Just as the marketing principles arise from the value systems of the business house, a fair trade practise from the business house can also result in fair trade marketing. Studies (Consumer Demand for the Fair Trade Label: Evidence from a Field Experiment) have suggested that consumers are willing to pay a premium amount provided the products are ethically certified! Now, we came across some important principles that we feel are pretty relevant to govern fair trade all over:
- Principle 1 – Create Opportunities for the Economically Disadvantaged: One of the key guidelines to be adhered to would be to support small time and economically backward producers as well.
- Principle 2 – Be transparent and accountable: This applies to the entire business house including the top management. Focus has to be on bringing transparency in the decision making process and at the same time being accountable to the stakeholders!
- Principle 3 – Be Fair: This brings out an a critical point on not maximising profits at the expense of not being fair with produces, employees, consumers, the supply chain etc.
- Principle 4 – Paying a fair price – providing fair and acceptable remunerations for all services sought!
- Principle 5 – No Child & Forced Labour – Need we say more!
- Principle 6 – Non discrimination with freedom of association – again, quite clear, but just not practised by many business houses.
- Principle 7 – Good working conditions – Safety, proper working hours etc. – all a part of this!
- Principle 8 – Provision for Capacity Building – looks at increasing the positive development among produces, employees and so on
- Principle 9 – Fair Promotion: Yet again, a highly missed out activity of fair promotion, providing the right information and so on
- Principle 10 – Be environment friendly:build systems, process , fair trade practises that do not harm the environment, but respect it.
Good fair trade practises result in fair trade marketing which results in more trust and more purchases. This ultimately reflects on the top line and bottom line numbers as well!