Directions: Read the memo Fiona Hills, President and CEO of Green Hills Coffee, received from her CFO and the attachment (Clause), and choose the best answer.
GREEN HILLS Coffee: The Taste of Quality
Re: Potential Image problem
I heard yesterday that farmers in Guatemala are still employing child labor on coffee farms, although there are no contracts of course, so we can’t prove it. I also discovered our biggest supplier is planting in virgin forest areas and using increasing amounts of pesticides – all clearly in breach of the terms of our contract (see attached). I know your father had a special relationship with the Cabrera family and used to turn a blind eye, but we have to sort this out quickly. There are other suppliers whose beans are just as good. We’re already under pressure from fair trade brands – fair trade sales grew 40 per cent last year – we simply can’t afford to be associated with these practices!
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Clause
3.1 New planting in virgin forest areas is prohibited.
3.2 The supplier shall make continual reductions in the toxicity and use of agrochemicals.
3.3 Materials on the ICGA Prohibited Materials List may not be used.
4.1 All workers shall be employed under legally binding labor contracts.
4.2 Children below the age of fifteen may not be employed.
4.3 Working shall not jeopardize schooling or the social, moral or physical development of the young person.