World of good in free trade

by Bill Kaufmann
The Calgary Sun, February 2, 2007

Ka-Hay Law remembers when the British-based company came to the village in Ghana where she'd been working to help make the local women self-sufficient.

The young Vancouver engineer, who'd met last month in Calgary with hundreds of idealistic colleagues, had been developing equipment to harvest palm nuts, whose oil is used in cooking and making soap.

The big U.K. processor at first confined itself to the fruit's soft skin and left the hard inner kernel to the locals.

"But they saw the business as being so lucrative, they wanted to process the kernel themselves, too," she says.

"When this is what the locals' livelihood depends on, that has a pretty significant impact on their community."

The stage was set for a classic tug-of-war between profit and corporate social responsibility.

But Law, a member of the group Engineers Without Borders and Canadian Business for Social Responsibility (CBSR), said her efforts aren't about opposing globalization, which is unstoppable.

The mission, as she sees it, is mitigating "free trade's" negative impacts and turning them into positives.

"Because we're engineers, we bring a real pragmatic view of change," says Law, 27.

"We need people willing to push back, but we also need a moderate role that says 'we're willing to work with you.' "

Globalization, she says, has its benefits, "but it's really left a lot of people behind."

A classic example of the latter is showcased in the excellent documentary film Black Gold, which chronicles the struggles of Ethiopian coffee producers paid crumbs while Big Caffeine rakes in billions.

Many give up on coffee and turn to growing narcotics.

In an ironic twist, the Ethiopians receive token Western food aid to compensate for their devalued sweat.

"Companies require regulatory licences, but now they require a social licence, or community approval," says Law, though it seems more like wishful thinking beneath the globalization bulldozer.

Developing fair labour practises with the locals and ensuring the supply chain favours them -- while still maintaining profit -- are some of the practical goals and challenges, says Law.

"Things don't happen overnight -- you really have to work with the communities," says Law, who's heading to Zambia later this year to do economic development work.

CBSR boasts 80 members, among them some of the country's largest corporations.

Engineers Without Borders' recent Calgary conference was partly sponsored by energy giants Nexen and Shell Canada and Law is asked if such participation is used as a corporate fig leaf.

She refuses to take a cynical view of those partnerships even as she acknowledges the bad reputations of some Canadian companies in their overseas operations.

Canadian mining operations, in particular, have drawn considerable ire for their environmental impact.

Law insists progress has been made, that Calgary-based resource companies under a particularly intense microscope have made considerable ethical strides.

She also points to one active-wear manufacturer whose sweatshop labour practises in Honduras was beset by protests.

The company eventually saw the light, she said, and now provides educational opportunities to its workers.

"They could see it would benefit their company by having better skills," says Law.

Even corporate punching bags such as Wal-Mart and McDonald's are coming around with fairer trade policies, she insists.

The question is, how much of it is PR window dressing?

Law argues we have to make progress where we can, while supporting fair-trade products available on store shelves.

When asked if they'd be willing to spend a few extra dollars to do that, 80% of Canadians say they would, says Law.

But only 30-35% actually do, she adds. "We have to step up to the plate."