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Code of Good Organic Retailing Practice

Code of Good Organic The idea: Ethical basics for business The tool: the Code of The target groups and results

Retailing Practice good organic retail practice

Facing all the problems caused by The target groups are:

globalization, fi nancial crises, economic Important stakeholders of the organic

and social deregulations ethical trade sector have started to develop

basics for business are becoming and promote 8 principles in business

more and more important. Organic and staff related contexts:

regulations and certifi cates are not

enough to assure the authenticity

of organic products and business.

> social aspects

> involvement in the organic sector

> product quality

> sustainability in the shop

> sustainable relationships

> transparency

> open communication

> quality management

> representatives, managers and

staff in organic and non-organic

retail sector

> institutions of adult education

> trainers, instructors and teachers

> decision-makers in public administration

> human resource managers

General Introduction

©BLE, Bonn/Foto: Dominic Menzler

social aspects

1 - social aspects

criteriadimension

of criteriacriteria in detail indicator example for indicator measurement

social aspects

No self-exploitation

Salary comparable to employed work

Compare gros profit before tax of organic shop to average income of a store

manager in the food retail business. This has to be done according to country

specific data on salaries of store managers. Payments for unemployment insurance

and pensions have to be taken into consideration.

Positive self assessment: A strict comparison of incomes and profits might be

misleading as being self employed and working in the organic sector might be

regarded as a personal value that at least partially makes up for losses in income.

But if a minimum level of income that allows for a decent way of living and social

security is not met, this would be an indicator for self exploitation.

Working hours not more than plus 25% compared to employed workRecord of working hours (diary). Example for Germany: If working hours exceed 50

hours per week in 4 subsequent weeks this would indicate self exploitationSelf assessment: daily record of working hours

Economic sustainability

Pension and health insurance covered

Health insurance?

pension fond/insurance that will lead to a pension compared to the pension to be

expected when working for a company

Self assessment

Sound profitsProfit of the company allows for covering all investments needed plus salary for

shop owner (see above)Self assessment or third party assessment by house bank

Meaningful work contents

Job satisfaction

Possible questions for self assessment on a 5-point scale (fully agree - fully

disagree) are:

- I enjoy going to work most days of the week

- My job adds value to the society

- I enjoy working

- I have the freedom to take my own decisions in my job

- In regards to my job I feel free of fear

- I would choose the same job if I could go back in time

- over all, I feel satisfied with my job

...

Self assessment on a scale with a positive overall assessment

Meaningful work contents

Job satisfaction

Possible questions for self assessment on a 5-point scale (fully agree - fully

disagree) are:

- I enjoy going to work most days of the week

- My job adds value to the society

- I enjoy working

- I have the freedom to take my own decisions in my job

- In regards to my job I feel free of fear

- I would choose the same job if I could go back in time

- over all, I feel satisfied with my job

Self assessment on a scale with a positive overall assessment

Fair payment, social security

Salary above the bare living wage The salary for a full-time job enables a decent way of living, no extra job is needed. Documents, comparison with statistics

Maximum 50% of working hours covered by minor employment The majority of the jobs should be subject to social insurance contribution Documents

No limitations in work

councils and/or labour unions

Perceived restrictionsStaff being member of the work council and/or a labour union don't have any

disadvantages.Self assessment

Training opportunities

Minimum one training per employee per yearManagement offers internal or external training opportunities and encourages the

staff to take part, at least once a yearDocuments

Empowerment

Perceived enabling to fulfil task Management offers support, encourages the staff to take responsibility Self assessment

Predictable, reliable contracts

Satisfaction with the contracts Self assessment

Diversity and inclusion,

gender, no discrimination

Shop owner report on activities surpassing national and/or European regulations More handicapped persons employed than required by law Documents

Staff

Ego

social aspects

criteriadimension

of criteriacriteria in detail indicator example for indicator measurement

Workplace (employee)

participation

Regular team meetings and/or consultations

Do employees know their legal rights at the workplace?

Does management inform staff members about workplace issues in due time?

Is staff participation based on informal aggreements, on labour-management

contracts or on legal regulations?

Is it possible to install institutions for employee participation on a legal basis, e.g.

works councils?

Self assesment, documents

Employee suggestion system

Staff members are provided with tools and means how to confront management on

issues requiering improvement and are requested to make use of them. Is there an

employee suggestion system agreed upon in a formal contract between

management and staff?


Safety at work, health

protection

Activities surpassing national and/or European regulations

Management initiates measures of health promotion for employees, e.g. anti-flu

vaccination. Management supports health relevant behaviour of staff. Legal

requirements on working environtment (ergonomy).

Self assessment

Individual development

opportunities

Personnel development concept

Management grants exemption for further education.

Management meets a part of or total of the costs for further education on workplace

related topics.


Working conditions (max.

average 48 hours)

Working hours statistic

Long term planning of working hours.

Labour-management contracts surpassing national and/or European regulations

about working hours, conditions for overtime work, holidays, etc.


No harassments (physical,

psychol., sexual), human

rights

Positive self assessment

Staff members are treated respectfully.

Employees know where to find support when they feel injured in their human dignity

and human rights.

Self assessment

Ombudsperson existing? yes/no

Corporate citizenship /

involvement in local activities

List of possible activitiesInitiative and/or participation in local activities like roadshows, street or community

festivals, participation in local boardsSelf assesment, documents

Long term supplier relations

Choice of supplier according to ethical criteriaSupplier involves handicapped person, supports social/environmental/Fair Trade

activities or associationsSelf assesment

Joint quality management, communication policySupplier - Shop Joint activities like tasting, product presentation, sampling or

informative eventsSelf assesment, documents

Long term consumer

relations

Customer dialogue conceptStore card, (regular) meetings in shop (information, advisory), newsletter or new

media information strategySelf assesment, documents

Need oriented customer services offered Cafeteria, lunch specials, delivery service, recipe suggestions Self assesment, documents

No corruption, integrity, tax

honesty

No assessment required due to national and/or European regulations

Society

social aspects

involvement in organic sector

2 - involvement in organic sect

criteriadimension

of criteriacriteria in detail indicator example for indicator

Membership

Member of national organic retailing umbrella organization Member in BNN-Einzelhandel in Germany / in comparable national

umbrella organizations in other countries. In Turkey: Orguder, Eto, Bugday

Membership in national organic retailing umbrella organization yes/no

Member of regional or local organic retailing association Member of a network of regional or local organic retailers groups or co-op

e.g. "fair & regional" in Berlin, Brandenburg

Membership in regional or local organic retailing association yes/no

Collaboration

Active member of a cooperation in organic retail Cooperation for common procurement, marketing, labelling activities etc Active membership in cooperation yes/no

Cooperation

Direct contact and cooperation with local/regional organic farmers; organic

products companies.

Regular visits to organic farms, organic products compaines, common

marketing activities and public events

Regular contacts and / or events with local/regional organic farms and

companies

yes/no

Member of regional, quality or other forms of cooperation. Some of the organic products have plus quality label (regional, others) Parts of assortment have additonal labelling concerning special regional or

quality issues

yes/no

Corporate citizenship, involvement in local marketing and PR activities Common local marketing and PR events of farmers, retailers and other

local actors

Participation in common local or regional activities of farmers, traders and

others

yes/no

Support

Company policy supporting development of organic farming projects Support of project for presenting advantages of organic agriculture and

organic food

Particpation in project on organic farming yes/no

Company policy supporting development of organic farming projects in

"Third world countries"

Listing of Fair Trade products, active support of according projects Support of "Third World" products (Fair trade) and / or projects yes/no

Participation in national

political decision

process

Company policy of engagement in national policy on organic agriculture

and trade

Discussion of national policy with local stakeholders, cooperation partners Discussion of national policy on local or regional level, support of

initiatives, activities for interventions

yes/no

Support of national NGOs engaged in national policy on organic

agriculture and trade.

Discussion of national policy via NGOs, umbrella association like BNN etc. Discussion of national policy in NGOs, support of initiatives, activities for

interventions

yes/no

Participation in the EC

decision process

Company policy of engagement in EU policy on organic agriculture and

trade.

Discussion of EC policy on organic agriculture and trade with local

stakeholders, cooperation partners

Discussion of EC policy on local or regional level, support of initiatives,

activities for interventions

yes/no

Support of IFOAM EU group Discussion of EC policy via national IFOAM representatives etc. Discussion of EC policy in IFOAM, support of initiatives, activities for

interventions

yes/no

measurement

Stakeholders

Organic Retail Sector

Involvement in organic sector

involvement in organic sector

Alnatura Ladensicht FR2. Licensed under CC BY-SA 2.0 de via Wikimedia Commons

product quality

3 - product quality

criteriadimension


product quality

food

number of certified organic products EU organic, USDA NOP organic at least 90% of the food that can be certified organic, is certified organic

% check on

purchase value

of products

certified organic products + labelling private organic labels such as Demeter, Bioland, % of the organic products that have an organic PLUS quality label

% check on

purchase value

of products

organic AND fair trade products Max Havelaar, Ecosocial label % of the food having a double label, organic and (preferably) fair.

% check on

purchase value

of productsnon food and food

other sustainable label if organic is not possible for wild fish there is no organic label: MSC would be the best and for

toothpaste, soap and cosmetics there is no public organic label

80% of the food and non food that cannot be certified organic has

another sustainable label for a limited list (MSC, Ecolabel, cosmos)

% check on

purchase value

of products

food

fresh fruits and vegetables harvested not long ago, fresh meat and fish visual check qualitative

artisanal

Labelinig of traditional products: Traditional German sausages

(mettwurst), French roquefort, Chech knetliki; Turkish delight; Ezine

cheese

presence of information from producer (on label and internet) qualitative

seasonal tomatoes in summer, cabbage in winter general knowledge of seasons yes/no

food and non food

local from no more than 100 km (as an example) information from producer yes/no

products come with a story Palestinian olive oil information from producer qualitative

non food

natural materialsbrushes from wood and natural fibers; natural sponges; natural olive

soapinformation from producer yes/no

measurement

quality not controlled by labels

quality controlled by labels

product quality

closed cooling system, image: Petra Hermann, kggk

sustainability in the shop

4 - sustanibility in the shop

criteriadimension


staff can inform

consumer about food

quality and health

safe and clean

environment for staff

and customers

shop is cleaned with non aggressive detergents make a list with allowed cleaning produtcs are allowed cleaning products used? yes/no

use as litte non

renewable energy as

possible

annual energy use over a number of years and practical measureslook at number of kWh/year and compare over the years, look at use of

ledlight, covered freezers, closed shop doors in winter

what is the decrease in energy use compared to last year (maybe

breakdown according to goal of energy, cooling, heating etc)

% but with

explanation as

expansion of

reorganisation

can alter the

entire picture

use of green energy self-explanatory how much of the energy use of the shop can be called green energy? % of total

energy use

solar panels and wind turbines self-explanatory does the shop have its own solar panels or wind turbines on the roof? yes/no

as little waste as

possible fo company

and consumers

minimum loss in quantity & quality of products staff is well trained in handling of all offered goodsis the staff trained to handle the products with care so that selflife is

optima and as a result there is less waste? yes/no

proper storage facilities does the shops have proper storing facilities? yes/no

waste separation separate bins for paper, glass, plastics does the shop have separate bins for paper, glass, plastic, green waste? yes/no

waste reduction

no free plastic bags; no promotional material in large quantities; no

packaging from non renewable sources; minimise food waste by good

climate control, storing facilies and purchasing/pricing strategy

checklist: on the plastic bags and protional material , on the other issues

info from producer and info from shop owner

yes/no and

qualitative

answer

be a good neighour

take care of waste around shop how does the shop entrance and neighbourhood look like?does the shop owner take action to improve the neighbourhood like

collecting paper, cleaning his porch

list activities

that are taken

arrange loading time no loading on sundays or very early/late at night complaints register of shop? # of complaints

fair payment for

employees

measurement

Sustainability in the shop

health

ecology

fairness

sustainability in the shop

Image: Ralph Liebig, ORA

sustainable relationships

5 - sustainable relationships

criteriadimension


long-term relationships

percentage of suppliers with long term contracts in %

percentage of assortment delivered by key-suppliers in %

know suppliers by name in %

visits to the main suppliers times/year

quality circle with suppliers yes/no

quality circle with suppliers yes/no

own high ethical standards as

demand for suppliers

presence of written down standards for sourcing yes/no

long-term customer

relationships

regular customers in %

daily

once / week

several times / week

several times / month

customers you know in %

existing data base yes/no

communication on sustainability

existing communication materials esp. on the topic sustainability in

the shopyes/no

existing campaigns esp. on the topic sustainability yes/no

benefits for sustainable behaviour yes/no

times / year

long-term relationships

employees in the company in %

less than one year

one year to five years

more than 5 years

since beginning

qualified employees

training for staff times/year

employees as role models for

sustainable behaviour

shop owner as role model yes/no

existing feedback-system yes/no

customers

emloyees

support employees in their sustainable behaviourtickets for public transport or car-sharing-card for free - as part of

salary

shop owner as role model for sustainable behaviourdemonstration of best practice in daily live: using public transport,

prevent waste, open communication...

education and training for the staffindividual training to qualify the staff in sustainability, e.g. importance

of a sustainable orientated supply-chain from farmer to fork

high percentage of long term employees quality orientated employee-policy with contracts for full-time jobs

direct marketing(mail)newsletter with information about suppliers, products, trends,

employees, regional products

benefits for sustainable behaviourbetter prices or conditions for clients showing their public-transport-

ticket, car-sharing-store-card or green-electricity-bill

sustainability as argument in acquisition / advertising advertising-campaigns, promotions, press relation with sustainability

as main argument

presence of sustainable topics in the shop / at the point of saleposters close to the fridge about green energy; leporellos about the

suppliers; tips for sustainable living on the receipt

data baseExcel-sheet with name, adress, e-mail of clients as base for e.g.

invitations or promotions

personal relationsongoing conversations with clients about more than shopping, e.g.

holidays, job, everyday topics

high percentage of regular customers custumers who buy regulary in the shop

social and environmental standards for sourcingwe don't work with suppliers in risk countries or suppliers with child

labours

continuous dialogue and engagement on sustainability integration of suppliers to find better solutions for packaging to

provide packaging waste

process optimization optimization of delivery and storage to save energy (for both)

personal relations direct contact with local farmers

measurement


solid contractual relationshipscontracts by the year with definition of quality, quantity, labeling,

services etc. with each key-supplier

suppliers


http://riodebio.wix.com/rio-de-bio-2

transparency

6 - transparency

http://riodebio.wix.com/rio-de-bio-2

criteriadimension of

criteriacriteria in detail indicator example for indicator measurement

transparency on the

production process and

composition of products

Available information about organic sector organization and commitmentsthe staff knows about the organic sectors and the suppliers; the consumer is

able to have some information about the organic sectorExistence of regular information/training programs

Clear labelling and available information on commitments to quality

Labels are visible

In-store signage is clear

Communication tools exist or the staff can inform customers about products

under quality/sustainable schemes and what these schemes mean

Existence of regular information/training programs

Clear information on the composition of the product

clients are well informed on the composition or if a product has a risk by

some communication tools or the staff :

clear labeling

clear In-store signage

self assessment

transparency on the supply

chain

Information on products origin Detailed by region / location / producer for unpacked products % of products with the information

Breakdown of the price examples for price and added-value in main product categories % of products with the information

Environmental informationenvironmental indicators are available : CO2 footprint, ecological impact

indicator, lifecycle analysis% of products with the information

Means of transportationCustomers can obtain information on transportation means (for instance for

fruits and vegetables : plane/ship)% of products with the information

Traceability of raw materials identification codes on products % of products with the information

degree of tracability : from store shelves until production of raw material, how

far can traceability be retraced ? self assessment

Assessment of the suppliers existence of a checklist for the assessment of supplier regular visits, business meeting

transparency on the

enterprise practices

Available information on the company (values, structure, policy etc.) actualised information sheet/website, communication tools yes/no

Monitoring on sustainable development commitment and performance Catalogue of criteria, Self-assessment process Self assessment program

Reporting on sustainable development policy and results A report is available and published one report a year

One person in the store is in charge of implementation of sustainable

development policyclear objectives and responsabilities yes/ no

Financial reporting available

the financial functioning of the shop is clear and transparent. The objectives

and results are known. A document which presents the financial functioning

of the shop is available.

yes / no

Consumer dialogue

Regular consumer feedback is organised

Consumers are actively invited to give feedback during and after the

purchase situation Consumer feedback tools (surveys, events …)

the customer complaints are taken into account complaints department

transparency in business

relationships

clear contracting practices with suppliers effective contracts with less interpretation as possible satisfaction survey with the suppliers

visible results of improvements / necessary adaptions/ changes in business

relationshop

Enterprise/Store level

Product / in-store level

Transparency

transparency

image: Petra Hermann, kggk

open communication

7 - open communication

criteriadimension


Improve efficiency and

effectiveness

Provide important information on company structure and its policies Description of the company structure and all its policies are freely

available online and offline.Existing description yes/no

Provide work place descriptions Thorough work places descriptions are provided to all employees. Existing work places descriptions yes/no

Encourage discussion and idea exchange. Regular and open exchanges of ideas and discussions between and

among managers and employees are organised and encouraged. Daily, once weekly, once monthly yes/no

Build trust

Provide summary of organizational goals and policies from

management to employees.

A manual that communicates the goals and policies of the organisation

and translates them into everyday work procedures is provided to all

employees. Existing manual updated yearly yes/no

Improve efficiency and

effectiveness

Share future direction of the organization's activities. Stakeholeders are provided with information on organisation's goals,

targets, strategies and policies on regular basis via online and offline

media.

Information provided yes/no

Allow confronting management on issues that stakeholders think require

improvement. Stakeholders are provided with tools and means how to confront

management on issues requiring improvement. Tools and means are provided yes/no

Build trust

Share values and visions of the organisation The values and visions of the organisation are openly communicated via

online and offline media. Values and vision provided yes/no

Include stakeholders in values and visions creation and modification.

Stakeholders are invited to use various tools and opportunities to

participate in creation or modification of organisation's values and

visions.

Tools and opportunities are provided yes/no

Open crises-communication policyCrises-communication policy is implemented, regularly updated and all

work team members are up-to-date with all necessary measures. All managers and work team members know how to behave in case of a

crises. yes/no

open communication

Work team members

Other stakeholders

measurement

open communication

Image: www.oekolandbau.de / Copyright BLE

quality management

8 - quality management

criteriadimension of

criteriacriteria in detail indicator example for indicator measurement

existing Quality

Standards

Quality Handbooks guidelines for choice of suppliers presence of handbook Y/N, completeness of handbook

Quality Standards ISO etc. presence of relevant standards

clear responsibilities

person/s in charge of QM organigram with responsibilities review protocols and assessement documentation

error-management

quoted process for dealing with errors defined and written-down organigramm and action plan presence of forms, scenarios, spontanous qualified reactions

know-how-

management

advanced education & trainings training schedule

quality management

quality-focussed professional procedures & processes in all necessary areas

quality management