This article analyzes the institutionalization of the global organic agriculture field and sheds new light on the conventionalization debate. The institutions that shape the field form a tripartite standards regime of governance that links standard-setting, certification, and accreditation activities, in a layering of markets for services that are additional to the market for certified organic products. At each of the three poles of the TSR, i.e., for standard-setting, certification, and accreditation, we describe how the corresponding markets were constructed over time (...) and the role of the different actors in their evolution. We analyze the politics at stake among the actors at each pole, their competing or cooperative interests and visions, and the tensions between them in the promotion of markets. Through the lens of the TSR heuristic, we show that the institutionalization of the organic field beginning in the 1990s and its de facto inclusion in the broader sustainability field beginning in the 2000s contribute to a progressive distancing between the organic movement and its initial political project of alterity, to which public and private actors both contribute actively. As a set of interlinked market institutions, the TSR orients and narrows the scope of debate, which becomes restricted to “market-compatible” dimensions and objects. We conclude that the TSR is a promising heuristic for analyzing contemporary global regulation. (shrink)

An outline of a theory ofvalues-based labeling as a social movementargues that it is motivated by the need tore-embed the agro-food economy in the largersocial economy. A review of some basic premisesof embeddedness theories derived from the workof Karl Polanyi reveals their connection toparticular values-based labeling efforts. Fromthis perspective, values-based labelingpresents itself as primarily an ethical andmoral effort to counter unsustainable trendswithin presently existing capitalism. Theselabels distinguish themselves from ordinarycommercial labels by a focus on processand on quality. Evaluating thetransformative potential (...) and progressive natureof values-based labeling poses a key challenge.One avenue for gauging this potential isconventions theory. This approach can beadapted to consider the decision makingprocesses that go on within values-basedlabeling groups, as well as consumer decisionmaking based on such labels, as instances ofwhat is termed a politics of ethical judgment.The conclusion emphasizes the need for moreresearch in this area and suggests how it couldbe furthered. (shrink)

The Fair Trade movement seeks to alter conventional trade relations through a system of social and environmental standards, certification, and labels designed to help shorten the social distance between consumers in the North and producers in the South. The strategy is based on working both ‘in and against’ the same global capitalist market that it hopes to alter, raising questions about if and how Fair Trade initiatives exhibit counter-hegemonic potential to transform the conventional agro-food system. This paper considers the multiple (...) levels at which Fair Trade alternatives operate to identify the different forms of social action that the movement engages with, and to clarify where the movement’s counter-hegemonic potentials are being realized. I suggest the Fair Trade movement is most successful in encouraging consumers and producers to commit acts of resistance and in supporting redistributive action that shifts resources from North to South. Up to now, however, Fair Trade alternatives appear to hold only a theoretical potential to provoke transformative change in the agro-food system. A reconceptualization of the Fair Trade model and how it is implemented could allow it to manifest more of its implicit, oppositional promise. (shrink)

Market-based social governance schemes that establish standards of conduct for producers and traders in international supply chains aim to reduce the negative socioenvironmental effects of globalization. While studies have examined how characteristics of social governance schemes promote socially responsible producer behavior, it has not yet been examined how these same characteristics affect consumer behavior. This is a crucial omission, because without consumer demand for socially produced products, the reach of the social benefits is likely to be limited. We develop a (...) comprehensive model that links twocharacteristics of market-based social governance schemes—(1) stringency and enforcement of requirements, and (2) promotion—to two conditions required for governance schemes to generate significant social benefits: (1) socially responsible behavior of participating firms; and (2) consumer demand for socially produced products which, in turn, expands products produced according to social governance schemes, and thus, the quantity of social benefits. We discuss market-based social governance schemes in the context of fair trade coffee. (shrink)

This is a case study investigating the growth of fair trade pioneer, Cafédirect. We explore the growth of the company and develop strategic insights on how Cafédirect has attained its prominent position in the UK mainstream coffee industry based on its ethical positioning. We explore the marketing, networks and communications channels of the brand which have led to rapid growth from niche player to a mainstream brand. However, the company is experiencing a slow down in its meteoric rise and we (...) question whether it is possible for the company to regain its former momentum with its current marketing strategy. (shrink)

This article presents an impact assessment framework that allows for the evaluation of positive and negative local-level impacts that have resulted from "responsible trade" interventions such as fair trade and ethical trade. The framework investigates impact relating to (1) livelihood impacts on primary stakeholders; (2) socio-economic impacts on communities; (3) organizational impacts; (4) environmental impacts; (5) policies and institutional impacts; and (6) future prospects. It identifies relevant local-level stakeholders and facilitates the analysis of conflicting interests. The framework was developed in (...) the context of, and is applied in this article to, the fair trade coffee industry in northern Nicaragua. It was designed, however, so that it can be applied across commodity sectors and responsible trade initiatives. It is able to do this by accommodating for differences in the social, environmental, political and institutional contexts of different areas, and by taking into account the distinct nature of an initiative's overall objectives, different levels of intervention, and the full range of stakeholders involved. (shrink)

Fair Trade companies have pulled off an astonishing tour de force. Despite their relatively small size and lack of resources, they have managed to achieve considerable commercial success and, in so doing, have put the fair trade issue firmly onto industry agendas. We analyse the critical role played by social capital in this success and demonstrate the importance of values as an exploitable competitive asset. Our research raises some uncomfortable questions about whether fair trade has 'sold out' to the mainstream (...) and whether these companies have any independent future or whether their ultimate success lies in the impact they have had on day-to-day trading behaviour. (shrink)

As the need for more diversity in business ethics is becoming more pressing in our global world, we provide an historical study of a Fair Trade (FT) movement, born in rural Mexico. We first focus on the basic assumptions of its founders, which include a worker–priest, Frans van der Hoff, a group of native Indians and local farmers who formed a cooperative, and an NGO, Max Havelaar. We then review both the originalities and challenges of the FT movement and its (...) potential contributions to the current theories and practices in business ethics. (shrink)

This paper examines two issues related to research of certified fair trade goods. The first is the question of how agendas for fair trade research should be developed. The second issue is the existence of major gaps in the fair trade literature, including the study of the particular features of fair trade practice in individual northern countries. In taking up the first of these issues, the paper proposes that normative analysis should provide the basis for developing research agendas. Such an (...) approach is important to ensure that the necessary types of questions to make normative judgments and policy decisions are posed and that biases that tend to favor mainstreaming practices in the generation of knowledge are minimized. The paper addresses the second research issue by examining the development of research agendas at the level of individual countries, using Canada as a case. (shrink)

EurepGAP is a pioneering field level food safety protocol called ‘good agricultural practices’ currently exercising influence over the global food quality assurance system. Developed by a consortium of major European retailers, this private standard enforces codes of conduct that address issues of health and safety for producers and consumers, as well as working conditions and environmental management on the farmland. Despite various merits and benefits that the standard is premised to offer, the institutional design gives a financial edge to powerful (...) large farms and exporters while diminishing opportunities for smaller growers and exporters to remain in the profitable agricultural export sector of the Global South. This paper explores the institutional origin and evolution of EurepGAP, discusses entry barriers and risks that EurepGAP imposes on the global value chain stakeholders, as well as the ethical implications from broader theoretical perspectives. Subsequently, it examines the evolving nature of a new trend in the fresh fruit and vegetable sector, i.e., the rise of public GAP standards. Promoted by some governments in the Global South, these GAP standards emphasize support for horizontal partnerships among value chain stakeholders, farmer participation, and less capital-intensive agricultural innovations. The paper argues that, within certain limitations, these GAP standards have the potential to be the major alternative GAP approach by encouraging a much broader inclusion of small-scale producers towards the attainment of various social, economic, and environmental benefits. (shrink)

Although Fair Trade has been in existence for more than 40 years, discussion in the business and business ethics literature of this unique trading and campaigning movement between Southern producers and Northern buyers and consumers has been limited. This paper seeks to redress this deficit by providing a description of the characteristics of Fair Trade, including definitional issues, market size and segmentation and the key organizations. It discusses Fair Trade from Southern producer and Northern trader and consumer perspectives and highlights (...) the key issues that currently face the Fair Trade movement. It then identifies an initial research agenda to be followed up in subsequent papers. (shrink)

The international organic agricultureand fair trade movements represent importantchallenges to the ecologically and sociallydestructive relations that characterize the globalagro-food system. Both movements critique conventionalagricultural production and consumption patterns andseek to create a more sustainable world agro-foodsystem. The international organic movement focuses onre-embedding crop and livestock production in ``naturalprocesses,'' encouraging trade in agriculturalcommodities produced under certified organicconditions and processed goods derived from thesecommodities. For its part, the fair trade movementfosters the re-embedding of international commodityproduction and distribution in ``equitable socialrelations,'' developing a (...) more stable and advantageoussystem of trade for agricultural and non-agriculturalgoods produced under favorable social andenvironmental conditions. The international market forboth organic and fair trade products has grownimpressively in recent years. Yet the success of thesemovements is perhaps better judged by their ability tochallenge the abstract capitalist relations that fuelexploitation in the global agro-food system. While theorganic movement currently goes further in revealingthe ecological conditions of production and the fairtrade movement goes further in revealing the socialconditions of production, there are signs that the twomovements are forging a common ground in definingminimum social and environmental requirements. I arguefrom a theoretical and empirical basis that what makesfair trade a more effective oppositional movement isits focus on the relations of agro-food trade anddistribution. By demystifying global relations ofexchange and challenging market competitiveness basedsolely on price, the fair trade movement creates aprogressive opening for bridging the wideningNorth/South divide and for wresting control of theagro-food system away from oligopolistic transnationalcorporations infamous for their socially andenvironmentally destructive business practices. (shrink)

Global concerns over environmental and social issues in agrifood value chains have increased and are reflected in a number of voluntary sustainability standards and regulatory initiatives. However, these initiatives are often based on poor knowledge of production realities, creating a disconnect between producing and consuming countries. Through narrative analysis, this paper reveals asymmetries in the responsibilities of the various actors participating in Ecuadorian banana value chains, providing clear problem- and solution-framings. Despite the broad range of actors interviewed, our analysis reveals (...) convergence in two main narratives that reflect asymmetries amongst local actors in terms of their ability to participate, ability to maintain participation, and adaptation strategies in view of changing external factors. One narrative relates to sustainability adaptations, the cost of which is not shared among all value chain actors. This is combined with a downward trend in the price of bananas and the lack of a differentiated price to account for losses and costs arising from increasing sustainability standards. Another narrative reflects a value chain structure that threatens small-farm survival. It highlights the urgency of protecting small-farm activity by enforcing national regulation and developing new market segments/models that understand small-scale producer reality. Study results show that the multitude of standards is not seen as beneficial and that downstream actors rather wish for common minimum standards to reduce business costs. Compatibility between standards and local realities should be a priority for global sustainability standards adoption. Building on the problems and solution-framings of local value chain links, we give voice to local actors, and link their perceptions to existing literature and discursive politics while contributing to social transparency and addressing the democratic deficit in agrifood value chains. (shrink)

This paper focuses on the environmental and ethical attributes of food products and their production processes. These two aspects have been recently recognized and are becoming increasingly important in terms of signaling and of consumer perception. There are two relevant thematic domains: environmental and social. Within each domain there are two movements. Hence the paper first presents the four movements that have brought to the fore new aspects of food product quality, to wit: (1) aspects of environmental ethics (organic agriculture (...) and integrated agriculture), and (2) social ethics (fair trade and ethical trade). Next, it describes how the actors in the movements (producers, retailers, NGOs, and governments) are organized and how consumers perceive each of the movements. From the perspective of the actors in the movements themselves, the movements are grouped into two “actors’ philosophies.” The first is a “radical” philosophy (the organic production and fair trade movements that arose in radical opposition to conventional agriculture or unfair trade relations), and the second is a “reformist” philosophy (the integrated agriculture and ethical trade movements that arose as efforts to modify but not radically change conventional agriculture). From the point of view of consumers, the classification of the movements is based on perceptions of the “domain” of the movements. That is, consumers tend to perceive the organic production movement and the integrated agricultural movement as a single group because they both deal with the environment. By contrast, consumers tend to group the fair trade movement and the ethical trade movement together because they both deal essentially with social ethics. Recently, key players such as large retailers and agribusinesses have adopted as part of their overall quality assurance programs both environmental and ethical attributes. Their involvement in and adoption of the goals of the movements have, however, generated tensions and conflicts. This is particularly true within the radical movements, because of concerns of cooptation. Finally, the paper identifies challenges faced by those promoting food products with environmental and social/ethical attributes as they attempt to communicate coherent signals to consumers at this crucial moment in the emergence of a mass market for these products. (shrink)