The Definition of Fair Trade in Business
Fairtrade is an easy way to change the lives of people who cultivate the things we love. We do this by doing it as a trade show. The Fairtrade certification scheme covers a growing range of products, including bananas, honey, coffee, oranges, cocoa beans, cocoa, cotton, dried and fresh fruit and vegetables, juices, nuts and oilseeds, quinoa, rice, spices, sugar, tea and wine. Companies that offer products that meet Fairtrade standards can apply for licences to use one of the Fairtrade certification marks for those products. The international Fairtrade certification mark was launched by FLO in 2002 and has replaced twelve marks used by various Fairtrade Mark initiatives. The new warranty mark is currently used worldwide (with the exception of the United States). The Fair Trade Certified mark is still used to identify Fairtrade products in the United States. But Sainsbury`s goes even further, apparently insisting it plays a role in determining the use of premiums. Now, Fairtrade is awash with apocryphal stories about how bounties were allegedly (abused). It is true that some producer groups need help in making decisions and implementing them, and this is where Sainsbury`s could help. But depriving producers of the right to decide is strangely disempowering.
It is also a high risk for Sainsbury`s. Fair trade as a movement began in the late 1940s when an American businesswoman founded a women`s sewing group in Puerto Rico run by the Mennonite Central Committee (MCC). To generate income for their local community, MCC began selling their crafts to friends and neighbors in the United States under the name Self Help Crafts. Around the same time, in 1946, according to the World Fair Trade Organization, a non-profit organization called SERRV (Sales Exchange for Refugee Rehabilitation and Vocations) was founded in the United States by the Brethren Church to establish trade relations with poor communities in South America. The first official fair trade store in the United States selling products from SERRV and other like-minded organizations was established in 1958. Sales eventually extended to the European Communities from 1962 onwards. After 34 years of successful trading, the project was renamed Ten Thousand Villages. With the advent of ethical labelling, consumers are able to take moral responsibility for their economic decisions and actions. This supports the notion of fair trade practices as “moral economies”. [66] The presence of labels makes consumers feel that they are “doing the right thing” with a simple purchase.
Fair Trade is a global movement made up of a diverse network of producers, businesses, buyers, advocates and organizations that put people and planet first. Choosing Fair Trade certified products is a choice to support responsible™ business, empower farmers and workers, and protect the environment. In other words, it`s a way of doing business that changes the world. Van Bergen acknowledges that there is a lot of skepticism in certifications, and that`s understandable. “Industry buy-in is important because you need to make sure standards and certifications carry weight, value and importance. For example, if West Elm uses one certification but other retailers use another, who should you trust? Industry alignment is key to this and will hopefully help consumers feel more confident in the value of our certifications. The current fair trade movement was shaped in Europe in the 1960s. Fair trade was often seen as a political gesture against neo-imperialism during this period: radical student movements began to target multinational corporations and concerns were raised that traditional business models were fundamentally flawed. The slogan “Trade, not aid” gained international recognition in 1968 when it was adopted by the United Nations Conference on Trade and Development (UNCTAD) to emphasize the establishment of fair trade relations with developing countries. [61] The remaining 25% of revenue comes from individuals, foundations, and corporations that partner with Fair Trade USA to invest in innovation, growth, and impact. Their mission is to foster sustainable development and empower communities by cultivating a fairer global business model that benefits farmers, workers, consumers, industry and the planet.
Studies conducted in the early 2000s show that the incomes, education and health of coffee farmers involved in fair trade in Latin America have been improved compared to producers who did not participate. [88] Brazil, Nicaragua, Peru, and Guatemala, which have the largest populations of coffee producers, use some of the most important areas for coffee production in Latin America and do so by participating in fair trade. [88] Latin American countries are also important exporters of fair trade bananas. The Dominican Republic is the largest producer of Fairtrade bananas, followed by Mexico, Ecuador and Costa Rica. Producers in the Dominican Republic have formed associations rather than cooperatives, so that each individual farmer can own his own land, but meets regularly. [86] FundaciĆ³n Solidaridad was founded in Chile to increase the income and social participation of craft enterprises. These products are marketed locally in Chile and abroad. [87] Fair trade handicraft and jewellery production has also experienced a significant recovery in recent years, supported by North American and European online retailers who have established direct relationships with the import and online sale of products. The online sale of fair trade and crafts has been of particular importance for the development of women artisans in Latin America. [89] Producers organize and seek Fair Trade certification for a variety of reasons, either through religious ties, desires for social justice, desires for autonomy, political liberalization, or simply because they want to be better paid for their work and products. Farmers identify with organic farming rather than fair trade farming methods because organic farming is a very visible way in which these farmers differ from their neighbours and actually influence the way they grow.