Fundamentals of ethical trading in poorer countries: overview for the World Bank

As trade further globalizes, social and environmental concerns are emerging, in some cases rather quietly. Dominant market groups are setting a range of standards that their developing country suppliers must meet. For some major European food companies these are proving to be nearly as relevant as concerns for quality and safety. What is this "ethical trading" and how does it impact the development of food production and the value chain in developing countries that seek to export? Can the promotion of ethical trading standards improve a subsector's competitiveness in the marketplace or does it serve more as a catalyst for sustainable production and livelihoods? This paper addresses these emerging standards, their application, their role, and potential implications for governments and development agencies

Social impact of ethical and conventional brazil nut trading on forest-dependent people in Peru

This study compares the impact of conventional and ethical international export of brazil nuts on the livelihoods of forest dependent people in order to identify the potential of ethical trade to improve those livelihoods

Ethical consumers and ethical trade: a review of current literature (NRI Policy Series 12)

This publication reviews the large number of consumer surveys of ethical consumerism, and describes the different types of ethical consumer, their motivation and concerns, their willingness to pay an ethical premium, and the ways they learn about ethical products. It shows how different survey methodologies affect what we know and do not know about ethical consumerism, and highlights how methodological shortcomings are starting to be addressed.The publication reveals that ethical consumerism is a complex phenomenon, something that those calling for greater consumer awareness of ethical issues need to understand when promoting different forms of ethical trade. The fair-trade and organic movements have been at the forefront of understanding this phenomenon, and their experiences offer lessons for the commercial mainstream, particularly the importance of information and awareness as a prerequisite for action. These lessons are also crucial for international development agencies that need to understand the operation of Northern markets if their investment in ethical approaches to trade in developing countries is to pay dividends

Moving from traditional government to new adaptive governance: the changing face of food security responses in South Africa

The food system faces increasing pressure from dynamic and interactive, environmental, political and socio-economic stressors. Tackling the complexity that arises from such interactions requires a new form of 'adaptive governance'. This paper provides a review of various conceptions of governance from a monocentric or politicotechnical understanding of governance through to adaptive governance that is based in complex adaptive systems theory. The review is grounded by a critique of the existing institutional structures responsible for food security in South Africa. The current Integrated Food Security Strategy and tasked governmental departments are not sufficiently flexible or coordinated to deal with an issue as multi-scalar and multidisciplinary as food security. However, actions taken in the non-governmental sector signal the emergence of a new type of governance. Apart from an increasing recognition of food security as an issue of concern in the country, there is also evidence of a changing governance structure including collaboration between diverse stakeholders. We review these governance trends with an understanding of the food system as a complex adaptive socio-ecological system where actors in the food system self-organize into more flexible networks that can better adapt to uncertain pressure

Business as a development agent: Evidence of possibility and improbability

An emphasis on making markets work for the poor has thrust companies into the role of ‘development agents’ – organisations that consciously seek to deliver outcomes that contribute to international development goals. This paper examines what business as a development agent means in terms of the promise, the conceptualisation and the developmental outcomes of several initiatives engaged in ‘bottom billion capitalism’. It argues that, while these initiatives are hailed as a solution for poverty, the benefits of such engagement must be weighed against other factors, including exclusion, the emphasis on capital assets and the reinterpretation of positive outcomes. The paper presents an alternative model of business as a development agent that better meets the criteria for a genuine development actor

Outsourcing Governance: Fairtrade’s Message for C21 Global Governance

Purpose – This paper seeks to bring together ethical governance theory and empirical findings to examine the shifting nature of governance in global value chains, and the implications of this shift for mainstream companies. In particular, it aims to examine one of the more mature models of ethical value chain governance, Fairtrade, and how this is being used by business. Design/methodology/approach – Information is derived from a longitudinal study of multi-stakeholder co-governance in Kenya and the UK, and an analysis of the literature on similar co-governance models. Findings – The paper shows that mainstream companies are looking to multi-stakeholder models not only to protect their reputation, but as a way of governing ethical dimensions of their value chains. However, rather than a form of co-governance, it has become a way of outsourcing governance, enabling companies to strengthen their public credibility, while simultaneously transferring an especially difficult element of modern value chain governance to organizations enjoying high consumer trust. Yet, primary data suggest that these governance systems are not delivering the benefits promised, at least at the producer level. Practical implications – By outsourcing governance to initiatives with dubious credibility in this way, companies may seem at risk. However, the mismatch between the promise and delivery of Fairtrade does not seem to be affecting consumer confidence and, until it does, companies may continue to benefit from the halo effect of being a Fairtrade ally. But there are also opportunities for companies to use Fairtrade's weaknesses to make the value chain a better avenue for delivering ethical governance, with implications for similar co-governance models. Originality/value – The study draws on one of the very few pieces of longitudinal field research on the impacts of Fairtrade. It approaches Fairtrade from a governance rather than reputations perspective, and emphasizes the implications for mainstream business rather than the co-governance movement