World Fair Trade Day 2022: How Your Business Can Help

May 14, 20221:21 pm1347 views
World Fair Trade Day 2022: How Your Business Can Help
image source: WFTO

Climate change is underway, whether you like it or not, and it is already harming people and livelihoods. There need to be equitable, inclusive, and long-term solutions for individuals affected by the climate issue while resolving the core consequences of global warming. To commemorate the World Fair Trade Day of 2022, here is an insight into how your company can help in incorporating climate justice into its business operation.

Climate and Inequality

The climate problem is the result of a flawed economic system that is indifferent to people’s well-being and the fragile environment. Modern global economy’s unfair trading arrangements and unjust commercial practices are growing inequality and creating climatic and ecological instability. Most conventional enterprises’ main economic strategy is profit via excess production. The mass manufacturing of commodities has resulted in a dependency on burning fossil fuels, which releases massive amounts of carbon and greenhouse gasses into the environment. The accumulation of consumer goods on the global market has also resulted in waste and environmental concerns.

The pandemic, lockdowns, and poor weather are deepening the wealth gap. The most severely impacted are already in misery. Farmers, craftsmen, laborers, and the most vulnerable members of society are now dealing with the consequences. The need for new solutions has never been higher in these trying times of pandemic and climate crisis. To address severe social and environmental concerns, the ethical movement joins forces with breakthroughs. Addressing the climate issue is more than just reducing carbon emissions; climate measures and goals must also address people’s needs and suffering, particularly those who are deeply affected by climate change.

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The Need for Fair Trade

Inequality is widespread and has been worsening. According to World Bank research, global goals of eradicating poverty by 2030 cannot be met unless inequality is reduced significantly. Businesses occupy the economy, route investments, and earnings, and play a critical role in deciding how economic benefits are distributed. In addition to this, a study shows how profits have been increasing for some years, but real incomes have not. Because of the expectation of high shareholder returns and the competition to attract shareholder investment through dividends, companies are less likely to invest in accomplishing social goals.

How Business Can Help

In a world where customers are overwhelmed with information and investigative journalism is under-resourced, many companies realize the need to be perceived to do the right thing while not feeling the same need to follow through on their activities. In line with the spirit of equality, the World Fair Trade Organization (WFTO) recommends businesses, particularly ones whose business model is consumer goods, to consider principles that put people and the planet first.

1 . Ethical Supply Chains

Businesses and enterprises of all sorts can encourage business model change by favoring and supporting Fair Trade Enterprises and other Sustainable models in their supply chain. They may also help suppliers adapt their business models by implementing five WFTO-mandated strategies: fighting inequality, women driving change, saving our planet, going where other businesses won’t, and commercial resilience.

2 . Supply Chain Policies

Commercial businesses must modify their purchasing procedures to fit the characteristics of Fair Trade Businesses. This includes order lead times that are adjustable and practicing minimum order quantities. Additionally, creating long-term commitments to social businesses and guaranteeing that the prices paid and conditions of trade help them in providing comparable terms to their producer groups, employees, farmers, and artisans.

3 . Impact Reporting

Companies need to be transparent in disclosing their impact on society, especially the ones operating on a massive scale, such as mining and energy, manufacturing, and consumer goods. Shareholders and stakeholders should be informed about the impact of ethical supply chains on producers and communities in order to develop an expectation of ethical behavior.

Justice is about individuals obtaining what they are owed. This must take place within the boundaries of the human world. Everyone has the right to live in a society where fairness and sustainability are equally valued, in an economy where no one is left behind.

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