Sustainability

Cheap shrimp and the human cost

July 31, 2014

Asia

July 31, 2014

Asia
Richard Welford

Chairman

Richard Welford is one of the founders and the chairman of CSR Asia. He has over twenty years of experience working in the fields of environmental management and social responsibility. He was one of the early pioneers in developing social audit and reporting methodologies with UK-based organisations such as The Body Shop, IBM and Eastern Electricity in the 1990s. From 2002 to 2010 Richard was also a professor at the University of Hong Kong and headed up the Corporate Environmental Governance Programme. He has worked with some of the leading multinational enterprises and local companies and NGOs in Asia including Disney, CLP, Nike, Shangri-La Hotels and Resorts, Swire Pacific, Cathay Pacific, HP, IBM, HSBC, Citigroup, Accor, Credit Suisse, UBS, P&G and Adidas. 

Richard’s work has had a strong emphasis on environmental sustainability and social justice. He has worked with companies on developing their CSR strategies and with NGOs on developing private sector engagement plans. He has also worked on policies and implementation plans covering a range of issues including governance, supply chain risks, human rights, community investment, poverty alleviation, conservation and biodiversity. 

Richard is also a Board Director of a number of other organisations including ERP Environment, the Compliance Practitioners Association and AIDS Concern.

Thanks in large part to aquaculture global shrimp production has increased by an estimated 13% since the 1980s. Now its price has dropped nearly 30%, transforming this once rare luxury into one of the most popular and affordable seafood products in the world.

For developing countries in Asia, the shrimp industry plays an important economic role, however this all comes at a cost. The industry has been associated with severe environmental degradation, excessive use of antibiotics and chemicals, low wages, and, more recently, scandals around modern day slavery and other human rights abuses.

A new report on the Asian shrimp industry by CSR Asia highlights ways to increase opportunity for people involved in fishing for or farming shrimp who are often poorly compensated for their work. The report demonstrates how retailers and distributors can make their supply chains more productive, safe and secure, whilst at the same time increasing incomes for poor communities. This can be done by effectively investing in people to increase productivity, improve quality, reduce disease and protect the environment.

Large retailers and big brand name shrimp product providers need a renewed focus on partnering with small scale fishers, farmers and processors to help them increase their incomes while maintaining the long term viability of the industry. Only by doing this can we create a more environmentally sustainable industry and avoid the abusive labour practices often associated with child labour, human trafficking and other forms of modern day slavery. 

The shrimp industry is under increasing scrutiny from international non-governmental organisations and advocacy groups eager to expose malpractices, and connect abuses in local supply chains to multinational brands. ‘Business as usual’ is no longer sustainable for companies which don’t take action. Given that production and processing is dominated by small enterprises where revenues are low (and in some cases falling) we need to look at opportunities to develop more inclusive value chains that can involve the poor and increase benefits accruing to them. 

Businesses, consumers, NGOs, development organisations and local governments need to work together to find solutions to problems. There is a great opportunity to turn recent industry scandals into opportunities for new ways of doing business in Asia that create shared value for both large retailers and small producers. 

See the full report here.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.

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