A Critical Review of Davenport & Low, 2013, From trust to compliance: accountability in the fair trade movement, Social Enterprise Journal, vol. 9, no. 1, pp 88-101. Davenport & Low (2013) conducted a study on the evolution of fair trade movement from trust-based relationships to standards-based systems. The research emphasized on the external and internal accountability approach adopted by Fair Trade Labelling Organization International (FLO) and World Fair Trade Organization (WFTO). External accountability used by FLO focuses respectively. on standard-based certification in which the reliability of the products depends on the label and ‘rituals’ of auditing’ while WFTO acquires internal accountability through organizational self-assessment which is based on democracy and trust between the producer and the consumer. The findings revealed that the popularization of labeling and certification used by FLO has turned the trust relationship to a market-based relationship. Jahn et al.(2005) stressed that it will create a substantial ‘brand risk’ to Fairtrade labeling if monitoring anywher...
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Fair trades underlying principle is that companies should serve interests beyond their own profits. Wal-Mart has disregarded that principle, and their extensive trade with China is a perfect example of their slavish devotion toward just unjust profits.
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According to both Fair Trade USA and the FTI, certification ensures that pricing, environmental and working condition standards established under fair-trade principles are being met. An independent third party, like IMO fair for life, conducts the farm visits while Fair Trade USA and FTI do the supply-chain audit. Because the FLO and FTI contract the certification out to third-party organizations, this adds another bureaucratic layer
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In the late 1940s the initial fair trade movement began in the United States. During that period Fair trade was often regarded as a political gesture to neo-imperialism. The slogan 'Trade not Aid' at the time, obtain international recognition. In addition, it adopted the United Nations Conference on Trade and Development (UNCTAD) to focus on the establishment of fair trade relations with the developing countries (Littrell and Dickson, 1999; MORI, 2000). At the same time Fair Trade in Europe started from the late 1950s. British Non-Governmental Organizations (NGO) name Oxfam gradually to sell some crafts by Chinese refugees made in Oxfam stores (Littrell and Dickson, 1999; MORI, 2000). And then in 1964 it created the first fair trade organizations. Moreover, Dutch third world groups also began to sell cane sugar and this produces with the message 'by buying cane sugar you give people in poor countries a place in the sun of prosperity' (Littrell and Dickson, 1999; MORI,
What if there was a way to consume and use everyday products while knowing the people who put the hard work into growing and harvesting them are being treated as fairly as possible? Fortunately, there is a way for the consumer to have full confidence in this while purchasing their products. What the buyer should look out for is if the product is marked “Fair Trade” or not. Fair Trade is a type of business in which it is established that the producer is paid a fair price for the goods they provide. Whereas some producers get ripped off and paid only a small portion of what they should be, Fair Trade ensures that this does not happen and gives the producers the full benefit of their work. Some may ask, “is it really worth it to invest in something that will only put a label on a product?” The answer is yes. In this day and age, every humane person should have the decency to pay a little bit extra to warrant the fair treatment of the producers. Fair Trade is quite a simple social movement to operate with rules that can be easily enforced and the range of products is large yielding it to have its strengths and weaknesses, as does every operation of this scale.
Consumers have expectations In terms of a good quality product that should be availed at a reasonable price. Consumers don’t only want the business to be socially responsible towards them in this manner of reasonable prices but way beyond this. They should meet the needs of consumers in ways of convenience and appearance. But business should also consider other aspects like environmental impact when packaging is disposed.
Fair Trade is a simple idea that improves the living and working conditions of small farmers and workers. The Fair Trade movement promotes the standards for fair labor conditions, fair pricing, direct trade, environmentalism, social policy, and community development. Businesses wishing to adopt Fair Trade practices have to purchase certification licenses, which then leads to Fair Trade Labeling Organization (FLO) sending representatives to the farms from which the products are purchased and ensures that the farmers adhere to the procedures outlined in the Fair Trade standards. Products marked by the Fair Trade label contain 100% Fair Trade certified contents. Buying Fair Trade Certified products, consumers are helping the lives of famers out of poverty through investments in their farms/communities, protecting the environment, and developing the business skills for trading. The practice of Fair Trading a good way to not only help cause awareness but also improve the lives of the workers.
A brand audit is a detailed assessment of a brand’s current ranking in the market compared to other competitors. It provides information on how the business is performing in the market. A brand audit also aims at examining the image and reputation of the brand as perceived by customers. The two key elements of brand audit are brand inventory and brand exploratory. Brand inventory provides up to date itinerary of how a company markets and brands its products. On the other hand, a brand exploratory is an examination undertaken so as to comprehend what consumers feel about the brand. It seeks to conduct a consumer insight research in order to acquire consumers’ feelings and perceptions. This paper looks into the brand exploratory of Cadbury in terms of the customer-based brand equity (CBBE) model.