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)

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)

While most studies on stakeholder engagement focus on high-power stakeholders (typically, employees), limited attention has been devoted to the engagement of low-power stakeholders. These have been defined as vulnerable stakeholders for their low capacity to influence corporations. Our research is framed around the engagement of low-power stakeholders in the coffee industry who are, paradoxically, critical resource providers for the major roasters. Through the case study of Lavazza—the leading Italian roaster—we investigate empowerment actions addressed to smallholder farmers located in Brazil, India, (...) East Africa, Haiti, and the Dominican Republic. We contribute to the theoretical discussion around engagement and empowerment by developing a framework linking together areas of empowerment (defined in the literature) and specific empowerment actions (emerging from our interviews). Our insights shed light on how organizations can design empowerment strategies leading to more effective stakeholder engagement and how empowerment actions can contribute to turn low-power stakeholders into active business partners. We demonstrate that moving from a traditional competitive view of corporate–stakeholder relationships to a stakeholder theory view based on a logic of cooperative partnerships reinforces the idea that stakeholder engagement and empowerment are both entangled with the value creation process. (shrink)

Sustainable management of natural resources by farmers is under increasing public scrutiny. In Australia, the case of water unsustainably used and stored by agricultural businesses has gained attention with communities in catchments potentially deprived of water and placed at downstream risk. Yet, sustainable water management institutional policy mechanisms remain disjointed around the country. The study reported here applies a strategic response typology to a survey of 404 farmers in four different institutional environments in Australia to explore their responses to institutional (...) pressures. Findings demonstrate a convergence in typologies that relate to farmers organising each other and communities influencing and networking for the benefit of agricultural resource management thereby questioning the traditional continuum of resistance. Furthermore, the mid-range typology ‘avoidance’ emerges as a highly problematic typology for sustainable water management policymakers especially those in weaker institutional environments where there is a need to develop policy instruments that retain farmer water management decision-making power and encourage networks. The paper also extends the strategic response typology to enable understanding of how gender and location affect strategic responses to institutional pressures. Findings provide insight for policy design in times of increasing catastrophic flood and drought conditions exacerbated by poor water management practice. (shrink)

The certification-based Fair Trade initiative has been steadily growing during the last two decades. While many scholars have analyzed its main characteristics and developments, only a few have assessed it against a concept of justice. And those exceptional cases have only focused on distributive justice, proving unable to grasp the important ethical elements that Fair Trade integrates in its project. In reaction to this, this article intends to critically examine what the Fair Trade movement proposes to be ‘fair’ by resorting (...) to the thought of the French philosopher Emmanuel Lévinas. To accomplish this goal, a new understanding of his conception of justice is presented, one that seeks to overcome the limitations that the two most common interpretations in the literature suffer. The idea of Lévinas’ ‘dialectics of justice’ is used to discuss Fair Trade’s relation of alterity, its appropriation of the notion of ‘face’ and its commitment to and responsibility for marginalized producers and workers. This analysis shows that Fair Trade operates with what could be described as a fetishized understanding of Levinasian ethics that justifies a deeply unjust praxis. (shrink)

Although research into fair and alternative trade networks has increased significantly in recent years, very little synthesis of the literature has occurred thus far, especially for social considerations such as gender, health, labor, and equity. We draw on insights from critical theorists to reflect on the current state of fair and alternative trade, draw out contradictions from within the existing research, and suggest actions to help the emancipatory potential of the movement. Using a systematic scoping review methodology, this paper reviews (...) 129 articles and reports that discuss the social dimensions of fair and alternative trade experienced by Southern agricultural producers and workers. The results highlight gender, health, and labor dimensions of fair and alternative trade systems and suggest that diverse groups of producers and workers may be experiencing related inequities. By bringing together issues that are often only tangentially discussed in individual studies, the review gives rise to a picture that suggests that research on these issues is both needed and emerging. We end with a summary of key findings and considerations for future research and action. (shrink)

Although most studies on the Fair Trade initiative are, to some extent, cognizant of its contribution to environmental sustainability, what the environmental aspect means to Fair Trade has not yet been explored fully. A review of environmental issues in the Fair Trade literature suggests that Fair Trade might influence participant producers’ farming practices even if it does not directly impact natural resources. This paper attempts to interpret Fair Trade certification as an intermediary institution that links two significant objectives of rural (...) development in the global South—environmental conservation and poverty reduction. This theoretical concept is examined in different real settings by observing four cases of Southern small farmer groups involved in the Fair Trade initiative. Findings from these case studies imply that if Fair Trade certification ensures tangible benefits for small farmers, it can not only help such disadvantaged farmers but also work as an approach for natural resource management. (shrink)

Despite their recent proliferation in global agricultural commodity chains, little is known about the potential of intersectoral partnerships to improve the position of smallholder farmers and their organizations. This article explores the potential of partnerships by developing a conceptual approach based on the sustainable livelihoods and linking farmers to market perspectives, which is applied in an exploratory study to six partnerships in the coffee sector in Peru. It is concluded that partnerships stimulate the application of standards to receive market access (...) and therefore emphasize human capital development of farmers to facilitate certification. By transferring knowledge to farmers, partnerships present a new source of technological change, which, in combination with certification, holds potential for improved environmental management and price premiums for producers. However, the emphasis on certification results in a comparatively narrow target group of farmers and is associated with high financial burdens for producer organizations. At the same time, other assets of producer organizations are often not strengthened sufficiently for them to operate successfully without further external support. This suggests that preparing producers for certification is prioritized over empowering organizations toward self-dependence. (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)