Fairtrade Fortnight Special: Shopping for a Better World Part 2

Types of Companies in the Fair Trade Movement

Radically Alternative Companies

Radically alternative companies are at the forefront of the fair trade movement. These organizations prioritize:

• Fair Trade Practices: Ensuring equitable relationships between producers and consumers.
• Sustainable Production: Utilizing eco-friendly methods.
• Worker Cooperation: Promoting south-south linkages and participatory ownership.
• Non-Profit Orientation: Focusing on social good rather than private profit.

Altruistic Companies

Altruistic companies, while conventional, attempt to project a socially responsible image. They often:

• Adopt Ethical Codes: Implement codes of conduct to appear responsible.
• Charitable Donations: Contribute a portion of profits to non-profits.
• Marketing Strategies: Use their association with charities for advertising.

Renegade Companies

Renegade companies resist acknowledging the social and environmental costs of their operations. They:

• Defend Free Market Mechanisms: Argue for the neutrality and fairness of the free market.
• Competitive Pricing: Use aggressive pricing strategies to undermine altruistic and alternative companies.
• Legal Tactics: Employ legal means to intimidate campaigners, as seen with Monsanto.

The Battle for Market Dominance

The interaction between these company types shapes the future market. Altruistic companies often mimic the language and imagery of alternative companies, confusing consumers. Renegades, on the other hand, use competitive pricing and PR strategies to challenge both altruistic and alternative companies.

Case Studies

• Monsanto: Known for using legal tactics to intimidate campaigners.
• McDonald's: Faced legal challenges in the McLibel case, where the original verdict highlighted issues of low pay, low nutrition, and misleading advertising to children.

Successful Campaigns and Their Impact

Consumer campaigns and alternative companies have achieved notable successes. For instance, the campaign against genetically modified food has significantly impacted public perception and policy.

Key Features of Successful Campaigns

1. Deeper Knowledge: Educating the public about the dangers of genetic modification and market limitations.
2. Widespread Understanding: Promoting issues through education and argument.
3. Specific Actions: Offering actionable steps for consumers.
4. Solidarity: Fostering a sense of unity against the zero-sum mentality of the global market.

Emerging Economic Alternatives

New economic models are emerging, taking these values to their logical conclusion. Companies like Cafe Direct and the Day Chocolate Company exemplify this trend by:

• Complex Social Purposes: Integrating social, human, and environmental goals into their production processes.
• Cooperative Structures: Promoting cooperative relationships and management of common interests.
• Educational Promotion: Stressing the importance of tolerance, diversity, and political relevance in their marketing.

Challenges and Future Directions

The success of fair trade and alternative companies depends on several factors:

• Government Regulation: Increasing political credibility through public regulation.
• Corporate Accountability: Ensuring corporations do not hold governments to ransom.
• Consumer Support: Gaining customers and endorsements to ensure commercial survival.
• Civil Action: Encouraging voluntary initiatives from all companies.
• Union and NGO Collaboration: Balancing cooperation with TNCs and maintaining independence.

Strategic Cooperation

Closer cooperation between labor movements and consumer-based campaigns can be mutually beneficial. The strategic vision of labor movements can complement the market-focused approach of consumer campaigns, leading to a more equitable market.

Conclusion

In the long term, efforts from consumers, trade unions, and governments can lead to new forms of companies that equalize relations between producers and consumers. Immediate collective action in the market can pave the way for these changes, even before ownership structures evolve.

Interesting Stats

• Fair Trade Growth: The global fair trade market was valued at approximately $9.8 billion in 2018 and is expected to grow at a CAGR of 9.7% from 2019 to 2025 (Statista).
• Consumer Preferences: 73% of global consumers are willing to change their consumption habits to reduce their environmental impact (Nielsen).
• Corporate Social Responsibility: Companies with strong CSR programs have a 13% higher employee productivity rate (Harvard Business Review).

By understanding these dynamics and supporting genuinely alternative companies, consumers can contribute to a fairer and more sustainable market.