What is the difference between Fairtrade and ethical trading?
Ethical trading means companies are involved in a process of trying to ensure that the basic labour rights of the employees of their third world suppliers from developing countries are respected. The Fairtrade Certification Mark, which applies to products rather than companies, aims to give disadvantaged small producers more control over their own lives. It addresses the injustice of low prices by guaranteeing that producers receive fair terms of trade and fair prices however unfair the conventional market is. On top of the Fairtrade Minimum Price, the Fairtrade Labelling system guarantees a premium for producer organizations or workers bodies to enable them to invest in social, economical or environmental improvements.
Ethical trading means companies are involved in a process of trying to ensure that the basic labour rights of the employees of their third world suppliers from developing countries are respected. The FAIRTRADE Certification Mark, which applies to products rather than companies, aims to give disadvantaged small producers more control over their own lives. It addresses the injustice of low prices by ensuring that producers receive fairer terms of trade and better prices however unfair the conventional market is. On top of the Fairtrade Minimum Price, Fairtrade includes an additoinal sum, called the Fairtrade Premium, for producer organizations or workers bodies to enable them to invest in social, economic and environmental improvements.
