Fair-trade aims to empower developing country producers and promote sustainability through fair pricing and environmental standards. It covers many agricultural products including coffee, tea, cocoa, fresh fruits, rice, honey and more. For honey production in South America, fair-trade has helped small family beekeepers and honey farmers market their products since 1994 by connecting them with companies. There are several fair-trade organizations globally that perform similar work to promote fair pricing schemes. The document argues that fair-trade should be used more widely to ensure farmers receive fair pay for their products and reduce poverty.
Case 13Corporate Social Responsibility and the Fair-Trade MovemeTawnaDelatorrejs
Case 13
Corporate Social Responsibility and the Fair-Trade Movement: How Fair Is Fair Trade?
AUTHOR BIOGRAPHIES
Pamela J. Rands holds an MBA from Western Illinois University with a focus in finance. She is the coauthor of numerous encyclopedia articles and was the research assistant for the second edition of the book, Affluenza: The All-Consuming Epidemic. Her research interests include corporate social responsibility and personal responsibility for social action.
Gordon P. Rands is a professor of management and former department chair at Western Illinois University, is a past chair of the Organizations and the Natural Environment division of the Academy of Management, and is a past president of the International Association for Business and Society. His research interests focus on environmental sustainability, corporate social performance, and various institutions’ responsibilities for solving social problems.
OVERVIEW
Fair trade is a concept that generally aims to help producers in developing countries receive a fair price for their products, thus reducing poverty; it also usually implies ethical treatment of workers and support of environmentally sustainable practices. The fair-trade movement has increasingly captured the hearts and purse strings of consumers in developed nations who are seeking to “do the right thing.” But does purchasing products with a fair-trade label actually produce the good they think it will?
THE FAIR-TRADE DILEMMA
Crystal Kepple, general manager of the Macomb [IL] Food Co-op, sighed and leaned back in her chair as she worked on completing the co-op’s next food order from United Natural Foods, Inc. (UNFI). What quantities of various fair-trade products should she order for the small consumer-owned co-op?
Fair-trade chocolate, tea, and coffee from Equal Exchange—itself a worker-owned cooperative based in Massachusetts—were all popular with co-op shoppers. So was Runa, a “clean energy” drink made from leaves of the guayusa tree, a species of holly native to the Amazon rainforest.1 Crystal and many Macomb Co-op shoppers shared the fair-trade ideals of environmental sustainability and economic justice. But she had begun to wonder about traceability. Could she guarantee to customers that all the ingredients in the products the Co-op sold had been produced in an environmentally sound manner and that the workers who grew and harvested the plants really were receiving better wages for their efforts than those who provided non–fair-trade ingredients?
p.450
Furthermore, the chairman of the co-op’s board of directors, himself an ardent fan of fair trade, had just mentioned some articles he found online that questioned whether fair trade was having the desirable effects its proponents claimed, and posited that the movement might even be leaving workers worse off. “No time to figure this all out now,” Crystal thought, as she turned back to the computer, “but I have to before next month’s order.” With that, she reordered the sam ...
In this talk I question whether consumer demand alone can really provide an adequate explanation for the growth of Fairtrade in Britain. By looking beyond the ‘ethical shopping trolley’, I suggest that there is an opportunity to explore in greater detail why businesses choose to engage with Fairtrade.
Case 13Corporate Social Responsibility and the Fair-Trade MovemeTawnaDelatorrejs
Case 13
Corporate Social Responsibility and the Fair-Trade Movement: How Fair Is Fair Trade?
AUTHOR BIOGRAPHIES
Pamela J. Rands holds an MBA from Western Illinois University with a focus in finance. She is the coauthor of numerous encyclopedia articles and was the research assistant for the second edition of the book, Affluenza: The All-Consuming Epidemic. Her research interests include corporate social responsibility and personal responsibility for social action.
Gordon P. Rands is a professor of management and former department chair at Western Illinois University, is a past chair of the Organizations and the Natural Environment division of the Academy of Management, and is a past president of the International Association for Business and Society. His research interests focus on environmental sustainability, corporate social performance, and various institutions’ responsibilities for solving social problems.
OVERVIEW
Fair trade is a concept that generally aims to help producers in developing countries receive a fair price for their products, thus reducing poverty; it also usually implies ethical treatment of workers and support of environmentally sustainable practices. The fair-trade movement has increasingly captured the hearts and purse strings of consumers in developed nations who are seeking to “do the right thing.” But does purchasing products with a fair-trade label actually produce the good they think it will?
THE FAIR-TRADE DILEMMA
Crystal Kepple, general manager of the Macomb [IL] Food Co-op, sighed and leaned back in her chair as she worked on completing the co-op’s next food order from United Natural Foods, Inc. (UNFI). What quantities of various fair-trade products should she order for the small consumer-owned co-op?
Fair-trade chocolate, tea, and coffee from Equal Exchange—itself a worker-owned cooperative based in Massachusetts—were all popular with co-op shoppers. So was Runa, a “clean energy” drink made from leaves of the guayusa tree, a species of holly native to the Amazon rainforest.1 Crystal and many Macomb Co-op shoppers shared the fair-trade ideals of environmental sustainability and economic justice. But she had begun to wonder about traceability. Could she guarantee to customers that all the ingredients in the products the Co-op sold had been produced in an environmentally sound manner and that the workers who grew and harvested the plants really were receiving better wages for their efforts than those who provided non–fair-trade ingredients?
p.450
Furthermore, the chairman of the co-op’s board of directors, himself an ardent fan of fair trade, had just mentioned some articles he found online that questioned whether fair trade was having the desirable effects its proponents claimed, and posited that the movement might even be leaving workers worse off. “No time to figure this all out now,” Crystal thought, as she turned back to the computer, “but I have to before next month’s order.” With that, she reordered the sam ...
In this talk I question whether consumer demand alone can really provide an adequate explanation for the growth of Fairtrade in Britain. By looking beyond the ‘ethical shopping trolley’, I suggest that there is an opportunity to explore in greater detail why businesses choose to engage with Fairtrade.
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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1. Matt Chappell 10G
Fair-trade Food
1) Fair-trade products:
Cotton Spreads
Flowers Yoghurt
Cocoa Cereals
Coffee beans Sugar and Syrup
Tea Bananas
Fresh fruits Rice
Cake
Chocolate
Biscuits
Sweets
Honey
Beer
Wine
2) Definition of Fair-trade:
Fair trade is an organized social movement and market-based
approach to empowering developing country producers and promoting
sustainability. The movement advocates the payment of a fair price as
well an environmental standard in areas related to the production of a
wide variety of goods.
3) Fair-trade production of honey:
A lot of the product is made in South American countries like Chile
and Mexico. They have been helped by the fair-trade organisation
since 1994. Early on, COASBA’s members - families who kept bees
and produced honey on a small scale – were all part-timers. Very few
owned any land, so most had to rent a parcela (small plot) for their
hives. The farmers keep and look after the bees themselves and then
Fair Trade helps them market it to companies. COASBA has been
certified for 5 years by the Fair Trade organisation.
2. Matt Chappell 10G
4) Schemes related to Fair Trade Organisation
Other organisations that try and do what Fair Trade does include
Equal Exchange, IFAT (International Fair Trade Association), The
Fairtrade Foundation, Fairtrade Mark Ireland, Association Max
Havelaar in France, Holland and Belgium and The TransFair
organisation in countries like Germany, Canada, South Africa, Italy,
Japan and the USA.
5) Should Fair Trade be used?
I think fair trade should be used globally as the producers of the
product get paid the same amount as the distributor and the exporters.
It’s good as it’s not just the companies who get money from the
consumers but the farmers who have made the product also get a share
of the money. It would help decrease the amount of poverty that
lingers around the world.
http://www.worldcocoafoundation.org/tree-to-table/default.asp
