Fair Trade is a fairly common term that conjures up pictures of coffee, chocolate, and farmers showing off fresh produce on the back of a product label. Most consumers know that they should consume Fair Trade products, but they don’t really know why.
Is Fair Trade more than a marketing tactic to allow customers to feel intrinsically good about spending their money? Let’s find out what Fair Trade is and why it is important to buy Fair Trade products.
The History of Fair Trade
The Fair Trade movement began in the early 1950s when European and American travelers noticed local artisans and farmers struggling to break-even and pay their businesses’ costs. These were the people who would purchase some of these local, low-costing products and go back to their homeland to sell them at ridiculously high prices, only to bring back the profits earned to those farmers and artisans.
Needless to say, this process raises some eyes as it is open to exploitation. How can one fully trust that the profits really went back to poor farmers and artisans instead of in the pockets of tourists? To solve this problem, in the 1990s, Paul Rice, founder of the Fair Trade USA, decided to create some standards to monitor the Fair Trade movement all over the world. His work now forms the basis of what is known as Fair Trade Certification.
In 1997, Rice made his way back to the US and founded Fair Trade USA. The certification model was introduced to large-scale companies that sold commodity goods, including cocoa, bananas, and tea. Rice aimed to help corporations understand the importance of selling ethical products under the terms set out by Fair Trade. Moreover, he also wanted consumers to understand the logic behind Fair Trade products and encourage them to buy products that were traded ethically and made by companies who supported better working conditions for workers while improving livelihood and protecting the environment.
How Has Fair Trade Helped Members of the WorkForce?
The funds collected under Fair Trade are laid in front of the corporation. It is then decided where those funds will be allocated and which workforce issues will be focused on. After all, simple things like giving a bicycle to every employee can change their entire lives. This was something that a group in India did. Their kindness allowed employers to pick up groceries for their families more easily and drive their kids to school.
Another factory in Sri Lanka pledged to build a nursery right next to their corporation. This has allowed hundreds of children under the age of five to attend school for the very first time in their neighborhood. Parents also get more time with their children since work and school were so close. Other corporations worldwide have invested Fair Trade funds in health insurance, gasoline vouchers, health, sanitization, subsidized food for workers, or have helped rebuild homes after an earthquake or calamity.
Fair Trade’s basic aim is to ensure that the workers in a company’s supply chain are treated fairly and paid fair rates. That is why it is of utmost importance to educate consumers and make them aware of Fair Trade’s values.