This post is part of Jasmine Jones’ 2023 Lazarus Summer Internship.
From the beginning, I knew that I would use this summer as an opportunity to delve into my longstanding interest in the Fair Trade movement as a gateway to ethical business. However, little did I know that I would end up “debunking” the Fair Trade model. My guiding question throughout my research was “In a global trade system faced with inhumane labor exploitation and environmental destruction, what have been the main approaches to conducting ethical business?” My perception and understanding of the word Fair Trade have transformed these past few months and pushed me to question what I value in an ethical business.
At the start of this project, I simply wanted to focus on consumer education and spreading the word about Fair Trade labels and the impactful work they are doing for laborers and the environment. However, somewhere along the line, I discovered criticisms of Fair Trade and how this was leading to emerging counter initiatives. I eventually found it more fitting to take apart the word “Fair Trade” and discuss what these labels mean, their origins, importance, effectiveness, criticisms, and the overall global response. There is a lot to tackle with 400 plus Fair Trade labels. Therefore, I found it most effective to structure my project as first, a general introduction to what Fair Trade is and its history that concerns discussions of colonialism, industrialization, and consumer consciousness. I followed with a discussion of why Fair Trade is important through an analysis of 6 key standards of the certification (Price Floor, Premium, Stability & Credit, Working Conditions, Institutional Structure, and Environmental Protection). Then, I discussed the economics of Fair Trade and Development Economics as a reminder that Fair Trade and its partners all abide by the realities of global trade. Following this I looked into 5 key areas of criticism for Fair Trade including Inefficient Positive Economic Impact, Market Inequalities, Certification Exclusion, Label Fatigue, and Greenwashing. Furthermore, I pursued case studies in the organization Fairtrade International and the company McDonald’s as a comparative analysis of a third-party verifying organization versus an independent company with self-certification standards. In the end, instead of reaching a definitive conclusion on the Fair Trade model, I developed visions for the future to expand the Fair Trade movement. By addressing wants, incentives, and accountability for both Fair Trade and independent company Green Standards, there will be progress toward addressing the flaws in the global exchange of goods.
Overall, with this “debunk” I exposed new approaches to look at Fair Trade and areas for improvement. However, I still plan to support Fair Trade as it is the most reputable on a large scale. I am excited to see how this movement evolves in the future and to reach the ultimate goal of welfare and transparency in ethical business.