This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson''s proposal for a more contextualist understanding (...) rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make. (shrink)

In order to enrich global corporate culture, a distinction must be made between the economic ideology of free trade and the moral ideology of fair trade. GATT has failed to make this distinction. Its sole ethos of free trade is only applicable among developmentally equivalent nations, and has been used by TNCs as a means for attaining their commercial ends in the third world. GATT''s lack of commitment to an objective of fair trade necessitates its replacement. This article suggests a (...) replacement in the form of a network of trade organizations. The network takes the form of a hub-and-spoke arrangement, in which the hub would be the Global Trade Organization, and the spokes would each represent Regional Trade Organizations. (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)

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)

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)

This paper examines the relationship between the university and fair trade coffee campaigns in North America. In recent years, fair trade coffee sales internationally have increased substantially but have still not grown large enough to meet the needs of fair trade producers in the South. In consequence, fair trade activists have sought to expand the market by pressuring public institutions to adopt fair trade purchasing policies. In North America, the university has emerged as a central focus of fair trade coffee (...) campaigns. Thus far, university administrators have been reluctant to support fair trade. This paper explores this reluctance and asserts that the university has a moral responsibility to support fair trade. However, it also argues that the potential exists for administrators to employ fair trade as an ethical fig leaf to mask the growing corporatization of the university under the weight of neoliberal reforms. This has become a common strategy of many neoliberal institutions in the North. Contrary to the assumptions of much of the emerging literature, it cannot be assumed that the impact of fair trade will necessarily be beneficial in the North unless activists work to ensure fair trade does not become employed as an ethical fig leaf. (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)