The term “fair trade” is often used in relation to ethical business practices and environmental sustainability. We frequently see fair trade stickers and icons on bananas, coffee, chocolate, and other products on our shopping lists. But what exactly do fair trade certifications mean? And why are they important for reducing human trafficking?
The Fair Trade Movement
The term “fair trade” refers to a global movement “of producers, companies, shoppers, advocates, and organizations” dedicated to “a more equitable model of trade.” There are several organizations that promote responsible labor practices by advocating for transparency in supply chains, ethical labor, safe working conditions, sustainability, and fair compensation for goods sold around the world. These groups also reinvest into farmers and other workers involved in the production of goods. The four most prominent fair trade organizations are Fairtrade International, Fair Trade USA, World Fair Trade Organization, and B Labs (B Corp Certification).
Shopping fair trade is one of the best ways to eliminate forced labor and ensure that workers are treated and compensated fairly. By auditing and tracing supply chains from start to finish, these organizations help consumers identify brands that are made without human trafficking and other unethical labor practices.
Certifications
Fairtrade International
Fairtrade International is “a global organization that is co-owned by more than 2 million farmers and workers.” Founded in 1997, it is a nonprofit, multi-stakeholder organization that “changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries.” Across the world, farmers and other workers involved in making the product exercise voting rights for Fairtrade standards and policies.
If a product has the Fairtrade mark, it means the producers and businesses involved have met internationally agreed-upon standards for being fairly produced and sold. This means that the product’s supply chain is as traceable as possible. Specifically, the Fairtrade mark refers to:
- Economic standards that provide producers with safety nets against falling prices, cover costs of sustainable crop production, and provide producers with access to advance credit for investments
- Environmental standards focused on ecological practices related to pesticide use, not using GMOs, water and waste management, and biodiversity management
- Social standards, including transparent supply chains, non-discrimination, fair pay, bargaining rights, and safeguards for safety and health among employees, and prohibition of child and forced labor.
FLOCERT is Fairtrade International’s independent certifier, which inspects producers and traders for compliance with these standards. Over 25 national Fairtrade organizations and marketing organizations promote Fairtrade products worldwide. You can find certified brands here.
Fair Trade USA
Fair Trade USA is the leading nonprofit organization and third-party certifier of Fair Trade products in the US and across North America. Fair Trade USA was founded in 1998 as a member of Fairtrade International. In 2012, Fair Trade Certified separated from Fairtrade International as a separate entity “with the objective of growing the impact of the fair trade movement to new products, geographies, and producers around the world,” although there is considerable overlap in terms of affiliated producers and buyers between Fairtrade International and Fair Trade USA.
Fair Trade USA aims to build “an innovative model of responsible business, conscious consumerism, and shared value to eliminate poverty and enable sustainable development farmers, workers, their families, and communities around the world.” If a product bears the certification, it meets the standards of Fair Trade USA’s sustainable sourcing model that focuses on investing in communities, protecting the environment, and ensuring transparent supply chains. Specifically, this model includes:
- Fair wages and benefits
- Safe working conditions and working environments
- Employee access to services
- Empowerment of workers
- Protection of children and young workers
- Efficient and sustainable use of resources
- Proper waste disposal
Coffee was the first product Fair Trade USA focused on, and the organization has since expanded to develop standards for agricultural production, factory production, and fisheries. The Fair Trade certification applies to several product categories such as produce, dairy, home goods, seafood, coffee, and floral products. Fair Trade USA provides oversight, measuring the performance of its partners. You can explore these partners and certified brands here.
World Fair Trade Organization
Founded in 1989, World Fair Trade Organization (WFTO) is “an association of visionary Small and Medium-sized enterprises (SMEs)” and the “global community and verifier of enterprises that fully practice Fair Trade.”
WFTO aims to address structural issues in the economy, balancing commercial success and ethical business practices. Its approach to fair trade encompasses production processes, supply chains, and relationships with stakeholders across 10 Fair Trade Principles:
- Economic opportunity
- Transparency and accountability
- Fair Trade practices (emphasizing the social, economic, and environmental well-being of marginalized small producers, as well as effective communication with partners)
- Fair payment
- No forced or child labor
- No discrimination and gender equity
- Good and safe working conditions
- Capacity building (developing managerial or production skills and capabilities of producers)
- Promotion of Fair Trade
- Climate action and environmental protection
The WFTO is not related to the World Trade Organization (WTO), but it is closely aligned with the United Nations’ Sustainable Development Goals. See WFTO verified members and partners to see products.
Certified B Corporation
The B Corp Certification is managed by B Labs, founded in 2006 in the United States. Receiving the certification means a business meets “high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.”
In order to achieve the certification, a company must:
- Demonstrate high social and environmental performance
- Changing their corporate governance structure to be accountable to all stakeholders, not just shareholders
- Make information about their performance measured against B Lab’s standards publicly available on B Lab’s website
In terms of social and environmental performance, companies are scored based on B Corp’s Impact Assessment; you can find sample Impact Assessment questions here. Standards are independently governed by B Lab’s Standards Advisory Council, “an independent, multi-stakeholder group composed of members from around the world with specific expertise in responsible and sustainable business.” External stakeholders and various Working and Advisory Groups also provide input. You can find B Corps here.
Why Ethical Certifications Matter
Fair Trade certifications empower farmers and producers that may be at risk of exploitation and empower consumers by informing them of such realities. According to Abe Bakhsheshy, Director of the Daniels Fund Ethics Initiative at the University of Utah, because such certifications are public, consumers can look into the products they are buying and the company’s labor practices and supply chain transparency, which are especially important for those concerned about trafficking.
Because forced labor is notoriously difficult to track in global supply chains, it is necessary to have third-party certifiers such as Fairtrade International, Fair Trade USA, World Fair Trade Organization, and B Corp Certification. According to the International Labour Organization (ILO), forced labor impacts 28 million men, women, and children worldwide and produces $236 billion in illegal profits annually. The ILO also found that most forced labor (63%) occurs in the private economy, from the restaurant industry to the agricultural industry. This means engaging businesses and brands is a crucial part of combating human trafficking.
Based on the standards from the above certifying organizations, Fair Trade certifications seek to guarantee that “no child or forced labor was used in production.” Additionally, profits from Fair Trade ventures are reinvested in communities. UNICEF maintains that when producers are paid a living wage, families are able to let children go to school rather than have them work for extra funds, decreasing their risk of exploitation.
If you are interested in finding more ethical businesses and slave-free products, read more of Stop Modern Day Slavery’s resources on fair trade:
- 7 Fair Trade Products You Didn’t Know Existed
- Slave-Free Apparel and Footwear
- Ethical Back-to-School Shopping Guide: Slave-Free School Supplies
- Five of Your Favorite Companies You Didn’t Know Were Slave-Free
- Four Delicious and Slave-Free Chocolate Brands
- Taste-Testing Divine Chocolate: Fairtrade Certified, B Corporation, Ethically-Made
Originally from New Jersey, Corinne has always loved learning about different cultures and her family’s ancestral roots across Europe. She earned her Bachelors in International Studies at the College of New Jersey and recently received her Masters in International Relations in Madrid. She currently works for an international organisation at the UN in New York, and hopes to continue working on important global issues and their intersections with gender equality. In her free time, Corinne is likely to be on a hiking trail, at the gym, in the kitchen baking and listening to music, or on the couch with a good book.
