The AERU Value Chain Compass

Risk

Social

The social risks to a food and fibre value chain are generally discussed under the heading of the enterprises ‘social licence to operate’. If an activity develops a reputation for harmful impacts, then regulations may be introduced to limit that activity. These harmful impacts can include perceptions of environmental damage, low animal welfare, poor employment conditions or cultural disrespect. This is not restricted to the country of production; regulations controlling international trade can deny market access to food and fibre products that do not meet social standards, perhaps under the heading of fostering fair trade. Maintaining a country-of-origin profile with strong production and processing values is an important mechanism for sustaining access to global markets.

Questions for developing a value chain

• Does the value chain monitor social expectations for food and fibre production and processing, both in New Zealand and in its key international markets?

• Does the value chain communicate to stakeholders how its contributes to the wellbeing of its local communities, including through providing decent work?

• Does the value chain contribute to New Zealand’s strong country-of-origin profile for food and fibre products?