Fair Trade USA, growing and still controversial

fairtrade_6833958232_076a8a019b_bFair Trade is an elegant idea. It’s an attempt to make globalization work for the world’s poor. Those of us in rich countries agree to pay a bit more for whatever it is we are buying — coffee is by far the No. 1 Fair Trade commodity — and, in exchange, we are assured that the farmers and workers at the other end of the supply chain are treated fairly.

If only it were that simple.

Today, in the US, there are no fewer than seven Fair Trade and Fair Trade-like labels. You can find an analysis of them here, if you so choose. The trouble is, they are competing in what remains by any measure a niche market.

Paul Rice, the founder of Fair Trade USA, formerly Transfair, wants to change that. I went to see him last week in Oakland, CA., and wrote about his efforts the other day in a story for Guardian Sustainable Business.

Here’s how my story begins:

Paul Rice, the hard-charging CEO of nonprofit Fair Trade USA, recently toured the Brooklyn headquarters of furniture company West Elm, along with former president Bill Clinton and West Elm’s president, Jim Brett. They were there to celebrate West Elm’s commitment to handcraft products, including the first Fairtrade rugs, which are made in India. “You can have a huge impact on the wage structure in India,” Clinton enthused. “Consumers will buy these. They’re beautiful, besides.”

Fairtrade rugs? What’s next? A lot more than coffee in church basements, it turns out. “We’re talking about furniture, we’re talking about linens, we’re talking about all kinds of things,” says Rice, when we met last week at Fair Trade USA’s offices in Oakland, California. “This move into the manufacturing sector puts us on the threshold of something really big.”

Fair Trade USA is in fast-growth mode. This fall, Patagonia and PACTwill begin selling Fairtrade apparel, made in factories that they say will meet strict environmental and social standards; a small company called Oliberté already sells Fairtrade shoes. Several years ago, Fair Trade USA formed a partnership with a nonprofit startup called Good World Solutions, which has developed mobile technology to connect big companies to the farmers and workers in their supply chains. Meantime, Fair Trade USA is working to certify a bell pepper farm in British Columbia, Canada, expanding the movement beyond its roots in the global south.

This flurry of activity has brought Rice lots of attention, some of it unwelcome. His supporters say that he works tirelessly to expand the impact of fair trade. Critics accuse him of abandoning its principles. As Jonathan Rosenthal, a co-founder of the co-op Equal Exchange, told The Nation: “Paul is not afraid to think and act on a big scale. That’s one of his great gifts. And he’s willing to cut any corners to get there. That, to me, is one of his great faults.”

The disagreements about what constitutes authentic Fair Trade can get pretty arcane pretty quickly. Some people, for example, argue that a chocolate bar should not be labeled Fair Trade unless the chocolate and the sugar were both procured from worker owned co-ops; others say the chocolate alone should do it. Small differences often matter, but in this arena, it seems to me that the priority ought to be growing the idea and practice of Fair Trade, even if compromises must be made along the way. As the movement grows, the bar can be lifted.

If you want to know more, see my 2012 blogpost, A schism over Fair Trade. You can read the rest of my Guardian story here.

The upside of outsourcing

To match Insight INDIA-OUTSOURCING/I heard an excellent, in-depth interview this week with William Easterly, the development economist and author of a new book called The Tyranny of Experts: Economists, Dictators and the Forgotten Rights of the Poor. Easterly, a controversial figure, is critical of top-down development experts — he names Jeffrey Sachs and Bill Gates, among others — who push technocratic, centralized approaches to alleviating poverty. Instead, he argues that the best way to promote economic development is for westerners to push for democracy, human rights and free markets in the world’s poorest countries.

Easterly cites, among others, the Nobel laureate Amartya Sen, who has said: “No famine has ever taken place in the history of the world in a functioning democracy.” Others disagree, noting that parts of India came perilously close to famine just a decade ago. What’s more, China has lifted hundreds of millions of people out of poverty while suppressing human rights, but allowing economic freedom.

I’m in no position to try to adjudicate the debate about how poor countries become rich, but I was thinking about Easterly’s faith in markets and global trade as I wrote my story this week for Guardian Sustainable Business. The story looks at an idea called “socially-responsible outsourcing” or simple “impact sourcing,” and a nonprofit called DDD that tries to put that idea into practice. (DDD stands for Digital Divide Data.) DDD operates businesses in Cambodia, Kenya and Laos that employ young people, typically high school age, to provide information technology and web research, mostly to clients in the US. The goal of the enterprise is to provide economic opportunity to the poor, DDD’s founders told me.

Here’s how my story begins:

So much attention is paid to deplorable factory conditions in poor countries that it’s easy to forget that global supply chains for electronics, apparel and toys have helped lift masses of people out of poverty. Since 1980, 680 million people have risen out of poverty in China which has seen its extreme-poverty rate fall from 84% to about 10%, largely because of trade, reports The Economist.

Now, a small number of companies, nonprofits and foundations want to see if the rapidly growing global supply chains that process data and operate call centers — an industry usually described as business processing outsourcing, or BPO — can be deployed to help alleviate poverty in Africa and South Asia. Can outsourcing, a business driven by the search for cheap labor, reconfigure itself to do good?

“By responsibly and ethically employing hundreds of thousands of people, BPOs have a role to play in shifting the social landscape in emerging economies around the world,” says a report called Outsourcing for Social Good from Telus International, a Canadian outsourcing firm, and Impakt, a social responsibility consultancy.

Others agree. The Rockefeller Foundation has committed $100m to a project called Digital Jobs Africa that aims to improve one million lives in six African nations. A nonprofit called Samasource organizes poor women and youth in Africa and Asia to deliver data services to such businesses as Microsoft and Google. And a company called Cloud Factory that operates in Kenya and Nepal says digital outsourcing can “flatten the world, connect people into the global economy and raise up leaders to fight poverty and change their communities.”

The pioneer of what is called socially-responsible outsourcing or simply impact sourcing is DDD (Digital Divide Data), a New York-based nonprofit that operates for-profit data centers in Cambodia, Laos and Kenya. DDD and its impact-oriented peers set themselves apart from outsourcing giants such as Tata, Accenture and Infosys because, they says, they deliberately seeks out workers in the some of the world’s poorest places and provides them not just with jobs, but with the education, training and career counseling they need to rise into the middle class.

“Our ultimate mission is to alleviate poverty,” says Jeremy Hockenstein, 42, the founder and CEO of DDD. “We focus on students who are finishing high school, who are very motivated and very smart and who come from low-income homes.”

Having met Jeremy Hockenstein (via Skype) and his co-founder Michael Chertok (face to face), I have no doubt of their good intentions. Both gave up more lucrative careers to start the nonprofit. DDD is about helping its global employees, not exploiting them.

But their work raises an intriguing question about how much intentions matter when it comes to infotech outsourcing, or all of global trade, for that matter. Despite all the the abuses in the global manufacturing supply chain, it seems inarguable that the factory jobs created in China, Mexico, India and Bangladesh have benefited the poor in those countries. Is it possible the Walmart and Apple have done more to alleviate poverty than Bill Gates and Jeffrey Sachs?

You can read the rest of my story here.

Big business loves marriage equality

A tweet from Gap Inc after the Supreme Court overturned DOMA

A tweet from Gap Inc after the Supreme Court overturned DOMA

At Target’s annual shareholder meeting in 2011, Gregg Steinhafel, the company’s chief executive, was asked whether Target would take a stand on a constitutional amendment being proposed in Minnesota to ban gay marriage.

His reply:

“Our position at this particular time is that we are going to be neutral on that particular issue, as we would be on other social issues that have polarizing points of view.”

You can almost feel him squirming, can’t you?

Steinhafel ducked the issue of gay-marriage even thought Target has a reputation as a gay-friendly employer. The company gets a top score of 100 percent and the distinction of “Best Places to Work for LGBT Equality” in the Human Rights Campaign’s Corporate Equality Index. This was a time when most companies ran away from the gay-marriage debate, figuring that no matter what they said, they’d annoy someone.

That has changed, dramatically, in just a couple of years, as I wrote a story posted yesterday at Guardian Sustainable Business:

Last year, when the supreme court pondered the fate of the Defense of Marriage Act (DOMA), which barred same-sex couples from receiving federal marriage benefits, a friend-of-the-court brief urging the repeal of Doma was signed by nearly 300 employers, including such big brands as Apple, CBS, Citigroup, eBay, Facebook, Google, Marriott, Mars, Nike, Starbucks and Walt Disney. Goldman Sachs flew an equality flag outside its downtown New York headquarters when the court overturned DOMA.

Now, as the battleground shifts backs to the states, businesses have allied themselves with supporters of gay marriage in Oregon and Indiana. In Oregon, a liberal-leaning state, you might expect a youth-oriented company like Nike to back marriage equality, and it has – with a $280,000 donation to the cause. The Portland Trail Blazers, meantime, became the first NBA team to back gay marriage.

More surprising is the role of two big companies in Indiana, a Republican stronghold. Cummins, the world’s largest manufacturer of diesel engines, and Eli Lilly, the big US maker of insulin products, each gave $100,000 to Freedom Indiana, a coalition of businesses, community groups and faith leaders trying to keep a constitutional amendment to ban gay marriage off the ballot this fall.

What’s more, as I go on to write, the executives at Cummins and Eli Lilly were very direct in their support of marriage equality. They said it was good for business and good for Indiana, and that the state does not need a divisive and emotional debate over gay marriage. You can read the rest of the story here.

I’ve followed the debate over LGBT equality in the corporate world since 2006 when I wrote a long story for Fortune headlined Queer Inc. In light of the fact that we are either stuck or moving backwards on some other important issues — climate change and economic mobility, to name just two — it’s heartening to see the progress being made by people who are working for gay, lesbian, bisexual and trans* equal rights.

By the way, Minnesotans eventually enacted legislation supporting marriage equality. It was signed into law by Gov. Mark Dayton, the great-grandson of George Dayton, the founder of Dayton’s – the department store that later became Target.

Investing in Bangladesh factories–for a profit

bangladesh-garment-workersOliver Niedermaier is selling a “capitalist solution to one of capitalism’s worst problems” — the unsafe, exploitative, polluting factories in the global south. That’s the topic of my latest story for Guardian Sustainable Business.

Here’s how it begins:

After more than a decade of corporate investment in social responsibility programs, codes of conduct, teams of inspectors and public reporting – all of it intended to improve the working conditions of factories in poor countries – anyone paying attention knows the system isn’t working very well. The Tazreen factory fire and Rana Plaza building collapse in Bangladesh were poignant symbols of its failure.

Maybe it has failed because Western clothing brands and retailers – Nike, Gap, Walmart and the rest – have been behaving like regulators by writing rules and meting out punishment. At least, so argues Oliver Niedermaier, the founder and CEO of Tau Invesment Management. He advocates that businesses should instead try acting like capitalists, using markets and the potential of investment gains to reform their global supply chains.

Tau plans to raise $1bn to turn around factories in poor countries, beginning with the garment industry. Tau promises to deliver “improved transparency, greater dignity for workers, cleaner environments for communities, and enhanced performance and value for stakeholders”.

As the story goes on to say, this is an intriguing–but very much untested–idea. Can Tau raise the money? Will brands partner with the company, a newcomer to supply-chain issues? Most important, can factories in places like Bangladesh that adhere to the highest standards compete effective with those who do not?

I don’t have answers. But I do know that a new approach to the problem is desperately needed.

Chip Bergh: Vegan, triathlete, Levi’s CEO

Levi's Wellthread

Levi’s Wellthread

You’ve heard about slow food.

You may have heard about slow money.

Now it’s time for slow fashion.

Last night, Levi Strauss & Co. unveiled a new collection of sustainable mens clothing called Wellthread, part of its Dockers brand. Wellthread, which the company has described as the antithesis of fast fashion–the cheap, throwaway stuff that is sold by places like Zara and Forever 21–is an attempt to produce a line of clothing that meets the very highest standards for environmental and social responsibility. I wrote about Wellthread for The Guardian, here.

chip-bergh-ls-co-ceoAt the dinner, I was fortunate enough to be seated next to Chip Bergh, the CEO of Levi Strauss. He’s an engaging guy, and while I can’t quote from our conversation–we were having dinner, and so we decided to keep his comments off the record–I can tell you that he is not your run-of-the-mill CEO. He’s a vegan, for health reasons, he told me. (The second vegan CEO I’ve met–Coca Cola’s Neville Isdell was the first.) Chip is marathon runner, biker and triathlete who has raised thousands of dollars for the Dana Farber Cancer Institute in Boston. (His parents and grandparents died of cancer.) He’s also committed to the values that have made Levi’s a social-responsibility leader for more than two decades. Those facts may sound random but they are likely connected–so many people I meet in the world of sustainable business are outdoor lovers or athletes who take care of their own health, and thus understand the connections between what they do at work and the health of the planet. That may sound like a stretch, but the sheer number of marathon runners in the sustainability world has persuaded me that it’s true.

In any event, Bergh these days has more to worry about than the sustainability performance at Levi Strauss. The company has been in a long slide, and he was hired in 2011 to turn it around. Levi’s sales had fallen from a peak in 1996 of $7.1 billion to $4 billion, give or take a few hundred millions, for much of the 2000s. Even as a privately-held company that doesn’t have to answer to Wall Street, that was unacceptable.

Bergh, who spent 28 years at Procter & Gamble before joining Levi Strauss, has reorganized the company, replaced much of the senior leadership team and exited some business. In FY2012, net revenues fell slightly to $4.6 billion and net income was $144 million, up a tick. For the first three quarters of FY2013, Levi’s has enjoyed modest top-line and bottom-line growth. Through it all, he said, the company’s commitment to doing business in a principled way has remained intact.

He seemed genuinely excited by the potential of Wellthread, which for now is a modest venture–almost like a beta test, or pilot project–but nevertheless represents a forward-thinking approach to sustainable fashion, one that begins with the commitment of a designer. here’s how my story begins:

Sixteen years of work as a fashion designer in New York was enough for Paul Dillinger. He quit and took a job teaching design at his alma mater, Washington University in St Louis. “I had become somewhat disillusioned – really challenged morally or ethically – by the industry,” he says.

Then a friend recruited Dillinger to work for Levi Strauss & Co Today, he’s leading a cutting-edge initiative to take sustainable design to new heights at the 160-year-old company: a Dockers line of clothes called Wellthread. The line brings together the best practices in materials sourcing and garment manufacturing, providing social and economic benefits to factory workers in Bangladesh and delivering durable khakis, jackets and T-shirts to consumers.

Dillinger wants to weave responsibility into every stage of design, manufacturing and usage, from the cotton fields to the factories to the market and beyond.

“I saw all these different nodes of activity in the company that were tackling different problems,” Dillinger said, when we met this week at Levi’s Eureka Innovation Lab, a research and development unit near the company’s headquarters in San Francisco. “The opportunity, to me, was to string all of these ideas together and create a systems approach to change.”

You can read the rest here.

Winter Olympic sponsors, feeling the heat

coca_cola_olympics_2010_01

My latest story for Guardian Sustainable Business looks at the pressures from LGBT (lesbian, gay, bisexual, transgender) activists being brought to bear on big American companies that are sponsoring the Winter Olympics in Sochi, Russia, in February.

Interestingly, some of the companies–my story cites Coca-Cola as an example–are otherwise known as being gay-friendly. But although they support equality for their own workers, they are being asked to speak out more widely and publicly against the discrimination that LGBT people face in Russia and elsewhere.

Here’s how the story begins:

On the issue of gay rights, The Coca-Cola Co has a sparkling record. The company has recorded a perfect score on the Human Rights Campaign’s Corporate Equality Index since the index launched in 2006. Coca-Cola was one of the first US companies to support the proposed Employment Non-Discrimination Act , which would protect employees from discrimination due to sexual orientation, and its HR department has funded a lesbian, gay, bisexual and transgender (LGBT) employees association since 2000.

Despite all that, protesters gathered earlier this month beneath a Coke billboard in New York’s Times Square, pouring cans of Coke into a sewer and carrying banners reading: “Coke: Don’t Sponsor Hate.”

The problem, of course, is that Coca-Cola is a sponsor of the 2014 Winter Olympics in Sochi, Russia, which has been a target for gay activists since the Russian government enacted a draconian anti-gay law in July. Other Olympic sponsors, including McDonald’sGeneral Electric,Procter & GambleVisaSamsung and Dow, also are feeling pressure.

The controversy is the latest evidence that even companies that have done their level best to meet society’s expectations – around sexual orientation, or factory conditions in poor countries, or climate change, or any other headline-generating issue – can be caught unaware as expectations ratchet up. And expectations always seem to be ratcheting up.

You can read the rest here. My own view is that if the corporate sponsors are going to benefit from their association with the Olympics, and they are, they ought to at the very minimum publicly push the International Olympic Committee and the Russian hosts to be very clear that LGBT athletes, spectators and sponsors will not face any discrimination. That’s the least they can do. Whether they should also be expected to support LGBT activist groups in Russia and elsewhere in the world–that’s one of the requests from the Human Rights Campaign, America’s biggest gay-rights group–is a trickier question. But if you see gay rights as a civil rights issue, as I do, then it’s reasonable to ask that influential companies to be public about where they stand.

Are your investments tied to genocide?

SP1119147That’s a refugee camp in Sudan. If you are an investor in mutual funds, it’s possible–perhaps even likely–that you own a small share of one of a number of foreign oil companies that are doing business with the government of Sudan, and thereby helping to finance a genocidal, outlaw government that is directly and indirectly responsible for the deaths of millions of people, and the displacement of many more.

I’m returning to the subject of “genocide-free” investing with a column this week at Guardian Sustainable Business, about the puzzling and troubling refusal of a mutual fund managed by ING US to even consider divesting in holdings in foreign oil companies that do business in Sudan. US oil companies are prohibited by law from operating there, but US-based mutual funds are free to invest in Chinese, Indian and Malaysian oil companies that help finance the Sudanese authorities.

Despite the best efforts of an advocacy group called Investors Against Genocide, big US mutual fund companies including Fidelity, Vanguard, JP Morgan Chase and Franklin Templeton continue to invest those foreign oil companies. It’s not because they are unaware of the issue. I’ve covered the topic of “genocide-free” investing since 2007, beginning with a story for Fortune.com headlined Fidelity’s Sudan Problem, and followed a few months later by another called Warren Buffett and Darfur. By then, Harvard, Yale and Stanford had divested their holdings in PetroChina and Sinopec, demonstrating that divestment is both possible and practical. In 2009, as an investor in mutual funds managed by Fidelity and Vanguard, I voted for divestment (and blogged about it here).

A few mutual fund companies–notably T. Rowe Price and TIAA-CREF–have agreed to purge their holdings of the Asian oil companies, but most have resisted. Among the most egregious is ING US, whose own shareholders voted for divestment. If nothing else, this is a reminder that we’re a long way from achieving “shareholder democracy” in corporate America.

Here’s how my story for Guardian Sustainable Business begins:

Call me old school but, in my view, companies should be accountable to their owners.

They should also try to stay away from repressive governments like the one in Sudan, where millions of people have been killed in a long-running genocide.

So when, as part of a campaign to stop the flow of money to Sudan, investors voted to ask a mutual fund managed by ING US to sell its holdings in companies that “contribute to genocide or crimes against humanity,” you’d think that ING US would comply.

It has not.

You can read the rest here.

To put this in perspective: It has been more than 15 years since the U.S. imposed sanctions on Sudan, and nine years since the killings in Darfur were declared to be a genocide by the U.S. Congress. Yet financial institutions are still investing in the worst companies funding the genocide.

It’s another reason, not that we need one, why so much of Wall Street is rightly held in such low esteem by so many Americans.

Launching: Guardian Sustainable Business US

GP_SusBus-logo_RGB_colourGreetings, blog-readers! I’m just back from vacation, in time for the launch of Guardian Sustainable Business US. Much as I enjoy my work, I confess that I enjoy my time away from work even more. I felt fortunate to be able to spend a week in the south of France, hiking and biking with my wife, two daughters and their spouses, enjoying the scenery, the food and the wine, and not necessarily in that order. I’m more of a beer guy than a wine drinker but the chilled rosé in Provence is a perfect complement to the warm summer days and nights. Nearly as good as our local Dogfish Head. But I digress.

My new part-time gig as editor-at-large of Guardian Sustainable Business is going great. It’s enormous fun to be part of what feels like a startup inside a media organization that is nearly 200 years old. Working with the Brits is a treat–they are a lively and irreverent bunch, none more so than Jo Confino, who is an executive editor of The Guardian and founder of the sustainable business site.

I’m now dividing my time between Fortune and The Guardian, which, I suppose, goes to show that the sustainability agenda can cross political, cultural and national boundaries. Or maybe it’s just evidence that biology is destiny. My father worked for Fortune back in the 1950s and 1960s, and I remember as a kid visiting him in the Time & Life Building. And we spent a summer or two back then in Manchester, England, my mom’s home town, where the local paper was The Guardian, then known as the Manchester Guardian. I would search the paper for baseball scores, and toss it aside when I couldn’t find them. Only recently has The Guardian begun to cover America’s pastime. You could look it up. But I digress, again.

The Guardian has hired Jennifer Kho, formerly of GreenBiz, to be the managing editor of the US site. Charlie Wilkie has moved to New York from London to lead the business side. Over the next few weeks and months, Jenn and I will be looking for contributors, as well as story ideas, so please feel free to be in touch.

Here’s how Jo explained our plans for the site in an introductory essay:

Today we officially launch the US edition of Guardian Sustainable Business, focusing our unique style of journalism on how American companies can rise to the sustainability challenges of our age.

This is an exciting time, given the increasing recognition that the business of business is much more than just business.

How times have changed. When I was a Wall Street correspondent back in the heady days of the 1980s, there was little if any space to talk about the role of business in society. [click to continue…]

Garment industry deaths in Bangladesh: The end of the beginning?

SAMSUNG DIGITAL CAMERAGarment workers in Bangladesh have  labored in unsafe conditions for years. They will likely suffer for years to come.

But in the aftermath of the Tazreen factory fire last November, which killed at least 117 people, and the Rana Plaza building collapse in April, which killed more than 1,100, European and US retailers–operating on separate but parallel paths–have come together to act. Actually, to be more specific, they have come together to promise to act.

There’s lot of controversy about the US effort, called the Alliance for Bangladesh Worker Safety, because it does not include the meaningful participation of organized labor, at least not yet. But, as I write today in Guardian Sustainable Business, it’s a step forward.

Here’s how my story begins:

At long last, US apparel retailers have joined together to improve safety for garment workers in Bangladesh – most of them poor women, toiling in hazardous workplaces at the bottom of the bottom of the global supply chain.

Gap, Walmart, Target, Macy’s, VF Corporation and a dozen other companies that formed the Alliance for Bangladesh Worker Safety say they will set common safety standards, inspect all their factories in Bangladesh, make the results public, provide loans for repairs and give workers more power to protect themselves.

Is that sufficient? Labour rights groups say no. As the US companies unveiled their alliance in Washington, student protesters gathered outside, chanting “Shame on Walmart” and decrying the plan as a “fake safety scheme.”

It’s not. It’s a serious plan, with some money behind it, that includes a commitment to transparency, and mechanisms to enable workers to speak out about unsafe conditions. It’s not perfect – the alliance’s glaring flaw is a lack of participation from unions – but the US companies hope to bring in Bangladeshi and international labour groups.

The story goes on to describe the key role played by Gap and its executives in bringing the US retailers together. Gap has been deeply engaged in Bangladesh since December 2010–before Tazreen and Rana Plaza–when a fire at one of its suppliers’ factories killed 29 workers. [click to continue…]

David Griesing: “Everyday low prices” hurt us all

Griesing-Medium-003Today’s guest post comes from David Griesing. A student of religion and ethics, David has been a non-profit manager, a caregiver, a corporate attorney, a teacher in a school for autistic kids, a company executive, retail clerk (of women’s shoes!), an arbitrator, and an entrepreneur. If nothing else, his peripatetic career has made him an expert on work–particularly how we can make it more productive and satisfying for ourselves and for those impacted by it. From his home base in Philadelphia, David helps parties to resolve their commercial disputes when he’s not writing and speaking about how all of us can do a better job of bringing our values into our work. He’s a regular on Twitter @worklifereward and blogs at http://www.davidgriesing.com/

David writes today about the downside of the “everyday low prices”  offered by discount retailers like Walmart, one of which is the inability of many of its workers to earn a living wage. A week or so ago, Business Week did an excellent cover story on Costco that complements David’s arguments here. Having said that, the counterargument is that Walmart’s low prices puts billions of dollars of savings into the pockets of the low and middle-income people who shop there, and even those of us who do not, since rival retailers reduce their prices to compete with Walmart.

Our expectation that we’ll always pay less for consumer products has an impact on the people in the supply chain who bring us those products—and it’s not a good one.

I’m talking about those who mine the metals in your cell phone, pick the cotton in your socks, process the rubber in your running shoes. Workers in places like Indonesia or Peru put your toaster together, stick the pins in your dress shirt so it looks good in its package, or pack the parts you’ll assemble into an IKEA bookcase. American sales clerks, stock boys and checkout girls get the final product into your hands.

To bring you “everyday low prices,” the people in these supply chains are paid as little as their labor markets will bear so that the factory owners, shippers and retailers can make a profit. With fewer dollars to go around and cutthroat competition between the on-line and bricks & mortar stores, every link in the consumer product supply chain is squeezed. This includes workers along the arc of production—including those in America.

How is our addiction to cheap stuff making the work that many of our neighbors do everyday a losing proposition—and why should we care? [click to continue…]