1. “POWER TO CHANGE THE WORLD EVERY DAY”
SHARED VALUES DRIVING COMMITMENT
CHARLOTTE MAGNANI
2. AGENDA CONTEXT:
FAIRTRADE & THEIR CUSTOMERS
DEFINITIONS & INTERPRETATIONS:
KEY TERMINOLOGY
FRAMEWORK:
EXISTING & CONCEPTUAL
FAIRTRADE’S EVIDENCE OF VALUES
THROUGH RELATIONAL & MARKETING
EXCHANGES
MOVING FORWARD:
RESEARCH IMPLICATIONS 2
3. FAIRTRADE & THEIR CUSTOMERS
Fairtrade is a non-profit organisation responsible for
officiating fair trade amongst the supply chain of
selected goods
Donors, fundraising events, campaigns
Organisational partnerships: daily touch-points
3
4. DEFINE:
RELATIONSHIP MARKETING
“An organisation engaged in proactively
creating, developing and maintaining
committed, interactive and profitable exchanges with
selected customers [partners]
over time is engaged in relationship marketing”
Harker 1999, p.16
5. SHARED VALUES
(i) FAIR PRICE:
PRICE PREMIUMS
ALL PARTIES ARE TREATED IN A DIGNIFIED MANNER
(ii) FAIR RESOURCE:
PLANET IS NOT AN INFINITE RESOURCE
RESPONSIBILITY OF CONSUMPTION
(iii) FAIR CHOICE:
DESIRE FOR KNOWLEDGE AND EDUCATION
BEING ACCOUNTABLE
EMPOWERING CUSTOMERS TO ACHIEVE VALUES
5
“integration of
corporate social
responsibility
into business
strategy”
Crane et al., 2014 p.131
6. COMMITMENT
6
“INTEGRAL TO ALL RELATIONAL-EXCHANGES”
“AIDS THE ESTABLISHMENT OF LONG-TERM RELATIONSHIPS”
“MULTIDIMENSIONAL CONSTRUCT”
7. DEFINE:
NORMATIVE COMMITMENT
Moral (normative) commitment suggests that
Fairtrade customers form an attachment with
Fairtrade based on moral judgement that leads to a
higher degree of involvement with the organisation,
aiding them to achieve their goals [shared values]
Adapted from: Gonzalez & Guillen 2007
8. DEFINE:
AFFECTIVE COMMITMENT
Affective commitment implies that the Fairtrade customer
has a psychological bond with the organisation, based on
‘identification’ (Verheof et al. 2002) of their [shared
values], which ‘motivates them to remain in a relationship
with Fairtrade because they genuinely want to be there’
Adapted from: Vivek et al. 2012 p.135
11. 11
CONCEPTUAL FRAMEWORK
MORAL COMMITMENT
BASED ON PERCEIVED ETHICAL
STANCE
AUTHENTIC BEHAVIOUR
LEADS TO HIGHER LEVEL OF
IDENTIFICATION
AFFECTIVE COMMITMENT
MOTIVATION TO REMAIN IN A
COMMITTED RELATIONSHIP
“acting
according
to one’s
values,
preferences,
and
needs”
Kernis, 2003 p.16
12. It is essential for organisations to have a successful
community to create demand for goods, provide critical
public assets and a supportive environment
(Porter & Kranmer, 2011 p.66).
13. There is a direct correlation between high levels of involvement
in an organisations activities, and high levels of transparency in
the operations and achievements of that organisation
(MacMillan 2005)
14. • SUBJECTIVE
• NOT ALL CUSTOMER NETWORKS IDENTIFIED
• IMPORTANCE & STRENGTH NOT MEASURED
• APPLICATION TO OTHER NPOs
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LIMITATIONS & FURTHER STUDY
15. CRANE, A., PALAZZO, G., SPENCE, L. & MATTEN, D. (2014), 'CONTESTING THE VALUE OF "CREATING SHARED VALUE"', CALIFORNIA
MANAGEMENT REVIEW, 56(2): 130-153
DWYER, F., R., SCHURR, P.H., & OH, S. (1987). DEVELOPING BUYER-SELLER RELATIONSHIPS JOURNAL OF MARKETING, 51(APRIL):
11-27
GONZALEZ, T., F. & GUILLEN, M. (2007). ORGANISATIONAL COMMITMENT: A PROPOSAL FOR A WIDER ETHICAL
CONCEPTUALIZATION OF ‘NORMATIVE COMMITMENT’, JOURNAL OF BUSINESS ETHICS, 78: 401-414
HARKER, M.J. (1999). RELATIONSHIP MARKETING DEFINED? AN EXAMINATION OF CURRENT RELATIONSHIP MARKETING
DEFINITIONS, MARKETING INTELLIGENCE & PLANNING, 17(1): 13-16
KERNIS, M.H. (2003). HIGH SELF-ESTEEM: A DIFFERENTIATED PERSPECTIVE, VIRTUE, VICE, AND PERSONALITY: THE COMPLEXITY
OF BEHAVIOR. AMERICAN PSYCHOLOGICAL ASSOCIATION, WASHINGTON US: P3-22
MACMILLAN, K., MONEY, K., MONEY, A., & DOWNING, S. (2005). RELATIONSHIP MARKETING IN THE NOT-FOR-PROFIT SECTOR: AN
EXTENSION AND APPLICATION OF THE COMMITMENT -- TRUST THEORY', JOURNAL OF BUSINESS RESEARCH, 58(6): 806-818
MEYER, J.P., & L. HERSCOVITCH (2001). COMMITMENT IN THE WORKPLACE: TOWARD A GENERAL MODEL, HUMAN RESOURCE
MANAGEMENT REVIEW 11: 299–326
MORGAN, R. & HUNT, S. (1994). THE COMMITMENT-TRUST THEORY OF RELATIONSHIP MARKETING, JOURNAL OF MARKETING,
58(3): 20-38
VIVEK, A., BEATTY, S., & MORGAN R. (2012). CUSTOMER ENGAGEMENT: EXPLORING CUSTOMER RELATIONSHIPS BEYOND
PURCHASE, JOURNAL OF MARKETING THEORY AND PRACTICE, 20(2): 127-145
15
REFERENCES
