fair trade and the triple bottom line: seeking equilibrium as the eagle meets the condor by paulette...

Fair Trade and the Triple Bottom Line:Fair Trade and the Triple Bottom Line:Seeking Equilibrium as the Eagle Meets the CondorSeeking Equilibrium as the Eagle Meets the Condor

by Paulette L. Stenzelby Paulette L. Stenzel

stenzelp@bus.msu.edu • tradeandsustainability.comstenzelp@bus.msu.edu • tradeandsustainability.com

Professor of International Business Law, Michigan State UniversityProfessor of International Business Law, Michigan State University

March 19, 2009

PachamamaPachamama

Mother Earth • Time • Universe

The Eagle and The CondorThe Eagle and The Condor

Eagle: reliance on head and brain

• Manifested in materialism, technology, and intellect• Much of the world has gone too much in this direction

Condor: reliance on heart and attention to Pachamama

• People in Andes Mountains & South America have stayed closer to ways of heart

The Prophesy of the Eagle & the CondorThe Prophesy of the Eagle & the CondorAs Told by the Indigenous People

of the Andes Mountains

It is time for the North & the South, the head and the heart, to meet and find the

good in each other to protect the Earth and all sentient beings.

Integration - Not Just BalanceReaching Equilibrium

Seeking the Best of Both

What is Fair Trade?What is Fair Trade?

“Fair Trade is a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair Trade [o]rganizations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practices of conventional international trade.Fair Trade products are produced and traded in accordance with these principles - wherever possible verified by credible, independent assurance systems.”

Definition is from F.I.N.E., an information organization that includes four major Fair Trade networks:  Fairtrade Labeling Organizations International (FLO), the International Fair Trade Association, the European Fair Trade Association, and the Network of World Shops.

Characteristics of Fair TradeCharacteristics of Fair Trade

Fair Wages

Cooperative Workplaces

Consumer Education

Environmental Sustainability

Financial & Technical Support for Producers

Giving Back to the Community

Respect for Cultural Identity

Public Accountability

What is the Goal of Fair Trade?What is the Goal of Fair Trade?To Create a Fair & Just System

Alternative Way of Doing Business

Paying People a Fair Price 

Building equitable, long-term partnerships

Connecting consumers in developed regions & producers in developing regions

Goods come from anywhere: including the U.S. & countries throughout the world

Fair Trade: A Tool to Pursue Fair Trade: A Tool to Pursue Sustainable DevelopmentSustainable Development

The Ecuadorian woman packaging fair trade soaps obtains her product

ingredients from the nearby gardens.

Defining Sustainable DevelopmentDefining Sustainable Development

“Development that meets the needs of the present without compromising the

ability of future generations to meet

their own needs.”

The 1987 United Nations Brundlandt report - published as Our Common Future – calls it:

What is the Triple Bottom Line (TBL)?Recognizes need to consider economic, social,

and environmental business decisions

People, Planet, Profit • Equity, Ecology, Economy • Social Equity, Environment, Economy

How Can We Recognize Sustainability?How Can We Recognize Sustainability?The Triple Bottom LineThe Triple Bottom Line

The TBL is a tool to measure progress toward sustainable development.

What is What is FreeFree Trade? Trade?

Not Synonymous with Fair Trade.

In theory…Free trade allows goods and services to flow across international borders without government-imposed restrictions.

In practice…Free trade agreements remove or lessen government restrictions on trade crossing international borders. There are many exceptions for “sensitive products.” Example: U.S. protects producers of sugar, rice,

corn, beans, and other agricultural goods.

Unsustainable Development Unsustainable Development

Cement Company, LAFARGE, stripping Ecuador’s Cement Company, LAFARGE, stripping Ecuador’s Cotacachi Ecological Preserve for lime.Cotacachi Ecological Preserve for lime.

How Does Fair Trade FitHow Does Fair Trade Fitinto theinto the

Triple Bottom Line (TBL)?Triple Bottom Line (TBL)?

A TBL Business Returns a greater share of profits to the producer

(i.e., farmer, seamstress, or artist) Avoids use of child labor (in most cases) Pays fair salaries to workers Maintains a safe work environment and tolerable

working hours Does not otherwise exploit a community or its labor

force.

Which are all Fair Trade Characteristics

How Fair Trade CoincidesHow Fair Trade Coincideswith Indigenous Paradigmwith Indigenous Paradigm

Rejects Privatization Reestablishes a “commons”

Recognizes community rights

& self-determination

Uses cooperatives and collectives

Seeks Local Products

Emphasizes Harmonization Takes plants only as needed.

Uses land wisely (rotates crops)

Organics not pesticides

Prophesy of the Eagle and the CondorProphesy of the Eagle and the CondorSeeking Harmony & Learning from Each OtherSeeking Harmony & Learning from Each Other

ConclusionConclusion

1. We are connected to the Earth locally and globally

2.2. FFair Trade provides a way

to respect our

fellow human beings

3. One significant tool to

promote sustainability:

Fair Trade

““We Are All One”We Are All One”

Email: stenzelp@bus.msu.edutradeandsustainability.com