An ethical dilemma for consumers retailers
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An Ethical Dilemma for Consumers & Retailers?. FAIRTRADE. Fair Price Fair labour conditions Direct trade Democratic and transparent organizations Community development Environmental sustainability . Example of a FAIRTRADE Labeling organization (FLO): Transfair. Ethical Dilemmas.

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An Ethical Dilemma for Consumers & Retailers?

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An ethical dilemma for consumers retailers

An Ethical Dilemma for Consumers & Retailers?


Fairtrade

FAIRTRADE

  • Fair Price

  • Fair labour conditions

  • Direct trade

  • Democratic and transparent organizations

  • Community development

  • Environmental sustainability

Example of a FAIRTRADE Labeling

organization (FLO): Transfair


Ethical dilemmas

Ethical Dilemmas

  • Influence of FAIRTRADE label on Customer purchase intentions

  • If a wholesale firm could source, say, only 40% of its coffee from Transfair, should it bother to separate its sales into two brands?

  • Trading in FAIRTRADE products the end of wholesaler or retailer responsibility?


Influence on customer purchase intentions

Influence on Customer purchase intentions

  • Yes. Although this preference is linked to the price comparison of the products available

  • Ready to pay 10-15% premium on FAIRTRADE products

  • Adverse impact if the price difference is too high


Branding issue

Branding Issue

  • Separate Brands

    • Individual Vs Community

    • Ethical Coffee is Premium Brand, higher price

    • Caters for society where “everybody feels guilty”

    • Consumer forced to make ethical decision in supermarket aisle

  • Combined Brand

    • Short Vs Long and Individual Vs Community

    • Producer is making ethical decision

      for consumer (relief!)

    • Retailers need to advertise moral

      high-ground


  • Is transfair a cop out for retailers

    Is Transfair a cop-out for retailers?

    • One hand wholesaler or retailer’s purpose is to provide its customers with a good products at the lowest price possible

    • On the other hand, a wholesaler or retailer might need to do more in term of social responsibility and check that the supply chain is ‘fair trade’ audited for all its products in stock.

    • Especially relevant in Quasi-monopoly for food retailing like in Australia by

      Coles and Woolworths


    Ethical dilemma

    Ethical Dilemma

    • Right Vs Right Paradigm

      • Individual Vs Community

      • Short Term Vs Long Term

      • Truth Vs Loyalty

  • Resolution Principles

    • I Means to an End – Australian customers Vs millions of growers

    • II Rule Based – Kantian principles

    • II Golden Rule


  • Resolution

    Resolution

    • Coles and Woolworths could follow the example of Whole Foods Market

    • Whole Trade Guarantee program, their in-house fair trade program

    • Target of more than 50% FAIRTRADE products in 10 years and in the long-term convert to only FAIRTRADE products imported from third world countries


    Questions

    Questions?


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