BUSINESS ETHICS

GROUP -5- Section-A

Fair Trade Submitted by :
Mugdha 18041
Rahul 18042
Shamanth 18043
Shreya 18044
Siddanth 18045
Souparnika 18046
Thejus 18047
Viswanath 18048
Submitted to : Vignesh 18049
Dr. Nilanjan Sengupta Yashank 18050
Sudarshan 18063
 Principle of Fair Trade

Fair Trade is a trade between companies in developed countries and producers in developing
countries in which fair prices are paid to the producers and to achieve better trading conditions.
 Creating employment opportunities in developing world.

 Practice transparency in communication and take accountability in actions.

 Focus on improving the lives of producers through long-term agreements.

 Pay a fair wage to producer groups promptly and in the amount previously agreed upon by both

parties.
 Maintain safe and healthy working conditions.

 Helps in removing barriers for different products to enter into the market via fair trade.
 Stakeholder Analysis
 Producers: Farmers and suppliers are involved in this category. Fair trade
is meant to improve their standards of living by providing them
equitable share for their product.
 Customers: Fair trade products are meant to give them a sense of
fulfillment that they are giving back to the community rather than the
corporations.
 Large Corporations and small corporations: should be involved in Fair
trade, they should have the moral responsibility of adhering to the
noble causes of Fair trade.
 Critics: This category involves media and NGO’s who shine the light on
the practices that are being followed by the big corporations with Fair
trade.
 Fair trade Organization: Their responsibilities are to monitor big
corporations and interests of farmers are being adhered to or not.
 Set out the main arguments for and against the
involvement of big business in fair trade.
Consider the argument from the point of view
of customers, supermarkets, and suppliers.
Against : For:

Customers:
1.Customers are being exploited as they are being
over charged.
2. Consumers do not know if the actual benefit
reaches the producers.
Supermarket
1. Big buyers may not be attracted to the Fair Trade
model.
2. Capitalizing on growing Fair Trade market, rather
than a genuine commitment.
3. Failed to change the core functionality of big
business.
Suppliers:
1. There is little accountability enforced on producers.
2. Due to increased demand from big corporations,
farmers/producers might be overwhelmed.
3. Fair trades profits are going in the pockets of
business rather than farmers.
Customers:
1.By buying Fair Trade products customers are satisfied
which in turn increases the demand and reduce the price.
Supermarket:
1. Multiple products are introduced which helps in
inclusiveness of multiple farmers from different areas.
2. Involvement of Middle man is reduced to null.
3. Long term relationship, co-operative trade relationship
and sustainable production
Suppliers:
1. There is an excellent wage system in place(monitored by
Fairtrade for producers).
2. Standard of living among producers is increasing for the
better (by Social premium by big organizations)
3. Producers are protected from international price
fluctuations.
Lessons learnt from the case

 The winners aren’t always the framers but are retailers who
promote themselves as good corporate citizens.
 Although the empowerment of producers through the process of
fair trade development is commendable and plausible, but it will
only work if the attention is given to the small scale co-operative
farmers.
 For many supermarkets and businesses fair trade makes up only a
small portions of their sales while unfair trade prevails in majority of
their business activities.
 Fair trade is a commendable step towards stopping market
exploitations.
Recent trends in Fair Trade

 Fair trade now:

Fair trade seeks 8% sales growth in 2017 exceeding £8 Billion for the first
time.

“The proper implementation of the GI Act would provide

tremendous socio-economic benefits to farmers, artisans,
women and rural manufacturers facilitating in a vibrant
rural India and satisfied consumers globally.”
Thank you!!!