FTF Principles and Practices
FTF members are committed to the following principles and practices
in their trading relationships:
Fair Wages
Producers are paid fairly for their products, which means that
workers are paid at least that country's minimum wage. Since the
minimum wage is often not enough for basic survival, whenever
feasible, workers are paid a living wage, which enables them to
cover basic needs, including food, shelter, education and health
care for their families. Paying fair wages does not necessarily
mean that products cost the consumer more. Since Fair Trade Organizations
bypass exploitative middlemen and work directly with producers,
they are able to cut costs and return a greater percentage of
the retail price to the producers.
Cooperative Workspaces
Cooperatives and producer associations provide a healthy alternative
to large-scale manufacturing and sweatshops conditions, where
unprotected workers earn below minimum wage and most of the profits
flow to foreign investors and local elites who have little interest
in ensuring the long term health of the communities in which they
work. Fair Trade Organizations work primarily with small businesses,
worker owned and democratically run cooperatives and associations
which bring significant benefits to workers and their communities.
By banding together, workers are able to access credit, reduce
raw material costs and establish higher and more just prices for
their products. Workers earn a greater return on their labor,
and profits are distributed more equitably and often reinvested
in community projects such as health clinics, child care, education
and literacy training. Workers learn important leadership and
organizing skills, enabling self-reliant grassroots-driven development.
Safe and healthy working conditions are maintained and producers
gain greater control and decision making power over the use of
their local resources.
Consumer Education
Fair Trade Organizations educate consumers about the importance
of purchasing fairly traded products which support living wages
and healthy working conditions. By defining fair trade and conducting
business in a manner that respects workers' rights and the environment,
the fair trade movement strives to educate consumers about the
often hidden human costs of their "bargains." By providing
information about producers' history, culture and living conditions,
Fair Trade Organizations enhance cross-cultural understanding
and respect between consumers and communities in the developing
world. They also educate consumers and policy makers about inequities
in the global trading system.
Environmental Stability
Fair Trade Organizations encourage producers to engage in environmentally
friendly practices which manage and use local resources sustainably.
Many FTF members work directly with producers in regions of high
biodiversity to develop products based on sustainable use of their
natural resources, giving communities an incentive to preserve
their natural environments for future generations.
Financial And Technical Support
Small-scale farmers and artisans in the developing world lack
access to affordable financing, impeding their profitability.
FTF members that buy products directly from producers often provide
financial assistance either through direct loans, prepayment or
by linking producers with sources of financing. Unlike many commercial
importers who often wait 60-90 days before paying producers, Many
FTOs ensure prepayment so that producers have sufficient funds
to cover raw materials and basic needs during production time.
They also often provide other critical technical assistance and
support such as market information, product feedback and training
in financial management. Unlike commercial importers, FTOs establish
long term relationships with their producers and help them adapt
production for changing trends.
Respect for Cultural Identity
Fair Trade Organizations encourage the production and development
of products based on producers' cultural traditions adapted for
Western markets. They seek to promote producers' artistic talents
in a way that preserves cultural identity.
Public Accountability
FTF members' finances, management policies, and business practices
are open to the public and monitoring by the Fair Trade Federation.
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