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Fairtrade Labelling Organizations International (Flo) Essay

844 words - 4 pages

One of the most relevant ethical and legal framework from what we gathered are Fair Trade and the EU’s CAP (Common Agriculture Policy). Firstly, Fairtrade will be discussed and then the CAP.

Fairtrade Labelling Organizations International (FLO) is an organization which promotes fair trade. It focuses on improving lives of producers in undeveloped countries in a sustainable way. According to the official website of FLO, the first Fairtrade labelled product was coffee from Mexico, which was sold in Dutch supermarket in 1988. During the late 1980s and the early 1990s, the idea of Fairtrade had been spread, and FLO was established in 1997 in Germany. Except Russia, East European countries, ...view middle of the document...

Moreover, not all items are Fair Trade certified therefore are alternatives to consumers. It is evident people are concerned about the ethical problems in the agriculture sector, sales have risen in Fair Trade goods by 12% in the UK. (Lucas, 2012) This thrusts on why corporations should be socially minded.

The Fair Trade helps the agriculture sector by helping farmers with a number of factors from which they will benefit. Their main aim is to reduce farmers in poverty and to create better wage conditions.

Due to the contracts, companies use it to their advantage and can change supplier, typically as it’s offered at a cheaper price which leaves its current producer in a dilemma. Fair Trade will draw up contracts which will care for the producers and form long-term trading partnerships; in-conjunction with the environment. Moreover, this also increases the knowledge about the market to the producers for future negotiations.

Not only do Fair Trade consider bigger producers but support smaller producers and form an alliance for farmers. This can be such a positive aspect for a company, evident from the research that Fair Trade goods are selling and that consumers will pay an extra. Therefore this is an important ethical framework within the agriculture.

The Common Agricultural Policy, also known as the CAP, is the agricultural policy of the European Union (EU). This sets out a collection of farming, environmental and rural activities, and controls the EU agricultural market. The Common Agricultural Policy began in 1962 but it has changed over...

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