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Fair trade and ethical trade: are there moves towards convergence?

Author

Listed:
  • Sally Smith

    (University of Sussex, UK)

  • Stephanie Barrientos

    (University of Sussex, UK)

Abstract

Fair trade and ethical trade have traditionally had quite different aims, scope and modalities, the former principally focused on terms of trade with small scale producers and the latter on working conditions in mainstream production. Global value chain analysis suggests that this coincided with different forms of governance in the chain: fair trade reflecting relational governance based on trust and mutual dependence, while ethical trade was incorporated into the industrial coordination of buyer-driven, modular value chains. This paper explores the potential for greater synergy between the two as a result of recent developments, taking UK supermarket value chains as a case study. We conclude that convergence may occur in some supermarket chains, in a context of relational governance, while in others ethical trade and fair trade will remain inherently different. Whether and how convergence occurs will depend largely on the prevailing culture, values and strategies of the supermarket concerned. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Sally Smith & Stephanie Barrientos, 2005. "Fair trade and ethical trade: are there moves towards convergence?," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(3), pages 190-198.
    • Handle: RePEc:wly:sustdv:v:13:y:2005:i:3:p:190-198
    DOI: 10.1002/sd.277
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    References listed on IDEAS

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    1. Douglas Murray & Laura Raynolds, 2000. "Alternative trade in bananas: Obstacles and opportunities for progressive social change in the global economy," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 17(1), pages 65-74, March.
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    Citations

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    Cited by:

    1. Pamela K. Robinson, 2009. "Responsible retailing: Regulating fair and ethical trade," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 1015-1026.
    2. Viorel Mionel & Oana Mionel & Alexandra Moraru, 2014. "The Relation between Fair Trade and Supermarkets: Spatial Implications for the Global Economy," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 109-113, June.
    3. Nick Clarke & Clive Barnett & Paul Cloke & Alice Malpass, 2007. "The Political Rationalities of Fair-Trade Consumption in the United Kingdom," Politics & Society, , vol. 35(4), pages 583-607, December.
    4. Jutta Kister, 2013. "Fair trade in Germany left the niche market. Power shifts observed in global fair trade value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(3), pages 35-54.
    5. Moana S. Simas & Laura Golsteijn & Mark A. J. Huijbregts & Richard Wood & Edgar G. Hertwich, 2014. "The “Bad Labor” Footprint: Quantifying the Social Impacts of Globalization," Sustainability, MDPI, vol. 6(11), pages 1-27, October.
    6. Nathan Manning & Kathy Edwards, 2014. "Why Has Civic Education Failed to Increase Young People's Political Participation?," Sociological Research Online, , vol. 19(1), pages 1-12, February.
    7. Will Low & Eileen Davenport, 2009. "Organizational Leadership, Ethics and the Challenges of Marketing Fair and Ethical Trade," Journal of Business Ethics, Springer, vol. 86(1), pages 97-108, April.
    8. Childs, John, 2008. "Reforming small-scale mining in sub-Saharan Africa: Political and ideological challenges to a Fair Trade gold initiative," Resources Policy, Elsevier, vol. 33(4), pages 203-209, December.
    9. Luc Fransen & Brian Burgoon & Jette Steen Knudsen, 2017. "How Do Domestic Regulatory Traditions Shape CSR in Large International US and UK Firms?," Global Policy, London School of Economics and Political Science, vol. 8, pages 29-41, May.
    10. John Wilkinson, 2007. "Fair Trade: Dynamic and Dilemmas of a Market Oriented Global Social Movement," Journal of Consumer Policy, Springer, vol. 30(3), pages 219-239, September.
    11. Seongtae Kim & Claudia Colicchia & David Menachof, 2018. "Ethical Sourcing: An Analysis of the Literature and Implications for Future Research," Journal of Business Ethics, Springer, vol. 152(4), pages 1033-1052, November.
    12. Darryl Reed, 2009. "What do Corporations have to do with Fair Trade? Positive and Normative Analysis from a Value Chain Perspective," Journal of Business Ethics, Springer, vol. 86(1), pages 3-26, April.
    13. Eeva L. Laine & Matias Laine, 2009. "Finnish World Shops at a crossroads in the commercialized fair trade market," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(5), pages 274-283.
    14. Childs, John, 2014. "A new means of governing artisanal and small-scale mining? Fairtrade gold and development in Tanzania," Resources Policy, Elsevier, vol. 40(C), pages 128-136.
    15. Doris Fuchs & Agni Kalfagianni & Tetty Havinga, 2011. "Actors in private food governance: the legitimacy of retail standards and multistakeholder initiatives with civil society participation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 353-367, September.
    16. repec:bla:glopol:v:8:y:2017:i:s3:p:29-41 is not listed on IDEAS
    17. Alex Nicholls, 2010. "Fair Trade: Towards an Economics of Virtue," Journal of Business Ethics, Springer, vol. 92(2), pages 241-255, April.
    18. John Wilkinson, 2011. "From Fair Trade to Responsible Soy: Social Movements and the Qualification of Agrofood Markets," Environment and Planning A, , vol. 43(9), pages 2012-2026, September.
    19. Mohammad Alghababsheh & David Gallear & Mushfiqur Rahman, 2020. "Balancing the Scales of Justice: Do Perceptions of Buyers’ Justice Drive Suppliers’ Social Performance?," Journal of Business Ethics, Springer, vol. 163(1), pages 125-150, April.
    20. Peter Edward & Anne Tallontire, 2009. "Business and development-Towards re-politicisation," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(6), pages 819-833.
    21. Viet Hoang & An Nguyen & Carmen Hubbard & Khanh-Duy Nguyen, 2021. "Exploring the Governance and Fairness in the Milk Value Chain: A Case Study in Vietnam," Agriculture, MDPI, vol. 11(9), pages 1-22, September.
    22. J. McMurtry, 2009. "Ethical Value-Added: Fair Trade and the Case of Café Femenino," Journal of Business Ethics, Springer, vol. 86(1), pages 27-49, April.
    23. Anne Tallontire, 2009. "Top heavy? Governance issues and policy decisions for the fair trade movement," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 1004-1014.

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