News - May 2013

Dimension

Conventional Trade

Fair Trade

Strategy

Profit is the overriding concern

Balances concerns for people, the planet, and profit

Financing

Payment is received at time of shipment; credit is sometimes extended by informal lenders at exorbitant rates

Advanced credit allows for income during lean seasons between harvest/ production cycles.

Investment

Corporate investment in a community can be limited to people and activities that build skills for use in related commercial enterprises and/ or generate good publicity.

Technical assistance and training build broader skill sets, and social premiums foster investment and social projects that benefit all residents of low income communities

Supply Chain

Supply chain seeks out lowest-cost labor and raw materials, often through exploitive middlemen or contractual arrangements that reflect little concern for producers and their families.

Disadvantage groups are made partners in the Fair Trade supply chain

Marketing

Marketing is directed at increasing profitability

Marketing is driven by consumer education and advocacy that leads to socially responsible business innovations.