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Corporate Social Responsibility
News
11.03.2006 - 10:46am ET
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Oxfam Calls on Starbucks to Stop Bullying the Poor
Starbucks Must Respect Ethiopia's Right to Choose Its Own Path to Development
(CSRwire) Global coffee giant Starbucks has refused to move forward in
negotiations with Ethiopia unless it's on the company's own terms,
according to international agency Oxfam. Oxfam is calling on Starbucks to
stop forcing an alternate agreement on Ethiopia, and come to the table -
open and willing to negotiate.
Last year the Ethiopian government filed applications to trademark its
most famous coffee names, Sidamo, Harar and Yirgacheffe. Securing the
rights to these names would enable Ethiopia to capture more value from the
trade, by controlling their use in the market and thereby enabling farmers
to receive a greater share of the retail price. Ethiopia's coffee industry
and farmers could earn an estimated $88 million (USD) extra per year.
Over the course of the last week, Oxfam has spoken out publicly regarding
Starbucks' opposition to the Ethiopia's trademarking project.
"Starbucks has engaged in some positive initial steps in helping coffee
farmers living in poverty - I don't understand why they won't take the
next step and come to the table to discuss Ethiopia's proposal in good
faith," said Seth Petchers, Oxfam International's Make Trade Fair campaign
coffee lead.
Ethiopia has chosen a strategy that best meets its needs, and in
consultation with intellectual property experts and legal counsel, has
asked Starbucks to sign an agreement that acknowledges Ethiopia's
ownership of its coffee names. If Starbucks is genuine in its commitment
to farmers it will sign the licensing agreement Ethiopia has offered it,
Oxfam says.
Ethiopia's motivations for this project are clear:
Coffee makes up 40-50% of Ethiopia's export income;
15 million Ethiopians are dependent on the coffee trade;
One in four people live on less than $1 a day and 80% of its people
live on less than $2 a day; and
Ethiopia ranks in the bottom 10 of the UN human development index of
income, health and education.
In a statement released yesterday, Starbucks called on Oxfam to end its
campaign.
"Starbucks' position on this is deflecting focus from its responsibilities
to Ethiopian farmers. We want to work to find a win-win solution," said
Petchers. "Oxfam believes it is critical to engage with corporations in
order to achieve long-term sustainable solutions for alleviating poverty."
Oxfam has engaged with Starbucks for over a year on this issue.
"However, engaging the public is also a critical element in creating real
long-term change, and Oxfam will continue to do this," Petchers continued.
Since last Thursday, over 60,000 concerned consumers have faxed or called
Starbucks to express their support for Ethiopian coffee farmers.
In the same statement, Starbucks claimed the trademarking initiative might
hurt farmers if "roasters stop purchasing Ethiopian coffees." The
suggestion that Ethiopia's request for Starbucks and other companies to
recognize the country's rights to its coffee names could result in
punishment suggests an unwillingness to work in true partnership with
farmers.
"Ethiopia wants to continue in its role as a growing source of coffees for
the world market - it's in our own interest. We have 15 million poor people
who depend on income from coffee every single day. Our goal for this
project, which was developed in consultation with the farmers unions, is
to help improve conditions for poor coffee growers," said Getachew
Mengiste, Director General, Ethiopian Intellectual Property Office.
Mengiste will formally respond to Starbucks' recent offer Friday, November
3.
If Ethiopia secures the ownership of its coffee names in the US, as it has
in the European Union and Canada, it hopes to work with the coffee industry
to build its coffee brands and the value associated with them. Ultimately
this will result in a greater portion of the profits to be shared more
fairly among farmers and the global coffee industry.
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Helen DaSilva
2006-11-04 12:18:36
For more information on this issue, please visit: www.oxfamamerica.org/starbucks
Carla Barbiero
2006-11-08 13:59:46
I think this is a very complicated and complex issue and one and that it is hard to judge whether Starbucks is really making a mistake. The Government of Ethiopia is corrupt, poorly managed and the so called added revenue that could go to farmers is far more likely to be used by the government to increase or sustain militarty spending at the cost of social service programs. rpithat is hard to judge t iis
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