9 July 2007
Kampala — THEY have a profit motive but they want to see the change first with farmers.
Dunavant Enterprise has emerged as this years agricultural and food processing 2007 World's Most Ethical (WME) because of the true spirit of Ethisphere's credo: good, smart, business and profit.
Companies routinely compete for recognition for their "corporate citizenship" or "best place to work" award.
"There are a number of issues that have made us achieve this award because our absolute business ethics are relational," stresses Ravi Patel. "This includes respecting employees and stakeholders, competing fairly and within the law and being a responsible corporate citizen wherever you find Dunavant."
The absolutes are necessary for a company to have strong core values to build upon. The context is the environment in which a company operates, both geographically as well as industrially.
The best lens through which to view a company's ethical leadership behavior is to examine a company compared to other companies in the same industry. And to be a leader, the company needs to have or build a competitive edge, such as size or technology, which allows it to be influential.
In assembling the 2007 rankings of the WME Companies, the researchers and editors of Ethisphere examined more than 5,000 companies across 30 separate industries looking for true ethical leadership.
They looked for absolutes. Companies were examined in relational context of their industries.
And they looked for influential leadership that moved others to change or follow.
Each of the companies has materially higher scores versus competitors in their industries.
Each forces other companies to follow its leadership or fall behind. Each uses ethical leadership as a profit driver. And each of these companies embodies the true spirit of Ethisphere's credo.
Ravi stated although their investments are short or long term, Dunavant gets its profits back after 10 years, when the farmers have enjoyed their premium prices.
Dunavant has shown its true spirit of Ethisphere's credo (good, smart, business and profit) by proactively engaging with the farming communities of Nakasongola, Kitgum and Pader, Lira, Apac, Oyam districts where they are promoting organic farming.
Smart credo focuses on companies that invest in innovation, quality and sustainable business practices that reduce resource environmental degradation in the production and increase consumer health or safety. While Dunavant profit credo ensures continuance of farmers.
Ravi explains that organic cotton farming means the growing of cotton using organic matter such as farmyard manure. "The system does not use synthetic chemicals, pesticides inorganic fertilizers."
Dunavant has an Internal Control System (ICS), certified by IMO which covers organic cotton certification. It checks on the soils and makes sure there is no inorganic residual on the grounds. Using the ICS anyone buying organic cotton can re-trace where organic cotton comes from.
The Dunavant farmers' in Kitgum and Pader districts numbering about 50,000 have been registered in groups of 25 to 30 under Dunavant Organic and provided with farming inputs like cotton seeds, spray pump and oxploughs free of charge. Dunavant has also put in place 18 tractors to open 24,000 acres of land with the help of USAID under the GDA project to help the returning IDPs Free of cost.
About 1,600 sprays have been given out to the farmers including organic pesticides and organic Folio fertilizers that are spread out onto the leaves, free of charge.
Dunavant conducts the training programme together with Agricultural Productivity Enhancement Programme (APEP). About 250 university-trained extension agronomists give advice to farmers' on how to grow organic cotton and other food crops.
With the help of APEP, Dunavant has organized demonstration plots of one-acre to act as teaching tools for the farmers to learn the modern methods of farming and how to get the best yields from one acre so they can get the maximum return. Each Demo plot is designed to cater for 25 to 50 farmers.
Dunavant also operates a Mobile Cinema Van, which goes from village to village showing documentary on how to grow cotton with modern methods and to get the best from the land. The Cinema Van also goes to local schools to teach the children the new methods of farming as they are the farmers of tomorrow.
Dunavant is also running a public awareness about HIV/AIDS. Dunavant gives out annual awards to the best farmers. The premium from overseas is passed on to the farmers as incentives.
Dunavant also is working with local Textile company NYTIL to convert organic lint into garments for export.
WME companies methodology analyses companies that go beyond making statements about doing business 'ethically' to translate those words into action. WME winners demonstrate real and sustainable ethical leadership within their industries, putting the council's credo of Good. Smart.
Business. Profit." into real business practices.
Otherwise the final ranking and scoring of the WME looks at governance, citizen ship, internal systems, innovation, executive leadership, industry leadership, transparency, legal and regulatory and perception and reputation.
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