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What is fair trade?
What is fair trade?
Fair trade is a global movement made up of a diverse network of producers, companies, consumers, advocates, and organizations putting people and planet first.
Fair trade is a global movement made up of a diverse network of producers, companies, consumers, advocates, and organizations putting people and planet first.
We at Fair Trade USA® believe that everyone wants to do what’s right – for their families, fellow global citizens, and the planet.
We at Fair Trade USA® believe that everyone wants to do what’s right – for their families, fellow global citizens, and the planet.
That’s why we’re committed to making the right choices the most obvious ones. Based on the simple idea that the products bought and sold every day are connected to the livelihoods of others, fair trade is a way to make a conscious choice for a better world.
That’s why we’re committed to making the right choices the most obvious ones. Based on the simple idea that the products bought and sold every day are connected to the livelihoods of others, fair trade is a way to make a conscious choice for a better world.
A choice for Fair Trade Certified™ goods is a choice to support responsible companies, empower farmers, workers, and fishermen, and protect the environment. In other words, it’s a world-changing way of doing business.
A choice for Fair Trade Certified™ goods is a choice to support responsible companies, empower farmers, workers, and fishermen, and protect the environment. In other words, it’s a world-changing way of doing business.
- Do you check where a product is made before you buy it?
- Do you check where a product is made before you buy it?
- Do you buy organic products?
- Do you buy organic products?
- Do you prefer to buy your products from local farms and family-run shops, or from large supermarkets? Why?
- Do you prefer to buy your products from local farms and family-run shops, or from large supermarkets? Why?
- Have you ever bought a fair-trade product?
- Have you ever bought a fair-trade product?
- What can people in developed countries do to help reduce poverty around the world?
- What can people in developed countries do to help reduce poverty around the world?
- Why do you think fair trade products are more expensive?
- Why do you think fair trade products are more expensive?
The basic idea which we call Creating Shared Value is about actually applying the capitalist model to addressing issues in society. Issues like hunger, issues like environment, issues like water, issues like health ahm and I want to be clear: applying the capitalist model. Creating share value is pure unadulterated capitalism; it's about making money.
The basic idea which we call Creating Shared Value is about actually applying the capitalist model to addressing issues in society. Issues like hunger, issues like environment, issues like water, issues like health ahm and I want to be clear: applying the capitalist model. Creating share value is pure unadulterated capitalism; it's about making money.
But the idea is that that actually there is no artificial need to limit the way you make money. Just the kind of the conventional needs of the conventional mainstream, you know, kind of consumer benefits that companies have been trying to create.
But the idea is that that actually there is no artificial need to limit the way you make money. Just the kind of the conventional needs of the conventional mainstream, you know, kind of consumer benefits that companies have been trying to create.
That we can open up our thinking about creating economic value by understanding that there’s huge opportunities for companies to have fundamental impacts on almost all the major issues in society.
That we can open up our thinking about creating economic value by understanding that there’s huge opportunities for companies to have fundamental impacts on almost all the major issues in society.
So, the idea here is to actually get capitalism working, not against the interests of society and the community, but actually integral to addressing the problems of society.
So, the idea here is to actually get capitalism working, not against the interests of society and the community, but actually integral to addressing the problems of society.
I think that CSR was an effort in companies to be responsible, that word responsible is a very important word. The idea is companies have a responsibility, they need to be good corporate citizens, they need to contribute to the community, they need to comply with the community standards, all those things really make up corporate social responsibility.
I think that CSR was an effort in companies to be responsible, that word responsible is a very important word. The idea is companies have a responsibility, they need to be good corporate citizens, they need to contribute to the community, they need to comply with the community standards, all those things really make up corporate social responsibility.
And all that is correct, all those things are important, but ultimately that motivation for companies is separate from the core of their business. Companies should be good, they should be generous, they should take money from their capitalist activity and invest it in this other stuff.
And all that is correct, all those things are important, but ultimately that motivation for companies is separate from the core of their business. Companies should be good, they should be generous, they should take money from their capitalist activity and invest it in this other stuff.
The idea of shared values says that, no, no, no, that there is a bigger opportunity. It's not taking money from capitalism and investing; it's actually really thinking how we practice capitalism.
The idea of shared values says that, no, no, no, that there is a bigger opportunity. It's not taking money from capitalism and investing; it's actually really thinking how we practice capitalism.
See, I think of the original CSR idea was, sort of, do no harm and a lot of companies set out to kind of see if they could reduce the harm they were producing in the variety of ways: environmental harms, safety, no accidents, or things like that. It's not about actually reducing harms, it's about actually creating value, value for a social issue but at the same time a business model that leads to profit.
See, I think of the original CSR idea was, sort of, do no harm and a lot of companies set out to kind of see if they could reduce the harm they were producing in the variety of ways: environmental harms, safety, no accidents, or things like that. It's not about actually reducing harms, it's about actually creating value, value for a social issue but at the same time a business model that leads to profit.
CSR is fundamentally about redistribution: take from the prosperous and donate, and that sometimes is the only way to solve some of these issues and sometimes that's necessary, but the CSV idea is no, no, that's probably not going to ultimately succeed, what if you could re-engineer the way you do your business, so you could actually create a business model.
CSR is fundamentally about redistribution: take from the prosperous and donate, and that sometimes is the only way to solve some of these issues and sometimes that's necessary, but the CSV idea is no, no, that's probably not going to ultimately succeed, what if you could re-engineer the way you do your business, so you could actually create a business model.
The idea is that the from of the work we've done and all the companies we worked with over the years, there seems to be kind of three buckets here. One has to do with the product itself and what features or needs the product is actually meeting and the are customers the company is seeking to serve. And the shared value idea says well there's many social dimensions that can be embodied in the product and there is often customers whose needs are that have not been served that are available so there is the product opportunity.
The idea is that the from of the work we've done and all the companies we worked with over the years, there seems to be kind of three buckets here. One has to do with the product itself and what features or needs the product is actually meeting and the are customers the company is seeking to serve. And the shared value idea says well there's many social dimensions that can be embodied in the product and there is often customers whose needs are that have not been served that are available so there is the product opportunity.
The second opportunity has to do with what I call the value chain, the way the company actually conducts its business. and has to to with supply chain and procurement operations and logistics and customer support service and so forth. And again that if we look at that value chain with a kind of a shared value perspective again we open up new opportunities to save energy, save packaging and have a more beneficial impact on our suppliers that benefit them and their employees.
The second opportunity has to do with what I call the value chain, the way the company actually conducts its business. and has to to with supply chain and procurement operations and logistics and customer support service and so forth. And again that if we look at that value chain with a kind of a shared value perspective again we open up new opportunities to save energy, save packaging and have a more beneficial impact on our suppliers that benefit them and their employees.
And then the third bucket it has to do with what I call a cluster that is the businesses and institutions around the company. Any company doesn't do everything inside the company, it depends on lots of other organizations to do the job well in order to be productive and efficient and grow its business and and the third kind of opportunity in shared value is there is to think about that. Ecosystem around the company and the better that ecosystem is the more effective and competitive the company can be so those are the three buckets are we we find that most companies can discover some new opportunities...
And then the third bucket it has to do with what I call a cluster that is the businesses and institutions around the company. Any company doesn't do everything inside the company, it depends on lots of other organizations to do the job well in order to be productive and efficient and grow its business and and the third kind of opportunity in shared value is there is to think about that. Ecosystem around the company and the better that ecosystem is the more effective and competitive the company can be so those are the three buckets are we we find that most companies can discover some new opportunities...
A great example I'd like to use and it really illustrates the distinction between CSR and CSV is the whole way by which you procure agricultural commodities from particularly from small farmers.
A great example I'd like to use and it really illustrates the distinction between CSR and CSV is the whole way by which you procure agricultural commodities from particularly from small farmers.
Now, the CSR approach to low incomes of small farmers. In CSR our approach is fair trade. Pretty much everybody in this room has probably bought a fair trade product. Fair trade is about making sure that the those poor farmers get an adequate price for the crop (do the farmers have to ....?)
Now, the CSR approach to low incomes of small farmers. In CSR our approach is fair trade. Pretty much everybody in this room has probably bought a fair trade product. Fair trade is about making sure that the those poor farmers get an adequate price for the crop (do the farmers have to ....?)
And that's being good, it's fair for those farmers to get an adequate price for their crop; we're being good by making sure that they get an adequate price for their crop. And yes, that will improve the incomes of the farmers, but that's not a sustainable solution, that is just redistribution, that's paying more for the same thing, that's, that's just passing income from one party to another.
And that's being good, it's fair for those farmers to get an adequate price for their crop; we're being good by making sure that they get an adequate price for their crop. And yes, that will improve the incomes of the farmers, but that's not a sustainable solution, that is just redistribution, that's paying more for the same thing, that's, that's just passing income from one party to another.
This other model of procurement is very different, it says: if you act as a capitalist, if you're a smart buyer, if you work more closely with your supplier, if you help your supplier improve, that allows tremendous improvement in the farmers' income. The farmers can increase their yield, they can increase their quality, they get higher prices and raise their income, not by charity, not by being a good corporate citizen, but you actually raise their income by being a better capitalist, it's a win-win.
This other model of procurement is very different, it says: if you act as a capitalist, if you're a smart buyer, if you work more closely with your supplier, if you help your supplier improve, that allows tremendous improvement in the farmers' income. The farmers can increase their yield, they can increase their quality, they get higher prices and raise their income, not by charity, not by being a good corporate citizen, but you actually raise their income by being a better capitalist, it's a win-win.
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