNIDO) as a business management concept “through which a company achieves a balance of economic, environmental and social imperatives (‘Triple-Bottom-Line-Approach’), while at the same time addressing the expectations of shareholders and stakeholders”, distinguishing it from the concepts of charity, sponsorship or philanthropy1.
Codes of conduct
In the framework of CSR, companies have developed voluntary internal codes of conduct (CoC) in which they commit to social, labour and environmental standards. Being only internal principles these codes are neither binding nor recognized outside the company, but they can be a first step towards the adoption of more ethical practices. Given the increasing public concern on multinationals’ responsible use of resources and working conditions in their subsidiaries and global operations, CoC have been shifting from a corporate governance focus to have a more comprehensive approach on societal issues2.
Content to include in a CoC:
- Aspects that the standard will address (social, environmental or both)
- Objectives of the standard
- Who must apply the standard and when
- Assessment method of the standard implementation
- Due diligence procedure
Brands in control of large portions of the banana industry have developed private codes of conduct and use them alongside external sources of certification. Companies have included the core principles of collective bargaining and freedom of association in their own codes of conduct. In Latin America, some companies have gone beyond and developed collective agreements that cover environmental and social standards.

Core elements in banana industry codes of conduct:
Human rights
Fair treatment and privacy
Protection against forced and child labour
Diversity and inclusion
Labour rights
Freedom of association
Collective bargaining
Health and safety
Risk and hazard prevention
Violence and harassment prevention
Business and consumer relationships
Due diligence, conflicts of interest and corruption
Product safety and quality
Marketing and trade policy
Recording and confidentiality policy
Environmental impact reduction
Natural resources management
Human health and nutrition
Support to local development
Programs that benefit local communities to enhance livelihoods
Administration of the code of conduct
CoC benefits for the company
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CoC development: example of BAMA
CoC development: example of BAMA
BAMA8 9, importer and distributor of fruits, vegetables and flowers to Norway, has developed a voluntary code of conduct for the purchasing of goods and services. It includes indicators of social and, on a smaller scale, environmental impacts. The principles of the code of conduct are:
- Freely chosen employment
- Right to organize in workers’ union and collective bargaining
- Rejection of child labour
- Rejection of ill-treatment or inhumane work
- Safe and healthy working conditions
- Living wage
- Working hours
- Regular employment
- Respect for property right and traditional use of resources
- Respect for marginalized groups
- Environmental impact.
- This code of conduct defines the standards that BAMA’s suppliers and transporters must meet to continue doing business with the distributor.
- It also ensures that BAMA’s vendors accept the code of conduct of its suppliers.
- The code’s implementation is confirmed during the signing of the purchase contract between suppliers.
- Suppliers must supply BAMA with infrastructure and data records to verify compliance. This data must be supplied even without notice.
Purchasing managers at BAMA are responsible for monitoring compliance with the code at a supplier level, overseen by a CSR manager.
Recommendations when drafting a Code of Conduct:
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References
References
1 UNIDO. What is CSR?
2 OECD. 2001. "Codes of Corporate Conduct: ExpandedReview of their Contents", OECD Working Papers onInternational Investment, 2001/06, OECD Publishing.
3 Clarke, R. 2010. Private Food Safety Standards: Their Role in Food Safety Regulation and their Impact
4 World Banana Forum, Paper on Discrimination, Presentation the 2nd World Banana Forum, February 2012, p.5
5 Smith, G. 2009. Interaction of Public and Private Standards in the Food Chain. OECD Food, Agriculture and Fisheries Working Papers, No. 15, OECD Publishing. doi: 10.1787/221282527214
6 Moïse, M. 2011. Private standards and WTO law. ICTSD BIORES, 5(1).
7 European Commission. Private Food Standards and their Impacts on Developing Countries
8 BAMA. BAMA website
9 BAMA. 2014. Code of Conduct