Heineken in Cambodia

Heineken Overview of arguable business practices in 2008 Sanne van der Wal & Rob Bleijerveld April 2009 Heineken Overview of arguable business practices in 2008 Sanne van der Wal & Rob Bleijerveld Amsterdam, April 2009 Heineken Overview of arguable business practices in 2008 Colophon Heineken Overview of arguable business practices in 2008 April 2009 By: Sanne van der Wal & Rob Bleijerveld Cover Design: Annelies Vlasblom Funding This advertisement is fabricated accessible with co-funding from the Vereniging van Beleggers voor Duurzame Ontwikkeling (VBDO) Appear by Stichting Onderzoek Multinationale Ondernemingen Centre for Analysis on Multinational Corporations Sarphatistraat 30 1018 GL Amsterdam The Netherlands Phone: + 31 (20) 6391291 E-mail: [email protected] nl Website: Hwww. somo. nl This certificate is accountant beneath the Creative Commons Attribution-NonCommercial-NoDerivateWorks 2. 5 License. 1 Introduction This aggregation address has been able by SOMO (Centre for Analysis on Multinational Corporations). It provides an overview of business practices that could be admired as unsustainable or capricious which occurred (or ability accept been addressed) in 2008. The overview beneath describes alone arguable practices and not the absolute achievements of a aggregation in the aforementioned year. Advice on absolute achievements can usually be begin in a company’s anniversary and/or sustainability address and on the company’s website. The purpose of this address is to accommodate added advice to shareholders and alternative stakeholders of a aggregation on controversies that ability or ability not be detected and appear by the aggregation itself. This address does not accommodate an assay of a company’s accumulated albatross policies, operational aspects of accumulated albatross management, accomplishing systems, advertisement and transparency, or absolute achievement on any issue. For some controversies, it is adumbrated which standards or behavior may accept been abandoned and a abrupt assay is presented. Apart from this, the address is mainly descriptive. The ambit of sustainability and accumulated albatross issues acceptable for admittance in this overview is almost ample and mainly based on the OECD Guidelines for Multinational Enterprises. These Guidelines are acclimated as a accepted anatomy of advertence in accession to the company-specific standards. Sources of advice are mentioned in footnotes throughout the report. The capital sources were acquired through SOMO’s all-around arrangement of civilian affiliation organisations, including reports, alternative documents, and abstruse information. Media and aggregation advice databases and advice accessible via the Internet are acclimated as accessory sources area necessary. Heineken has been abreast about the analysis activity in beforehand and was accustomed two weeks to analysis the address and accommodate corrections of any absolute errors in the abstract version. The overview of arguable practices in this address is not advised to be exhaustive. Instead, it focuses on a bound cardinal of issues and cases that ability arete added absorption or reflection. Where advice about the latest developments, either absolute or negative, was unavailable, it is accessible that situations declared in the overview accept afresh changed. Taking into annual these limitations, SOMO believes that the address can be acclimated for advance and for a added abreast appraisal of a company’s accumulated albatross performance. For added information, amuse acquaintance SOMO: SOMO (Centre for Analysis on Multinational Corporations) Sarphatistraat 30, 1018 GL Amsterdam, The Netherlands Tel. 31 (0)20 6391291 Fax +31 (0)20 6391391 e-mail: [email protected] nl website: www. somo. nl 2 Heineken Overview of arguable business practices in 2008 Precarious alive altitude of Heineken Beer sellers in Cambodia This abbreviate overview deals with alone one issue: the continuing bad labour and bloom altitude of socalled ‘beer sellers’ in Cambodia, salaried women who abrasion characteristic Heineken uniforms while alone affairs Heineken beer in confined and restaurants, alongside those alive for its partly endemic accomplice brands (e. . , Tiger, ABC, etc…), and for competitors. The assignment altitude of these women, who are assassin by best of the all-embracing brewers and their distributors operating in Cambodia 1 , accept been criticised for several years, by the Cambodian NGO (Non-Governmental Organisation ) Siem Reap Citizens for Health, Educational and Amusing Issues (SiRCHESI) 2 . In 2002 the CEO and the Boards of both Heineken Breweries Ltd and Heineken Holding N. V. from here: Heineken) were aboriginal notified by SiRCHESI of apropos about the bloom and abundance of their beer sellers, who continued, in 2008, to be at aerial accident for HIV/AIDS and alcohol- accompanying bloom problems, who acquaintance animal aggravation and abandon at their workplaces, and who are not paid a 'living wage'- a bacon for a full-time job on which they can abutment themselves and their ancestors dependents. Columnist letters activity aback to 1998, and decidedly a adventure in the Wall Street Journal (2000) had already acutely declared the problems afore amusing scientists began analytical abstracts collection. Additionally SOMO's overview of arguable business practices of Heineken during 2006 for VBDO of April 2007 has alleged absorption to this analytical issue. 4 Contempo inquiries and analysis in Cambodia –as allotment of a longitudinal abstraction (2004-2009) 5 - reconfirm that these bad labour and bloom altitude still exist. Heineken - and alternative brands, with whom they both attempt and co-operate - accept not fabricated cogent advance in 2007, nor in 2008 to abate the aerial risks to the bloom and assurance of the women beer-sellers in Cambodia nor accommodated their account banking needs. So far, industry efforts to boldness these issues - through the accumulation in backward 2006 of “Beer Affairs Industry Cambodia” as a able brewers affiliation with a cipher of conduct (COC) for beer sellers - accept failed. 1 2 3 4 5 See e. g. “Heineken en promotiemeisjes in Cambodja – deel A,” R. Feilzer and F. P. van der Putten (p. 85-96) and F. P. van der Putten, “ – deel B” (p. 109-13), in: Bedrijfsgevallen, Eds. W Dubbink and H. van Luijk (Assen: Van Gorcum, 2006). SiRCHESI website, . and ,, and . SiRCHESI’s website http://www. fairtradebeer. com columnist letters section. Heineken - Overview of arguable business practices in 2006," Francis Weyzig (SOMO), April 2007 Performed by Staff, volunteers ,researchers and acceptance amid in Siem Reap with SiRCHESI, or at Siem Reap Provincial AIDS Office, of University of Guelph (CA), Civic Center in HIV Amusing Analysis (University of New South Wales, AU), Macquarie University (Sydney, AU), University of Melbourne (AU), Australia Volunteers International, Duke University (North Carolina, US), Oxford University (Oxford, UK), University of Technology Sydney (AU), as welll as University of Maastricht, NL, Civic University of Singapore, and Staffordshire University (UK). Data and analyses were provided through Ian Lubek, all-embracing adviser to SiRCHESI. The SIRCHESI interviews with beer sellers were conducted either in the workplaces or during bloom workshops. 213 interviews were conducted from 2004-6, and 324 from 2007-9. 22 beer sellers formed for Heineken and accomplice brands, 57 formed for Carlsberg brands such as Angkor; 56 awash AB-INBEV brands, 1 awash a SAB-Miller brand, and the actual 201 awash alternative brands including Dutch brands Bavaria, Hollandia, as able-bodied as Corona, San Miguel, Singha, Oettinger, Asahi, etc. 3 Below, some arguable aspects of the bearings in 2008, appear by SiRCHESI, are described. Added accomplishments abstracts can be begin on the SiRCHESI website committed to this affair www. ethicalbeer. com. On the aforementioned website added new capacity on the longitudinal study, including abstracts for 2008-9, are appear by SiRCHESI 6 as well. Low assets and accuracy As in 2006, SiRCHESI analysis 7 confirms that Heineken is not advantageous a “living wage” in 2008. If Heineken and its Asia Pacific Breweries accomplice brands (Tiger, ABC, Anchor, Cheers,etc. paid their beer sellers the accepted industry accepted (2008) of aloof over 8 US dollar per beer case as commission, they would acquire - based on SiRCHESI’s observations of sales of added than 3 cases per night - about 700 US dollars per ages which amounts to about 10 times the accepted anchored salary. BSIC cast sellers are consistently paid beneath anniversary ages than non-BSIC brands yet added advertise assorted added beer anniversary year 8 . In actuality workers get beneath than 2. 5 percent of the sale, and face astringent nightly abode bloom and assurance risks. Allotment of this advantage for Heineken is based on the sellers’ own nightly burning of about 6 percent of sales, which adds corruption and accident to their alive situation. For a cardinal of years, Heineken admiral appear advantageous bonuses to the beer servers, yet SiRCHESI interviews showed that from 2002 advanced these were not actuality accustomed by the beer sellers. In actuality in 2008 they appear accepting account balance of 71 US dollars which is appreciably lower than the 84 US dollars appear by non-BSIC sellers and the 85 US dollars Heineken address letters advantageous 9 . SiRCHESI estimates that 71 US dollar account is still beneath than bisected of what would be abundant to accommodate for them and their ancestors dependents. This bearings of underpayment –first appear to Heineken admiral in 2002 and banausic anytime since- puts abhorrent pressures on the women to abutment their families and to accomplish ends meet, acute some to advertise alarming sex to barter in agony to supplement bereft income. In accepted it is difficult for Heineken beer sellers to apperceive to what allowances and bonuses they are advantaged because Heineken is crumbling to accommodate beer sellers copies of their assignment affairs allegorical alive conditions, allowances such as severance pay and maternology leave, and exact earnings– all, transparently. In 2008, no beer agent could appearance SiRCHESI a archetype of their alive contract. Several Heineken beer sellers said they did accept alive affairs but that these affairs had gone to the distributors' Head Quarters in Cambodia. In 2008 SiRCHESI asked the benefactor and BSIC for copies of these affairs they but were told they were "proprietary" and could not be disseminated. 6 7 8 9 See for example: “Ab-Inbev, Carlsberg, Heineken and alternative all-embracing brewers are yet afresh in 2008-9 behaving abominably to women beer sellers in Cambodia”, SiRECHESI, April 2009, http://www. ethicalbeer. com/read/April2009-INFO. df AND “Professor criticizes all-embracing beer companies for not actuality proactive abundant in Cambodia (2008-9) to assure their women beer sellers from hazardous, harmful, and potentially bitter abode bloom and assurance risks: Citing contempo research, he urges aggregation executives, cast consumers and shareholders to apparatus actual changes. ”, SiRCHESI, April 2009, http://www. ethicalbeer. com/read/APRIL2009Press-info. pdf This overview builds on SiRCHESI appear (see comment anon above) and abstruse advice provided/communicated anon to SOMO by As Tiger Beer agent Sophea wrote to administration at Cambodian Breweries Ltd. allurement for a bacon admission to 100 US dollars monthly: “Our affirmation is actually justified. The abundance of our sales increased, and the amount of beer added too…. Now it {Tiger Beer} is awash for 2. 90 US dollars. “ (Cambodge Soir, 18-25 June, 2008). “Biermeisjes bezorgen Heineken hoofdpijn," Financiele Telegraaf (p. 27) 10 mei 2008 4 Heineken Overview of arguable business practices in 2008 Abode bloom and assurance issues Heineken’s HIV/AIDS action of 2002 has promised advantage to all its workers all-embracing 10 . However the aggregation and accomplice brands are still not accouterment chargeless HAART (highly alive anti-retroviral therapy) for their HIV absolute beer sellers as they do for their cadre in Africa. What compounds the bearings is that best beer-sellers are currently afar from Government ARVT (anti-retroviral therapy) programs due to Cambodia and the All-around Fund’s disability to apparatus admission in 2008-9 for all bodies active with HIV. Simple factors such as abridgement of circadian busline to a administration armpit beggarly that abounding beer-sellers cannot accept ARVT. In Africa Heineken has apparent this botheration through abode administration of HAART. Heineken is additionally not accouterment abundant able abode bloom and assurance apprenticeship about HIV/AIDS, changeable bloom and booze risks afore application begins. Although Heineken proactively developed the Affairs Beer Safely (SBS) Affairs in 2003 it has not been offered to every employee; moreover, the cardinal of beneficiaries of SBS is crumbling markedly. Of 224 Heineken ancestors sellers in the SiRCHESI analysis sample of 2004 to 2009, 31. 2 percent had accustomed no bloom training at the time of the interview. It should be mentioned that this is bigger than the industry boilerplate of 43. 3 percent that accustomed no bloom and assurance training about actuality a beer seller. In 2004, 22 percent of Heineken or Tiger beer sellers had accustomed SBS training. However in 2008 this allotment had beneath to 4. 7 percent. However, back SiRCHESI asked whether they had accustomed either the SBS or any alternative centralized training affairs 11 , BSIC beer sellers did abundantly better: 27. 8 percent appear centralized training, while alone 8. 3 percent non-BSIC sellers appear centralized training. But the best austere criticism is the dabbling in bartering this education. Of 224 Heineken ancestors beer sellers interviewed, 16 (7. 1 percent) accustomed training afore they started, and a added 6 (2. 7 percent) accustomed it on the aboriginal day. 80/224 or 35. 7 percent had accustomed it in the abutting 6 months, while the butt had training in the abutting 18 months or not at all (122 or 54. 5 percent). Hence alone 9. 8 percent had been accustomed some early-warning training - afore or on the aboriginal day of work- about the risks and corruption accessible for beer-sellers themselves, accident to the fetus during pregnancy, or abbreviating of HIV/AIDS or a sexually transmitted infection (STI). Although the BSIC COC which Heineken claims to advocate absolutely forbids abode bubbler of alcohol, SiRCHESI begin that alone 6% of Heineken (7. 6% of BSIC brands) beer sellers were in actuality abnegation in 2008. For those who abide to drink, the beggarly booze captivated nightly by BSIC sellers in 2008 was 1. 48 litres nightly or 6 accepted drinks (N=103), while 1. 53 litres (7 accepted drinks) were captivated nightly by Heineken beer ancestors servers (N=89). All of these levels are able-bodied aloft levels of civic guidelines for amenable bubbler as set for women by 23 countries surveyed by the All-embracing Center For Booze Behavior (ICAP) 12 including the Netherlands. This agency that these women accept an added accident for concrete (raised claret pressure, stroke, and alarmist cirrhosis), mental, and amusing problems associated with booze abuse. While (excessive) abode bubbler continues to be a analytical affair in Cambodia it has been empiric by SiRCHESI to no best abide in adjacent Singapore. 10 11 12 “Heineken's HIV/AIDS Action - addition of a clandestine company," HEINEKEN COR P. COMMUNICATION ~ 02 92857455 NO. 023, by Heineken International, 18 April 2002 (at http://fairtradebeer. com/reportfiles/heinekenaidspolicy2002. pdf) SiRCHESI: “other in house-training” are mostly beneath than the 3 day SBS training some aloof get 1-2 hours - the "refresher courses" All-embracing Center For Booze Behavior (ICAP) in All-embracing Bubbler Guidelines Letters 14

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
Top Academic Writers Ready to Help
with Your Research Proposal
Order now and a get a 25% discount with the discount code: COURSEGUYOrder Now!
+ +