Over the last two decades there has been a proliferation of partnerships between business and government, multilateral bodies, and/or social actors such as NGOs and local community organizations engaged in promoting development. While proponents hail these partnerships as an important new approach to engaging business, critics argue that they are not only generally ineffective but also serve to legitimate a neo-liberal, global economic order which inhibits development. In order to understand and evaluate the role of such partnerships, it is necessary (...) to appreciate their diversity with respect to not only the activities that they engage in, but also the degree to which they are subject to social control. This paper distinguishes four different types of business partnerships, based upon differing degrees of social control: conventional business; corporate social responsibility; corporate accountability; and social economy. Each type of partnership is described, their basic forms are noted, and the conditions and prospects for them contributing to development are examined. By way of conclusion, an analysis is offered of how the different types of business partnerships relate to different conceptions of development and function as policy paradigms to promote different globalization agendas. (shrink)

This paper explores an empirical puzzle, namely, how inter-organizational relationships can be sustained between organizations that draw upon distinctive—and potentially conflicting—institutional logics under conditions of power asymmetry. This research analyses cases of these relationships and suggests some key conditions underlying them. Examining relationships between ‘Fair Trade’ organizations and corporate retailers, a series of contingent factors behind the dynamic persistence of such relationships are proposed, namely: the presence of pre-existing ‘hybrid logics’; the use of boundary-spanning discourses; joint tolerance of conflict; and (...) co-creation of common rules. These four elements are supported by a fifth mediating factor, i.e. the presence and use of a Fair Trade certification system in the collaboration. The latter appears as a central vehicle facilitating cross-logic relationships—it can be seen as a ‘boundary object’ embodying a series of narratives and discourses that are open to multiple interpretations corresponding to the dominant institutional logics of each partner organization. (shrink)

This article examines the development of and contestation over the standards for certified fair trade, with particular attention to the U.S. context. It charts fair trade's rapid growth in the United States since the 1999 advent of formal certification, explores the controversies generated by the strategy of market mainstreaming in the sector, and focuses on five key issues that have generated particularly heated contention within the U.S. fair trade movement. It offers a theoretical framework based in the literatures on agrifood (...) systems, social movements, and public-choice economics, for understanding the corporate response to alternative markets such as fair trade. The article suggests a typology of responses by social movement actors to this increased corporate participation, and assesses the relevance of the U.S. case for the future prospects of fair trade, both in other national contexts and as an international movement. (shrink)

The significance of private standards and associated local level initiatives in agri-food value chains are increasingly recognised. However whilst issues related to compliance and impact at the smallholder or worker level have frequently been analysed, the governance implications in terms of how private standards affect national level institutions, public, private and non-governmental, have had less attention. This article applies an extended value chain framework for critical analysis of Private Standards Initiatives (PSIs) in agrifood chains, drawing on primary research on PSIs (...) operating in Kenyan horticulture (Horticulture Ethical Business Initiative and KenyaGAP). The paper explores the legislative, executive and judicial aspects of governance in these southern PSIs highlighting how different stakeholders shape debates and act with agency. It is argued that governance is exercised ‘beyond the vertical’ in that one can identify wider horizontal processes of governance, including how the scope of key debates is constructed (especially in legislative governance) but analysis of executive governance emphasises the dominant role of the lead buyers. (shrink)

Various promising claims have been made that business can help alleviate poverty, and can do so in ways that add value to the bottom line. This article begins by highlighting that the evidence for such claims is not especially strong, particularly if business is thought of as a development agent, i.e. an organization that consciously and accountably contributes towards pro-poor outcomes. It goes on to ask whether, if we did know more about either the business case or the poverty alleviation (...) case, would this give cause for greater optimism that business could make a significant contribution to development. By exploring the experiences of producers of Fairtrade tea in Kenya, we reveal the complex nature of what constitutes a beneficial outcome for the poor and marginalized, and the gap that can exist between ethical intentions and the experience of their intended beneficiaries. The lessons of these experiences are relevant for Fairtrade and any commercial initiative that seeks to achieve outcomes beneficial and recognizable to the poor, and raise questions about the integration of social and instrumental outcomes that a future generation of ethical entrepreneurship will need to address. (shrink)

How can firms support their customers' collaborative, social responsibility initiatives — and especially pro-environmental, firm—customer collaborations? Does corporate transparency affect customers' willingness to undertake pro-environmental collaborative programs? This study addresses these questions in relation to the US residential electricity market. It focuses on the impact of customers' perceptions of the utility's degree of transparency and on the willingness to engage in proenvironmental behavior related to electricity consumption. The responses of 1257 interviewees from US households to questions related to their electricity (...) suppliers are analyzed through structural equation models (SEMs) using latent variables. Results show that customers' perceptions of an electricity utility's transparency affect their willingness to collaborate in environmental programs, and that the degree of perceived transparency of the utility is related to customers' environmental awareness. (shrink)

The Fairtrade movement is a group of businesses claiming to trade ethically. The claims are evaluated, under a range of criteria derived from the Utilitarian ethic. Firstly, if aid or charity money is diverted from the very poorest people to the quite poor, or the rich, there is an increase in death and destitution. It is shown that little of the extra paid by consumers for Fairtrade reaches farmers, sometimes none. It cannot be shown that it has a positive impact (...) on Fairtrade farmers in general, but evidence suggesting it harms others is presented. Many of the weaknesses are due to an attempt to impose political views on farmers and others. Secondly, the unfair trading criteria require that sellers do not lie about their product, nor withhold information that might alter the decisions of a substantial proportion of buyers. It is argued that the system only can exist because of the failure of the Fairtrade industry to give the facts on what happens to the money and what it can be proved it achieves. This unfair trading compromises the reputation of charities in general. Much of the trading may constitute the criminal offence of Unfair Trading in the EU. (shrink)

In the literature, Fair Trade (FT) goods are usually associated with other products differentiated by process attributes such as organic food, genetically modified (GM) food or child labour-free clothing. All of these products are regarded as credence goods. This classification refers to the simplified definition of credence goods, which describes product attributes which consumers cannot evaluate, even after having consumed the good. Focusing on the characteristics of FT goods, this article proposes a reassessment of the link between FT goods and (...) credence properties as defined by Darby and Kami. We first demonstrate that (1) the usual classification masks important particularities of FT goods compared to other goods with process attributes and (2) the full definition of credence goods may even provide a better description of the quality of FT goods. However - and this is our second theoretical contribution - the lack of consensus among experts concerning FT standards and their level of efficiency encourage us to consider FT goods as indeterminate goods as defined by Lupton. This result leads us to suggest a new typology of product attributes summarized in an innovative diagram. It sheds light on how competition between the different FT approaches works and why the FT market is still confined to a niche, if not threatened with collapse. We mainly illustrate our theoretical analysis with observations relating to the French FT market and institutions. (shrink)

In recent years, consumers in the United States have been confronted by no fewer than four competing fair-trade labels, each grounded in a separate certification system and widely differing standards. This fracturing is partly a response to the recent split by the U.S. certifier Fair Trade USA from the international fair trade system, but also illustrates longstanding divisions within the fair trade movement. This article explores the dynamics of competition among nonstate standards through content analyses of fair trade standards documents (...) from the four U.S. fair-trade certifications for agrifood products. It analyzes the differences among them, asking what kinds of social and labor relations are facilitated by each, and identifies how closely they correspond with key fair trade principles. We make two primary arguments. First, we contend that the case of fair trade challenges the dominant conceptual model used to analyze competition among multiple private standards in a single arena, in which newer challengers lower the rigor of standards. Second, we argue that the current fractured U.S. certification landscape illuminates divisions among different interest groups over which principles—and which labor and production forms—should be privileged under the banner of fair trade. (shrink)

Over time, according to popular and academic accounts, alternative trade initiatives [such as fair trade, organics, forest certification, and socially responsible investing ] almost invariably lose their oppositional stance and go mainstream. That is, they lose their alternative, usually peripheral, and often contrarian character. In this paper, I argue that this is not always the case and that the path to going mainstream is not always an unproblematic one. I observe that while scholars have documented various aspects of specific alternative (...) trade initiatives, little comparative work has been done to theorize their different trajectories. To advance the scholarship, I compare two alternative trade movements, fair trade and SRI, and develop three hypotheses—the relation motivations hypothesis, the material interests hypothesis, and the organization of credibility hypothesis—that explain why going mainstream has been so hotly contested in the fair trade movement but not the SRI movement. I articulate these hypotheses and evaluate their merits. (shrink)

We analyse the development of Fair Trade in Italy by examining its principles, structure, performance, dilemmas and potential solutions and identifying its main distinctive features. These lead us to develop a specifically Italian model. Fair Trade in Italy is younger than its more established North European counterparts and more focussed on broad social justice issues in addition to its concern to include marginalized producers. This normative difference has given rise to a social-economy-dominated value chain, although it has generated much lower (...) per capita consumption of Fair Trade products. At the same time, we also observe a relatively higher specialization in handicraft products and educational activities as well as a strong capacity to attract voluntary labour and create social capital. We identify clear trade-offs between social goals and the economic performance of the Italian model: reduced economies of scale, a closer focus on non-economic-value-creating social activities and greater consideration of values such as consumption sobriety and environmental concerns which may conflict with economic performance. We propose solutions which may resolve these dilemmas without abandoning the initial ambition not only to achieve the promotion of market access for marginalized producers in the South, but also to pursue a broader concept of well-being in the North and the South. (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)

Ethical consumerism theory aims to describe, explain, and evaluate the ways in which producers and consumers use the market to support social and environmental values. The literature draws insights from empirical studies of sectors that largely take place on the legal market, such as textiles and agri-food. This paper takes a first step toward theorizing ethical consumerism in semi-legal sectors where market activities occur legally and illegally. How does extant theory extend to sectors such as sex work, cigarettes, and recreational (...) drugs? This study draws on the case of recreational cannabis (marijuana) in Portland, OR (USA). Data from 33 interviews, structured fieldwork at 64 dispensaries, and the US Census Bureau American Community Survey are analyzed using qualitative, quantitative, and spatial methods. The findings are compared to 12 suggestions that emerge from the literature on fair trade, organics, alternative agriculture, and political consumerism. I argue that not all ethical consumerism theory extends to semi-legal sectors. Cannabis closely resembles theoretical expectations in terms of supply/demand, prioritization of ethical issues, and pervasiveness of false claims, but differs in terms of who organizes, which types of strategies are pursued, and how ethical products are framed. The differences stem from several pervasive stigmas about cannabis. I also argue that the stigmas that set cannabis apart from other (more legal sectors) and present challenges to ethical consumerism in cannabis are directly related to the War on Drugs. These insights suggest that prohibition (and its lingering effects) can inhibit the emergence of ethical consumerism. (shrink)

Relations between non-governmental organizations (NGOs) and companies have been the subject of a sharply increasing amount of publications in recent years within academic business journals. In this article, we critically assess this fast-developing body of literature, which we treat as forming a ‘business and society discourse’ on NGO–business relations. Drawing on discourse theory, we examine 199 academic articles in 11 business and society, international business, and management journals. Focusing on the dominant articulations on the NGO–business relationship and key signifiers they (...) rely on, we analyze the problem-settings of articles in order to reveal the statements that are acceptable and appropriate within this field. Our threefold aim is to (1) identify dominant articulations of NGO–business relations in business and society discourse, (2) expose those articulations that are silenced or suppressed by these dominant articulations, and (3) critically assess possible power effects of these discursive dynamics in the field of discursivity. While business and society discourse on NGO–business relations overall remains open to many different articulations, we also find that those articulations that focus on NGO–business partnerships and governance initiatives tend to privilege collaborative and deliberative ways of engaging and marginalize more adversarial subject positions. We call for more recognition of the potentially constructive role that can be played by conflict. (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)

In recent years, researchers have observed the process of mainstreaming Fair Trade and the emergence of alternative sustainability standards in the coffee industry. The underlying market dynamics that have contributed to these developments are, however, under-researched. Insight into these dynamics is important to understand how markets can develop to favor sustainability. This study examines the major developments in the market for certified coffee in the Netherlands. It finds that, in the creation of a market for sustainable coffee, decisions that significantly (...) influence market creation are made in the lead companies (retailers and coffee roasters). These decisions are made possible by the availability of multiple systems of sustainability standards and by the existence of a small segment of loyal Fair Trade customers that ensured that sustainability remained an issue on the coffee market in the years before the market creation took-off. Fair Trade did not become the new rule in this process, but it became the benchmark against which companies could compare themselves and the basis upon which they built in adopting or developing new standards that would be more feasible in their business models. (shrink)

Consumers' concerns for the environment have led to the creation of niche markets, quality certifications and labelling systems. Built by activists and NGOs, these systems were adopted by agribusiness. Such firms try to capture consumers and react to opinion campaigns, whilst appropriating the conservation (or 'fair') discourse. This leads to the rise of new forms of third-party certifications of food production based on private standards and, hence, to new forms of contract relations between producers and buyers. The nature of these (...) relationships is not always evident in these new labels or in the discourse built to justify them. This is particularly so in the case of goods produced in the South to be traded and sold in the North, as the case of Starbucks illustrates. By the end of the 1990s, Starbucks, operating through an NGO called Conservation International (CI), arrived at the region of El Triunfo, in Chiapas, and contacted the producers' cooperatives that were trying to find a market for their product. CI promoted Starbucks standards to raise the coffee quality and won the control over the production system. Meanwhile, the producers forced to sell their coffee through the largest trade company (AMSA) against whom the cooperatives were created, lost the control over their own organization. When some cooperatives refused the deal, they suffered divisions but could survive thanks the Fair Trade (FT) network in Chiapas. (shrink)

This article analyzes the dual process occurring in the field of Fair Trade organizations (FTOs) in Belgium. On the one hand, there has been a gradual diversification of the organizational landscape over time from pioneering volunteer-based non-profit organizations to a broader array including cooperatives, group structures, businesses and individual entrepreneurs exclusively devoted to FT. On the other hand, a process of networking is currently taking place among the various types of FTOs in the context of the creation of a Belgian (...) Fair Trade Federation (BFTF). Drawing on neo-institutional theory, including institutional entrepreneurship, this article examines how and why these two processes have taken place. A qualitative field study in the Belgian FT sector, including interviews with 15 FTOs, offers rich empirical material which illustrates the diverse patterns of these organizations. Based on the observed combinations of different variables among Belgian FTOs, a taxonomy reflecting diverse means of conceiving and organizing FT activity is suggested. The different categories of FTOs and the evolution of these categories over time seem linked to the broader institutional evolutions of FT at the international as well as at the Belgian level. Finally, several factors are reviewed to explain why the diversity among Belgian FTOs has not been an obstacle to their collaboration. (shrink)

The organic sector is in an ongoing, but somewhat ambiguous, process of differentiation. Continuing growth has also entailed intensified competition and the emergence of conventional structures within the sector. Producers are under pressure to adapt their terms of production to these developments, bearing the risk that the original values and principles of organic farming may become irrelevant. To confront these tendencies and maintain their position on the market, organic producers and processors have launched a number of organic–fair initiatives. As some (...) consumers attach importance to ethical aspects of consumption, these actors sense market opportunities in such quality differentiation. This article presents results of a study on current organic–fair criteria, as formulated by such initiatives. All of them define standards of distributive, procedural and informational fairness, with fair prices for producers and processors and long-term agreements being core standards. We show that distributive and procedural fairness are closely linked. Although organic–fair initiatives and their main protagonists focus on external fairness, such as fair prices for farmers, thus far internal concerns, such as minimum wages or employee involvement, are of less importance. The initiatives exemplify the differentiation of quality-oriented organic food producers in highly competitive markets. They have the potential to revitalise the original values of the sector and contribute significantly to ethical standardization therein. In order to make a substantial contribution to future development of the sector, a critical examination of aspects of internal fairness as well as the formulation of appropriate standards in this field is recommended. (shrink)

The objective of this article is to examine the different ways that smallholders are brought into Fairtrade certification schemes in the Tanzanian tea industry. We examine the different ownership relations of processing factories and the perceived benefits of these different arrangements. We use descriptive qualitative analysis based on qualitative interviews and focus groups conducted between 2008 and 2010 to identify the significance between factory ownership organization and Fairtrade certification. We find that there is a movement toward innovation in the organizational (...) strategies, which includes new ownership arrangements of processing factories and outgrower contracts that have been associated with certified Fairtrade production. We also suggest that organizational innovation is significant for obtaining scheme success yet perceived benefits of and increased information about Fairtrade production is independent from ownership shares in processing. (shrink)