BSBA 1

1. Fair trade
is a social movement whose stated goal is to help producers in developing countries achieve better
trading conditions. Members of the movement advocate the payment of higher prices to exporters, as well
as improved social and environmental standards. The movement focuses in particular on commodities, or
products which are typically exported from developing countries to developed countries, but also consumed
in domestic markets (e.g. Brazil, India and Bangladesh) most notably handicrafts, coffee, cocoa, wine,
sugar, fresh fruit, chocolate, flowers and gold. The movement seeks to promote greater equity in
international trading partnerships through dialogue, transparency, and respect. It promotes sustainable
development by offering better trading conditions to, and securing the rights of, marginalized producers and
workers in developing countries. Fair trade is grounded in three core beliefs; first, producers have the power
to express unity with consumers. Secondly, the world trade practices that currently exist promote the
unequal distribution of wealth between nations. Lastly, buying products from producers in developing
countries at a fair price is a more efficient way of promoting sustainable development than traditional charity
and aid.
2. Advantages
Fair Trade relationships provide the basis for connecting producers with consumers and for
informing consumers of the need for social justice and the opportunities for change. Consumer support
enables Fair Trade Organizations to be advocates and campaigners for wider reform of international trading
rules, to achieve the ultimate goal of a just and equitable global trading system. Shoppers can buy products
in line with their values and principles. They can choose from an ever growing range of great products. By
buying FAIRTRADE labelled products consumers support producers who are struggling to improve their
lives. For producers Fairtrade is unique in offering four important benefits: (1) stable prices that cover the
costs of sustainable production; (2) market access that enables buyers to trade with producers who would
otherwise be excluded from market; (3) partnership (producers are involved in decisions that affect their
future) and (4) empowerment of farmers and workers (assistance for producer organizations to understand
more about market conditions and trends and to develop knowledge, skills and resources to exert more
control and influence over their lives).
3. Disadvantages
Another disadvantage that is often mentioned is that getting Fair Trade certification is expensive for
the individuals and small businesses that the program wants to help. The initial process of getting certified
can be expensive. But the benefit to the business is enormous. Being a certified business can increase
sales by 15% or more for most businesses. There are expenses to running any business and paying for the
certification necessary to be part of the program is a business expense that provides a great return.
Businesses also need to renew their Fair Trade certification every couple of years which does cost a bit,
although it costs less than the initial certification. Being re-certified every few years is important because it
ensures that the business if following the protocols of the program. Because of the added marketability that
the certification brings the cost is not a hindrance to most businesses. This disadvantage of Fair Trade is
one that consumers who aren’t really familiar with the program often raise. They think that it really doesn’t
make a difference if you buy these products or not so people should just buy the cheapest product. To a
large corporation it’s true that a single purchase won’t make a difference. But to a small independent
business that purchase does matter. Every dollar earned can make a dramatic difference for a family owned
business or artist cooperative. It might seem like buying these products isn’t really an important choice to
make because you don’t see the impact but dig a little deeper into how Fair Trade works and you will be
amazed at the difference your purchase can make
4. Real-life Situation. Ben & Jerry’s Ice Cream
The first ice cream company to use Fair Trade ingredients, Ben & Jerry’s launched their Fair Trade
foray with their coffee flavors in 2005. Ben & Jerry’s plans on being 100-percent Fair Trade sourced by
2013. As a major company in the public eye, Ben & Jerry’s movement into ethical sourcing paved the way
for other businesses to follow suit. A few of their current Fair Trade ingredients include cocoa, vanilla beans,
coffee and espresso beans and nuts.

BSBA 1
 1. Fair trade. The fair-trade system helps ensure that growers are compensated in an equitable way for their products. Fair
trade is a movement aimed at ensuring that the farmers and workers who grow, pick, and make
the food products you buy earn a fair wage and don’t experience dangerous or overly taxing
working conditions.

2. Advantages. Fair Trade relationships provide the basis for connecting producers with consumers and for
informing consumers of the need for social justice and the opportunities for change. Consumer support
enables Fair Trade Organizations to be advocates and campaigners for wider reform of international trading
rules, to achieve the ultimate goal of a just and equitable global trading system. Shoppers can buy products in
line with their values and principles. They can choose from an ever growing range of great products. By buying
FAIRTRADE labelled products consumers support producers who are struggling to improve their lives. For
producers Fairtrade is unique in offering four important benefits: (1) stable prices that cover the costs of
sustainable production; (2) market access that enables buyers to trade with producers who would otherwise be
excluded from market; (3) partnership (producers are involved in decisions that affect their future) and
(4) empowerment of farmers and workers (assistance for producer organizations to understand more about
market conditions and trends and to develop knowledge, skills and resources to exert more control and
influence over their lives).

3. Disadvantages. Another disadvantage that is often mentioned is that getting Fair Trade certification is expensive
for the individuals and small businesses that the program wants to help. The initial process of getting certified
can be expensive. But the benefit to the business is enormous. Being a certified business can increase sales
by 15% or more for most businesses. There are expenses to running any business and paying for the
certification necessary to be part of the program is a business expense that provides a great return.
Businesses also need to renew their Fair Trade certification every couple of years which does cost a bit,
although it costs less than the initial certification. Being re-certified every few years is important because it
ensures that the business if following the protocols of the program. Because of the added marketability that the
certification brings the cost is not a hindrance to most businesses. This disadvantage of Fair Trade is one that
consumers who aren’t really familiar with the program often raise. They think that it really doesn’t make a
difference if you buy these products or not so people should just buy the cheapest product. To a large
corporation it’s true that a single purchase won’t make a difference. But to a small independent business that
purchase does matter. Every dollar earned can make a dramatic difference for a family owned business or
artist cooperative. It might seem like buying these products isn’t really an important choice to make because
you don’t see the impact but dig a little deeper into how Fair Trade works and you will be amazed at the
difference your purchase can make

4. Real-life Situation. Blends for life.

Blends for Life creates a diverse range of beauty and body care products using Fair Trade Certified™
Organic Shea Butter Blends. Blends for Life buys Shea butter at a Fair Trade price, which doubles the
producers’ earnings (typically women), which also helps improve their families’ living conditions. Associative
life, management training and access to new technologies are also some of the results from Blends for Life’s
community development programs. Shopping for any type of Fair Trade product is not only easy, but it also
benefits communities around the world and the environment. Look for the Fair Trade logo when shopping
for products—it acts as a guarantee that products have been certified according to international Fair Trade
standards.

Rozanne Barloso
BSBA 1
1. Fair trade.
Fair trade labelling organizations commonly use a definition of fair trade developed by FINE, an informal
association of four international fair trade networks: Fairtrade Labelling Organizations International, World
Fair Trade Organization (WFTO), Network of European Worldshops and European Fair Trade
Association (EFTA). Specifically, fair trade is a trading partnership, based on dialogue, transparency, and
respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, are
engaged actively in supporting producers, awareness raising, and in campaigning for changes in the rules
and practice of conventional international trade. There are several recognized fair trade certifiers,
including Fairtrade International (formerly called FLO, Fairtrade Labelling Organizations International),
IMO, Make Trade Fair and Eco-Social. Additionally, Fair Trade USA, formerly a licensing agency for the
Fairtrade International label, broke from the system and is implementing its own fair trade labelling scheme,
which has resulted in controversy due to its inclusion of independent smallholders and estates for all crops.
In 2008, Fairtrade International certified approximately (€3.4B) of products. The World Trade
Organization publishes annual figures on the world trade of goods and services.
2. Advantages.
Fair Trade relationships provide the basis for connecting producers with consumers and for informing
consumers of the need for social justice and the opportunities for change. Consumer support enables Fair
Trade Organizations to be advocates and campaigners for wider reform of international trading rules, to
achieve the ultimate goal of a just and equitable global trading system. Shoppers can buy products in line
with their values and principles. They can choose from an ever growing range of great products. By buying
FAIRTRADE labelled products consumers support producers who are struggling to improve their lives. For
producers Fairtrade is unique in offering four important benefits: (1) stable prices that cover the costs of
sustainable production; (2) market access that enables buyers to trade with producers who would otherwise
be excluded from market; (3) partnership (producers are involved in decisions that affect their future) and
(4) empowerment of farmers and workers (assistance for producer organizations to understand more about
market conditions and trends and to develop knowledge, skills and resources to exert more control and
influence over their lives).
3. Disadvantages.
Another disadvantage that is often mentioned is that getting Fair Trade certification is expensive for the
individuals and small businesses that the program wants to help. The initial process of getting certified can
be expensive. But the benefit to the business is enormous. Being a certified business can increase sales by
15% or more for most businesses. There are expenses to running any business and paying for the
certification necessary to be part of the program is a business expense that provides a great return.
Businesses also need to renew their Fair Trade certification every couple of years which does cost a bit,
although it costs less than the initial certification. Being re-certified every few years is important because it
ensures that the business if following the protocols of the program. Because of the added marketability that
the certification brings the cost is not a hindrance to most businesses. This disadvantage of Fair Trade is
one that consumers who aren’t really familiar with the program often raise. They think that it really doesn’t
make a difference if you buy these products or not so people should just buy the cheapest product. To a
large corporation it’s true that a single purchase won’t make a difference. But to a small independent
business that purchase does matter. Every dollar earned can make a dramatic difference for a family owned
business or artist cooperative. It might seem like buying these products isn’t really an important choice to
make because you don’t see the impact but dig a little deeper into how Fair Trade works and you will be
amazed at the difference your purchase can make
4. Real-life Situation. Green Mountain Coffee Roasters
This Vermont-based coffee company offers Fair Trade versions of its popular roasts in bags for at-
home brewing as well as in K-cups for single-serve machines. The company partners with farmers to ensure
they're getting a fair wage and working in appropriate conditions, while supporting the local Vermont
economy. The company also reduces waste through recycling plans at its headquarters, manufacturing
plants and retail stores.
Real-Life Situation. Blends for life.

Blends for Life creates a diverse range of beauty and body care products using Fair Trade Certified™
Organic Shea Butter Blends. Blends for Life buys Shea butter at a Fair Trade price, which doubles the producers’
earnings (typically women), which also helps improve their families’ living conditions. Associative life, management
training and access to new technologies are also some of the results from Blends for Life’s community development
programs. Shopping for any type of Fair Trade product is not only easy, but it also benefits communities around the
world and the environment. Look for the Fair Trade logo when shopping for products—it acts as a guarantee that
products have been certified according to international Fair Trade standards.