Explain what the term 'fair trade' means and what are the importnent Essay

Explain what the term 'fair trade' means and what are the importnent issues for the business world - Essay Example The Fair Trade Federation states that members are committed to seven key concepts: to pay fair wages; to support participatory workplaces; to ensure environmental sustainability; to supply financial and technical support; to respect cultural identity; to offer public accountability; and to educate consumers. Fair trade consists of 10 standards a business must adhere to. These include: working to create opportunities for disadvantaged producers; transparent management and accountability; helping producers to develop independence; raising awareness and promoting the opportunities of fair trade; paying a fair price; offering gender equality; providing safe and healthy work environments; respecting the UN Convention on the Rights of the Child; working toward environmentally healthy approaches; and fair trade relations—taking into consideration the social, economic and environmental well-being of producers and not taking advantage of the producers by profiting at their expense. 2 To be included as a fair trade business, one must first determine what is considered â€Å"fair†. Fair Trade Resource Network (FTRN) says that being fair constitutes more than just paying a fair wage. â€Å"It means that trading partnerships are based on reciprocal benefits and mutual respect; that prices paid to producers reflect the work they do; that workers have the right to organize; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources.†3 The products included in fair trade business are numerous. These include: apparel, accessories, art, crafts, agricultural products, furniture, cards, holiday items, house wares, jewelry, music and musical instruments, paper, pottery, rugs, textiles, toys and others. For consumers, it’s not always easy to determine if a product comes from a fair-trade business.