Empower Suppliers By Making Them Stakeholder

Elisabeth Gisler • 14 November 2019
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By making small producers stakeholders of the exporting company, they would have direct access to the profit and be represented in the board, making them directly accountable if they violate HRs.

Producers like small farmers often have to sell their crops to manufacturers at very low prices. While their know-how and expertise is poorly rewarded and they struggle to meet basic needs, the exporting companies make huge profits. By turning the producers from mere raw material suppliers into stakeholders of their own cooperative business, they would have more power over their products and have direct access to its success. They would be represented in the board of the company and have a real voice in the product development, communication and marketing strategy. Thereby, they could directly define the business strategy of the company and the price of their commodity and benefit from the profits as shareholders. This empowerment would enable small producers to live in dignity reduce their dependency on third parties. On the other hand, as member of the board they would be directly accountable to the consumer who could (if needed) ask them to respect human rights and employ sustainable production methods.
Disclaimer: this idea was inspired by the chocolate producer Choba Choba.