Boxes of Twinings tea, produced by Associated British Foods Plc., are seen on a supermarket shelf in London, U.K., on Friday, Feb. 24, 2012. The U.K. economy shrank in the fourth quarter as companies scaled back investment, underscoring the risks to a recovery that Bank of England Governor Mervyn King says will be "slow and uncertain." Photographer: Chris Ratcliffe/Bloomberg Boxes of Twinings tea, produced by Associated British Foods Plc., are seen on a supermarket shelf in London, U.K., on Friday, Feb. 24, 2012. The U.K. economy shrank in the fourth quarter as companies scaled back investment, underscoring the risks to a recovery that Bank of England Governor Mervyn King says will be "slow and uncertain." Photographer: Chris Ratcliffe/Bloomberg
Bloomberg Washington
MAJOR food businesses including Kellogg have received failing grades in an Oxfam International report on how they support sustainability and human rights, including the treatment of women.
Associated British Foods scored lowest in the report, the human rights advocacy group said. Kellogg and General Mills were the next lowest in the study released yesterday. Nestlé, Unilever and Coca-Cola scored the best results, although none did better than 38 out of a possible 70 points.
“What we’re out to do is create attention on these issues,” Chris Jochnick said. He is the director of the private sector department of Oxfam America, the US arm of the UK-based global group. The study rated corporate policies related to the land rights of small farmers; exploitation of women, farmers and workers; climate change; business transparency; and water use.
Greater corporate concern for human rights, endorsed by the UN in 2011, has been urged by advocacy groups as businesses have grown operations in sub-Saharan Africa and other developing regions. Firms including ConAgra Foods and Royal Dutch Shell have joined initiatives and created certifications such as Fair Trade to monitor business practices and encourage improvements.
Associated British Foods criticised the report, saying that any accusation it was hiding the mistreatment of people in its supply chain was “simply ridiculous”. The company said: “We treat local producers, communities and the environment with the utmost respect. Where issues are found, they are appropriately resolved.”
Kellogg spokeswoman Kris Charles said the company had been in contact with Oxfam as the group prepared its report and valued the discussions.
The 10 businesses studied in the report are among the top producers in the global food and beverage industry, which consultancy IMAP values at almost $7 trillion (R61.9 trillion). The scores of the 10 businesses were: Nestlé 38, Unilever 34, Coca-Cola 29, PepsiCo 22, Mars 21, Danone and Mondelez 20, General Mills and Kellogg 16, and Associated British Foods 13.