Empower Suppliers By Making Them Stakeholder

Elisabeth Gisler • 14 November 2019
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By making small scale producers stakeholders in the exporting company, they would have direct access to the profits, be represented on the company board and be directly accountable if violating HR.

Oftentimes, small scale producers like farmers produce their crops at very low prices to the manufacturer. While their know-how and expertise are poorly rewarded and they struggle to meet basic needs, the trading industries make huge profits. By turning the producers from mere raw material suppliers into stakeholders of their own cooperative business, would have a more power over their products and have direct access to its success. Those producers/entrepreneurs could define the price of their cacao, benefit directly from the profits and would be represented in the board of the company and have a real voice in the product development, communication and marketing strategy. The profit from the added value of their products on the end market would help the producers to live in dignity and reduce their dependence on traders. By making them members of the board, they would also be more directly accountable to consumers that could ask for the respect of human rights and the employment of sustainable production methods.
Disclaimer: my idea is inspired by the chocolate company Choba Choba.