Fairtrade for Business

October 2008: Bristol Fairtrade Purchasing Guide released.

We are living at a time when there is a rapidly emerging convergence between corporate sustainability and environmental and social sustainability.

The ever increasing number of consumers making a stand for ethical consumption to preserve the planet and make it a better place for us all, present companies with challenges to adapt their business models - but also opportunities to respond to new trends in purchasing behaviour. Ethical consumption is currently growing at rate nearly eight times faster than the economy as a whole.

 

Most companies now recognise the need to adopt Corporate Social Responsibility (CSR) policies to ensure they are meeting their customers' expectations. Fairtrade provides an opportunity to not only avoid unjust or unsustainable practices, but to make a positive contribution to a better and fairer world.

 

Your Customers want Fairtrade

The Fairtrade Foundation's annual MORI survey of awareness of the FAIRTRADE Mark shows a doubling from around 20% to nearly 40% of the population between 2002 and 2004. Similarly, other MORI surveys have shown that the number of consumers for whom CSR is an important factor in purchasing decisions has risen by more than half from 24% to 38% over the last six years. This is further reinforced by Mintel research which shows that 79% of adults are now swayed by ethical issues when making purchases.

At the same time, there is increasing scepticism of corporate claims in this area, with nearly 70% of consumers feeling that companies do not pay enough attention to their social responsibilities.

As an independent certification label, the FAIRTRADE Mark provides a simple and clear guarantee to consumers that products have been sourced and traded in accordance with standards. The Foundation's 2004 MORI survey revealed that 86% of people who bought Fairtrade products regarded this guarantee as "very or fairly important" in making their decision.

Fairtrade - the supply side

Some companies are concerned that Fairtrade producers may not be able to meet the commercial requirements of mainstream businesses but these concerns are unwarranted.

Fairtrade producers understand the importance of quality and reliability and are keen to use the opportunities provided through Fairtrade to invest in making their businesses more customer focussed. They understand that this is a key element in sustainability, but all too often in conventional supply chains the primary producer is detached from the market and only learns of changing trends or requirements when it is too late.

For businesses that want to offer Fairtrade products to their staff and visitors there are now a number of excellent specialist suppliers in the Bristol area. Click on the suppliers link for details.

 

Fairtrade for your staff

Ninety three percent of organisations experience difficulties in recruitment and 72% admit to staff retention problems.

In the current economic climate employees are more selective about who they work for and are looking for companies that care about and look after their people. If the company cares about the working conditions of its overseas suppliers it is more likely to take similar pains with its direct employees.

In addition, employees who feel good about the companies they work for will be more committed and happier, leading to improved staff retention and therefore reduced recruitment and training costs.

Once again, by making Fairtrade products available to your employees and your customers, you can demonstrate actions in support of these principles, rather than just words.

 

Fairtrade - a sound investment

Increasingly, people funding businesses - including investors and banks - are concerned about the ethical stance of the companies they are supporting and need to be assured that there is a sustainable and profitable future.

Transparent reporting of CSR in company reports is now becoming de rigeur and by the use of Fairtrade products where possible, whether as supplies for consumption within the business or as goods for resale, provides an easily achievable and recognised goal to demonstrate your company's commitment to socially responsible practices.

 

Latest Retail developments

Fairtrade is becoming big business for retailers with sales of certified products doubling every two years.

Dedicated Fairtrade business Cafedirect, is now Britain%u2019s 6th largest coffee brand, while its Teadirect is the fastest-growing tea brand in the UK. Successful brands like Percol and Clipper have worked with Fairtrade for ten years and the list of companies offering Fairtrade products is growing weekly. Fairtrade accounts for nearly 20% of the premium roast & ground coffee market by volume and 7% of banana sales.

While the Co-op has taken a lead in making Fairtrade products more widely available and over the past two years has switched all it's Own Brand coffee and chocolate to Fairtrade, as well as extending the range across all categories for which there are Fairtrade standards, most other national retailers are also recognising the growth trend in Fairtrade products. Tesco, Sainsbury, Waitrose and Asda are all increasing the distribution of products across their stores, and developing new product lines.

In the cafe and restaurant sector, Fairtrade coffee is now standard at Marks & Spencer's 'cafe Revive' chain and at AMT kiosks at stations and airports. Consumers can also choose Fairtrade options at Starbucks, Pret a Manger and Costa Coffee. And thousands of independent outlets and workplaces are recognising that Fairtrade makes good business sense as well as being socially responsible.

Check the directory to make sure that your business is listed.