Fair Trade (Essay Sample)

Fair Trade
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The essay below provides a brief description of fair trade in ethics. The essay explains fair trade by using coffee trade as an example. The essay sets out the ethical principles of fair trade. The essay also points out the various limitations to fair trade.
Fair-trade is a movement or partnership between consumers and producers. Its aim is to help producers, especially in developing countries to have good trading conditions that promote sustainability. Fair-trade focuses mostly on exports from those developing countries to already developed countries. It provides a better deal to producers and well improved trading terms. This deal allows the producers have a better plan for their future as well as an improved way of living. It also offers consumers, a great deal in reducing poverty while shopping every day (DeCarlo, 2007).
Fair-trade mostly focuses on exports of goods such as sugar, coffee, honey, bananas, cotton, chocolates, fruits and gold. These fair-trade products can easily be identified because they carry the fair-trade logos which are certified by recognized certifiers.
The trade is based on transparency, dialogue and equity during trading. It is a show of justice when it comes to trading. It mostly advocates for change in the practices and rules of conventional trading. This is done through fair-trade standards that address unstable markets and power imbalances in trading.
Fair-trade has two sets of distinct standards. These take into consideration different types of producers who are disadvantaged. One applies to smallholders working in organizations or co-operatives. The other standard applies to those working. Here employers pay decent wages, ensure safety and health standards and allow them to join trade unions. These standards also provides terms of trade. Products have a fair-trade price, the minimum price that producers must be paid (Fair-trade Labeling Organizations International, 2011).
There are several principles or elements that govern fair-trade. These principles include; creating opportunities for producers who are economically disadvantaged. Fair-trade aims at reducing poverty and sustaining developments. It is done through supporting marginalized producers or disadvantaged whether grouped in co-operatives or independent. It helps them move from poverty and income insecurity to ownership and being economically stable.
Another element is of that of being accountable and transparent. Fair trade ensures transparent management by involving all its employees, producers and members in decision making. It also displays accountability to its stakeholders and respectively deals well with its trading partners. Fair-trade provide a good and healthy working condition. The organization complies with local and national laws on safety and healthy laws (Bright, 2005, p. 5).
Fair-trade provide a fair price, a price that has been agreed upon through participation and dialogue. It covers both the production cost and provides production which is environmentally sound and just. It pays based on work thus the principle of paying equally for equal work to both men and women. This helps them have gender equity, meaning that they value women's work and reward them.
Fair-trade also provides capacity building, developing capabilities and skills of its members. It seeks to enhance positive development for the small marginalized producers as well as helping them access new markets. The organization ensures that no forced or child labor is in practice. It adheres to national laws and local on underage employment and the convention of the UN on a child's right. This helps it ensure that the producer fully complies with the law.
Coffee for instance remains one of the most valued items in the world. However, for many of the coffee farmers they get little financial return. This has been as a result of the nature of coffee farming which is labor intensive. The market of coffee has also been characterized by high price volatility. It has led to International Agreements to curb this (Fair-trade Labeling Organizations International, 2011).
Fair trade standards have been set for coffee trading. The standards have set a minimum trade price which is considered fair. It has been set in accordance to various qualities of coffee. In addition, small farmers have to be organized in small organizations which they govern. Decisions are democratic and each member has the right to vote (Fair-trade Labeling Organizations International, 2011). In addition, the standards also encourage environmental friendly agricultural practices. They emphasize on sustainability.
There are also some limitations to fair-trade principles in spite of it showing efficiency in fair-trade. The ...