Ethical Sourcing & MEC

China's 3.1 Upgrade - Coming Soon

The next industrial leap for China is not making more cheap clothes, cell phones, cars and just about every other knick knack.  It's IT architectecture, selling financial products and developing life saving drugs.  It's moving up the value chain currently dominated by Western economies.  This climb won't happen today but bet on it happening in our life time.

Israel, Apartheid and Boycotts Part 3

The motion to boycott Israeli suppliers was defeated at MEC's AGM on April 30. 

I have a bunch of observations but will keep most of them to myself simply because if I say "low" a whole bunch of people will be peeved or if I say "high" another group will be keyboarding furiously.

However, I will say I had surprisingly civil and respectful conversations/debates with both sides at our AGM.  For sure many are disappointed, many are relieved but still disappointed and many are out right angry.   I respect the range of emotions and for me personally, the politeness I had encountered is a refreshing pause in a seemingly intractable and unending struggle to achieve peace in the Middle East. 

Israel, Apartheid and Boycotts Part 2

MEC has been labeled a whole bunch of names including hypocrite for buying products from China, Taiwan, US, India, Sri Lanka and just about everywhere else outside of Canada.  Yesterday, a blogger found us to be "pathetically transparent racists" for presumably upholding the basic democratic tenets of being a co-operative.

For the record, the resolution to boycott Israeli suppliers is NOT being put forward by MEC or MEC employees.  It is tabled by members of MEC and it will be voted on at the upcoming Annual General Meeting (AGM).  As a co-operative, MEC is obligated to protect the right of members to participate in the co-op including calling for specific motions or voicing their views (both must comply with the rules of conduct and procedure for the AGM).   If protecting this measure makes MEC a forthright but pathetic racist then so be it.  The alternative of only allowing some voices to be heard is much more bothersome than being tossed an incendiary label.

Before us is an ordinary resolution calling on MEC to stop doing business with Israeli companies and it will be tabled at our upcoming AGM on April 30. It will be brought forward by a member (as is required by MEC Rules) and discussed and voted on at the AGM. While ordinary resolutions only require a simple majority of members in attendance at the AGM to vote in favour of them to pass, they are non-binding. So, even if the resolution passes, it will be considered as only one piece of information that bears on this issue.

MEC management and Board take this proposed resolution very seriously.  It will be considered in context to a host of other priorities and issues.  Our position on boycotts in general is clearly and unequivocally stated in the prior blog Israel, Apartheid and Boycotts. 

Thank you. 

Israel, Apartheid and Boycotts

Recently, I have gotten many emails from members requesting and demanding MEC boycott products made in Israel because of that country's handling of the Palestinian issue.  The occupied territories, restrictive social and economic policies, and the invasion of Lebanon and Gaza strip, according to these voices, mirror the worst policies of apartheid South Africa.  Furthermore, to break Israel's "oppression", the World must boycott Israeli businesses as it had done with the Botha regime of South Africa.  If MEC does not heed this request (and take the right moral position), they will boycott MEC stores (of which some have). 

As a recent response to the above development, a number of members have emailed me demanding that MEC can not and shall not boycott Israel.  According to this group, the conflict in the Middle East is complex and any effort to single out Israel would be both hypocritical in light of conflict in our other sourcing countries and shortsighted as a boycott does not address the real and fundamental security issues facing Israel.  If MEC were to boycott Israeli suppliers, these members would "never shop" at our stores again. 

Amidst the push and pull on MEC, by the committed sides on this issue, lies incredible suffering on those caught in this conflict.  This is obvious. As the cycles of violence perpetrated by all groups continue to ebb, flow and escalate many more will suffer.  This is deeply troublesome and is on the forefront of our mind. 

MEC is a Co-op retailer with a mandate to get Canadians outdoor by selling them the right gear and giving them the relevant technical insight.  MEC is neither a political activist group nor a human rights body.  Nonetheless, we believe business can and should improve the human condition behind manufacturing.   To this end, MEC takes a Canadian and international view of our global supply chain. Just as creed and country are not barriers to being an MEC member, we do not divide our supply chain along political lines. In short, we will not take sides in the Israeli-Palestinian conflict. Our human rights efforts are squarely focused on our supply chain—on working to improve the factory conditions and treatment of the workers that make MEC-brand products. As much as this is cowardice to some or a sell out to others, it is our conviction and our intent is to not veer from this belief. 

Women, Bikes and Manufacturing

We were heading to our next factory visit when our Lexus suffered a puncture on its rear left wheel.  A four inch steel bolt pierced the radial tire leaving its hexagon head jutting from the rubber surface while its body was lodged deep in the wheel.  Lucky for us there was a "mom and pop" tire store 100 metres away.

The tiny garage was deserted except for three weathered looking men smoking and drinking tea while sitting around a card table.  We pulled adjacent to them. One man examined the puncture, make a few "tsk tsk" sounds and then barked for the woman sitting behind a desk in the show room.  The woman came to the car, inspected the flat and proceeded to change the tire.

It was an odd sight.  Here was a women dressed in pink slacks, a blouse and low profile heels operating a lift, hoisting the wheel from the axle, winching the tire from the rim and then reversing all these tasks with the replacement part.  But what stood apart wasn't really the incongruent image of a well dressed woman changing a tire in a garage or performing a traditional male job, but rather it was the singular unhelpfulness of all the nearby men.  They sat, chatted and smoked while she did the work and then when she was done she returned to the office to ring in the transaction.

What's the Bugaboo with China: Part 2

China is top of mind. The Olympics, Tibet, earthquakes, dog food, lead laced toys, smog spitting chimney stacks and a Chinese Milli Vanilli scandel stemming deep from the heart of the politburo make us all wonder  the suitability of China's membership to the global community. These issues are serious and they have sparked a vocal and valid concern from some Members. Here's a sampling of what they're saying: 

Aunty and India's Openning Economy

India is booming. It's economy grew by 9% last year. This was obvious on my last trip there in May. Subways, freeways and airports, the backbone of bursting industry, were being constructed or upgraded in the major cities.

Much of this growth can be attributed to Dr. Manmoham Singh, India's Prime Minister. Before he was elected to govern the world's largest democracy, he was India's most successful Finance Minister. Under his watch, he opened India's notoriously closed and moribund economy. He introduced competition and lifted some of India's heavy state control over business matters big and small. His goal was to encourage entrepreneuralism and investments. Given the year over year growth he was admirably successful.

What's the bugaboo with China?

Personally, I have issues with the Chinese government since my family suffered considerably both personally and materially when the Communists took over.  Having put that on the table, I can’t help but wonder how much of the current indignation and fear over China are warranted.  It seems like just about everything China does or doesn’t do "we’re affronted”.      

First there is considerable reason to be appalled by the current “goings-on” in China.  The Economist describes best the Chinese government as being morally bankrupt.  The pretence of “rule for the people” under communism passed long ago when Dao Xiaoping took his own “great leap forward” to capitalism.  Now China is anxiously looking for ways to justify its despotism since it can no longer govern under the moniker of “for the people”.   Meanwhile Amnesty International accurately shouts at the enormous human rights abuses in China and Harvard Business Review depressingly details the shocking environmental consequences of the “Made in China” phenomena.   

In light of these and other very critical issues should we feel indignation over China? Is it justified?  What action must we take?  I think anytime human rights are breached or our planet wantonly disregarded we must be disgusted and justifiably.  Where there is considerable disagreement is what action to take.  Some passionately advocate boycotting China.  Others equally feel we should engage the regime.  Regardless of the action, there are pros and cons to both and neither are wrong.

A bit of me wonders if our feelings over China are “inflated” because of a discomfort for an emerging power that is not from the Occident.  For centuries, rotating Western countries dominated the world in terms of military rule, sciences, commerce and philosophy.   In essence they defined reality.  With China, we may be on the cusp of seeing this old order turned on its head.  This is understandably scary and perhaps even more so given the country’s human rights record.

Regardless of our feelings, China is inextricably tied to our individual lives and to global order.  We depend on it for a good portion of our clothes, electronics and increasing economic stability.  China will mature and take a healthier approach to all the issues it now seemingly disregards.  Unfortunately, it won't likely be soon.