One of the virtues cited in defense of competitive markets is the concept of "consumer sovereignty" -- in other words, by "voting" with the dollars they spend or invest in one product or company over another, consumers and investors should be able to determine which products and companies thrive.
But this powerful concept is predicated on another pre-requisite for competitive markets: "perfect information." In order for consumers to exercise their sovereignty, they must be able to distinguish between products, not only on the basis of price, but also of content and origin. "Perfect information" also implies knowledge of the social and environmental conditions under which products were produced.
The more consumers learn about the consequences of their food choices for the farmers and workers who produce it, the more they can shift their buying power to reward companies that are socially and environmentally responsible.
The organizations listed at right are among many around the world whose efforts make consumer and investor information about food products and the companies behind them more "perfect." They focus attention on the consequences of corporate control for food safety, food prices and food quality, mobilizing consumers to raise these concerns with companies and government regulatory agencies.
This type of public education has a direct impact in markets, and is thus an important aspect of shifting the food economy away from the corporate cartel towards a more sustainable and balanced ownership structure.
Investors also play an important role when they bring their concerns about market distortions and corporate labor and environment practices to annual meetings through shareholder resolutions.
Socially Responsible Investment (SRI) groups including those listed here have created new opportunities for dialogue with agro-food companies over issues from environmental and labor standards to the impact of genetically-modified foods. For companies who choose not to engage with advocates, SRI has also proven to be a valuable education and advocacy tool through which shareholders can organize to address the financial, social and environmental risks to which they are exposed by the current behavior of agro-food companies.
For example, a report commissioned by Greenpeace on risks to Monsanto investors warns that:
"Monsanto could be another disaster waiting to happen for investors. If the firm does not take steps to mitigate its substantial market risks, for example by diversifying its GE-focused strategy, further investor losses seem likely. Given available knowledge about company risks, financial analysts and asset managers may be hard-pressed to explain their current positions on Monsanto."
The consumer and responsible investment movements are thus crucial elements in the larger challenge to corporate control of the food system.
