📘 UNIT 2: FAIR TRADE PRACTICES IN RETAIL BUSINESS
2.0 OBJECTIVES
After studying this unit, you should be able to:
• Explain principles of fair trade
• Understand impact on consumers
• Link fair trade with product quality
• Know social & economic importance
2.1 INTRODUCTION
• Fair trade = part of business ethics
• Ensures:
o Minimum wages
o Safe working conditions
o No child/forced labour
o Fair price to producers
o Environmental protection
Focus: Fairness + Transparency + Sustainability
2.2 SIGNIFICANCE OF FAIR TRADE
1. Empowers Producers
o Helps farmers & workers earn fair income
2. Reduces Poverty
o Improves living standards
3. Environmental Protection
o Promotes eco-friendly practices
4. Ethical Consumption
o Consumers support ethical products
5. Community Development
o Funds used for education & health
6. Challenges Unfair Trade
o Promotes global equality
2.3 PRINCIPLES & STANDARDS
🔹 2.3.1 PRINCIPLES OF FAIR TRADE
• Fair prices
• Fair labour conditions
• Direct trade (no middlemen)
• Environmental sustainability
• Community development
• Gender equality
🔹 2.3.2 STANDARDS OF FAIR TRADE
• Fair trade price (minimum guaranteed)• Fair trade premium (extra for development)
• Transparent supply chain
• No child labour
• Safe working conditions
• Environmental standards
• Empowerment of communities
• Gender equality
• Democratic decision-making
2.4 FAIR TRADE IN BUSINESS ACTIVITIES
1. Consumer Awareness
• Educates buyers about ethical products
Example: Fair trade coffee campaigns
2. Product Quality
• Ensures high quality standards
Example: Fair trade chocolate quality
3. Labelling
• Special logos show ethical products
Example: Fair Trade Certified label
4. Packaging
• Eco-friendly & sustainable materials
5. Pricing
• Minimum price guaranteed to producers
6. Distribution
• Fair share to producers
• Less intermediaries7. Promotion
• Ethical marketing campaigns
Example: Anti-child labour promotion
8. People & Community Development
• Investment in:
o Education
o Healthcare
o Infrastructure
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