Farmer consumer partnerships

WP1

Transdisciplinary framework integrating the different research and CSR arguments and stakeholder perspectives (responsible partner: UWA): With the help of key stakeholder interviews a conceptual framework will be developed in relation to the overall project question of how organic companies can adopt and communicate CSR ethical trade arguments. This will promote a transdisciplinary and trans-national understanding of the complexity of researching ethical values, the range of existing CSR arguments and the different perception of the research partners and organic farmers, processors, standard setting bodies and consumers for consideration in the following WPs.

Deliverable 1: Report on results of WP1 and WP2

Padel, S. and K. Goessinger (2008) (Eds.): Farmer Consumer Partnerships. Communicating Ethical Values: a conceptual framework. http://orgprints.org/12821/

Executive summary

The CORE-Organic Farmer Consumer Partnership project develops and tests innovative generic communication strategies as a valuable tool for the strategic positioning of organic companies and farmers´ initiatives in the five partner countries: Austria, Germany, Italy, Switzerland and the UK. The main objective is to determine how commitment to a broader range of ethical values than those covered by European organic regulations can be reflected in communication with customers.

This report represents the outcome of the first two work packages (WPs 1 & 2). In WP 1, a conceptual framework for communicating ethical approaches in organic agriculture was developed. The most important ethical traditions frequently mentioned in the context of ethical consumerism and Corporate Social Responsibility was reviewed. It was established which of the concerns expressed by organic stakeholders go beyond current organic standards, in particular the European Regulations. These concerns and the activities with which they are associated are referred to as ‘organicPlus’ in this report. In WP 2, in a two step empirical study, organicPlus approaches and ‘communication arguments’ of organic companies were identified by analysing written company material and qualitative interviews. The first step involved mapping 101 companies to develop a general understanding of the issues for organic SMEs. In a second step, the background of organicPlus approaches was explored in greater detail in 20 case study companies.

Chapter 1 summarises the basic rationale for the project. OrganicPlus activities have the potential to differentiate organic products in a growing and increasingly globalised market, where organic products compete with other ethical choices such as local or regional foods and ‘Fairtrade’ products. Strengthening the producer-consumer link in the European organic sector in a similar way to Fairtrade certification could make consumers become more aware of food culture and identity and organic food production conditions. Companies should be able to integrate social and environmental concerns into business activities and communicate how they relate to values of consumers and other stakeholders.

In Chapter 2, the relevance of ethical consumerism, fair trade and ethical business management concepts, such as Corporate Social Responsibility (CSR), for the organic sector is explored. Ethical consumers consider the effect that their purchasing decisions have on others but have a variety of motives for buying and are influenced by contextual factors. Consumer’s ethical decision-making in relation to food consumption is complex and cuts across various disciplines ranging from moral philosophy to the natural sciences, from politics to economics, and from nature to culture. The many different ways of considering the rights and wrongs of an action represent a challenge for both researchers and companies. The literature points to three underlying philosophical traditions – consequentialism, deontology and virtue ethics. Value communication can be further assisted by tools (e.g. Ethical Matrix) aiming to simplify the analysis of food choices by referring to underlying ethical traditions and the impact on producers, consumers, farm animals and the environment. CSR approaches in European companies relate to a range of ethical values, depending on business context and location. SMEs have been slow to respond to the CSR agenda and show a level of scepticism towards formal auditing. Evidence from CSR-reporting in the food sector, fair trade principles and the IFOAM Principles of Organic Agriculture indicates that concerns relating to food choices can be categorised in different ways. Most authors make some reference to the three pillars of sustainable development and include categories for environmental impact and social and economic concerns, in terms of employment conditions, sourcing policy and concerns for producers, and many include a separate category for impact on animals. There is no evidence that the European organic sector is widely engaged with CSR although one study of the natural food sector in Germany illustrates the potential of combining organic food with an ethical management system.

Chapter 3 uses stages of a tool-kit for food companies (Corporate Moral Responsibility Manual by Brom et al., 2006) to explore values expressed in literature about the organic sector. The relevant organic stakeholders are identified and their concerns are mapped and analysed. This leads to 13 categories of concerns under the five principal headings of environmental impact, impact on animals, economic and social concerns, and concerns relating to systems or the supply chain. Several categories, such as preference for local food or concerns about the integrity of the organic supply chain, remain difficult to assign under a principal heading because they consider a range of impacts. These 13 categories of concerns are compared with European Organic Regulations (EEC/2092/91 and EC/834/2007). It is concluded that organic principles and organic stakeholders express a broader range of concerns than is covered by statutory European regulations and standards. Organic certification can provide guarantees that production rules are followed and this is likely to have a positive impact on food quality and the environment. However, stakeholders’ concerns about sustainability of resource use, protection of biodiversity and animal welfare are only partly addressed in direct terms. Concerns about animal welfare reveal potential conflicts and relate to wider questions of how animal welfare should be defined. European standards partly address concerns that relate to the entire food chain and transparency by clearly stating requirements for all operators. They do not address many fairness-related economic and social concerns with likely impact on farmers, farm workers and consumers, some of which are covered by national law. Across a range of issues, the discrepancy between stakeholders’ expectations and standards can be seen as a threat to both the integrity of organic farming and trust in general organic labels, but also as an opportunity for the development of organicPlus activities. Standard-setters have taken first steps to address some of the concerns reviewed. This is illustrated by the fact that the new European Regulation (EC/834/2007) on organic production sets out objectives and principles in which reference is made to a broader range of values than Regulation (EEC) 2092/91, and that private standards also cover a broader range of values in certain areas.

Chapter 4 describes how organic companies in the five partner countries integrate organicPlus approaches in their activities. The qualitative analysis of empirical evidence from the mapping of 101 companies and 20 case studies indicates that such activities have the potential to improve company image and the relationships between farmers, processors and consumers, strengthen marketing strategy and increase earnings. The mapping identified 72 different communication arguments and analysis highlighted the need to extend categorisation based on three pillars of sustainability to a fourth cultural dimension. Arguments were finally summarised under 16 sub-categories and included several cross-cutting ones. Those relating to regional development issues, regional supply chains or food miles appeared very important for organic companies in all participating countries. Communication arguments are a crucial vehicle that can be focused internally (on animal welfare or fair prices for farmers for example) or can be externally oriented (on community, culture or landscape for example). Communication arguments offer more transparency, make knowledge more accessible and enhance awareness of product quality and its origins through information about how the product relates to nature, the environment, the economy and the social and cultural quality parameters along the supply chain. In summary, communication arguments try to appeal directly to consumers by reflecting the consequences of their purchasing decisions. More detailed information arising from the case studies provides first insights into the development of organicPlus approaches. Ethical engagement in many companies appears driven by personal commitment reflecting a holistic approach. The internet, product labels, leaflets/brochures and newspaper articles, as well as word of mouth, are frequently used to communicate organicPlus activities, the main targets being committed organic consumers. The majority of companies do not systematically consider CSR, the sustainability dimensions or the IFOAM Principles when developing organicPlus and attitudes towards the need for documenting ethical engagement vary. Dairies and dairy farms focus mainly on a fair price for farmers, whereas meat producing companies focus more on animal welfare. Care farms are given particular attention with respect to social goals. A SWOT assessment provides the context for analysing future potential of organicPlus activities and for identifying preliminary trends in developing a typology of such approaches in the future. 

The final chapter brings together the findings from the two WPs and provides concluding remarks related to the organicPlus approach, the most promising communication arguments for further study and some general conclusions and recommendations. The final selection of most promising communication arguments for further testing in the project was based on expert rating. It includes two arguments each under the headings of biodiversity, animal welfare, regional production, fairness for farmers, care farms, social aspects of production and the preservation of cultural features. However, ethical acting cannot be reduced to arguments, categories and criteria alone, and the implementation of ethical concepts and values in the organic market place represents a considerable challenge for all stakeholders involved.