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A Fair trade business should be able to demonstrate its commitment to fair trade by providing verifiable documentation to its customers. A general ‘rule of thumb’ for determining whether fair trade claims match their business practices is this: The more information that an organization can provide you the customer with on how they do business, the more likely that the business is actually a fair trade business as opposed to a conventional business with a fair trade window dressing.

What is Fair Trade?

Fair trade is a type of trading relationship that advocates a more equitable price for goods and services from marginalized producers and/or workers in developing nations. It also doesn’t mean higher prices for goods and services, but a more equitable share of the proceeds going to the people who actually make the product or perform the service.

The key principles of fair trade create sustainable businesses by:

• Enabling greater market Access for producers;
• Paying a fair price for goods and/or services;
• Creating opportunities for economically disadvantaged people(s);
• Treating worker fairly: fair wages, fair labour practices, and equitable employment opportunities;
• Providing a safe and habitable workplace;
• Minimizing the business' environmental impact.

How do you differentiate between conventional and fair trade practices? A fair-trade business is transparent and accountable to its customers and employees with respect to its fair trade claims and throughout their supply chain as well. It means following International Labour Organization (ILO) agreements such as:

• Those banning the use of child and slave labour,
• Guarantee of a safe workplace, and
• The right to unionize.

It also means respecting the United Nations charter of human rights

A Fair trade business should be able to demonstrate its commitment to fair trade by providing verifiable documentation to its customers. A general ‘rule of thumb’ for determining whether fair trade claims match their business practices is this: The more information that an organization can provide you the customer with on how they do business, the more likely that the business is actually a fair trade business as opposed to a conventional business with a fair trade window dressing.

The principles of fair trade are not mutually exclusive with making a profit. A successful business is a business with a conscience. Fair trade means working with marginalized producers and workers to move from a position of vulnerability to one of economic self-sufficiency.  A fair-trade certification guarantees that the price covers the cost of production, including the cost of protecting the environment, facilitates social development. It also should promote long-term business relationships between buyers and sellers,

A greater equity in international trade will only be achieved if workers are empowered to participate as full stakeholders in their own organizations. Fair-trade not only means fair prices, but also ethical purchasing. Fair trade proponents include a wide array of developmental aid, social, religious and environmental organizations.

The Fair-trade certification system covers a growing range of products, including artisan products, and many agricultural products, including (but not limited to) bananas, honey, coffee, oranges, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine. Companies offering products that meet the Fair-trade standards will often display a fair-trade certification mark.

Posted by JackBoyle on January 5, 2009 12:49:31
Filed in : Law, Policy & Social Justice, Green Living/Sustainable Living, Fair Trade & The Social Economy, Agriculture & Food