Thursday 9 April 2009

The Confusing Business of Doing Good

In the quest to make a professional name for myself out in these foreign climes under the umbrella of Fair Trade, I've had to come to terms with an unexpected barrier in the path of my progress; the variety of certifications available for consumer products (which consumers are, naturally, supposed to recognise and differentiate). A case in point are two recent heavyweight certification events; the crossing over of Cadbury to Fairtrade for it's Dairy Milk bar and the Mars Inc. commitment to The Rainforest Alliance for it's Galaxy chocolate bars.

So what are the difference between these two different organisations? Surely any commitment to certification standards by a mutli-national is good news? Well, fundamentally it depends on what you percieve as important in the inclusion of the standards that the Mars's and Caburys of this world are supposed to follow.

In a sentence (for those members of the social networking revolution with dwindling attention spans that can be measured only in nanoseconds) and in the case in point of Fairtrade and Rainforest Alliance the following differences in focus of accreditation are;

Fairtrade addresses the trading system, ensuring that producers receive a minimum price for their coffee plus a premium for investment in community projects.

Rainforest Alliance aims to cover aspects of sustainable agriculture: environment, rights and welfare of workers and the interests of local communities.

Another important factor to consider the factor of consumer recognition and relationship with these various different badges that are stamped on products; certified coffee appears relatively expensive because of the use of conventional coffee in some countries as loss leaders with substantial discounts. This is a significant barrier to expansion of certified coffee. Where discounts are not used, it is very difficult in many cases for consumers to compare prices on a rational basis because so little information is given on the origins and quality of the mainstream coffee brands. There is so much variation in the price of coffee, depending on the brand and the outlet.

Despite setbacks, consumer awareness of certification seems to be high and growing, and can only get better with the big league commitments shown over the last couple of months. However, factors also have to be considered of the certification bodies to maintain standards under a rapidly expanding remit of certified producers and their ability to monitor and enforce required best practise; a tricky balancing act with resources stretched thin by the momentum of growth.

All in all, an exciting time for ethical international business, and an especially exciting time for chaps wishing to roll up their sleeves abroad and get jolly well stuck in.


Puerto Escondido
9th April 2009

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