Why Fairtrade is Good for Business

John Eccles, 10 October 2012

Magnetism is a Fairtrade certified workplace, which means we serve Fairtrade products to staff and visitors, including trainees, at our Dynamics CRM training courses.

My reasons for leading the company down the Fairtrade path were probably not well grounded in economic theory:  My daughter is president of the University of Auckland Fairtrade Association, and she is very, very persuasive.

So the following reasons why companies should consider involvement with Fairtrade may be rationalisations.  Let the reader decide.

1.      Be on the right side

The global movement for fairer trade and ethical consumption continues to grow despite global recession. It is clearly not a fad. I believe in part it is a reaction against the demonstrable excesses of corporate greed. It’s a global consumer movement that says that exploitation and unethical production is bad and ethical business is good. Personally I think it is more constructive than the “Occupy movement” - a protest against social and economic inequality with the primary goal of changing the economic structure and power relations in society into what organizers considered to be more fair. I would much rather that Magnetism be aligned with the high ground.

2.      Show that Money is NOT your Overriding Motivation

Don’t get me wrong. Of course making money is critically important for businesses. But it should never be the ONLY motivation for owners, managers and staff. When it is, that is where we see the worst excesses. That is where people become de-humanised – merely cogs in a money-making machine. I don’t want to be an owner or shareholder in a company like that. I don’t want to be an employee of a company like that.

Being a Fairtrade workplace does not cost much. But the coffee we buy is somewhat more expensive than other options. It does impact our profitability – and everyone knows it. So it sends a message to staff and visitors that money is not everything. I think that is a reassuring message.

3.      Make Your Business More Ethical

Being a Fairtrade workplace does not make an organisation ethical. But if you want to be an ethical organisation, Fairtrade can communicate that to staff. Taking this step is action – not just words. Everyone says they are ethical and honest, but actions speak louder than words.

* Image from Occupy Auckland demonstration: http://workersparty.org.nz/category/occupy-movement/