Fair Trade Organizations Research Articles

Fair Trade Practices, Social Innovation and Social Impact: A Case of Mahaguthi Craft with A Conscience

This study presents the case of Mahaguthi Craft with a Conscience founded in 1984, a non-profit-distributing social enterprise that helps the marginalized small producers and generate employment. The main aim of this study is to evaluate fair trade practices, social innovation and social impact. This study is based on the primary data. This study analyzes data in the three different stages. First, evaluate the practices of fair trade by reviewing the existing documents, such as, self-declaration report of Mahaguthi and external social audit by World Fair Trade Organization (WFTO). That had been validated by an interview with the chief executive officer (CEO) of Mahaguthi Craft. Interview includes to evaluate social innovations and social impact Secondly, a structured survey questionnaire has been used to examine the social impact to beneficiaries, mainly, Mahaguthi employees. Results revels that Mahaguthi has been following ten principles of Fair Trade practices very effectively. Product innovation, supply chain management innovation, technology innovation, new business model and business ecosystem innovations are key points to Mahaguthi for positive change of social welfare of marginal group of peoples. Additionally, this study finds the major five components for measuring their impact to Mahaguthi staffs, such as, economic, self-confidence, organizational goal, social and leadership impact. Fair trade practices are the first stage of social innovation and positive impact to society. This case study may be the best example to practitioners and academia for operating social enterprise for social change through generation of employment.

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Agricultural associations and fair trade in the Peruvian rainforest: a socioeconomic and ecological analysis

Fair trade initiatives represent an essential support for the scarce opportunities that have arisen in the agricultural sector, as they cover various areas that contribute to increasing good trade practices. It is essential to highlight the contribution of fair trade in urban and rural areas, as it becomes a valuable incentive for differentiation. The main objective of this study was to determine how Fair Trade is applied in the socioeconomic and ecological sphere in an association of sustainable agricultural producers in the Peruvian jungle. This is quantitative research with a non-experimental cross-sectional design. The survey technique was used, and a questionnaire was applied to 99 agricultural producers in the Amazon region of northern Peru, because it would help to analyze the new challenges of fair trade. In addition, data analysis and processing was carried out with Microsoft Office Excel and SPSS. The results show that 51% of the producers surveyed have been sensitized to adopt socially responsible actions aimed at strengthening sustainable development, social responsibility and good practices for fair trade in favor of the preservation of the resources of the Peruvian Amazon, as well as the socioeconomic development of farmers and the region itself. Forty-seven percent carry out social responsibility activities under the guidance of the Fairtrade organization, which has accompanied farmers to obtain Fairtrade certification. In addition, 59% of respondents say that they engage in healthy competition that generates trust among farmers. Fairtrade enables associated farmers to improve their ethical behavior and respect for their rights as well as those of the entire community.

Drivers of consumer’s willingness to pay for fair trade food products: the role of positive and negative emotions

This paper proposes an explanatory model of the intention to pay for fair trade food products based on the stimulus-organism-response (S-O-R) theory. The research aims are to test the effects of general attitudes toward sustainable food products on the valuation of fair-trade food products, to study the effects of emotions on willingness to pay for fair trade food products and to analyse the mediating role of product evaluation and emotions. The proposed model was tested using an ordinary least squares estimation and an analysis combining the properties of parallel and serial mediation on a representative sample of 305 consumers in the Basque Country (Spain). Descriptive analyses indicate that respondents had a favourable attitude toward sustainable products and positively valued fair trade products. The willingness to pay was moderate. The results show the importance of emotions, especially pride, in transforming attitudes toward sustainable food products into a willingness to pay for fair trade food products. This study links the more general literature on sustainable products to that of fair-trade products, broadening the focus of the S-O-R theory. In addition, it helps fair trade organisations understand consumer behaviour influenced by positive emotions and attitudes towards sustainable products, including fair trade products.

Protection and Management of Gayo Arabica Coffee in the Laws and Regulations of Central Aceh Regency

Coffee is one of the leading commodities in the plantation subsector because it has market opportunities, both domestically and abroad. Gayo Coffee (English: Gayo Coffee) is a variety of arabica coffee that is one of the leading commodities originating from the Gayo Plateau. Gayo Coffee has received Fair Trade Certified™ from the International Fair Trade Organization on May 27, 2010, and has also received an IG (Geographical Indication) certificate submitted by the Ministry of Law and Human Rights (Kemenkumham) Republic of Indonesia. People living in the Gayo highlands until now live dependent on coffee, butuntil now there are still problems experienced by gayo coffee farmers, such as the condition of coffee selling prices that are still unstable, and tend to plummet. Therefore, the problems experienced by gayo coffee farmers should be accommodated in a law, especially at the regional level. So that problems that occur like this are not experienced continuously and protracted by coffee farmers from year to year. Based on the background that has been described, the formulation of the problem in this study is what things must be contained in Qanun so that can it provide protection for the management of gayo arabica coffee in Central Aceh Regency? The research method used in this study is normative juridical research, which is carried out through literature studies that examine (mainly) secondary data in the form of laws and regulations, or other legal documents, research results, assessment results, and other references. The results showed that the things that need to be contained in Qanun protection for the management of gayo arabica coffee include arrangements about gayo arabica coffee ecosystem, gayo coffee commerce and cultivation, international cooperation, coffee research and education centers, customary institutions related to the protection and management of gayo arabica coffee, tourism and coffee villages, Geographical Indication certification, and Coffee Regionally Owned Enterprises (BUMD). The suggestion from the researcher is that Central Aceh Regency should have a regulation in the form of Qanun which regulates the protection and management of Gayo Arabica Coffee, because this area is an area that is a source of coffee and has become the lifeblood of the people in Gayo.

Approaches to implementing fair trade practices for smallholder farmers

Abstract Fair Trade is a global network, a certification system whereby producers meet certain social, economic and environmental standards, with additional funding to improve these conditions and a minimum price set for their products. The literature shows the rapid spread of movements implemented by countries who want fair trade, fair prices and high quality products. The present research demonstrates the need for the implementation of the Fair Trade movement at the level of each country in the European Union and the benefits for the actors involved. At the global movement level, the total number of producer organisations in the FairTrade scheme in 2020 was 1880, of which 950 were registered in Latin America and the Caribbean. The paper is based on the quantitative and qualitative analysis of areas and productions for the 7 main agricultural products: tea, coffee, cocoa, sugar, bananas, cottonseed and plants and flowers, as well as the calculation of the main statistical indicators standard deviation, coefficient of variation and growth rate. At E.U. level there are 16 countries representing national Fair Trade organisations, of which Germany ranked second in terms of retail trade of FairTrade products in 2017. The recognition of certification in Europe is an important asset, as the high living standards in Western European countries mean that they are interested in buying products with this label.

Beyond responsibility? Fair trade and citizenship

The aim of this article is to investigate by means of a qualitative content analysis which models of citizenship emerge from the communication practices of four fair trade organizations: Oxfam-Worldshops, Fairphone, Trade for Development Centre (TDC) and Colruyt. Drawing on discourse theory, three forms of citizenship are distinguished: expanded, communitarian and agonistic. TDC and Colruyt expose the conditions of production in the Global South and encourage the consumption of fair trade products in the Global North (thus reflecting an expanded citizenship). In contrast, Fairphone aims to create a community and encourages members to communicate the alternative, the Fairphone smartphone (thus reflecting communitarian citizenship). Finally, Oxfam-Worldshops emphasizes the conflicts between the interests of farmers and consumers and those of multinational corporations, thereby encouraging citizens to protest unfair trade (thus reflecting agonistic citizenship). We conclude by highlighting the meaning of purchasing fair trade in the different models of citizenship.

The Effects of Competition Between Fair Trade Organizations

The Effects of Competition Between Fair Trade Organizations

The Adoption of Bundled Sustainable Farm and Environmental Practices by Coffee Farmers in Southwest Ethiopia.

Despite numerous efforts to introduce sustainable farm and environmental practices (SFEPs), such as pruning, soil erosion control, and water pollution abatement measures), their adoption by smallholder farmers is awfully low in Ethiopia. As a result, smallholder coffee farmers in the country remain in poverty traps even if there is room to enjoy coffee returns by doubling the yield by implementing sustainable practices. On the other hand, most previous coffee sustainability studies focus on the economic, livelihood, and poverty alleviation impact of private sustainability standard schemes. Despite the holistic advantages of the adoption of bundled SFEPs over individual adoption practices, it has been overlooked by earlier scholars in the country. In southwest Ethiopia, few farmers applied sustainable coffee farm practices (particularly pruning, stumping, the use of fertilizer, and mulching), and the yields gained by the farmers are quite low. Therefore, this study seeks to examine the factors affecting the adoption of bundled SFEPs and their intensity at the farm household level in southwest Ethiopia based on cross-sectional data obtained from 153 sampled coffee farm households for the 2019/2020 cropping season. The study results showed that the farmers' adoption of different SFEPs depended on farm and management characteristics (total size of coffee holdings, multiple plots, remoteness of coffee farm, hired labor, and farming experience), socioeconomic variables (literacy, household size, and training), and Fairtrade coffee certification. Likewise, the intensity of SFEPs implementation is influenced by literacy and hired labor. Providing training and supplementing coffee farmers with farm equipment used for SFEPs, promoting small-scale mechanization options to address seasonal labor constraints, as well as strengthening Fairtrade organizations will facilitate the adoption of multiple SFEPs by coffee farmers in the country.

The Rise of Market Approaches to Social Problems: The Case of Fair Trade and Its Uneven Expansion Across the Global South

This study examines international market formation and expansion with a focus on the social regulation of economic activity. I use fair trade as a strategic case because of its centrality in the growing field of civil society–based initiatives that address social and environmental problems via market mechanisms as well as its comparatively long history that encompasses a substantial change in organizational structure. Using a comprehensive data set of current and former World Fair Trade Organization members, I conduct a series of fixed effect zero-inflated negative binomial regression analyses. Results reveal the variable significance of macro-historical conditions and organizational structures that underlie the market’s uneven growth across the global South. I find that organizational linkages to world society, a history of British colonization, and the presence of Peace Corps volunteers enable market formation and expansion. By contrast, French and Portuguese colonial ties have a constraining effect. Additionally, I find that the organizational structure of the market itself is both directly and indirectly consequential for its growth. The shift from idiosyncratic direct sales networks to a formalized labeling system facilitates market expansion and amplifies the importance of global institutions but diminishes the impacts of international political domination.

ROLE OF TOTAL QUALITY MANAGEMENT PRACTICES ON PERFORMANCE OF FAIRTRADE PREMIUM PROJECTS IN KENYA

Purpose: The purpose of this study was to establish the role of total quality management on the performance of fair trade premium projects with particular reference to Flamingo Horticulture Limited (herein referred to as the company or organization).
 Methodology: The target population for this research comprised of the employees, the management and the fair trade premium committee of the Flamingo Horticulture Limited. The study employed descriptive research design. A census sampling was carried out and the sample size was 46. Survey method was used to solicit the information. The researcher used a questionnaire to collect primary data which was analyzed using qualitative and quantitative analysis techniques then presented in tables. Data collected will be both quantitative and qualitative. Validity and reliability of the questionnaire was enhanced by carrying out a pilot study prior to data collection. The data collected was analyzed using descriptive statistics by aid of Statistical package for social scientists (SPSS). The results were presented in form of Tables.
 Results: The studies found that quality management planning, customer focus and application of Quality Management planning approaches such as auditing, continuous improvement, monitoring & evaluation have positive effect on performance of fairtrade premium projects. Correlation analysis showed that there were positive and significant correlations between performance of Fairtrade premium projects in Kenya and all independent variables (quality management planning, r=0.537, p<0.05; customer focus, r=0.542, p<0.05; leadership qualities, r=0.476, p<0.05 and, QMS approaches, r=0.452, p<0.05).
 Unique contribution to theory, practice and policy: The study recommended that Fairtrade organizations should integrate quality management planning in their overall planning process to ensure identification of risks, to ensure that errors are eliminated throughout the operational process and products and services are produced at an optimal quality that can satisfy all stakeholders. Adoption of quality management will enable the leaders to use their personal values, ethics, and commitment to the organization’s vision and mission, passionate to energize and create a synergy in teams; heading towards accomplishment of organizational goals. With high level of quality improvement quality management practices and leadership will be higher since leadership qualities are associated with successful quality improvement.

Social impact disclosure and symbolic power: Evidence from UK fair trade organizations

• Social impact disclosure is an instrument of symbolic power. • Bourdieu’s notion of symbolic power explains fair trade disclosures. • Stakeholder narratives facilitate power struggles of fair trade organizations. • Injustices are silenced by the discourse of economic impacts of fair trade. • Rhetorical strategy does not protect farmers’ emancipation in fair trade. This article unravels how fair trade organizations use social impact disclosures as forms of symbolic power amid stakeholder concerns that prevail in the fair trade field. Mobilizing Bourdieu’s notion of symbolic power and through narrative analysis of social impact disclosures and the associated rhetoric of major UK fair trade organizations, as well as their stakeholders’ rhetoric and persuasive arguments in the public domain during the period from 2006 to 2013, we show that these organizations position themselves as dominant actors in responding to stakeholders’ concerns over social inequality. We provide important insights into how social impact disclosures, silence and rhetorical strategies are used as a mechanism of symbolic power through which fair trade organizations maintain dominance over their stakeholders in the fair trade field.

The moral economy of face: marketized gift and depoliticized solidarity in South Korea’s fair trade

ABSTRACT Metaphors of ‘face’ are often found in South Korea’s fair trade activism, as fair trade is frequently described as ‘face-to-face commerce’ and its goal is presented as pursuing ‘global trade with a human face.’ By asking how and why fair trade relies on the metaphors of face, this article analyzes the political implications and limits of the trope. I first examine the intimate connection between gift-exchange and face based on Marcel Mauss’s analysis of the gift and I present face as a locus of symbolic recognition and politics. Next, drawing on ethnographic research into Beautiful Coffee, the largest fair trade organization in South Korea, I illuminate fair trade as a hybrid practice of ‘marketized gift-exchange’ in which the various faces of producers and consumers are produced and circulated along with market transactions. In examining the meanings of those faces, I maintain that the prevalent metaphor of face in fair trade betrays the contradictory nature of market-based solidarity that is sought through the activism to redefine the whole economic structure based on moral and ethical practices.

AVALIAÇÃO DO PREÇO DA LARANJA, SOB O SISTEMADE COMÉRCIO JUSTO DO MÉXICO

Orange production in the Totonacapan region of the state of Veracruz it is one of the main economic sources in the region and throughout the state. However, the downward movements in prices and intermediary have led producers to seek new market inser-tion alternatives such as the fair trade and organic production. The need of producers to have more elements of trial for to decision making regarding the best alternative motivated the present study. Therefore, the objectives of the same is to assess the minimum price paid out in the market farm for fair trade with regard to the cost of orange production from four organizations registered under this model. Additionally, contrast results achieved whit a group of producers dedicated to the organic production. In both cases it was used the methodology of the Fairtrade Guide to Sustainable Production Costs (COSP). The indicator shows that fair trade organizations are profitable as long as they have an average profit margin that ranks from 20% to 34% of the cost their production per hectare. The profit margin of the organization of organic orange producers is higher than fair trade organizations with a profi-tability 158% considering of the cost its production per hectare. However, the producers should regard others factors in matter of commercialization, organization and social profit prevenient to decision making.

Towards a collaborative approach between practitioners and academics: insights from an academic–Fairtrade collaboration

Partnership approaches have been identified as crucial for meeting the Sustainable Development Goals. In the context of an emerging literature on cross-sector partnerships, and more specifically reflections on how academic institutions and non-governmental organizations (NGOs) create effective and mutually beneficial research collaborations, this paper draws on the experiences of a particular partnership between academic researchers and a Fair Trade organization partnership to contribute to building an understanding of how collaborative research can be achieved more effectively. A set of collaborative outputs resulted from the experience, including best practices for engagement and a training tool. It has contributed to changes in some of Fairtrade International’s ways of working with researchers. We found that we had more in common than what divided us in terms of skills and attitudes to knowledge, which is an important factor in the success of our relationship. Rooted in reflective practice, our project highlights the importance of trust and relationship building but also recognition of formal agreements and institutional structures to sustain the relationship.

Fair trade and sustainable development practices

There is consumer interest in organic and fair trade products globally. This has created a growing interest for producing agricultural products, which meet the standards for organic and fair trade products. This paper critically discusses fair trade as notion and in practice and connects the analysis of production of fair trade quinoa in a community in Southern Bolivia with Sustainable Development Goals (SDG). According to World Fair Trade Organization fair trade will improve environmental sustainability both at local level and globally as peasants in global South have opportunities to export organic products to markets in the global North, which will also have the result of empowering producers. This paper poses the question whether fair trade is alleviating poverty and supporting local producers creating environmentally sound technologies (Sustainable Development Goal 12, Target 12a) – in this case in communities in the highlands (Altiplano) in Southern Bolivia. The paper critically discusses sustainable development and the Sustainable Development Goals and questions whose interests Sustainable Development Goal 12 is primarily serving: consumers or producers. The discussion concludes that initiatives like fair trade and policies based on global goals can have unintended consequences, which are disadvantageous to local communities.

Money Well Spent? Operations, Mainstreaming, and Fairness of Fair Trade

We examine the operations, fairness, and social implications of fair trade certified products. We consider the market for fair trade certified products, which may serve as a substitute to a regular product. A fair trade organization chooses standards for the certification, namely, the (unit) premium and minimum fraction of fair trade raw materials, to maximize the total premium transferred to farmers. We analyze the operations of various stakeholders in the fair trade value chain, as well as the role and social welfare of fair trade organizations with different philosophies. We characterize the firms’ entry decision in the fair trade market as well as the resulting market equilibrium. Furthermore, we examine the impact of mainstreaming, i.e., whether to allow large‐scale plantations (often owned by large corporates) to be eligible for fair trade certification or not, which is one of the most discussed topics in the fair trade movement. We also identify the welfare allocation among various stakeholders in the value chain under different certification policies, and thereby address the fairness issue of the fair trade market as well as its resulting social welfare implications. Finally, we obtain a number of policy insights and suggestions to support this nascent marketplace.

Effects of perceived justice of fair trade organizations on consumers’ purchase intention toward fair trade products

The purpose of fair trade (FT) initiatives is to provide fair and reasonable payment to producers who may otherwise be negatively affected by free trade. Attracting consumers to purchase FT products is key to the success of the FT movement. This study identified the effects of consumers’ perceived justice of FT organizations (FTOs) on their purchase intention toward FT products. A total of 398 valid questionnaire responses were received and structural equation modeling was adopted to assess the casual relationships between variables. The results indicate that (a) perceived distributive, procedural, and interactional justice of FTOs among consumers positively affected trust in FTOs; (b) perceived distributive and procedural justice exhibited positive effects on perceived effectiveness of FT; and (c) trust in FTOs and perceived effectiveness of FT among consumers positively affected their purchase intention toward FT products. Based on these findings, this study provides practical suggestions to FT-related businesses and organizations, enabling these entities to accurately determine directions for the promotion and marketing communications of FT products.

HOW TO IMPLEMENT FAIR TRADE IN INDONESIA

Fair trade is one of the trading system that concern about the fairness and the development of the small producers that tend to be treated unfairly by free trade system since the main idea of competitive advantage from free trade incline to be exploitative towards these small producers. Indonesia has many small producers, artisans and farmers that do trading with international society, therefore, fair trade is supposed to be one of a beneficial trading system that Indonesia should implement. But the fact is that, fair trade is not developed well in Indonesia, even many NGOs and fair trade organization went bankrupt in Indonesia. One of the fair trade organization that still do well and have been categorized as success in implementing the fair trade system is APIKRI, a fair trade organization in craft industry that located in the special region of Yogyakarta. In this paper, we argue that based on APIKRI success, it�s not impossible to implement the fair trade system in Indonesia that will bring a beneficial result to the majority of Indonesian producers which are the small producers, artisans and farmer.

Changing women’s lives? Empowerment and aspirations of fair trade workers in South India

ABSTRACTFair trade is a new form of commercial partnership whereby actors in the North engage with actors in the South on a number of conditions, including setting a minimum price, a development bonus, and so on. But above all, fair trade organizations in the South are implementing mechanisms that more or less facilitate the empowerment of their members. This article analyzes the empowerment effects of two fair trade organizations in South India. It shows that while positive effects can be seen, the prevailing social norms in India are extremely influential for women at the moment, so that women are putting all their hopes on their daughters through their education.