Unifrutti Tropical Philippines, Inc. (UTPI), a banana trading corporation based in Mindanao, was known for its sustainable and inclusive business practices as well as its transparent and mutually beneficial relationship with its workers, landowners and rural communities. Founded in 1992 in a region marred by wars between Muslim and Christian populations, UTPI’s experience provides valuable insight in how stable markets can emerge from a situation of zero trust. To make the initial investments in banana plantations succeed, a great amount of effort was needed to establish confidence and overcome the attendant risks.
Learning objectives:
1. Describe the key drivers of an inclusive business model in the context of SDG 1 and SDG 16.
2. Analyse the dilemmas and trade-offs companies face in their attempts to make their value chains more inclusive.
3. Discuss the importance of governance of global value chains.
4. Explain the concept of social capital and trust.