Ethical fair trade

These defining principles have been used by Browne et al. (2000) to develop a composite definition of ethical trading as follows  

Ethical trading is defined as trading in which the relationship between the 

In 1990, EFTA was established representing 12 organisations importing fair trade products. As a proportion of fair trade imports, EFTA represents around 60% of European market. Fair trade shops expanded in Europe after the 1970s and now there are more than 3000 in 18 European countries. The International Federation of Alternative Trade (IFAT) was established in 1989, as an umbrella organisation for ATOs from Africa, Asia, Australia, Europe, Japan and North and South America (EFTA, 1998). 

Fair trade exploited the mainstream channels by focusing on selling to institutional outlets. In 1988, the first fair trade label, Max Havelaar, was established in The Netherlands. This seal of approval was awarded to conventional businesses that respected fair trade standards that were open to external monitoring. Other labels such as Transfair International (co-founded by EFTA) and the Fairtrade Foundation, have also evolved. The International Fair Trade Labelling Organisation (FLO) has coordinated all fair trade labelling since April 1997 (EFTA, 1998). 

The outcome of the above is that, nowadays, the fair trade organisations represent an important alternative trade market (Raynolds et al., 2004). It is reported that international fair trade sales are worth over US 500 million and are expanding at approximately 30% per annum (Fair Trade Federation, 

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This chapter aims to illustrate the role and importance of ethical (fair) trade in the agricultural production chain. Towards that, we will initially analyse the organic market and will illustrate the role of the accreditation schemes and the local certification bodies. This is followed by a section on ethical (fair) trade discussing the evolution of the concept(s) and their association with organic production. The last sections examine the view of the stakeholders and selected supply chain members in relation to ethical (fair) trade, before drawing relevant conclusions. 

Associations between organic and ethical (fair) trade... 

This chapter has shed light on the increasing role of ethical (fair) trade and its relationship with organic production and, subsequently, their key associations and differences have been illustrated. The authors expect the above discussion to prove beneficial and to provide further knowledge in this field of study. We also expect further research to be undertaken that could validate and/or contradict some of the key arguments cited in this work. 

Certification Yes, based on regulation by the state. Assured by legally registered labelling symbols on marketed produce Yes for fair trade no for ethical. No legal status for ethical claims on marketed produce... 

Those who are willing to pay extra for goods traded in an ethical manner do so based on the understanding that significantly improved livelihoods result from the premium paid for fair trade and/or organic certified produce. Statements on packaging of ethically traded products relating to the impact on the livelihoods of producer communities serve to link consumption and production for the consumer. 

Across the Atlantic, Nicholson-Lord (2003) tirgues that British organic farm conversion slowed to 3% in 2002-2003, while 10% of organic farms reverted to conventional status because their organic premium was lost in a maturing market. In response, the Soil Association (2003a) hoped to introduce ethical trade certification in 2004, for small and medium-scale British farmers and processors, similar to global Fair Trade schemes. 

Personal ethics about fair trade for the growers... 

The maintenance of standards of commercial ethics and the encouragement of invention are broadly stated policies behind trade secret law. The necessity of good faith and honest, fair dealing, is the very life and spirit of the commercial world. .. . ... 

The trade-off between science and spirituality is fair and square in this formulation. We need no longer invoke disembodied spirits to account for mental life. At the same time, we can retain the notion of free will that is the basis of our ethical codes, our laws, and our self-respect. Stretching the point, we can envisage a materialist spirituality. Because conscious states include poetic wonder, awe, reverence, and numinosity, and because we know all such attributes are aspects of brain activity, we can safely say that the brain is not only conscious, but is also a spiritual self standing in appropriate awe of its own complexity, creativity, and social conscience. 

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