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The Steps to being a Guaranteed Fair Trade Organization
•Registration document and mission statement•In country commentsNetwork reference•Three references including one WFTO member•Two years of accounts•Region submit Profile to WFTO global board for approval
Applicant
•WFTO approve provisional membership•Member pays fee (annual) SAR checked and approved at region and global•Provisional member submits SAR to the region•SAR approved by GS manager
Provisional• Peer visit completed • Audit completed
successfully
Guaranteed Fair Trade Organisation
Part I: Initial Requirements and Documents
Two years of legal existence
Initial Requirements
Compliance with the 10 Principles of Fair Trade
1) Mission Statement in registered documents
Integrated Development Trust:
Mission: We are women and men of diverse ethnic and geographical backgrounds who are committed to gender equality. As individuals and as an organization, we are committed to working with marginalized, oppressed, poor and exploited women and children from Thailand, Burma and some regions in Asia.
2) Financial AccountsTwo years of audited accounts showing majority of income through trade
What we check for:
① Audited
② Consistency in Name
③ Turnover and Profit
PO / MO
Producer member
Casual/ Seasonal Labour
Producer Groups
Supplier
Quality ControlSystem
Employees
Intermediary
Internal Monitoring
System
Unverified / Not
Verified
3) Profile
Profile Form
4) References
Country Network | In-Country Comments | 3 References
Dear WFTO Members of India,
Happy New Year!
The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in Mumbai, India is a private company founded in 2000. The reason behind their foundation was xxxx. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. Xx has 1 store. If you would like more information please request it or visit their website at www.website.com
As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.
Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.
Thank you for your participation.
Costs
Turnover/income in Euros Membership fee
Monitoring fee Regional fee Total annual
payment
< 100,000 375 25 100 500
100,001 - 135,000 375 50 100 525
136,000 - 500,0000.00275 x turnover 50 175
calculation based on turnover
500,001 - 682,0000.00275 x turnover 100 175
calculation based on turnover
683,000 - 1,000,000 1875 100 175 2150
1,000,001 - 4,000,000 1875 350 175 2400
4,000,001 - 8,000,000 1875 600 250 2725
8,000,001 – 16,000,000 1875 800 250 2925
> 16,000,000 1875 1000 250 3125
Other Costs: Handling Fee, Payment of Audit, Peer Review (alternating every 2-6 years)
Handling Fee 100-750 Euros
Part II: The Guarantee System
The Guarantee System (GS)
Self Assessment as the basic monitoring obligation for trading organizations.
The GS guarantees the compliance of members with the WFTO Standard.
The GS label guarantees the organization, not the product.
The emphasis is on the Internal Monitoring System the FTOs use to monitor their supply chains.
Peer visit
Profile & Self Assessment
Report (SAR)
GSGuarantee
System
Monitoring Audit
Fair Trade Accountabilit
y Watch(FTAW)
Internal Monitoring
System (IMS)
Com
pone
nts
Fiscal Clarity & Transparency
• FOB product breakdown
• Documenting payments to producers & buyers
• Formula for calculating a living wage
• Adjusting wages for increase in costs of living
Fair Pay means provision of socially acceptable remuneration (in local context) considered by producers themselves to be fair
Mandatory Points
Principle 10 Environment
The Improvement Plan
• Purpose to improve performance against FT principles over next 2 years
• Reference number of compliance criteria• Summarise action to be taken, when it will be done
and how you will measure its achievement• Plan will be agreed or amended with WFTO
Internal Monitoring System
Internal Montoring System (IMS)
This describes how your organization works.How and why it sources and sells the products that it does.
It references all the key documents that define your organization: the agreements in place with producers, the policies it
follows, how it follows the guidelines, by who and the frequency of it happening.
The Goal of an IMS:
1. Monitoring that FT practices are happening on the ground
2. Feedback that the FTO are behaving in accordance with FT in their trade relationships
Internal Monitoring
System (IMS)
Peer visit
Monitoring Audit
FTOs must propose peers who can check their practice against the
Standard. This will involve field visits to verify what is happening on
the ground and the claims in their Self Assessment Reports, as well
as some review of documents. Peers can be trading partners, FTOs
from regional or country WFTO networks, or local NGOs etc.
This will be done by independent auditors approved by WFTO as
part of the WFTO Guarantee System. They will check compliance
against the requirements of the Standard through field visits and
document review.
Internal Monitoring System
Fair Trade Accountability
Watch(FTAW)
The WFTO Logo is only the symbol and can be used on marketing material/stationery/ catalogues (but not with products)
WFTO Logo
Product Labels
The WFTO Label is for use on products, but may also be used in place of the Logo
