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Book part
Publication date: 13 December 2021

Sarah Lyon

Since the introduction of product certification in the 1980s, fair trade has grown apart from its social justice roots and the focus has steadily shifted away from calls for…

Abstract

Since the introduction of product certification in the 1980s, fair trade has grown apart from its social justice roots and the focus has steadily shifted away from calls for institutional market reform, corporate accountability, and fair prices, and toward a celebratory embrace of poverty alleviation and income growth through market integration and business partnerships. This paper examines fair trade's narratives of poverty and partnerships, focusing on the brand communication strategies employed by influential fair trade organizations and businesses. These are compared with how fair trade coffee producers in southern Mexico understand and practice partnership, demonstrating some of the ways in which the latter resist narrative framings which position them as entrepreneurial businesspeople first and cooperativistas second. The business partnerships between coffee buyers and producers are highly asymmetrical, and the partnerships that matter most for the Oaxacan coffee farmers are not with global businesses and certifiers, but instead with each other and their producer organizations. These relationships did not originate with fair trade, although, they are, in part, sustained by this system which supports democratically organized producer groups, the sharing of technical and market information, and communal management of the fair trade premium. In contrast to the organizations that certify and market their products, the paper demonstrates how farmers regard their precarious economic circumstances as an issue of social justice to be addressed through increased state support rather than market empowerment. The analytical juxtaposition of farmers' attitudes with fair trade organizational priorities contributes to the expanding literature examining how fair trade policies are experienced on the ground.

Details

Infrastructure, Morality, Food and Clothing, and New Developments in Latin America
Type: Book
ISBN: 978-1-80117-434-3

Keywords

Article
Publication date: 3 May 2016

Robbe Geysmans

This paper aims to provide a detailed account of the evolution of the fair trade discourse of a Belgian fair trade organization, with a specific focus on the changes in the…

Abstract

Purpose

This paper aims to provide a detailed account of the evolution of the fair trade discourse of a Belgian fair trade organization, with a specific focus on the changes in the combination of the organization’s trade and social (movement) dimensions.

Design/methodology/approach

This study is based on an analysis of the organization’s discourse as found in the member magazine at four periods. These four periods cover different phases in the life history of the organization and in the broader fair trade field.

Findings

Throughout the organization’s history, both social (movement) and trade dimensions know drastic changes, also in their mutual relationship. In the earliest history, trade practices are clearly subordinate to goals of a socialist-inspired societal change, while in the more recent history, trade has permeated the entire discourse, putting the trade dimension in a more central position. However, both dimensions seem to evolve in a connected way, as the discourse shows clear similarities on both, and evolutions can be related to changes in the organization’s broader field.

Originality/value

Focusing on the discourse of a specific fair trade organization breaks with a tradition of broad notions of a fair trade history. Moreover, this case provides insight into the evolution of the mix of both social and economic dimensions within a specific organization, and connects this to evolutions in the broader (fair trade) field.

Details

Social Enterprise Journal, vol. 12 no. 1
Type: Research Article
ISSN: 1750-8614

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Article
Publication date: 17 May 2013

Eileen Davenport and William Low

There is a growing academic literature exploring the fair trade movement but, to date, there has been little explicit discussion of accountability within the movement. This paper…

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Abstract

Purpose

There is a growing academic literature exploring the fair trade movement but, to date, there has been little explicit discussion of accountability within the movement. This paper aims to cast the development of the fair trade movement within a shift from trust‐based relationships to standards‐based systems. The authors particularly aim to focus on the dominance of an external accountability approach being used for Fair Trade Labelling Organization International (FLO) certified products versus an internal accountability approach being adopted through organizational self‐assessment of World Fair Trade Organization (WFTO) members.

Design/methodology/approach

While this is predominantly a conceptual paper, the authors draw on primary research with northern and southern fair trade organizations (FTOs). Five southern FTOs were interviewed along with three northern FTOs.

Findings

The paper illustrates the conflict that Power expressed about trust increasingly being placed in formalized “rituals” of auditing rather than in organizations. Standards‐based certification has played a crucial role in mainstreaming fair trade food which reduces the trust relationship to a label and relies on market‐based mechanisms of “ethical consumerism” to signal (dis)content with the operations of the certification system. By contrast, organizational self‐assessment under development by WFTO, which has proven popular amongst southern FTOs, fitting their organisational culture(s) and contributing to organisational learning and democracy, creates greater accountability to internal stakeholders such as producers.

Originality/value

This paper draws direct comparisons between the FLO system of certification of products and the WFTO process of self‐assessment of organizations. It demonstrates that the WFTO system builds on the movement's tradition of democracy and trust. Producers, southern FTOs, and northern FTOs must demonstrate their democratic principles throughout the supply chain up to consumers. Conversely the FLO system governs the products themselves and largely leaves the participants, other than producer groups, free of demands for corporate social responsibility and organizational learning.

Details

Social Enterprise Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1750-8614

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Article
Publication date: 19 October 2012

Christina Stringer

The movement of profit‐orientated corporations into the fair trade value chain has caused some socially orientated fair trade organizations to question the direction the movement…

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Abstract

Purpose

The movement of profit‐orientated corporations into the fair trade value chain has caused some socially orientated fair trade organizations to question the direction the movement is taking. One organization at the forefront of the debate is Trade Aid (NZ), Inc. (hereafter Trade Aid), a New Zealand based socially orientated fair trade organization actively engaged in fair trade since the 1970s. This paper seeks to evaluate how Trade Aid is seeking to reformulate fair trade's vision of empowerment and partnership constructively.

Design/methodology/approach

A single case study approach is undertaken to examine how a socially orientated organization is adhering to and seeking to advance fair trade values. This research draws from the global value chain literature, which analyses how industries are governed. The relational co‐ordination or governance mode, which is characteristic of mutual dependency between supplier and buyer firms, is used as a framework for investigating the fair trade industry. Distinction is made between the corporate and social economy variants of the relational governance mode.

Findings

Trade Aid's commitment to producer groups is demonstrated through various initiatives the organization is undertaking as they work both with producer groups and corporate actors to expand the fair trade market. Trade Aid is part of a worldwide socially orientated movement seeking to reformulate the vision of fair trade.

Originality/value

To date the fair trade literature has largely focused on socially orientated fair trade organizations in the Northern hemisphere. This research contributes to a gap in the literature in that it examines Trade Aid and the way this organization is addressing mainstreaming.

Details

Critical perspectives on international business, vol. 8 no. 4
Type: Research Article
ISSN: 1742-2043

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Book part
Publication date: 8 November 2011

Jane Gibbon and Philip Angier

Purpose – The chapter is concerned with the practice of social accounting as enabling understanding and development of accountability relationships within a global values-based…

Abstract

Purpose – The chapter is concerned with the practice of social accounting as enabling understanding and development of accountability relationships within a global values-based organisation operating with those in emerging and less developed countries.

Design/methodology/approach – The research takes a case-based approach to the experience of social accounting and reporting from 2005 to 2009 with Shared Interest Society, an international fair trade finance organisation.

Findings – The findings are better understandings of how accountability relationships within the case organisation are developed over time through social accounts. Shared Interest's social accounts suggest a way to move towards understandings of accountability that acknowledge organisational values and the needs and expectations of different stakeholder groupings.

Research limitations/implications – The research examines a single organisation with a particular focus on their social accounts. Nevertheless, this offers considerable insight into how accountability is developed within a single organisational setting.

Social implications – Through social accounting, awareness of issues concerning fair trade can be raised at an organisational, local and national level. The case organisation is underpinned by the fundamental value of working for the common good to benefit humanity and/or the planet rather than working for individual gain using financial assets held for the benefit of society, in this case through the financing of international fair trade within developing nations where fair trade is seen as part of a solution to bring benefit to the world's poorest people.

Originality/value – The research responds to a lack of empirical studies within social accounting addressing fieldwork exploration in ‘values-based’ organisations and specifically co-operative-based organisations where social accounts are used to communicate with stakeholders, in this case at the level of fair trade producers.

Book part
Publication date: 10 August 2017

Laurel Zwissler

This project explores tensions at the heart of the fair-trade organization Ten Thousand Villages. I investigate the ways in which this organization attempts to balance concerns of…

Abstract

Purpose

This project explores tensions at the heart of the fair-trade organization Ten Thousand Villages. I investigate the ways in which this organization attempts to balance concerns of North American staff and volunteers, to care for artisans abroad, and to incorporate expansion plans in the face of challenges raised by the recession.

Methodology/approach

This chapter draws on fieldwork with stores in Toronto (2011–2012) and ongoing fieldwork (summer 2014 and 2015) with the flagship store in Ephrata, Pennsylvania.

Findings

Members express continuing tension between the organization’s founding Mennonite values and the more recent orientation chosen by leadership, to compete successfully in “regular” retail space against non-fair-trade brands. Store staff and volunteers perceive Villages’ buying practices, meant to provide “fairness” to producers in the developing world, as somewhat inconsistent with the treatment of North American store employees. Corporate leadership is mainly focused on ameliorating poverty abroad, rather than framing the organization’s work in a broader social justice context, which store staff and volunteers expect.

Originality/value

At a time of increasing dialogue about alternative value systems that expand notions of economic worth, the fair-trade movement offers a useful model for one attempt to work within the market system to ameliorate its damages. Understanding how one organization negotiates its own competing value systems can provide useful perspective on other revaluation projects.

Details

Anthropological Considerations of Production, Exchange, Vending and Tourism
Type: Book
ISBN: 978-1-78743-194-2

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Article
Publication date: 14 August 2007

Iain A. Davies

This paper aims to investigate the increased mass‐marketing in the fair trade industry to provide a robust analysis of the industry, participants and growth for use both as a

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Abstract

Purpose

This paper aims to investigate the increased mass‐marketing in the fair trade industry to provide a robust analysis of the industry, participants and growth for use both as a starting‐point for researchers in this field and as a case study for readers with an interest in any ethical trading initiative.

Design/methodology/approach

Utilizing data from a longitudinal exploratory research project, participant observation from two organizations and in‐depth interviews from a total of 15 organizations are combined to build a strong theory grounded in the data.

Findings

The paper provides insight into the nature of participants and industry structure in fair trade over time. Four distinct eras are identified which reflect both current literature and the practitioners' perspective. The four eras can be split into three extant eras – the solidarity era, niche‐market era, and mass‐market era, and the fourth – the institutionalisation era – depicts participants' beliefs about the future for the industry.

Research limitations/implications

The three principal theoretical contributions are the definitions which are provided for the different eras of the market's progression, the view of industry structure and the newly defined participants from both the commodity and under‐considered craft markets.

Practical implications

Practical contributions are provided since the paper offers a holistic view of the fair trade market, so acting as a starting‐point for those new to fair trade.

Originality/value

This paper provides deep empirically grounded theory from which fair trade research can grow. It also provides future insights from participants in the industry, advancing current theory.

Details

Corporate Governance: The international journal of business in society, vol. 7 no. 4
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 4 May 2012

Angelina R.W. Jones and Gloria Williams

The fair trade system was established as an alternative to the free trade system. In the case of fair trade apparel, certification standards are nascent and there is no consistent…

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Abstract

Purpose

The fair trade system was established as an alternative to the free trade system. In the case of fair trade apparel, certification standards are nascent and there is no consistent logo or labelling to aid consumers in their quest to purchase fairly‐made garments. The purpose of this paper is to examine the practices and marketing strategies of three fair trade apparel businesses based in a metropolitan city in the USA, where there are no clear standards to follow. The interviews taken for these case studies were conducted before the launching of a certification program for fair trade apparel by TransFair USA.

Design/methodology/approach

This research comprised three case study fair trade apparel companies – two wholesale and one retail. The case studies are based on in‐depth interviews, the examination of documents provided by business owners, and publicly available information on each of the companies.

Findings

These three case studies revealed differences in fair trade practices. The wholesalers communicated that they perceived a hierarchy of importance in fair trade practices, placing an emphasis on labour standards and workers’ rights and considering environmental standards to be secondary. The lack of a standardized logo for labels on fair trade apparel has meant that the businesses have had to find creative ways to communicate their fair trade practices to consumers. None of the participants felt that this lack of standardization negatively impacted their businesses.

Practical implications

There is need for a standardized label to make fair trade apparel easily identifiable for consumers and for the further development of standards for fair trade apparel and the marketing of fair trade apparel.

Originality/value

Standards for fair trade apparel are currently being developed and the paper provides valuable information about the process by which fair trade standards are formed and marketed in practice.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 16 no. 2
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 1 October 2006

Jaya Halepete and Jihye Park

This study aims to provide competitive e‐tailing strategies for fair trade organizations using a benchmarking approach.

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Abstract

Purpose

This study aims to provide competitive e‐tailing strategies for fair trade organizations using a benchmarking approach.

Design/methodology/approach

A coding guide was developed to obtain information available on 28 fair trade web sites and 28 commercial web sites focusing on company information, product information, distribution channels, customer service, and web site structure/media service.

Findings

Results revealed several evidences that fair trade organizations presented limited information online, compared with commercial organizations.

Research limitations/implications

Fewer commercial retailers benchmarked in the study sold handicrafts, compared with fair trade organizations. Discrepancies in the proportion of products carried by each organization may result in limited generalization of the findings across product categories.

Practical implications

Through benchmarking against profit‐making business leaders, fair trade organizations would be able to evaluate strengths and weaknesses for their current online business operations and explore opportunities and improvement in web site management.

Originality/value

This paper provides valuable managerial implications for fair trade organizations focusing on web site operations. Information availability and strategic web site management can attract customers to make purchases on fair trade web sites and, in turn, enable organizations to sustain and grow in the competitive marketplace.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 17 May 2013

Anne Tallontire and Valerie Nelson

The recent departure of Fair Trade USA (FTUSA) from Fairtrade International is the most seismic event in the fair trade movement in the past decade. This paper aims to analyse…

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Abstract

Purpose

The recent departure of Fair Trade USA (FTUSA) from Fairtrade International is the most seismic event in the fair trade movement in the past decade. This paper aims to analyse recent dynamics between and within multiple fair trade strands and the attendant changes in vision and approach.

Design/methodology/approach

The authors use and develop a framework focusing on the relationship between business and development to analyse the dominant narratives and practices of each different strand of fair trade. To unpack the various fair trade narratives, they have conducted a narrative analysis of policy documents and online debates in the wake of the split in the fair trade movement and they draw on recent impact studies.

Findings

The politicising narrative in fair trade stresses governance and voice based on clear structures of representation within the standards body, and recognizes the value of development inputs that do not focus solely on technical and quality development, but lead to organisational advocacy and representational capacity of producer organisations and the regional networks. In contrast “pragmatism” focuses more on economic empowerment and using the market to drive change, an approach that is gaining greater traction with the split of FTUSA from FLO, the most prominent body within Fairtrade International.

Practical implications

The analysis raises implications with regards to how impact analysis captures both the pragmatic and politicising narratives.

Originality/value

The paper's originality/value lies in its novel use of narrative analysis and its early analysis of the shifting dynamics within fair trade precipitated by the departure of FTUSA.

Details

Social Enterprise Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1750-8614

Keywords

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