As a business ethics keynote speaker, business ethics consultant and someone who enjoys organic and natural foods, it was unpleasant to recently hear that the U.S. Department of Agriculture has finally admitted its ineptitude to combat fraud.
You don’t need me to tell you that grocery prices have gotten ridiculously expensive. If you think you have it bad, talk (as I do) to restaurant owners, bakers, food manufacturers and such. Worse yet, are those who must utilize foods designated as organic.
When did foods start being called organic? Believe it or not, around 1972. It started with noble intentions of farmers in the West and Northwest and stretched out across the country. However, when the USDA got fully involved, it worried me as a business ethics keynote speaker, business ethics consultant and book author, because I knew that regulation often creates more fraudulent activities than not.
Labeling laws
The government, at some point in the late-1980s, decided that state and local regulatory agencies were not powerful enough to police smaller-family farms, manufacturers and shippers. It met with stiff opposition. Nevertheless, in 1990, organic labeling laws came into being in an attempt to codify organics and how they were labeled. Whole levels of bureaucracy were created.
It seemed as though there were rules for small family farms (under intense scrutiny) and somewhat relaxed rules for manufacturers, processors and growers on a large scale.
For, make no mistake, the industry is ripe with fraud at every level. Why? Because organic food fraud is no different than any other kind of fraud. In fact, it may be easier. I suppose a fake, high-end looking watch might pass initial inspection for several months but it will usually be found out. How can anyone discern between organic pinto beans and non-organic? Unscrupulous farmers and processors know that. In recent years, huge fraud cases were levied against growers who were pocketing windfall profits.
The flaws in the system did not take the government by surprise. The USDA knew the system of regulating organic products was poorly controlled. For example, in 2010, the USDA admitted, “enforcement of federal laws governing organics is abysmal.”
Frankly, the worse the gap between farm to table organic certification became, the worse any of us could be assured that the premium organic can of beans, or rye bread or chicken chili was, in fact, organic.
I believe the difference between then and now, the small family farms then and the organic “business” now, is ethics – or a current lack of ethics (or at least an emphasis on ethics).
January organic enforcement
In January 2023, the USDA instituted new amendments (Federal Register):
“The amendments protect integrity in the organic supply chain and build consumer and industry trust in the USDA organic label by strengthening organic control systems, improving farm to market traceability, and providing robust enforcement of the USDA organic regulations.”
The new regulations are endorsed by the Organic Trade Association. The OTA wants tougher laws to protect their industry; they like the USDA organic seal on products. But are regulations and seals enough? As a business ethics keynote speaker and consultant, I remain skeptical.
When the government decided to steam roll over state and local regulators of producers, growers and processors, they removed the ethical bonds that connected those who produce from those who consume. Suddenly, family farms were supplanted by layers of Washington, D.C. bureaucrats.
There are two movements in this regard that in my opinion that need to be instituted as quickly as possible: to insert an ethical screen with expectations on the entire industry and frankly, to allow control of the organic industry back to its state and local origins.
The future of the organic movement should not rest between the pages of the Federal Register but the ethical bond between those who produce and the customers who need to be assured that trust has been restored.
LEAVE YOUR COMMENTS!
