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Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATO's)

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  • Zanasi, Cesare
  • Paluan, Lorenzo

Abstract

Fair Trade related import from developing countries is quickly growing although it still represents a small share of the total import. Its influence on the development of rural areas in developing countries is related to both quantitative growth and the respect of its ethical code. Large food multi-national companies are increasingly interested in Fair Trade; part of the Fair Trade movement considers the risk of a related loss in the products' identity; others consider the refusal of a more "professional" approach to Fair Trade management as a constraint to its growth. This debate is particularly felt in Italy. The goal of this paper is to evaluate how the most important Italian Fair Trade importers (ATO's) business models influenced their growth strategies; transaction costs analyisis and logistics performance indicators were adopted to measure the supply chain coordination efficiency and performance. The results showed that the ATO's growth strategies, and logistics performances, seemed more influenced by their value propositions, than the lack of managerial skill.

Suggested Citation

  • Zanasi, Cesare & Paluan, Lorenzo, 2007. "Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATO's)," 105th Seminar, March 8-10, 2007, Bologna, Italy 7889, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa105:7889
    DOI: 10.22004/ag.econ.7889
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    References listed on IDEAS

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    4. Leonardo Becchetti & Marco Costantino, 2006. "The effects of Fair Trade on marginalised producers: an impact analysis on Kenyan farmers," Working Papers 41, ECINEQ, Society for the Study of Economic Inequality.
    5. Conforti, Piero & Velazquez, Beatriz E., 2004. "The Effects of Alternative Proposals for Agricultural Export Subsidies in the Current WTO Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-26.
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