The Importance of Fairtrade and Ethical Supply Chain Practices

  

What if you were told that you were able to improve the lives hardworking farmers within developing countries by just purchasing one bag of coffee. Would you purchase a bag, or would you feel it was too good to be true? Established in the 1990’s by Paul Rice, the Fairtrade movement this scenario has been made possible, and for those who feel it is too good to be true can feel at ease with the knowledge that each supply chain is monitored by the Fair-Trade USA organization to ensure all supply chains are following the ethical guidelines and procedures of the organization. These guidelines are put in place to protect the producers, distributers, and the consumers.

 

What is Fairtrade?

As defined by the world fair trade organization fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. This type of supply is globally recognized by companies and organizations as ethically receiving their products straight from the producers rather than other supply retailers. This allows the funding to be directly received by the producers rather than providing funding to other established entities.

Fair trading is recognized globally as a trading process consisting of companies working directly with farmers as their supply chain.

With every sold bag of coffee allows the farmers to receive a profit and put money back into their hands while also receiving funds to improve their communities. So, while fair trade is a business the movement is also seen as philanthropy as the farmers typically are in developing countries.

Through the purchasing of coffee beans with the Fairtrade mark you as a consumer are helping to fight social causes such as poverty and child labor. While also supporting causes such as workers’ rights, gender equality, a bountiful environment, and improvement of underdeveloped communities.

 

The Fairtrade certified seal

For a producer to receive a Fairtrade certification seal they would have to have gone through an extensive process that normally takes roughly 6-9 months to achieve and is evaluated annually. Within this process Fair Trade USA performs a pre-assessment procedure on the crops and communities through a webinar and in-person meetings. One of the final steps in the process is to have a third-party auditor compare the standards of that the farmers and workers to the standards of Fair Trade. Once certified the producers are able to set up a bank account to “serve as their Premium Fund” (Shoenthal, 2018).

Paul Rice created a movement to help those in other parts of the world to profit off their everyday jobs as to provide themselves and their families with a better way of living. In the end, it is all of us whether in developed countries or underdeveloped countries who have been affected. We are all in a position to better improve our world for the next generation. All it takes is a small commitment to think outside of ourselves just as Paul Rice.