Land-related conflicts
Abuses in mushroom farming
Ethical dilemmas
products to hedge risk exposures incurred by customers in the real economy. Until now,
leading international studies have not produced conclusive evidence that derivative markets
have a material inflationary effect on the price of food commodities and food products.
In the year under review, Rabobank met with public interest groups such as Oxfam Novib, the
Transnational Institute, FIAN and Banktrack about its policy in relation to land grabbing, i.e.
the buying or using of land in developing countries by large transnational food and agri
companies. The organisations are concerned about the negative effects of land grabbing on
local communities and the environment. This has prompted Rabobank to launch an extensive
study of the issue and initiate internal debate, for instance in the Ethics Committee.
It was concluded that land acquisition has been a common phenomenon in the food and
agribusiness for many years and that it cannot or should not be dismissed without considering
further arguments. Rabobank has defined policy to avoid becoming involved in unfair land
acquisition and to provide positive input into these processes where appropriate to its role,
based on the premise that local communities should have sufficient influence on developments
that affect them heavily. The problem centres on the land-related conflicts that may arise
when there is a change in the ownership or use of land, particularly where there is no
adequate legislation or government enforcement. Finally, Rabobank stresses the crucial role
that local authorities play in creating conditions or enforcing rules. Based on the outcome of
the dialogues and the internal study, Rabobank will adjust its supply chain policies by focusing
more on the position and rights of weaker groups and communities. In addition, it has
developed a theme policy for the prevention and resolution of land-related conflicts.
The policy is expected to be finalised and implemented in 2013.
Rabobank does not accept employment structures that are designed to work around the law.
In the year under review, Rabobank tightened its policy for working conditions at mushroom
farms. The policy is meant to prevent or put an end to employment structures and working
conditions that potentially breach the law and violate human and labour rights. Rabobank
screened its portfolio in this sector based, in part, on the updated human rights policy;
where needed, the bank initiated a dialogue with mushroom farmers to help them improve
their business practices. Rabobank will take further measures if these farmers do not take
follow-up action.
As the largest financier of mushroom farming, Rabobank is closely involved in the
development of a quality mark for this sector. The bank actively encourages businesses in
the sector to join this initiative. The Dutch government has also acknowledged the abuses
in mushroom farming and has stepped up the inspections by the Inspectorate of the Ministry
of Employment.
Rabobank Group employees who are faced with an ethical dilemma can refer the issue to the
Ethics Desk, which has been established to encourage dialogue and to improve compliance
with all the relevant rules and regulations.
The Ethics Committee, which is chaired by the Chairman of the Executive Board of Rabobank
Nederland, advises all Rabobank group entities on ethical questions. An introduction video
was produced in 2012 to raise the profile of the Ethics Desk and the Ethics Committee.
In addition, Rabobank communicates about ethical dilemmas via internal and external
platforms. Ethics was added as a theme in the seminars that were organised for members
of the supervisory committees of local Rabobanks.
The Ethics Committee addressed the following issues in 2012: controversial weapons and
controversial regimes, land grabbing, the moral and ethical declaration, the integrity of
religious institutions, sustainability in livestock farming, food speculation, customer integrity,
developments in shale gas and anti-corruption.The ethical dilemmas that are discussed, and
advised on, by the Ethics Committees were communicated internally so that all employees
could read about the proceedings.
An example of a dilemma discussed by the Ethics Committee was a case referred to it by a
local Rabobank involving a customer who defaulted on the terms and conditions of his
mortgage loan and threatened to fall into foreclosure. The customer finds himself in an
24 Annual Report 2012 Rabobank Group