The Role of Fair Trade: The Benefits Toward Society 1

THE ROLE OF FAIR TRADE: THE BENEFITS TOWARD SOCIETY
The Role of Fair Trade:

Analyzing the Positive Impacts Fair Trade has on Society
Adam R. Epstein
Global Studies and World Languages Academy
Global Connections
Abstract
The producer, purchaser, and consumer cycle is a vital system that has been around for
thousands of years. The head-honcho companies buy the crops and items, then they
sell them to the billions of people worldwide. However, what happens during this cycle
of bartering? Left in the dark to much of the world are the suppliers of their breakfast,
lunch, and dinner. Improper pay of third world country farmers and producers alike has
reached an all time high in relevance. Consumers, now aware of this indifference,
purchase or prefer insured Fair Trade products. Fair Trade is the act of reasonably paying
suppliers for their hard work and labor. Numerous doors for positive opportunities open
when this structure of exchange takes place. Education, shelter, and food, are all
necessities of life. Not one of those can reach a level of satisfaction with a fragile source
of income. A family relying upon a trade job (farming, manufacturing, handcraft, etc.)
tends to follow along with this succession of occupation for generations. What begins to
happen is no one in that family has access to the proper resources for a better life. With
Fair Trade however, suppliers and consumers alike create a more well-rounded human
network.
Table of Contents
Table of Contents
Introduction
Limitations
Methodology
Literature Review
10
Body/Discussion
13
Conclusion
18
References
19
The Role of Fair Trade:

Analyzing the Benefits toward Society
Introduction
How does Fair Trade influence, if at all, the local economy of the area, including the
supplier? First, one must understand what this idea of Fair Trade is. Fair Trade is the
system in which the supplier of a certain crop or good makes a just profit for their labor
and product. Companies and business around the world, even in our own neighborhoods,
take unfair advantage of the ambitious workers by providing them with a lower salary
than what they truly deserve. The exploitation of workers throughout major companies
negatively influences the local economy, and those involved. However, Fair Trade
provides positive influences for their local realm of income.
Not a very common topic for discussion, Fair Trade is a very prevalent matter
today. The rapid globalization of economies around the world has to have a rapid source
of product, many times turning towards those that cannot truly stand up for themselves.
The most notable targets for these powerhouses include farmers, factory workers, and
often children. Fair Trade does deal with food, but in retrospect, the areas of
influence/study are endless.
Sweatshops, rapid population growth, and third world development all have a
deep connection towards this ideology of proper payment, and living conditions. Each
area of study mentioned above has the possibilities for new research, meaning a new
chance to help and learn. Rapid population growth impacts globalization. How can the
Earth keep up? Sadly, many times sweatshops are the answer for cheap products. Fair

Trade is not just about food; it is about this deep connection with the rest of Earth. How
Fair Trade is affected, and how it affects those participating in the exchanged goods.
Limitations of Study
Fair Trade is an ever-growing research topic in a material sense and physical as well.
Despite the countless resources available, the writer/publisher of this essay had obstacles
that limited his best effort. The intended purpose of this project, Fair Trade, is to inform
the public of the poor working conditions and wages major companies have imposed
upon the local working economy, specifically on a global scale.
Personal Experience in the Area of Study: A lack of personal experience in this field of
study will result in heavy dependence on other published sources of information. As this
is the first time the writer of this paper has heard of Fair Trade, further research is
recommended for a deeper understanding of the material at hand.
Lack of Direction for an Action: The predicted action is to hold a dinner in which Fair
Trade products are served displaying the high quality of the item. While holding a dinner
is in and of itself an obstacle, money is even a greater barrier to overcome. Where will
the money come from to support food for over fifty people, not to mention who will cook
it. Along with the issue of money, is publicizing this event. A space big enough for the
intended crowd will have to be rented out months in advanced. The purpose behind the
dinner is to inform people of the positive effects of Fair Trade products, not only the
taste, but also the charitable benefits. The unknown factor in this action is whether
people will continue to look into Fair Trade products. One cannot measure the quality, or
overall satisfaction with the dinner, resulting in a faulty study. A survey may be delivered
after the dinner/presentation, but no guarantees can be established. The other central
action to this senior project is a quick job shadow of a Fair Trade company locally run
in the Tidewater Area. Further time will be needed to search for a legit company, capable
of teaching the presenter more than he/she has already researched.
Procrastination: The writer of this essay did not schedule his/her time well enough.
Despite ample class time, the author put the paper aside, and continued to attend to other
matters. The result of his/her actions is a rushed piece of educational literature that could
have been at least two times better.
Methodology
The intended question of the research project is, how Fair Trade benefits the local
economies, and suppliers in a positive manner. Millions of workers are subject to poor
working conditions, not to mention unfair wages. Families cannot be supported with
only earning a couple of dollars a day doing hard, manual labor. Dominant companies
throughout the world take advantage of the uneducated workers, exploiting their health,
physically, mentally, and family related. This crisis will continue generation after
generation if nothing is done. Parents will continue to work long hours, preventing the
children from receiving a proper education. However, Fair Trade is an international
organization that helps to properly pay workers for their supplies, or labor. With proper
payments for products, families can afford education, food, shelter, and other necessities
for a good life. Through research and interviews, the author of this paper intends to
discover what the true benefits of Fair Trade have on the families involved. A dinner will
hopefully be set up in order to inform the public of the positive effects Fair Trade has on
the economy. Food from Fair Trade will carefully be turned into a delicious dinner in the
hopes of influencing the ideologies of the participants. Along with the dinner, a brief
presentation will be shown, expressing the importance of fair worker wages. After the
event, a survey will be handed out rating the experience with the cooking. Qualitative
and quantitative results may be brought about from the action. Qualitative is the content
study of the dinner, while quantitative data will come from the money raised. For the
second portion of the action for this research paper, an interview will be set up with a Fair
Trade company, based locally in the Tidewater Area. The purpose behind the interview is
a deeper insight to the business aspects of the organization. The interview will open new

doors to the positive benefits Fair Trade provides, while also establishing future
connections with the employers.
10
Literature Review
Fair Trades main intention is to promote the proper payment for a suppliers
creation in developing countries. Companies participating with this equal wage
program tend to place a floor price, which sets in stone a fair compensation for their
hard work. In the end, this system of exchange positively affects the social, physical, and
educational lives of those in need (Adams and Raisborough, 2011).
After World War II, America began to venture into the original Fair Trade
Organizations (FTOs), purchasing hand made goods from the deprived Puerto Ricans and
Europeans. Because churches were and still to this day the leading force behind these
Fair Trade trips, most exchanges between supplier and consumer turned into missionary
and humanitarian efforts. About 20 years later, Europe began investing in this movement,
with the establishment of the Oxfam Company. The Oxfam Company was a major
trading establishment that participated in bartering across the globe. Entering the 1980s,
more than 1,000 Third World stores (stores selling unique products from different parts of
the world) were located in the UK and Switzerland (Brief History of Fair Trade).
Today, there are more than 1.2 million Fair Trade producers in over 63 countries
worldwide. Shoppers in the marketplace have contributed to a sharp rise in Fair Trade
product sales, totaling over 4 billion euros. In addition, a survey of 24 countries showed
that the international Fair Trade Certification Mark is the number one ethical brand label
(Fairtrade by the Numbers).
The current fashion industry on a global scale is a whopping $3,000 trillion
(Chamber of Commerce Hawaii). Take a moment to realize the numerous amounts of
workers that have to produce those clothing items. Many of those poor workers make
11
barely 60$ a month. How is one supposed to support their family with earnings that low?
Fair Trade Fashion guarantees the consumer that the supplier was treated equally, in
regards to workplace conditions and compensation (Fair Trade Fashion).
In most scenarios involving impoverished families, the children are forced to stay
home in order to help out in the fields. This prevents them from going to school and
receiving a proper education that is a necessity in the 21st century. Fair Trade profits
have been known to help build schools in the community, pay tuition for families, and
even help fund the uniforms (Fair Trade USA). Children lacking education contribute to
this cycle of minimal pay dependency. However, if they were to go to college and make
a better life for themselves, then their kids will also be more fortunate.
According to John Beaver, co-founder of a quite popular Fair Trade Market in
Montana, Fair Trade supports farmers and craftspeople in developing countries who are
socially and economically marginalized. With the help of his church, John for the past
eight years has been selling jewelry, baskets, and clothes, from the poverty stricken
women of Guatemala. He goes on to state that the annual Market brings in a greater
sense of community (Independent Record).
Numerous organizations have joined the fight against the unfair pay of
underprivileged workers. One of the top leaders in the ice cream industry, Ben & Jerrys,
launched their Fair Trade coffee flavor ingredients in 2005. They hope to be 100% Fair
Trade by 2013. The year being 2016 Ben & Jerrys has succeeded in their goal of
ingredients. A few of their flavors are already Fair Trade approved, include cocoa,
vanilla bean, and espresso beans (Global Citizen).
12
According to a German-based survey, Fairtrade International (FLO) organizations

helped to level out the poverty in third world agricultural communities. When suppliers
make money due to their products being sold, the money is invested in the social
infrastructure. Fair Trade labels offer the customers on a global scale to recognize where
their products are coming from, in a sense, starting a revolution (deliciousliving).
13
Body/Discussion
Fair Trade plays a positive role in the lives of the suppliers participating in the reasonable
exchange of goods for payment. Most of the time witnessed with the third world, hardlabor workers, more companies and consumers alike are hopping on board to take part in
this fair or equitable payment. Education, food, shelter, clothing, etc. create a new life for
those less fortunate. A chain of lack of education and poor living standards soon become
outdated, overall benefiting the Earth itself.
Fair Trades Rapid Growth of Involvement
The global retail sales for Fair Trade products have soared up to 14%. Many
researchers have concluded that the certified label on Fairtrade International food items
brings about the rise in product sales. Coffee and sugar remain in the lead by a large
margin, other countries have joined in the fight against unjust pay. The number of
countries partaking in Fair Trade production has reached 74, not to mention, the 30,000
goods on sale globally. The United States remains the leader in the polls of countries that
take interest in this exchange system. With new markets popping up in countries such as
India, Kenya, and South Africa, the US is starting to catch the attention of some curious
nations (the guardian, Smithers). Recently, Africa has seen sharp rises in their Fair Trade
participation. A little over 370 certified producers in Africa were officially established as
of 2013. In addition, African revenues have totaled nearly a whopping 14 million euros
(Fairtrade Africa).
On a local scale, Norfolk, Virginia holds an annual Fairtrade festival. Different
hand-made crafts from around the world will be featured for sale. Their Facebook page
features not only equality of payment type goods, but eco-friendly ones as well.
14
Festivals, parades, and showcases, connect local and global economies to venture into a
different realm of shopping. Products offer a sense of excitement, taste, and curiosity not
seen in traditional items. Small steps within the community bring about awareness to the
cause, leading to further involvement with organizations, and simply purchasing
groceries.
Positive Effects on the Producers
Major companies are known to be driven by overseas labor forces; however, work
environments usually involve poor conditions. Sickness, and in severe cases death, is a
common aspect of intensive working requirements, as seen with Coke and Apple.
Exploitation of the land is not a rare sight either, most known throughout the rural areas.
Numerous organizations have joined the fight against the unfair pay of underprivileged
workers. One of the top leaders in the ice cream industry, Ben & Jerrys in 2005
launched their Fair Trade coffee flavor ingredients. They hope to be 100% Fair Trade by
2013. A few of their flavors already Fair Trade approved include cocoa, vanilla bean, and
espresso beans (Global Citizen).
In most scenarios involving impoverished families, the children are forced to stay
home in order to help in the fields. This prevents them from going to school and
receiving a proper education that is a necessity in the 21st century. Fair Trade profits
have been known to help build schools in the community, pay tuition for families, and
even help fund the uniforms (Fair Trade USA). Children lacking education contribute to
this cycle of minimal pay dependency. However, if they were to go to college and make
a better life for themselves, then their kids will also be more fortunate.
15
The major benefits of Fair Trade go beyond the producer aspect, but rather the
environment as well. For example, rice is a staple crop for over 3 billion people,
resulting in a whopping 20% calorie intake. With this massive demand for rice, there
have to be numerous suppliers for it. Chemicals and pesticides play a large role in
destroying the surrounding area. This results in high chances of consumer sickness.
Fairtrade participates in the production of organic rice, resulting in less chemical usage.
Not only does this provide the consumer with a healthier choice of meal, but it also
predicts the natural area of the producer.
Negative Side of Fair Trade
Bruce Wydick presents new insights into the subject of Fair Trade, that provide a
negative side to the area of research. The main idea behind his reasoning; is that Fair
Trade is not sustainable. It is too expensive to keep up with, while at the same time only
catering to the skilled laborers. Poverty is not truly addressed with the Fair Trade
organizations, so in a sense this project is, well redundant (huffingtonpost).
Turning to a monetary approach, some Fair Trade organizations have been
accused of discriminating against farmers/workers that do not wish to get involved with
their companies. Agricultural cooperatives (co-ops), as they are known present an
alliance between worker and company. Many of times, those hard labor workers do not
intend on forming a connection, and in return are left in the dark. Some fear that the tide
of power will shift towards the underprivileged, not rational in a sense; however, this
shows the publics tendency to have doubts (HowStuffWorks).
Effects on Consumers
Sweatshops, rapid population growth, and third world development all have a
deep connection towards this ideology of proper payment and living conditions. Each
16
area of study mentioned above has the possibilities for new research, meaning a new
chance to help and learn. Rapid population growth impacts globalization, how can the
Earth keep up? Sadly, many times sweatshops are the answer for cheap products. Fair
Trade is not just about food; it is about this deep connection with the rest of Earth. How
Fair Trade is affected, and how it affects those participating in the exchanged goods. A
sense of global involvement is needed in order to help those in need.
According to John Beaver, co-founder of a quite popular Fair Trade Market in
Montana, Fair Trade supports farmers and craftspeople in developing countries who are
socially and economically marginalized. With the help of his church, John for the past
eight years has been selling jewelry, baskets, and clothes, from the poverty stricken
women of Guatemala. He goes on to state that the annual Market brings in a greater
sense of community (Independent Record).
Charity is a key word in any purchase related to Fair Trade. Profits companies
make off their legitimized ethnic food labels help support communities across the globe.
People are buying into a system to protect the living and social standards of millions of
hard working laborers.
Personal Experience
The author of this paper conducted a survey around his neighborhood asking the
residents about their shopping experiences. Out of the fifty people participating in the
survey, 33 have never been to a grocery store known for Fair Trade products, including
Krogers, Farm Fresh, and Food Lion. The other 17 people surveyed reported they have
purchased items from Fair Trade establishments, such as Trader Joes and the World
Market. Included in the survey, the author asked the participants what their reasoning
17
was behind their choice. The most common answers were It is too expensive, or We
do not know how it will taste. The survey provides the author with possible ideas for an
action. It appears that the main reason behind a communitys lack of action in the Fair
Trade market is information/experience. A dinner showcasing Fair Trade food will be
exceptional for presenting the potential for taste. On the other aspect of Fair Trade
products, regular hand-crafted items, a parade presents a good possibility.
18
Conclusion
The author is able to conclude from the research gathered, that the thesis stands; the
exploitation of workers through major companies negatively impacts the local economy,
and those involved, while Fair Trade provides positive influences for their realm of
income. The fundamentals for a well-balanced life can be derived from a system of equal
pay to all the producers, education, clothing, shelter, and food. While on the negative
side of major company exploitation, a cycle of poor living standards is created. Families
that do not receive proper payment for their hard labor, sadly have to put their kids in the
fields, preventing them from getting a proper education. For generations to come, the
children and their childrens children will undergo the same process, resulting in a lack of
global prosperity. Countless festivals/parades/meetings involving Fair Trade items have
been featured all over the United States, including locally here in Norfolk. Communities
are brought together by this over-arching sense of charity, helping humans despite their
status in the world. Through a conducted survey and intended interview further
information will be collected that will assist in the process of creating an action. Fair
Trade is not just about food or unique objects people buy for fun; it is about this deep
connection with the rest of Earth. How Fair Trade is affected, and how it affects those
participating in the exchanged goods. People should take the time to step back and
realize the change-taking place by helping those in need. A new community, a new
family, simply, a new person may benefit from helping to fund a better life.
19
References
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<http://www.fairtradeafrica.net/about-fairtrade/fairtrade-growth/>.
Website
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Smithers, Rebecca. "Global Fairtrade Sales Reach 4.4bn following 15% Growth during
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<https://www.cochawaii.org/30-shocking-figures-and-facts-in-global-textile-andapparel-industry/>.
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"Fair Trade USA." Education. Fair Trade USA, 2015. Web. 19 Nov. 2015.
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THE ROLE OF FAIR TRADE: THE BENEFITS TOWARD SOCIETY