An effective Code of Conduct should:

1. At the very least, incorporate the eight ILO Conventions that are fundamental to the rights of human beings at work. A company should neither ‘select’ which rights to include in its Code of Conduct, nor ‘rewrite’ them for its own purposes. Eight fundamental ILO Conventions have been identified relating to:
   • Forced labour
   • Discrimination
   • Child labour
   • The right to organize and collective bargaining
   • A living wage
   • Overtime
   • Safe and healthy working conditions
   • A legal contract of employment
2. Describe how the company will implement and enforce the Code of Conduct. The company will also monitor compliance with the code, which is usually implemented in phases
3. Involve all stakeholders. If a company draws up a code without consulting anyone else, it will lack credibility. All stakeholders should contribute: companies, trade unions, NGOs. This also applies to the practical implementation of the code, at the local level
4. Appoint an independent body to monitor compliance with the code
5. Offer favourable business terms for suppliers (e.g. long-term contracts and fair prices). This will provide suppliers with the financial resources needed to implement the code

The main goal of Fairtrade is to give farmers a fair chance to improve their own market position. The Fairtrade Labelling Organizations (FLO) was founded in 1997 to bring together the various fair trade labelling initiatives in consumer countries, the first of which was Max Havelaar in the Netherlands in 1988. Currently, there are 20 such initiatives operating in 21 countries, creating a huge market for Fairtrade products. More than 240 cooperatives in 26 countries in Africa, Asia and Latin-America produce Fairtrade certified coffee.

FLO Standards are divided into smallholder producer standards and hired labor standards. Smallholder producer standards include social development criteria, such as the ability for Fairtrade to add development potential and for producer groups to have a democratic structure and transparent administration.

The FLO system guarantees a Fairtrade minimum or floor price that is based on the estimated costs of sustainable production. The minimum price ranges from US$ 1.01 to US$ 1.21 per pound depending on the type of coffee and the country of origin. When market prices rise above the minimum, a small additional premium is paid (since June 2007 the additional premium is US$0.10 per pound). The premium is intended for use by cooperatives for social and economic investments at the community and cooperative level.

For more information visit www.fairtrade.net

The International Federation of Organic Agriculture Movements (IFOAM) was founded in 1972 to bring the organic movement together. It’s mission is “leading, uniting and assisting the organic movement in its full diversity, “ and its goal is the worldwide adoption of ecologically, socially and economically sound systems that are based in the principles of Organic Agriculture.

IFOAM’s basic standards should be considered as a baseline reference standards for organic agriculture worldwide. Although many people understand organic agriculture as the prohibition of synthetic agrochemicals, the organic standards also include nature conservation through the prohibition of clearing primary ecosystems, biodiversity preservation, soil and water conservation, a prohibition on the use of genetically modified organisms, diversity in crop production, maintenance of soil fertility and biological activity, among others. There has also been a basic chapter on social justice sine 1996, it’s coverage is weak and implementation is from a more recent date by IFOAM accredited certification bodies.

Certified organic coffee is exported from more than 30 countries. Price premiums vary considerably due to several factors. In many cases organic premiums are part of larger premiums based on quality, regional designation, reputation of the producer or additional certifications like Fairtrade.

For more information visit www.ifoam.org

Rainforest Alliance (RA) emerged in the beginning of the 1990s as a certifier of environmentally friendly coffees, called Eco-OK. Certification activities have later been re-branded as “Rainforest Alliance Certified.” Rainforest Alliances’ mission is to integrate productive agriculture, biodiversity conservation and human development. It certifies both large and smallholder coffee producers in tropical countries.

From early efforts in Central America, it has expanded to other parts of Latin America and more recently to Africa and Asia. Sales are expanding rapidly in Northern America and Europe and are also on the rise in other markets including Japan, Australia and Brazil, though at a slower pace.

Rainforest Alliance standards were originally focused on environmental requirements though the social component has been considerably strengthened over the years. Standards include requirements for ecosystem and wildlife conservation, waste management, water conservation, community relations, as well as fair treatment and good conditions for workers, including compliance with ILO conventions.

The price premiums for certified Rainforest Alliance coffee range from US$ 0.04 to US$ 0.20 per pound with and average of US$ 0.10. These premiums depend largely on the quality of the product and the relationship between the buyer and the producer.

For more information visit www.rainforest-alliance.org

UTZ certification was developed (in 1997) by the Coffee Company of Dutch retail giant Ahold with cooperation from Guatemalan coffee producers, and later became an independent foundation. UTZ Certified sees itself as a “partnership between coffee producers, distributors and roasters” whose mission is “to enable coffee producers and coffee brands to show their commitment to responsible coffee production in a credible, responsible and market-driven way”.

UTZ Certified covers both hired labor and smallholder production types in Africa, Latin America and Asia. UTZ Certified coffee is exported from 19 producing countries and Europe is by far the major market region.

In addition to food safety standards, the UTZ Certified standard covers a broad range of social and environmental requirements. UTZ Certified is benchmarked as equivalent to the EurepGAP standard of European retailers for food safety. Specific issues covered include soil management, appropriate use of fertilizers, hygienic procedures for harvesting, post harvest product handling, processing and storage, waste and pollution management, worker health safety and welfare, including worker rights in compliance with ILO conventions and national laws.

UTZ Certified coffee may benefit from a price premium, which depend largely on the quality of the product and the relationship between the buyer and the producer. In practice, producers have reported premiums that average between US$ 0.01 and US$ 0.12 over the last years.

For more information visit www.utzcertified.org

Starbucks' own private standard, termed Coffee and Farmer Equity (C.A.F.E.) Practices, sets basic social and environmental criteria for several thousand certified farmers and co-operatives in more than two dozen countries. Their standard includes quality parameters and has been one of the fastest growing. Starbucks is one of the leading coffee brands in the world and one of the top retail food chains operating more than 15,000 outlets worldwide in 2008.

Starbucks applied its own experience and stakeholder feedback to pioneer a coffee buying programme that strives to improve the lives of farmers and increase the amount of high-quality coffee that is grown, processed and traded in a sustainable manner. C.A.F.E. Practices are founded on socially, environmentally and economically responsible coffee buying guidelines that have evolved to reflect more than three years work and the contributions of coffee farmers, sustainability experts, and Conservation International (CI).

Each indicator is assigned a maximum number of points that can be earned, except for Starbucks' prerequisites of product quality and economic accountability. The tabulated total score determines preferred supplier status. Farmers and suppliers who demonstrate the use of best practices according to the guidelines, and obtain independent verification of their performance, may become Starbucks' preferred and strategic suppliers. To become a Starbucks C.A.F.E. Practices verified, preferred or strategic supplier, coffee farmers, processors and suppliers must meet minimum requirements and demonstrate best practices that are subject to independent verification under its guidelines. Higher scoring suppliers receive preferential buying status, higher prices and better contract terms.

For more information visit http://www.starbucks.com/sharedplanet

Nespresso is a subsidiary of Nestlé and provides coffee brewing equipment on a membership basis to clients around the world. In cooperation with Rainforest Alliance the private Nespresso AAA standard (Nespresso AAA Sustainable Quality Program) has been developed, with a focus on high quality (AA = coffee quality and the third A stands for sustainability). The compliance with the standard is verified by Rainforest Alliance. It features social and environmental practices and coffee is mainly purchased from Latin-America, and some farms in Africa and Asia. Nespresso makes no distinction in terms of a premium for meeting the AAA standard, it claims that the eligible producers receive well above the market price for a combination of quality and sustainability.

For more information visit www.nespresso.com