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CRWatch, a round up of recent business sustainability news - July 2011

Greenpeace had Barbie’s packaging independently tested and discovered the presence of MTH – mixed tropical hardwood. According to Greenpeace, there are only two pulp producers in Indonesia that use MTH, namely APP and Asia Pacific Resources International Limited, but the latter does not produce packaging materials in Indonesia, thus “suggesting that APP is the predominant producer of any packaging material with MTH content”. 

Mattel has quickly responded to the campaign, stating that it does not contract directly with Sinar Mas/APP . “We purchase packaging materials from a variety of suppliers and it is not the normal course of business to dictate where suppliers source materials,” Mattel says. “That said, we have directed our packaging suppliers to stop sourcing pulp from Sinar Mas/APP as we investigate the deforestation allegations.”

A recent report by the International Textile, Garment and Leather Workers’ Federation has found that while most of the 18 Indonesian factories surveyed have union representation, all have in some way stymied union activity, including denying space to organise, setting exceedingly high production targets so workers have little to no time to complete union duties, and refusing to engage with trade union representatives.

“In contrast, most CSR approaches marginalise the role workers play in the attempts supposedly designed to improve their situation,” Merk says. “The protocol … represents a much-needed move away from the managerial, top-down approaches still advocated by the majority of global sourcing companies. Such direct engagement could help bring CSR programmes more into line with local priorities of workers.”

“This programme provides us with the opportunity to contribute to the development of sustainable communities in two areas of particular relevance: social and economic inclusion of people living under very adverse conditions, and environmental protection,” says Jose Octavio Reyes, president of Coca-Cola Latin America. “This programme also contributes to our vision of ‘zero waste’ for our packaging, where increased use of recycled materials in our bottles constitutes a central part of this vision.

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