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)

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005-2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006-2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country (...) relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers. (shrink)

Certification of banana plantations is widely used as a device for protecting and improving socio-economic conditions of wageworkers, including their incomes, working conditions and—increasingly—voice [related to labour relations and workplace representation]. However, to date, evidence about the effectiveness of certification in these domains is scarce. We collected detailed field data on (1) economic benefits for improving household income, (2) social benefits for labour practices, and (3) the voice of wageworkers focusing on identity and identification issues amongst wageworkers at Fairtrade certified (...) banana plantations and comparable, non-certified plantations in the Dominican Republic. We used different types of regression models to identify significant relationships. Econometrical analysis of survey results complemented by field observations and outcomes from in-depth stakeholder interviews indicate that the impact of Fairtrade certification on wageworkers’ economic benefits is rather limited. However, the impact on the voice of wageworkers (job satisfaction, sense of ownership, trust), is more evident. On Fairtrade certified plantations workers are more satisfied with the course of life and better represented. Thus while the additional value of Fairtrade certification on primary wages seems limited, Fairtrade has relevant positive effects on the labour force, particularly by delivering in-kind benefits, offering a sense of job-security, improving voice and enabling private savings. Benefits of (Fairtrade) certification, but also other interventions with a similar purpose, might therefore not be discerned in terms of economic benefits such as wages or basic labour conditions that are under direct control of (inter)national law, but they should be identified in terms of social benefits and improved norms of conduct for wageworker engagement. (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)

An environmental, climate mitigation rationale for research and development on liquid transportation fuels derived from plants emerged among many scientists and engineers during the last decade. However, between 2006 and 2010, this climate ethic for pursuing biofuel became politically entangled and conceptually confused with rationales for encouraging greater use of plant-based ethanol that were both unconnected to climate ethics and potentially in conflict with the value-commitments providing a mitigation-oriented reason to promote and develop new and expanded sources of biofuel. I (...) argue that the conceptual construct of technological trajectories provides a fecund approach to the ethical evaluation of R&D strategies in the case of plant-based liquid transportation fuels. The idea of a trajectory has a current use in the literature of science studies and aptly summarizes a number of themes that are critical to the evaluation of tools and techniques whose future shape, design, applications and potential consequences are necessarily somewhat speculative. In the case of biofuels, it is the imagined future trajectory that provides the basis for resistance to an emerging technology, rather than the present-day technical capabilities and the unexpected consequences of biofuel development. (shrink)

This paper investigates necessary conditions for developing a participatory, rightsholder-driven approach to remedy for business-related human rights abuses by analyzing findings from a case study with the Fair Food Program. With the inclusion of human rights into discussions of business ethics and CSR, scholars and practitioners have made calls for participatory approaches to remedy to address cases of human rights abuses. However, a gap remains in our understanding of how to operationalize participatory approaches in a manner that empowers rightsholders, particularly (...) within contexts of severe power imbalances. The paper puts forth a rightsholder-driven theoretical framework for remedy, grounded on critical dialogic accountability principles and integrated with empirical analysis from the Fair Food Program case study. This framework defines remedy as a system comprising reinforcing aspects rather than standalone mechanisms. The critical dialogic accounting and accountability framework provides a theoretical framing of engagement that enables the inclusion of multiple, divergent voices and aims toward meaningful engagement with marginalized groups. The analysis of findings from the case study identifies enforcement and education as necessary conditions for effective and empowering rightsholder-driven approaches to remedy. The paper deconstructs these conditions to develop an understanding of the program’s unique approach to enforcement and education. The paper concludes by discussing the implications of rightsholder-driven remedy for Business and Human Rights and business accountability. (shrink)

This article analyses the representational politics of global commodity networks, where certified forest products are produced and consumed, approaching them as complex forms of governance in which diverse actors, images, conventions and values interact. The study draws upon a case study of certified Honduran community forestry groups producing furniture and kitchenware for Danish design markets. Special focus is on the forms of negotiation and contestation through which the different actors mediate the representations and imagery circulating in the marketing of certified (...) products and on their differential access to control and power. The research illustrates how leading retailers, in negotiation with environmental organisations, modify definitions of quality and guide consumers’ expectations of certified southern forest products, by building images of southern community forest producers as authentic and exotic ‘others'. The article concludes that certification as a market-based form of governance has had only limited impact on altering the unequal relationships characteristic of global networks of production and consumption. (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)

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)