Data from a longitudinal study into the key management success factors in the fair trade industry provide insights into the essential nature of inter-organizational alliances and networks in creating the profitable and growing fair trade market in the UK. Drawing on three case studies and extensive industry interviews, we provide an interpretive perspective on the organizational relationships and business networks and the way in which these have engendered success for UK fair trade companies. Three types of benefit are derived from (...) the networks: competitive developments through virtual integration in which the organizations remain flexible and small while projecting size to the market; intellectual developments through the sharing of intellectual capital with a diverse network of organizations in many fields; and ideological developments through an ideological network of like-minded individuals by which the companies can prevent the co-opting of the original purpose of fair trade. However, relative success at leveraging these benefits is influenced by three managerial factors: partner choice, partner use and partner management. (shrink)

There has been tremendous growth in the sales of certified fair trade products since the introduction of the first of these goods in the Netherlands in 1988. Many would argue that this rapid growth has been due in large part to the increasing involvement of corporations. Still, participation by corporations in fair trade has not been welcomed by all. The basic point of contention is that, while corporate participation has the potential to rapidly extend the market for fair trade goods, (...) it threatens key aspects of what many see as the original vision of fair trade – most notably a primary concern for the plight of small producers and the goal of developing an alternative approach to trade and development – and may even be undermining its long-term survival. The primary purpose of this article is to explore the normative issues involved in corporate participation in fair trade. In order to do that, however, it first provides a positive analysis of how corporations are actually involved in fair trade. In order to achieve both of these ends, the article draws upon global value chain analysis. (shrink)

After nearly 20 years of work by activists, fair trade, a movement establishing alternative trading organizations to ensure minimal returns, safe working conditions, and environmentally sustainable production, is now gaining steam, with increasing awareness and availability across a variety of products. However, this article addresses several major remaining challenges: (a) a lack of agreement about what fair trade really means and how it should be certified; (b) uneven awareness and availability across different areas, with marked differences between some parts of (...) Europe and North America that reflect more fundamental debates about distribution; (c) larger questions about the extent of the potential contribution of fair trade to development under the current system, including limitations on the number and types of workers affected and the fair trade focus on commodity goods. (shrink)

Information and communications technology (ICT) is now used more by non-IT professional end-users than by IT professionals. A survey of 125 London-based organisations found that the majority had instituted codes of conduct designed to govern the use of ICT by their employees. However, the primary purpose of adopting such codes was to ensure the security and efficient operation of the organisation's information systems rather than for wider ethical considerations. Hence, few of the codes of conduct addressed issues relating to the (...) collection, storage and dissemination of data about individuals (personal data); this was especially the case with codes emanating from IT departments rather than senior management. In general, codes of conduct were found to be ineffective in influencing end-user behaviour in the organisations surveyed. Codes of conduct are a means by which organisations seek to exercise power, control and ownership, but their effectiveness is compromised by the nature of ICT itself as well as the attitudes of employees. The failure of well-publicised ethical policies to influence use of ICT by business studies students – the managers of tomorrow – suggests that these tensions are likely to remain unresolved. (shrink)

The context of economic globalization has contributed to the emergence of a new form of social action which has spread into the economic sphere in the form of the new social economic movements. The emblematic figure of this new generation of social movements is fair trade, which influences the economy towards political or social ends. Having emerged from multiple alternative trade practices, fair trade has gradually become institutionalized since the professionalization of World Shops, the arrival of fair trade products in (...) the food industry, and the establishment of an official "fair trade" label. With the strength that this institutionalization has generated, fair trade can now be considered a real trade system that questions, as much as it renews, the traditional economic system. In parallel, this transformation has exacerbated the tensions within the movement, which can be characterized as a clash between a "radical, militant" pole and a "softer, more commercial" one. However, it is not the actual institutionalization of fair trade which is being debated among fair trade actors on either side of the fence, but rather the challenges inherent in finding an economic institutionalization acceptable to social economic movements. Therefore the institutionalization process of fair trade should not be seen as mere degradation of social action, but rather as typical of the institutionalization process of new social economic movements. If we need to worry about the highjacking and alteration of the fair trade movement by the dominant economic system, the opposite is no less likely, as new social economic movements contribute to an ethical restructuring of markets. (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 paper provides an analysis of the fair trade network in the North through a comparative assessment of two distinctly different fair trade certified roasters: Planet Bean, a worker-owned co-operative in Guelph, Ontario; and Starbucks Coffee Company, the world's largest specialty roaster. The two organizations are assessed on the basis of their distinct visions of the fair trade mission and their understandings of "consumer sovereignty". It is concluded that the objectives of Planet Bean are more compatible with the moral mission (...) of fair trade, even while the network has become increasingly dependent on the market-reach of corporations like Starbucks, raising difficult prospects for the future of fair trade. (shrink)

Businesses that maintain ethical standards have an advantage in the marketplace based on the increasing interest of consumers in products that have a social and ethical component. Fair trade organisations that adopt environmental, social and ethical principles in trading are in a good position to make the most of this growing interest in the market. However, it is unclear whether fair trade organisations are taking full advantage of emerging market opportunities for ethically traded products. This research explores this issue by (...) describing the business strategies of three fair trade organisations that import and sell craft goods into Western countries and evaluates them in the context of this growing market. The research findings indicate that in order to remain in business, fair trade craft organisations have had to adopt better business practices in recent years, improving quality, customer service and product offerings to customers. However, growth appears to be limited, as distribution remains focused on a small, niche market. This paper explores the distribution strategies of two fair trade commodity organisations that are successfully reaching a wider customer base, demonstrating that fair trade products have a unique selling advantage in the mainstream marketplace. In conclusion, fair trade craft organisations are not exploiting this market opportunity to the degree they should and will need to explore wider distribution and alternative business strategies to expand their market share. (shrink)

Fair trade aims at humanising the capitalist economy by serving the community, instead of simply striving for financial profit. The current fair trade sector is an excellent example of an innovation where networks based on ethical principles can help to effectively serve this market. Our analysis is based on 48 interviews amongst fair trade innovators in France and illustrates the advent of a new type of entrepreneur, one that is grounded in the social and solidarity economy (SSE). Based on a (...) service-dominant logic, these innovators aim to construct a 'new world' centred on trade relationships by integrating the role of multiple-player networks into the creation of value in the market. (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)