The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair (...) trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers. (shrink)

Driven by increased consumer interest and stakeholder pressure, the number of Fairtrade (FT) products has been steadily increasing. The mainstreaming of FT means that the products are now facing stiff competition within the generic product categories in which they operate. While consumers may pressure organizations for ethical conduct, they are less willing to pay premium prices for fairly traded products. For FT to continue to grow, more efficient operating models are required to offset the premium prices paid to producers to (...) ensure competitiveness in the market. One such improvement approach may be the management of FT supply chains. To investigate the feasibility of this approach, this article systematically combines literature on FT with key supply chain management (SCM) constructs and theories. We discuss existing SCM paradigms in the context of FT and demonstrate aspects where the efficiency of FT chains needs to be improved to ensure their viability. We present propositions that demonstrate the key limitations of the FT model from the point of view of SCM theory and practice and suggest the potential changes needed in the management of FT supply chains. The article provides a timely first attempt to systematically combine FT with SCM constructs, thus establishing a basis for the further development of FT chains and for the improvement of the operating efficiency within them. (shrink)

Despite growing interest in ethical consumer behaviour research, ambiguity remains regarding what motivates consumers to purchase ethical products. While researchers largely attribute the growth of ethical consumerism to an increase in ethical consumer concerns and motivations, widened distribution of ethical products, such as fairtrade, questions these assumptions. A model that integrates both individual and societal values into the theory of planned behaviour is presented and empirically tested to challenge the assumption that ethical consumption is driven by ethical considerations alone. Using (...) data sourced from fairtrade shoppers across the UK, structural equation modelling suggests that fairtrade purchase intention is driven by both societal and self-interest values. This dual value pathway helps address conceptual limitations inherent in the underlying assumptions of existing ethical purchasing behaviour models and helps advance understanding of consumers’ motivation to purchase ethical products. (shrink)

Although fair trade has grown exponentially in the U.S. in recent years, we do not have a clear understanding of why small U.S. firms choose to participate in it. To answer this question, we use a qualitative case study approach and grounded theory analysis to explore the motivations of 35 small fair trade businesses. We find that shared values and the desire to help others, often triggered by a critical incident, lead social entrepreneurs to found and sustain fair trade businesses. (...) The relationship between shared values and engagement in fair trade and the relationship between altruism and engagement in fair trade are strengthened by four motivating factors: direct relationships with producers, support for social causes, the desire for the preservation of craftsmanship, and the desire to share aesthetic products. These links are strengthened by four facilitating factors : the acquisition of business knowledge, family member involvement in the firm, assistance from faith communities, and assistance from the fair trade community. Additional analysis reveals three types of fair trade social entrepreneurs: “ethics first” entrepreneurs, primarily motivated by human rights and social justice concerns; “faith first” fair traders, motivated primarily by their religious faith; and “business first” businesspeople, motivated by what they perceive to be an opportunity to build a successful business while simultaneously doing “good” and helping others. (shrink)