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)

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)

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)

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)

The development of the certified Fair Trade market was initiated by a group of indigenous communities in Mexico. Over time, their vision of Fair Trade as a different type of market has become increasingly marginalized by an emphasis on poverty reduction. This article presents their understanding of what Fair Trade should and should not be. It presents the key principles of the Fair Trade market as effectiveness, ecological sustainability, social sustainability, and more direct producer-consumer relationships. The key challenges that confront (...) Fair Trade in living up to these principles are the need to democratize the formal structures of Fair Trade so as to give a greater voice to small producers and to link with other social movements to confront the dominant neo-liberal trade regime. (shrink)

Fair trade bananas are the latest inan increasing array of commodities that are beingpromoted by various organizations in an effort tocreate alternative production and consumption patternsto the environmentally destructive and sociallyinequitable patterns inherent in traditionalproduction and trade systems. Fair trade is touted asa strategy to achieve more sustainable developmentthrough linking environmentally and socially consciousconsumers in the North with producers pursuingenvironmentally sound and socially just productionpractices in the South. Promotion of fair tradebananas in Europe has achieved impressive initialgains on the consumer (...) end of the commodity chain,capturing 10 percent or more of the banana trade inseveral countries. Yet in spite of these gains, thefair trade banana initiative appears to beencountering serious obstacles to its further success.We argue that the primary challenge in creating atruly alternative trade in bananas stems from thedifficulties of upholding rigorous social andenvironmental standards in the face of increasinginroads into fair trade markets by transnationalcorporations producing under less rigorous conditions.We then develop a series of options for strengtheningfair trade banana initiatives in both Europe and NorthAmerica. We conclude by arguing that the case ofbananas illuminates the general question of how toachieve more progressive and sustainable productionand consumption systems within a global system thatdrives production and consumption toward greaterintegration and homogenization under the control oftransnational corporations. (shrink)

The Fair Trade movement seeks to alter conventional trade relations through a system of social and environmental standards, certification, and labels designed to help shorten the social distance between consumers in the North and producers in the South. The strategy is based on working both ‘in and against’ the same global capitalist market that it hopes to alter, raising questions about if and how Fair Trade initiatives exhibit counter-hegemonic potential to transform the conventional agro-food system. This paper considers the multiple (...) levels at which Fair Trade alternatives operate to identify the different forms of social action that the movement engages with, and to clarify where the movement’s counter-hegemonic potentials are being realized. I suggest the Fair Trade movement is most successful in encouraging consumers and producers to commit acts of resistance and in supporting redistributive action that shifts resources from North to South. Up to now, however, Fair Trade alternatives appear to hold only a theoretical potential to provoke transformative change in the agro-food system. A reconceptualization of the Fair Trade model and how it is implemented could allow it to manifest more of its implicit, oppositional promise. (shrink)

This article engages various critiques of Fair Trade, from its participation in commodification to providing a cover for "Fair-washing" corporations, and argues that Fair Trade has the potential to answer the challenges contained within them if and when it initiates an ongoing process of developing the "ethical valuedadded" content of the label. This argument is made in a number of ways. First, by distinguishing between economic and human development impacts and ethics, this article argues that these impacts are necessary but (...) not sufficient conditions for ethical trade. Second, it engages the question of the possibility of ethical practice in economics generally; developing the idea that when economics is concerned with securing the material basis of a broad range of life capacities it becomes ethical. Third, Fair Trade practice itself is examined from this standpoint, and is conceived of as both comprising a promising ethical value-added practice as well as posing a problem in its current formulation that the framework of ethical valueadded can help understand and resolve. Finally, an examination of these theoretical ideas in practice is undertaken through a case study of Café Femenino, a Fair Trade coffee produced in Peru. In conclusion it is argued that for Fair Trade to build upon its economic and human impacts, and therefore remain a meaningful ethical and economic alternative to corporate capitalism and globalization, it must distinguish itself clearly in ethics from those market relations it wishes, explicitly or implicitly, to challenge. (shrink)

Sales in supermarkets have contributed greatly to growth in Fairtrade, but the literature suggests there may be tensions between Fairtrade principles and the commercial practices which characterise UK supermarket value chains. This article explores these tensions through an analysis of supermarket value chains for Fairtrade coffee, cocoa, bananas and fresh fruit. It finds considerable variation in UK supermarket approaches in terms of scale and scope of commitment to Fairtrade and in the nature of relationships with Fairtrade suppliers. In some cases (...) supermarket involvement has the potential both to expand and deepen the impact of Fairtrade, whereas in others it threatens to undermine the ability of Fairtrade to support long-term processes of development. The findings indicate that a more nuanced approach to supermarket Fairtrade is required, with recommendations for actions that could be taken to maximise the opportunities and minimise the risks. (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)

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)

In the mid-1960s and 1970s the field of business ethics saw a basic shift in emphasis from personal responsibility to corporate responsibility. While the notion of corporate responsibility has come to be a dominant concept in the field of business ethics since that time, it is a contested concept that admits of a range of conceptions. A concern underlying this paper is that many of these conceptions are less adequate than they might be. This paper has two overlapping goals. First, (...) it seeks to elaborate a more adequate conception of corporate responsibility by drawing upon critical theory to distinguish three different normative realms (viz., legitimacy, morality and ethics). Second, the paper attempts to indicate from a critical theory perspective the nature of corporate responsibilities in each of these realms. The paper begins with a short introduction to German critical theory and an explanation of the different normative realms. The following three sections elaborate in turn the responsibilities of corporations in each on the three normative realms. Finally, the conclusion attempts to indicate some of the advantages of a critical theory conception of corporate responsibility. (shrink)

This long-awaited book sets out the implications of Habermas's theory of communicative action for moral theory. "Discourse ethics" attempts to reconstruct a moral point of view from which normative claims can be impartially judged. The theory of justice it develops replaces Kant's categorical imperative with a procedure of justification based on reasoned agreement among participants in practical discourse.Habermas connects communicative ethics to the theory of social action via an examination of research in the social psychology of moral and interpersonal development. (...) He aims to show that our basic moral intuitions spring from something deeper and more universal than contingent features of our tradition, namely from normative presuppositions of social interaction that belong to the repertoire of competent agents in any society. Jürgen Habermas is Professor of Philosophy at the University of Frankfurt. (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)

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)

This paper explores the claims made by various authors that the fair-trade network provides an initial basis for a challenge to the commodification of goods under global capitalism. Proponents of fair trade generally advance two essential arguments in this regard. First, they claim that fair trade reveals the social and environmental conditions under which goods are produced and brings producers and consumers together through 'ethical consumerism', which challenges the commodification of goods into items with an independent life of their own. (...) Second, they argue that fair trade affirms non-economic values of co-operation and solidarity which challenge the capitalist imperatives of competition, accumulation, and profit-maximisation. Drawing from cases in the fair-trade coffee sector, these assertions are critically examined and it is argued that, while fair trade can provide a symbolic challenge to commodity fetishism, in the end this challenge is strictly limited by the power of global market imperatives and the network's market-driven approach. (shrink)

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)

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 (with a partial corporate involvement uniquely (...) in the retail sphere), 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 is the first book to be published in this exciting new series on political philosophy. Cunningham provides a critical and clear introduction to the main contemporary approaches to democracy: participatory democracy, classic and radical pluralism, deliberative democracy, catallaxy, and others. Also discussed are theorists in the background of current democratic thought, such as Tocqueville, Mill, and Rousseau. The book includes applications of democratic theories including an extended discussion of democracy and globalisation.

a critical introduction Frank Cunningham. economic 200; and globality/ globalism 200, 204 group loyalties 62-3 group representation 95-100; challenges 97-100; modes 97; types 96 guild socialism 137 hegemony 190-1,213 Hobbesist 73, ...