1. Global Business Strategy Project
Stephanie Chapman🔴Estefanie Policy & Strategy
Lopez🔴Derek Mitchell🔴Chapman Atlanta Module
Parker Summer 2012

2. Global Business Strategy Project
SUSTAINABILITY

3. Environmental Demand
• Pollutes air, water, and land
• Produced on large scale
– Up to 100 square kilometer plantation
– Deforestation
• Soil quickly depleted
– No natural leaf litter
– More land expansion
– Soil erosion
– Runoff causes frequent flooding

4. Monoculture
• 300 species of banana
– Cavendish is only grown for
international trade
• All bananas are genetically identical
• Increases susceptibility to single
pest, fungi or disease
• Increases pesticide use
• 30 kilograms of pesticides per
hectare

5. Pesticides
• Bananas are judged on aesthetic standards
• 400 types of agrochemicals
– More chemicals used than any other crop
except cotton
• Insects become resistant
– Stronger, more toxic pesticides are needed
• Affects mammals, birds, and plants
– Biodiversity disappears
– Destroys pioneer plant species

6. Waste
• Banana industry produces most waste
• Two tons of waster per ton of bananas
• Types of wastes
– Plastic bags
– Containers
– Banana trees
– 30 to 40 percent discarded
– Waste is contaminated with pesticides

7. Dole Sustainability
• Water management
• Carbon footprint
• Soil conservation
• Packaging

8. Global Business Strategy Project

9. Dole Latin American Operations

10. Dole Latin American Operations
Certified Sustainable

11. Latin America-Caribbean (LAC)
Urbanization
• 28% increase in urban population between
2007-2025 (127 million people)
• Agriculture share of GPD declines as
manufacturing increases
– Major city share of national income (World Bank)
• 55% for low income countries
• 73% for middle income countries
• 85% for high income countries
• Over 78% of LAC population lived in urban
areas as of 2007
– More highly urbanized than Asia, Europe or Africa

12. Latin America-Caribbean (LAC)
Urbanization
• 67 cities with populations over
1 million
– 46% of population living in these
cities
• 4 of world’s 19 mega cities (10
million inhabitants)

13. LAC Urbanization Breakdown
• South America: 81.8%
– Projected (2015:85.2%) (2025%:86.4%)
• Central America: 71.7%
– Projected (2015:73.25) (2025:76.2%)
• Caribbean 64.3%
– Projected (2015:69.3%) (2025:73.6%)
• Costa Rica 64.3%
• Ecuador 66.9%
• Honduras 48.8%

14. Urbanization Trends
• Rural to urban migration for economic
opportunities reason for early urbanization
• Rural migrants now more educated
including a disproportionate share of
women
• Migration trends have shifted to more
intra-metropolitan migration

15. Urbanization Effects
• Fosters aggregate economic growth
– Made little impact on urban poverty
– Increased urban poor population
– Decreased rural poor population
• Majority of poor in LAC in urban areas (2002)
– 59% living on less than$1 day
– 65% living on less than $2 day
• Relocation of poverty
– Migrant concentration in outer edges of cities, inner
suburbs and center cities
– Weak migrant integration into health and education
systems

16. Dole Rural Incentives
• Workers
– Health & safety
– Training programs
– Wages, working hours & social benefits
– Labor organizations
• Community
– Medical programs
– Housing & community programs
– Drinking water
– Education programs

17. Dole Rural Incentives
• Costa Rica
– Mobile medical units
– Bananito - Costa Rican farm
providing nurturing work
environment and benefits
• Ecuador
– Health & medical programs
– Paved road projects
– HIV/AIDS prevention programs
• Honduras
– Hospital Vicente d’Antoni

18. Urbanization Matrix
Where we produce Where we sell
Banana is convenience food
Labor shortage Goes along with urban
lifestyle
Need to provide Migratory people will recognize
community their rural foodstuffs
infrastructure Urbanization corollary with
natural
Products Supply Chain
Generation gaps occur
More centralized
where people have
enjoyed the rural banana distribution
People will be more
accepting of cavendish
variety

19. Dole Rural Incentive
Project Map

20. o
o
o

21. o
o
o
Mobile Medical Units
Bananito
Hospital Vincente d'Antoni
HIV/AIDS Prevention Programs Paved Road Projects

22. Global Business Strategy Project
Planet
People Profit
SUSTAINABILITY MEASURES

23. Sustainability Measures
• Dole Sustainability Measures
• Sustainability Benchmarking:
Indicator use

24. Certifications
Carbon footprint assessment
Water assessment
Social Indicators
DOLE SUSTAINABILITY
MEASURES

25. Certifications
ISO 14001 Global G.A.P.
• Standard for environmental • Standard designed to
management systems
reassure consumers of
• Areas of focus
environmental impact
– Waste management
minimizing production
– Practices to avoid adverse techniques
changes in air, water and land • Reducing chemical inputs
quality
• Responsible approach to
• All banana farms certified worker health & safety
(except Sri Lanka, • Certification adopted to
Vietnam, Malaysia and satisfy European
Indonesia) customer demands

26. Certifications
SA 8000 Organics
• Monitors and evaluates the social • Organic operations certified
accountability of companies
• Areas of focus
by accredited independent
– Child labor
agencies
– Forced labor
– Health and safety
• Accrediting agencies
– Freedom of association
– USDA
– Discrimination
– Disciplinary practices
– National Organic Program
– Working hours
– European Union
– Remuneration
– Effective management implementation
• Areas of focus
• Dole is the first agricultural – Use of environmentally
company to receive certification
sensitive and natural remedies
instead of pesticides

27. Certifications
Rainforest Alliance FAIRTRADE
• Conserve biodiversity and • Movement seeking to improve
ensure sustainable livelihoods
trade terms for farmers
• Areas of focus
– Reforming land-use practices, • Ensures market prices covers
business practices and consumer costs of sustainable practices,
behavior
• Three pillars
acceptable working conditions
– Social equity
and longer trade relationships
– Environment protection
– Economic viability
• Consumers pay premium for
• Consists of ISO 140001 FAIRTRADE marked products
standards
that is reinvested into
– Certification trademarked seal economic and social
appeals to European and
American consumers
development for producers

28. Carbon Footprint Assessment
• Calculated carbon footprint of bananas produced in
Costa Rica and distributed in Germany
• Areas of focus
– Cradle to grate approach
• Raw materials to retail shelf
– Defines sources of greenhouse gas during various supply
chain stages
• Results
– The carbon footprint of Dole bananas amounts to 1124 kg
CO2e per ton of bananas.
– The majority of emissions are related to overseas
transportation.
– Emissions related to fertilizer use have a significant impact on
the total carbon footprint of Dole bananas.

29. Water Assessment
• Conducted water footprint study on Costa Rica and Honduras
facilities including independent grower’s farm Dole purchases from
• Water footprint measures human demand of freshwater
– Measures water consumption by source and polluted volumes
• Areas of focus
– Analyze impact of different watering methods
• Costa Rica-rain-fed crops
• Honduras-irrigation systems
– Analyze impact of packing facilities
• Results
– The water footprint of handling bananas and pineapples (packing facility phase)
is much smaller than the water footprint of growing them (farm phase).
– In Costa Rica, the blue water footprint of both pineapples and bananas is zero
due to the fact that farmers feed their crops via rain rather than irrigation
systems.
– The water footprint of growing pineapples is lower than that of bananas.
– Growing bananas (blue and green water footprint) on Dole’s banana farm
(Guanacaste) versus growing them on the individual grower’s farm (Casmul) –
both in Honduras – yield similar water footprints.

30. Social Indicators
• HIV/AIDS prevention program
– Developed alliance with CARE and UNIVIDA
– Served over 85,000 people through:
• Educational talks
• Home visits
• Counseling
• Screening test
• Medical records
– Dale Medical Record Program
– Obtain data on health conditions of Ecuadorian communities to
identify prevalent illnesses and ailments
• Mobile clinics
– 61,000 patients in Ecuador in 2009
– Expanded medical services by 25% in same year

31. Dole Sustainability Model
Certifications
Carbon
Social Dole
Footprint
Indicators Sustainability
Assessment
Water
Assessment

32. Dole Sustainability Model

33. Sustainability Definition
EU Sustainable Development Focus
25 Sustainability Indicators
Sustainable Community Model
SUSTAINABILITY
BENCHMARKING

34. Generic Definition
“Sustainable is a community that meets the
diverse needs of existing and future residents,
their children and other users, contributes to a
quality of life and provides opportunity and
choice. They achieve this in ways that makes
effective use on natural resources, enhances the
environment, promotes social cohesion &
inclusion, protects the human rights and
strengths economic prosperity”
(Eagan-review UK, 2004)

35. EU Sustainable Development Indicator
• Areas of focus
– Address issues of Greece, Tunisia, Italy, Palestine &
Jordan as pilot for Mediterranean area
– Fair trade driven local economy based on olive oil
production and exporting to U.S. and EU markets
• Sustainable community model indicators
– Governance
– Economics
– Social & cultural
– Environmental
– Labor capital
– Quality
– Global partnerships

36. 25 Indicators
• Governance
• Social and cultural
– Provide continuous process of – Ensure adequate local olive oil (banana)
participation
supply
– Establish means for continuous – Reverse rural abandonment
monitoring
– Promote education and cross
– Promote local community communication
resiliency
– Provide equitable returns
• Economics
– Respect cultural and legal norms
– Optimize benefits to households
– Protect heritage and enhance
– Optimize direct consumer and community resiliency
producer linkage
– Promote family identity and wellbeing
– Emphasize social and – Special attention to non-native workers
environmental business models
– Opportunities for women/youth
– Invest in local capital
*all of these may not apply to Dole and banana industry but I think it’s relevant for the most part

37. 25 Indicators
• Environment
– Environmentally friendly process
– Practice regenerative agriculture
– Increase resiliency to hazards
• Quality
– Establish traceability
– Implement best practices
• Labor
– Fair wage and protection of workers
– Non-exploitive relations
• Global partnerships
– Understanding diversity and commonality among partners
– Cross-cultural connection among consumers and producers

38. Sustainable Community Model
Governance
Social &
Quality Cultural
Sustainable
Community
Global Model
Economics
Partnerships
Environmental Labor Capital

39. Global Business Strategy Project
Thank you
Contact info.
Derek Mitchell
dlmitchell3001@gmail.com
www.linkedin.com/in/dereklmitchell