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MM343
Business Ethics
Assignment 1
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Print of Article 1:
Costco pulling products allegedly made with forced monkey labor

New York Post. 2020. Costco Pulling Products Allegedly Made With Forced Monkey Labor.
[online] Available at: <https://nypost.com/2020/10/28/costco-pulling-products-allegedly-made-
with-forced-monkey-labor/> [Accessed 18 December 2020].
October 23rd, 2020
Gabrielle Fonrouge

The alleged use of forced monkey labor has led Costco to stop selling Thai-made coconut
products.

People for the Ethical Treatment of Animals (PETA) has been tracking such animal abuse since
2019, while urging retailers to pull merchandise made from the bad actors to discourage the
practice, USA Today reported.

“No kind shopper wants monkeys to be chained up and treated like coconut-picking machines,”
PETA president Ingrid Newkirk said in a statement, according to the outlet.

“Costco made the right call to reject animal exploitation, and PETA is calling on holdouts like
Kroger to follow suit.”

PETA’s investigation found chained-up monkeys can pick around 400 coconuts a day and are
then stuffed in cages until their next shift, the outlet reported.

“Just because something is legal or accepted it doesn’t mean it’s OK,” said Kent Stein, PETA’s
corporate responsibility officer.

Stein pointed to the Tourism Authority of Thailand’s active promotion of the “Monkey Center,”
where tourists can watch the primates learn how to collect coconuts for 300 baht, or about $10.
Kids can catch the show for just 150 baht, or about $5.

“The Monkey Center is established and has turned into a new tourist attraction which becomes
popular among local people and foreigners. In the center, the monkeys will be trained to collect
the coconuts. Each training session takes about 4 months and requires a trainer and a student,”
the tourism authority’s website reads.

“Moreover, you can enjoy other monkey shows in the center,” it continues.
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One of the brands removed from Costco is Chaokoh, made by Theppadungporn Coconut Co.
Ltd, which denies using monkey labor, the outlet said.

The company shared a 14-page document with the outlet titled “Monkey-Free Coconut Due
Diligence Assessment” that claims 64 randomly selected farms out of 817 were not using
monkeys for coconut harvesting, the outlet said.

“Chaokoh, one of the world’s leaders in coconut milk production, reassures that we do not
engage the use of monkey labour in our coconut plantations,” the company insisted in a
statement, noting its suppliers have “signed memorandums of understanding” that monkey labor
will not be used at their farms.

Walgreens, Food Lion, Giant Food and Stop & Shop have all pulled alleged monkey-picked
coconut products from their shelves, but products from Chaokoh are still available on Target,
Walmart and Kroger’s websites, the outlet said.

“What really drives this change is retailers not supporting the product, and of course, customers
not buying the product. Costco being a major player should have an impact,” Stein explained.

A Costco rep said it was “not able” to respond to requests for comment from USA Today on the
decision, and Walmart and Target didn’t immediately say whether they plan to make changes to
their coconut suppliers.

Kroger, the nation’s largest grocery store chain, insisted it has a “longstanding commitment to
responsible business practices, including the humane treatment of animals.”

“We have re-engaged our suppliers, as well as other stakeholders, on this issue to re-confirm
they are also protecting animal welfare,” Kroger continued in a statement.

PETA has issued a list of brands that don’t use monkey labor in their production of coconut
products. They include Daiya, DREAM Coconut Milk and AYAM.

Discussion of Article 1:
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The article “Costco pulling products allegedly made with forced monkey labor”, was published
on the New York Post, a regular tabloid newspaper with daily news ranging from entertainment,
business, sports, fashion and real estate. The article featured on October 28th, 2020, composed by
Gabrielle Fonrouge who centers her report round the leading wholesale retailer, Costco pledging
to remove and eradicate coconut milk products from its shelves, manufactured by suppliers from
Thailand accused of utilizing forced monkey labor in coconut harvests. The renowned Thai
brand, Chaokoh has its brand identity stained with accusations and damaging indictments of the
exploitation and abuse of monkey labor. The revelations were unveiled and uncovered after an
investigation conducted by People for the Ethical Treatment of Animals (PETA) Asia allegedly
publicized their verdict in August as they reported ongoing practices of "cruelty to monkeys on
every farm, at every monkey-training facility, and in every coconut-picking contest that used
monkey labor." (Monkeys Chained, Abused for Coconut Milk | PETA, 2020)

This article raises a burning ethical issue towards labor management and regulations. Forced
animal labor points fingers towards the abuse and maltreatment of the labor workforce,
aggravating Costco’s accountability and answerability towards the public, especially its retailers
and consumers. Raising several dilated eyes towards this issue, the animal rights organization
stated Costco’s ban on the purchase of coconut milk products from Chaokoh in a public press
statement until “it stops using chained monkeys as coconut-picking machines” (Peta says Costco
has stopped selling coconut milk brand accused of monkey labour, 2020) Chaokoh’s inhumane
ill-treatment of monkey labor highlights their deplorable workforce practices and illegitimate
means of cutting costs by refusing employment prospects to low-skilled workers through
‘outsourcing’ production and supply chain jobs to coerced and constrained monkey labor.

Ethical behavior not only encompasses human rights, but also sustainability, environmental and
animal rights. Animals have rights to not be exploited, subjected to suffering (Francione, 2003;
Haynes, 2011; Sorenson, 2010) and similar to humans, they lie within the moral realm entirely
and are worthy of fine care, being well looked after and provision of an adequate compensation
for their hard-earned efforts. With society’s mounting pressure and added value on sustainable
green business practices in the 21st century, Chaokoh’s animal maltreatment may cost more than
humane conduct towards those innocent creatures. According to the research enquiry, at eight
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different farms across Thailand; monkeys are pressured to accumulate around 1,000 coconuts per
day. The report claims they are also ostensibly required to endure "circus-style shows for
tourists” are "confined to cages barely larger than their bodies," and "chained to old tires,"
(Monkeys Chained, Abused for Coconut Milk | PETA, 2020). Indications of agitation were also
apparently exhibited by the creatures, with one monkey biting off one of his limbs.

The consequentialist theory of business decision making is the view that actions are judged as
morally right or wrong based on their consequences and outcomes. Under this banner falls the
theory of “Ethical Egoism” which entails the moral agents as “Egoists [who] believe that they
should make decisions that maximize their own self interest” (Ferrell, Fraedrich & Ferrell 2009,
p.150). This theory is useful in explaining Chaokoh’s unethical practices which represent their
self interested stance towards diminishing production costs, utilization of high-skilled, low paid
labor and ruling authority over guiltless animal labor. When formulating business decisions the
“Egoist will probably choose the alternative that contributes most to his or her self-interest.”
(Ferrell, Fraedrich & Ferrell 2009, p.150-151). Chaokoh’s unethical action represents its
unaccountable and unobligated mindset towards its stakeholders; had Chaokoh considered the
effects and implications of its actions towards its investors, consumers, and retailers, it would
never have dug its own hole.

The notion of social welfare focuses on the "collective action concerned with meeting basic
human needs" (Mishra, 1987), and it is redefined in contemporary legislations to provide an all-
encompassing role of each participant in a market economy, including animals; Fairness and
equality to promote social justice are fundamental values of social welfare through the allocation
of social resources (Taylor-Gooby, 2004). The representation of governments, societies and
cultures is congruent to their conduct with animal labor, and in this case, the governmental body
is depicted as an oppressive, heedless and neglectful of their current economic, agricultural and
commercial practices. Alongside harming a nation’s political image, the abuse of animal labor
entails adverse effects on humans as well. Employees working at the corporation engaged in the
abuse of animal labor suffer from negative emotional and mental stresses; worker communities
are subject to somatization, anxiety, anger hostility and psychotism as compared to the workers
of other corporations (Emhan, Yildiz, Bez, & amp; Kingir, 2009). The abuse of animals is
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embedded in the root causes behind domestic violence, physical or corporal punishment and
mental illnesses.

Correlating the ‘Egoist’ approach to the ‘Utilitarian’ approach in corporate decision making, it
“seeks the greatest good for the greatest number of people.” (Ferrell, Fraedrich & Ferrell 2009,
p.151), Costco’s decision to ban its purchase represents the necessary steps taken towards public
good, ensuring safety of relevant stakeholders and working towards public interest even if it
meant higher costs from high-cost suppliers. Costco’s decision to cease its purchases of
Chaokoh’s products brings it into the public spotlight and accentuates its ethical corporate
standpoint and socially responsible stance as reiterated by Costco’s vice president, Ken Kimble
in his statement, as the retail store “continue[s] to monitor the implementation of the harvest
policies and once satisfied will resume purchasing, [and their] supplier is in the process of
visiting every one of its supplier farms to communicate the harvest policies.” (Costco drops
coconut milk amid allegations of brand’s forced monkey labor, 2020) The withdrawal of support
from retailers and the refusal of product purchase from consumers are bound to drive change
within Chaokoh’s corporate organization and its internal workings and practices.

PETA President Ingrid Newkirk highlights and remarks each corporate business’s liability,
whether a sole trader, partnership or multinational corporation to hold accountability for making
conscious purchases from ethical suppliers and establishing thoroughly investigated, carefully
reviewed and scrutinized supplier contracts as the universe is moving towards a globally-
enforced ethical stance including ethical shopping and moral buyers. President remarks in his
media release of increasing consumer awareness and the growing conscious ethical mindset of
every customer, "No kind shopper wants monkeys to be chained up and treated like coconut-
picking machines. Costco made the right call to reject animal exploitation, and PETA is calling
on holdouts like Kroger to follow suit." (Costco Just Dropped This Controversial Product from
Its Stores, 2020) Consumer awareness in markets is taking its toll as media and press coverage
continues to advance and instill a need for ethical manufacturing in the general public;
Chaokoh’s industry can suffer a drastic fall in its consumer demand and a sharp hit in its
plummeting consumer base until it serves an earnest apology to its consumers, repents over its
actions and puts in an unreserved effort in rectifying its faults.
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Businesses are under a microscope in the contemporary economy when it comes to how they
communicate with the ecosystem around them. In past centuries, subjugating the care of animals
among other financial considerations may have made market sense; but it apparently works
against a corporation's interests nowadays. Evidently, it is no longer at odds with solid balance
sheets to enhance the lives of creatures used in industry, but more part and parcel to safeguard
them. The industry leading retail chains have prioritized animal welfare concerns along with
safeguarding and shielding their brand reputation by undertaking severe actions against unethical
supply chains which doesn’t have values and interests aligned with their own. Several other
supermarket chains, including Walgreens, Stop & Shop, Giant Food, and Food Lion, have put
forth their refusal on the distribution and supply stock of the Chaokoh’s commodities. The
leading grocery store chain, Kroger has reassured its consumer audience of its actions towards
assuring ethical product manufacturing and moral supplier connections in its statement, "Kroger
has a longstanding commitment to responsible business practices, including the humane
treatment of animals. We have re-engaged our suppliers, as well as other stakeholders, on this
issue to re-confirm they are also protecting animal welfare." (2020)

The concept of ‘Social responsibility’ is “described as the obligation of an organization to

maximize its positive impact on stakeholders and to minimize its adverse impact" (Ferrell,
Fraedrich & Ferrell 2009, p.38). This highlights the ethical challenge faced by businesses;
whether they should make choices centered on a greater position for humanity or based purely on
their own needs and objectives. The long-term interests of a corporation are centered on its
socially responsible stance including a respectable brand image and identity, established supplier
and retailer networks as well as a permanent customer base. The nature of the social and
communal environment has coerced corporations to place the interests of the general community
first, thus Chaokoh’s future business decisions would have to be made entirely focused on
fulfilling the expectations of its stakeholders, along with effectively and meticulously designing,
implementing and monitoring its internal labor practices keeping up with consumer interests.

Bibliography
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1. The Independent. 2020. Peta Says Costco Has Stopped Selling Coconut Milk Brand Accused Of
Monkey Labour. [online] Available at: <https://www.independent.co.uk/life-style/costco-coconut-
milk-chaokoh-monkey-labour-peta-animal-abuse-thailand-investigation-b1428173.html>
[Accessed 22 December 2020].

2. Francione, G., 2003. Animal Rights Theory and Utilitarianism: Relative Normative
Guidance. Between the Species: An Online Journal for the Study of Philosophy and Animals,
13(3).

3. Haynes, R., 2011. Competing Conceptions of Animal Welfare and Their Ethical Implications for
the Treatment of Non-Human Animals. Acta Biotheoretica, 59(2), pp.105-120.

4. Sorenson, J., 2011. The Myth of “Animal Rights Terrorism”. The Brock Review, 12(1), pp.69-99.

5. Ferrell. O.C, Fraedrich. J & Ferrell. L, 2009, Business Ethics: Ethical Decision Making and
Cases, 7 th Edition, South Western Cengage Learning, Ohio

6. PETA Exposés and Undercover Investigations. 2020. Monkeys Chained, Abused For Coconut
Milk | PETA. [online] Available at: <https://investigations.peta.org/monkeys-abused-coconut-
milk/> [Accessed 23 December 2020].

7. Mishra, R., 1987. Social welfare: national and international dimensions. International Social
Work, 30(2), pp.151-158.

8. Taylor-Gooby, P., 2004. Open markets and welfare values Welfare values, inequality and social
change in the silver age of the welfare state. European Societies, 6(1), pp.29-48.

9. Emhan, A., Yildiz, A. Ş, Bez, Y., & amp; Kingir, S. (2009). A Comparative Study of the
Psychological Status of Butchers Working in Slaughterhouse and Meat Retail Businesses. Kafkas
University Journal of Veterinary Faculty. doi: 10.9775 / kvfd.2011.5494]

10. Chicago Sun-Times. 2020. Costco Drops Coconut Milk amid Allegations of Brand’S Forced
Monkey Labor. [online] Available at:
<https://chicago.suntimes.com/2020/10/28/21538899/costco-drops-chaokoh-coconut-milk-
allegations-forced-monkey-labor-harvesting> [Accessed 24 December 2020].

11. Eat This Not That. 2020. Costco Just Dropped This Controversial Product From Its Stores.
[online] Available at: <https://www.eatthis.com/costco-chaokoh-coconut-milk-monkey-labor-
allegations/#:~:text=%22No%20kind%20shopper%20wants%20monkeys,like%20Kroger%20to
%20follow%20suit.%22> [Accessed 24 December 2020].

12. Usatoday.com. 2020. [online] Available at:

<https://www.usatoday.com/story/money/food/2020/11/12/wegmans-chaokoh-coconut-milk-
pulled-peta-monkey-claims/6267988002/> [Accessed 24 December 2020].
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