LIVING WAGE GAP OF KENYAN ROSE FARMERS
Hivos is an international NGO that promotes sustainability in specific commodity groups. In addition to using true pricing in their campaigns to initiate positive engagements with commodity production systems in Africa, Asia and other regions, Hivos also launched a strategy which supports makers contribution to freedom of expression in societies.
The Impact Institute was commissioned by Hivos to 1) explore the business case for closing the living wage gap across the roses supply chain in Kenya and 2) improve its corporate social responsibility (CSR) activities.
We calculated the living wage in Lake Navaisha based on the area’s living costs to develop the local standard of living as defined in Universal Declaration of Human Rights. Contrasting this standard of living with the actual wages of Kenyan rose farmers illustrated the farmers earned less than the living wage.
Benefits to the client
In its report, Impact Institute presented different strategies to effectively close the living wage gap faced by Kenyan rose farmers. The study also showed consumers’ increased willingness to pay extra. Hivos can justify a higher price for certified roses by presenting their contribution to a decreased living wage gap.
At last, this study’s results sparked the start of the Living Wage Lab established by Hivos and Fairfood International. This lab enables different stakeholders to collaborate for more sustainable supply chains.
* The customer was working with the Impact Institute under its former name, True Price