The Fair Trade label and its many derivatives and relatives have become familiar to consumers in the last few years as awareness of the backstory behind products drives demand for increased transparency. We want to know that the people who produced our goods did so in just and equitable circumstances, and without harming the natural environment or exploiting local resources. These certifications offer values-based consumers the assurance they seek. But the farmers and producers (almost all in the developing world) who send their goods to us with fair trade labels represent only a portion of the number of farmers and producers wanting to join the network of international trade in fair and environmentally-responsible goods. In order to be a part of that chain, though, they have to have sufficient financial stability to create the relationships with international traders that position them for success. If they can’t obtain the financial leverage to prove to trade partners that they’re a safe bet, they struggle endlessly to profit from choosing more sustainable production practices, while on the other hand, if they can’t convince lenders to finance their enterprises, they can never get in the door with the trade partners. Ultimately they may revert… (more)
(Posted by Sarah Rich in Socially Responsible Investment at 3:49 PM)