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Fair trade standards
| By Michigan Tech's Open Sustainability Technology Lab.
Wanted: Students to make a distributed future with solar-powered open-source 3-D printing.
This literature survey helped develop:
- Feeley, S. R., Wijnen, B., & Pearce, J. M. (2014). Evaluation of Potential Fair Trade Standards for an Ethical 3-D Printing Filament. Journal of Sustainable Development, 7(5), 1-12. DOI: 10.5539/jsd.v7n5p1 open access
- 1 Fairtrade Labelling Organisations International (FLO)
- 2 Fair Trade USA
- 3 United Nations Fair Trade
- 4 International Labour Organization (ILO)
- 5 World Fair Trade Organization (WFTO)
- 6 Fair Labor Association (FLA)
- 7 Institute for Marketecology (IMO)
- 8 Corporate Social Responsibily
- 9 Triple Bottom Line
- 10 Global Reporting Initiative (GRI)
- 11 Other
Fairtrade Labelling Organisations International (FLO)
- minimum price
- additional Fairtrade premium to be invested in projects for social, economic, and environmental development
- pre-financing when needed
- strong partnership between trade partners
- symbiotic long-term trading relations
- minimum and progressive criteria to make sure conditions for production and trade of product are socially and economically just and environmentally conscience
Fair Trade USA
Fair Trade Standards: Principles
- Democratic decision making
- Group management of premium
- Training and capacity building
- Stable business partnerships
- Pre-determined premiums
- Minimum pricing and increasing wages
- No child labour
- Established health and safety measures
- Access to healthcare
- Community development premiums provide greater access to and quality of healthcare and education.
- No GMOs
- Very toxic chemicals are not used
- Safe use of agrochemicals
- Responsible waste management
- Protection of soil, water and biodiversity
- Reduction of energy and greenhouse gas emissions
United Nations Fair Trade
- Traceable flow of products
- Transparency in exchange of money
- Compliance with national labor laws and the Conventions of the International Labour Organization
- Where national and ILO standards differ, the higher standards must be adhered to
- Compliance with basic environmental standards
International Labour Organization (ILO)
- conventions-legally binding international treaties
- recommendations-non-binding guidelines
- freedom of association and collective bargaining
- ban on all forms of forced or compulsory labour
- elimination of discrimination
- abolition of child labour
Child labour is defined as work that:
- is mentally, physically, socially or morally dangerous and harmful to children
- interferes with their schooling
- deprives them of the opportunity to attend school
- obliges them to leave school prematurely
- requires them to attempt to combine school attendance with excessively long and heavy work
In its most extreme forms, child labour involves children being enslaved, separated from their families, exposed to serious hazards and illnesses and/or left to fend for themselves
Children’s participation in work that does not affect their health and personal development or interfere with their schooling, is generally regarded as being positive. This includes activities such as:
- helping their parents around the home
- assisting in a family business
- earning pocket money outside school hours and during school holidays
These kinds of activities contribute to children’s development and to the welfare of their families; they provide them with skills and experience, and help to prepare them to be productive members of society during their adult life.
World Fair Trade Organization (WFTO)
Principles of Fair Trade
- Creating Opportunities for Economically Disadvantaged Producers
- Transparency and Accountability
- Fair Trading Practices
- Payment of a Fair Price
- Ensuring no Child Labor and Forced Labor
- Commitment to Non Discrimination, Gender Equity and Freedom of Association
- Ensuring Good Working Conditions
- Providing Capacity Building
- Promoting Fair Trade
- Respect for the Environment
Fair Labor Association (FLA)
- Employment Relationship
At a minimum, employers must safeguard workers rights under national and international labor and social security laws and regulations.
- No person shall be discriminated against for hiring, compensation, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, social group or ethnic origin.
- Harassment or Abuse
No physical, sexual, psychological or verbal harassment or abuse.
- Forced Labor
No use of forced labor, including prison labor, indentured labor, or bonded labor
- Child Labor
No employees under the age of 15 or under the age for completion of compulsory education, whichever is higher
- Freedom of Association and Collective Bargaining
Right of employees to freedom of association and collective bargaining
- Health, Safety and Environment
Safe and healthy workplace setting to prevent accidents and injury
Measures to offset negative impacts that the workplace has on the environment
- Hours of Work
Regular work week shall not exceed 48 hours
Regular and overtime hours in a week shall not exceed 60 hours
Overtime work payed at premium rate
At least the minimum wage or the appropriate prevailing wage, whichever is higher
Institute for Marketecology (IMO)
Fair for Life Social & Fair Trade Certification Programme
For Life - Social Responsibility Certification
- Confirms that workers enjoy fair and safe working conditions covering all key labour aspects from core ILO workers rights to good employment conditions
- evaluates the operator’s overall environmental performance and its role and impact in the local community
- confirms that a company is committed to act as a responsible employer and promoter of sustainable practices
- producer groups have transparent internal structures with fair relations to producers.
Fair for Life - Social & Fair Trade Certification
Includes all Social Responsibility standards with fair working conditions, environmental performance and community relations
- additionally on fair trade relationships,
- fair prices
- direct support of marginalised groups by means of a Fair Trade Development Fund.
- long-term and trusting cooperation between partners
- transparent price setting negotiations and prices, including a Fair Trade Premium, that allow for social development of the concerned communities.
- A Fair Trade Policy defines the beneficiaries of Fair Trade and confirms the social commitment of the production company.
Individual Performance Rating
audits to attest compliance with private standards and criteria (e.g. Corporate Social Responsibility, CSR).
- Individual performance assessment, verification of selected social issues or private codes
- CSR Value Certification of agreed social, ethical or fair trade working codes or sourcing programmes, such as the Ethical Trade Initiative Base Code, following the SMETA guidelines
Corporate Social Responsibily
- Economic Responsibility
- make profits
- Legal Responsibility
- obey the letter and the spirit of the law
- Ethical Responsibility
- do the right thing even when neither the spirit nor the letter of the law apply
- Philanthropic Responsibility
- contribute to society's projects even when they're independent of the particular business
- contribute to society's projects even when they're independent of the particular business
Triple Bottom Line
Values and criteria for measuring success in three main areas: social, environmental and economical.Also known as the 3P concept.
Social sustainability requires that a business foster an environment in which all can succeed. In the big-picture it is better for a whole society to thrive than for one single corporation to thrive alone. This allows the company to continue to exist, and it will foster good-will between the company and the society.
Environmental sustainability stems from the recognition that resources are not infinite, and that too much degradation will worsen the lives of ourselves, our children and so on. Members of the moral community ought not cause undue harm to the people around them and the people who will come later, and value protection of the environment. Efforts should be made to renew some of the environments that have been harmed in the past
Economic sustainability must focus on the long term because this is the nature of a persistent company. A decision which creates an economic boon in the short-term, but causes long-term harm, would likely reduce this bottom line
Global Reporting Initiative (GRI)
A non-profit organization that provides companies and organizations with a comprehensive sustainability reporting framework, widely used around the world, to measure and report their economic, environmental, social and governance performance – the four key areas of sustainability.
By reporting transparently and with accountability, organizations can increase the trust that stakeholders have in them, and in the global economy.
Something useful here: Jaffee, D., Howard, P.H., 2010. Corporate cooptation of organic and fair trade standards. Agric Hum Values 27, 387–399.