SERBECC 2016 Embry-Riddle Aeronautical University

Publix and the Fair Food Program: Supply Chain CSR or Violation of Business AutonomyBrittiney Ally & Musaddiq Khan

The Coalition of Immokalee Workers’ (CIW) Fair Food Program (FFP) was designed to advance the human rights of tomato workers in the fields and the long-term interests of Florida’s $600 million tomato industry. It is a partnership among farmers, farmworkers and retail food companies that ensure humane wages and working conditions for workers of participating farms. Since approached by the CIW in 2009, Publix has refused to join the Fair Food Program, holding that the issue is a labor dispute and it is the responsibility of their suppliers to ensure proper working conditions for their employees. Analyzing the stakeholders and the financial, legal and ethical implications of this issue, we have made several recommendations on how Publix should address this issue.

The key stakeholders that will be affected by Publix’s final decision to join the FFP include farm workers, suppliers, the community and shareholders (employees). From a financial stand point, if Publix were to join the FFP, it would cost Publix $6.6 million annually. Publix holds the position that they are willing to pay the increase once suppliers “put it in the price” however, they will not pay the suppliers’ employees directly for their labor. Our research shows that the “penny per pound” premium is in fact built into the final price on the invoice. To address any other concerns Publix may have, it is our first recommendation that Publix opens dialogue with the CIW in order to clarify misconceptions of the FFP. After having open negotiations with the CIW, Publix has the option of not joining the FFP if they do not agree with the terms and conditions of the program. However, we believe that ignoring the concerns of their stakeholders will only continue to portray a negative image of Publix and eventually lead to loss of revenue in the long run. In reviewing the legal aspect, Publix is in compliance with all federal and state regulations. However, FFP requires its members’ standards to go well beyond the requirements of law.

Ethically, joining the FFP would be deemed by society as the right thing to do. This was determined using the three ethical methods of reasoning: utilitarian, human rights and justice. The utilitarian method holds that decisions should be evaluated on the basis of the benefits and costs they will impose on society. Research has shown that since 2011, the Fair Food Program has brought far-reaching reforms across the Florida’s tomato industry, creating verifiable change in the working and living conditions of nearly 100,000 workers each year. The Universal Declaration of Human Rights, Articles 4 and 5 refers specifically to slavery and inhumane treatment or punishment. In the tomato fields, there is modern slavery and based on the human rights ethical method of reasoning, denying tomato workers the most basic human rights or failing to protect them for other persons and groups is highly unethical on Publix’s part. At the rate of 50 cents per 32 bucket of tomatoes, workers have to pick nearly 2.5 tons of tomatoes to earn minimum wage in a typical 10 hour workday. For society as a whole, justice means that a society’s wealth and income are distributed among the people in fair proportions. When resources are scarce, we as society have to develop principles to allocate them fairly. This is what the CIW has done with the implementation of its program.

Publix’s business autonomy has not been violated. In fulfilling their mission, Publix has committed to be involved as responsible citizens in their community. This means that Publix has vowed to acknowledge any harm to people and society and correct it if possible, regardless of where the workers fall in the supply chain.