Certification and labeling initiatives that seek to enhance environmental and social sustainability are growing rapidly. This article analyzes the expansion of these private regulatory efforts in the coffee sector. We compare the five major third-party certifications – the Organic, Fair Trade, Rainforest Alliance, Utz Kapeh, and Shade/Bird Friendly initiatives – outlining and contrasting their governance structures, environmental and social standards, and market positions. We argue that certifications that seek to raise ecological and social expectations are likely to be increasingly challenged (...) by those that seek to simply uphold current standards. The vulnerability of these initiatives to market pressures highlights the need for private regulation to work in tandem with public regulation in enhancing social and environmental sustainability. (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)