Is Fair Trade a Fair

Trade-Off?
2 :

 I. Case Summary
A. What is Fair Trade?

B. Introduce Stakeholders
Contents C. Unethical Behavior

D. Criticism of Fair Trade

II.Questions & Discussion

I.Case Summary
 A. What is Fair trade?
What is Fair trade Where we can find it

Programs designed to ensure that Products carrying FAIRTRADE Mark

export-dependent farmers in mean the producers and traders have
developing countries receive fair met Fairtrade Standards.
prices for their crops

What is their vision and mission?

What Fair trade do -connect disadvantaged producers

and consumers
-Set International Fair trade standards -promote fairer trading conditions
-Organize support for producers and empower producers
A. Fair trade - Products
FOOD COCOA

Bananas, Cocoa, Coffee, -40% of the worlds cocoa bean come from small
Sugar, Tea, Honey, farms throughout the west african nation of ivory
Juices, Rice coast

Non-FOOD -Before Fair trade

Cotton, Flowers, Gold, -After Fair trade

Sports Balls
-Guarantee producers
A. Fair trade - How?
Anti-child labor laws + providing Companies are monitored by TransFair
education and health care services
Companies- Fairtrade+Organic
Guarantees producers Fair
Minimum Price for their producs Conscious consumer

market price < Minimum Price

Provide difference

makret price > Minimum Price

provide certain amount of
premium
 B. Introduce Stakeholders

Stakeholder
: An individual, institution, or
community that has a stake in
the operations of an
organization and in how it does
business

Major Stakeholders
: Customers
Shareholders
Employees
 B. Introduce Stakeholders

Customers Shareholders Employees

Provide(resources) Provide Provide
Revenue Risk capital Labor, Skills

Receive(interest) Receive Receive

Reliable product Maximized return Commensurate income,
Job satisfaction,
Job security,
Good working condition
B. Introduce Stakeholders
Topic-relevant
Stakeholders
Customers/General Public
-Provide
more revenue
-Receive
fair-trade product
Suppliers
-Receive
Commensurate income
Good working cond.
C. Unethical Behavior

Def) Unethical Behaviors

behaviors that happen when personal/organizational goal is
above basic rights of stakeholders
C. Unethical Behavior

Self -Dealing Information Anticompetitive

Manipulation Behavior

Substandard
Opportunistic Environmental
Working Corruption
Exploitation Degradation
Conditions
C. Unethical Behavior

Information
Self -Dealing
Manipulation

using corporate funds to benefit distort or hide information to enhance financial situation
oneself
C. Unethical Behavior

Opportunistic
Anticompetitive Exploitation
Behavior

behaviors aimed at harming actual or using firms power to write contract favorable to
potential competitors firm
C. Unethical Behavior

Environmental
Substandard Degradation
Working
Conditions

managers tolerate unsafe working conditions or when behaviors result in pollution or

pay employees below-market rates environmental harm
C. Unethical Behavior

Corruption

when managers pay bribes

C. Unethical Behavior

Topic-relevant
Self -Dealing

Substandard
Opportunistic
Working
Exploitation
Conditions
D. Criticism of Fair trade

REVIEW
II. Questions & Discussion
Questions & Discussion 1
What are the trade-offs in the fair-trade process? Do you think that fair trade
promotes fair trade-offs? Why or why not?

Refer to:

Def.) trade-off
a situation where you exchange all or part
of one thing for another
Questions & Discussion 2
Under what circumstances could unethical parties abuse the fair-trade concept?

Refer to: Unethical

Behavior

Self -Dealing Information Anticompetitive

Manipulation Behavior

Substandard
Opportunistic Environmental
Working Corruption
Exploitation Degradation
Conditions
Questions & Discussion 3
Under what circumstances might fair trade actually cause harm? To whom? At
what point would fair-trade trade-offs no longer be acceptable?

Refer to:
Stakeholders