Fair Trade: A Case Study in Business Ethics
Diane ZablotskyToward a Global Ethic:
A Dialogue with the World’s Religions (HR 5113)Ingrid Shafer, Ph.D.
Economic activity is at the foundation of the development of civilization.
(Swidler, 1998, p. 1)
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What is Fair Trade?
“Fair Trade is a trading partnership, based on
dialogue, transparency and respect, that seeks greater
equity in international trade.” (Fairtrade Labelling Organization, 2009)
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Certification that goods are produced
according to standards for social, economic and environmental
development.
Coffee, tea, cocoa,
mangoes, bananas,
sugar, rice, vanilla, and
flowers.
And even soccer balls!
Dialogue to determine fair pricing involves:• Producers• Workers• Mission-based companies• Conventional traders• Labeling initiatives (e.g., FLO,
Transfair)• Independent consultants
(Transfair, 2009)
5JJ Keki, Founder and Director of Peace Kawomera
STAKEholders, not SHAREholders.
(Swidler, 1998, p. 14)
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“Dialogue creates a community-based
culture of cooperation and
shared leadership.”(Swidler, 1998, p. 21)
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Transparency in management, and transparency in commercial relations to include honest
advertising and marketing techniques.(WFTO, 2009)
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Democratic cooperativesSocial premium funds allocated by
local committees for:
• Business infrastructure• Training centers• Microfinance• Community stores• Access to clean water • Latrine construction• Education
(Smith, 2008, p. 64-65)
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RespectILO Convention 111 rejects:
“any distinction, exclusion, or preference made on the basis of race, colour, sex, religion, political opinion, national extraction or social origin, which has the effect of nullifying or impairing equality or treatment in employment or occupation.”
(Fairtrade Labelling Organizations International, 2009, p. 10)
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Fair Trade Coffee Imports to US: + 425% $ 44,000 in 1998$18,721,000 in 2007(Fairtrade, 2007, p. 1)
Premium Payments to Producer Organizations:+ 1,299%
$ 3,803 in 1998$4,941,530 in 2007(Fairtrade, 2007, p. 3)
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“Free Trade not Fair Trade”
• Lacking economic incentive to develop• Reaches too few
producers• The very poor do
not benefit(Sidwell, 2008)
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• Consumer choice• Structural considerations • Increased growth in Africa• Movement into areas such as
manufactured soccer balls• (Smith, 2008)
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“Delicious Peace”
Ugandan cooperative
Jewish, Christian & Muslim
750 Members
Prices 4x
(Delicious Peace, 2009)
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Corporate Involvement:Starbucks
100% of espresso coffee sold will be Fairtrade in the UK
CadburyAll Cadbury Dairy Milk will be Fairtrade
by end of summer 2009
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Summary
Fair Trade is:
• Consistent with Swidler’s vision• Just one tool in the fight against
poverty• Awareness is raised through efforts• Corporate involvement may increase
potential
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SourcesCadbury. (2009) Fairtrade. Retrieved 14 April 2009 from
http://www.cadbury.com/ourresponsibilities/ethicaltrading/Pages/fairtrade.aspxCastaldo, S., Perrini, F., Misani, N., & Tencati, A. (2009). The Missing Link Between Corporate Social Responsibility and
Consumer Trust: The Case of Fair Trade Products. JOURNAL OF BUSINESS ETHICS. 84 (1), 1-15.Delicious Peace. (2009). The Story. Retrieved 14 April 2008 from http://www.mirembekawomera.com/cooperativeDine, J. (2008). Democratization: The Contribution of Fair Trade and Ethical Trading Movements. INDIANA JOURNAL OF
GLOBAL LEGAL STUDIES. 15 (1), 177-212.Fairtrade Labelling Organizations International. (2006). About Fair Trade. Retrieved 14 April 2009 from
http://www.fairtrade.net/about_fairtrade.htmlFairtrade Labelling International. (12 Jan 2008). Generic Fairtrade Standards for Hired Labour. Retrieved 14 April 2009
from http://www.fairtrade.com/standards.htmlSidwell, M. (2008). Unfair Trade. London: Adam Smith Institute.Smith, A. (2008). A Response to the Adam Smith Report & A New Way to Think About Measuring the Content of the Fair
Trade Cup. Retrieved 14 April 2009 from http://www.brass.cf.ac.uk/uploads/TheFairTradeCupResponsetoAdamSmithD9_1.pdf
Starbucks. (2009). Starbucks and the Fairtrade Foundation. Retrieved 14 April 2009 from http://starbucks.co.uk/en-GB/_Social+Responsibility/Supporting+coffee+farmers+through+Fairtrade.htm
Swidler, L. (1998). The Intimate Intertwining of Business, Religion, and Dialogue. Retrieved 21 March 2009 from http://astro.temple.edu/~dialogue/swdbs_an.htm
Transfair USA. (2009). Alamanc: 2007. Retrieved 14 April 2009 from http://www.transfairusa.org/pdfs/2007FairTradeAlmanac.pdf
World Fair Trade Organization. (2009 Feb 09). 10 Standards of Fair Trade. Retrieved 14 April 2009 from http://www.wfto.com/index.php?option=com_content&task=view&id=2&Itemid=14
Wetzler, L. (2009). Delicious Peace Spreads to Poorest Villages. Retrieved 16 April 2009 from http://www.kulanu.org/abayudaya/delipeacespreads.php
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Image CreditsRawles, S. “Coffee Sorting.” Online image. Fairtrade Foundation. Retrieved 14 April 2009 from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxRawles, S. “Moussa Keita, Cotton Farmer.” Online image. Fairtrade Foundation. Retrieved 14 April, 2009 from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxAtkinson, S. 22 Feb 2008. “Fairtrade Healthy Eating Big and Small Brands.” Online image. Retrieved 14 April 2009 from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxAtkinson, S. 22 Feb 2008. “Fairtrade Wine Group Shot.” Online image. Retrieved 14 April from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxLyons, M. 22 Feb 2008. “Fairtrade Supermarket Consumer.” . Online image. Retrieved 14 April from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxMoskowitz, Holly. 28 Dec 2008. “JJ Keki, Founder and Director of Peace Kawomera.” Online image. Peace Kawomera Cooperative / Coffee Photos. Retrieved
15 April 2009 from http://picasaweb.google.com/HollyMoskowitz/PeaceKawomeraCooperativeCoffeePhotos#5293787294486267762Fairtrade Labelling Organisations (FLO) International. “The Fairtrade Mark.” Fairtrade Foundation. Online image. Retrieved 14 April 2009 from
http://www.fairtrade.org.uk/resources/photo_library/the_fairtrade_mark.aspxTransfair, USA. “Ripe Sugar Cane Ready to be Cut.” Online image. Retrieved 14 April 2009 from
http://transfairusa.org/content/resources/image_gallery.php?s=sugarTransfair USA. 8 Aug 2006. “Women picking tea.” . Online image. Retrieved 14 April 2009 from
http://transfairusa.org/content/resources/image_gallery.php?s=teaViemos, K. “Hands and Tea.” . Online image. Retrieved 14 April 2009 from http://transfairusa.org/content/resources/image_gallery.php?s=teaRawles, S. “Cotton growing, India.” Online image. Retrieved 14 April from http://www.fairtrade.org.uk/resources/photo_library/images.aspxRawles, S. “Jennipher Wettaka coffee farmer Uganda.” Online image. Retrieved 14 April 2009 from
http://www.fairtrade.org.uk/resources/photo_library/images.aspxPayne, Jennee. “Picked Coffee beans ready to be washed and sorted”. Online image. Retrieved 14 April 2009 at
http://transfairusa.org/content/resources/image_gallery.php?s=coffee Transfair USA. “School girls at United Nilgiri tea garden.” Online image. Retrieved 14 April 2009 from
http://transfairusa.org/content/resources/image_gallery.php?s=teaMoskowitz, Holly. “Peace Kawomera. 28 Dec 2008. Peace Kawomera Cooperative / Coffee Photos. Online image. Retrieved 14 April 2009 from
http://picasaweb.google.com/HollyMoskowitz/PeaceKawomeraCooperativeCoffeePhotos#5293783194828699314Transfair USA. “Ripened Cocoa Pod”. Online image. Retrieved 14 April 2009 from http://transfairusa.org/content/resources/image_gallery.php?s=cocoaRawles, S. “Conrad Jamesbanana farmer Windwards “. Online image. Retrieved 14 April from
http://www.fairtrade.org.uk/includes/documents/cm_docs/2008/C/Conrad%20James%20portrait%20next%20to%20bananas,%20WINFA,%20St%20Lucia%20©Simon%20Rawles%202006.jpg
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