Palm Oil, Poverty Fighter or Environmental Killer?
Palm Oil; Poverty Fighter or Environmental Killer?
The rapid globalization and dismantling of trade barriers is resulting in many changes in today’s international trade environment. According to Luthans (1) globalization is the process of social, political, economic, cultural and technological integration among countries around the world. Many challenges are facing agro-food producers, but also retailers such as our company Tesda, an international supermarket based in UK, that seek to remain competitive in both local and international markets.
The following article will first highlight the main issues regarding palm oil industry, and then the main stakeholders will be identified followed by an evaluation of their value and power. Finally the article will propose a strategic stakeholder management policy specific for Tesda.
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Food Safety and environmental requirements are becoming more stringent as a result of the increased knowledge of the risk and harm to health and environment. This is Consumer Awareness. These requirements have very important implications for trading, in particular for market access and development. Palm oil is one of the most popular vegetable oils. It is present in many supermarket products, but it also used for bio-fuel for vehicles. Palm oil is very popular due to the increasing demand of cheap food. As Primark’s Business model, palm oil is traded at low prices and high volumes. This leads to developmental, sustainability and CSR issues.
Sustainability is the ability of productive activities to continue without harm to the ecological system (2). According to IISD (3) sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its stakeholders while protecting, sustaining and enhancing the human and natural resources that will be needed in the future.
In other words this is economic development that does not endanger the incomes, resources and environment of future
The rapid globalization and dismantling of trade barriers is resulting in many changes in today’s international trade environment. According to Luthans (1) globalization is the process of social, political, economic, cultural and technological integration among countries around the world. Many challenges are facing agro-food producers, but also retailers such as our company Tesda, an international supermarket based in UK, that seek to remain competitive in both local and international markets.
The following article will first highlight the main issues regarding palm oil industry, and then the main stakeholders will be identified followed by an evaluation of their value and power. Finally the article will propose a strategic stakeholder management policy specific for Tesda.
1/
Food Safety and environmental requirements are becoming more stringent as a result of the increased knowledge of the risk and harm to health and environment. This is Consumer Awareness. These requirements have very important implications for trading, in particular for market access and development. Palm oil is one of the most popular vegetable oils. It is present in many supermarket products, but it also used for bio-fuel for vehicles. Palm oil is very popular due to the increasing demand of cheap food. As Primark’s Business model, palm oil is traded at low prices and high volumes. This leads to developmental, sustainability and CSR issues.
Sustainability is the ability of productive activities to continue without harm to the ecological system (2). According to IISD (3) sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its stakeholders while protecting, sustaining and enhancing the human and natural resources that will be needed in the future.
In other words this is economic development that does not endanger the incomes, resources and environment of future
References: (2) Hamilton, L. & Webster, P., (2009) The International Business Environment, Oxford : Oxford University Press (3) IISD website (2011) (4) Daniels, J. D., Radebaugh, L.H. & Sullivan, D.P., (2009) International Business : environments and operations, 12th ed., NJ: Prentice Hall (5) Young, T (10) Ross, M. (2009). Tribes struggle to survive in Borneo, The Guardian, 16 April (online), Available at : http://www.guardian.co.uk/world/2009/apr/16/indonesia-endangered-habitats. (Accessed 3 December 2011) (11) Lucas, L (12) Law, B. (2010). Can palm oil help Indonesia 's poor? BBC News, 1 March (online), Available at : http://news.bbc.co.uk/1/hi/world/asia-pacific/8534031.stm (Accessed: 3 December 2011) (13) Hickman, M (16) Boddy, D. (2002). Management; an introduction, 2nd ed. London : Prentice Hall (17) Tabacek, K (20) Ormsby, A. (2008). Palm oil protests target Unilever sites, Reuters Website, 21 April (online), Available at : http://uk.reuters.com/article/2008/04/21/uk-britain-unilever-idUKL2153984120080421. (Accessed 3 December 2011) (21) Hickman, M