Ethical and Social Responsability

Arnot, C., Boxall, P. C., & Cash, S. B. (2006). Do ethical consumers care about price? A revealed preference analysis of fair trade coffee purchases. Canadian Journal of Agricultural Economics, 54(4), 555.

The existing literature on socially responsible purchasing relies heavily on stated preference measures elicited through surveys that utilize hypothetical market choices. This paper explores consumers' revealed purchasing behavior with regard to fair trade coffee and is apparently the first to do so in an actual market setting. In a series of experiments, we investigated differences in consumer responsiveness to relative price changes in fair trade and non-fair trade brewed coffees. In order to minimize the hypothetical bias that may be present in some experimental settings, we conducted our experiments in cooperation with a vendor who allowed us to vary prices in an actual coffee shop. Using a choice model, we found that purchasers of fair trade coffee were much less price responsive than those of other coffee products. The demonstration of low sensitivity to price suggests that the market premiums identified by stated preference studies do indeed exist and are not merely artifacts of hypothetical settings.

Audebrand, L., & Pauchant, T. (2009). Can the fair trade movement enrich traditional business ethics? an historical study of its founders in mexico. Journal of Business Ethics, 87(3), 343.

As the need for more diversity in business ethics is becoming more pressing in our global world, we provide an historical study of a Fair Trade (FT) movement, born in rural Mexico. We first focus on the basic assumptions of its founders, which include a worker-priest, Frans van der Hoff, a group of native Indians and local farmers who formed a cooperative, and an NGO, Max Havelaar. We then review both the originalities and challenges of the FT movement and its potential contributions to the current theories and practices in business ethics.

Bright, L. (2005). Fair trade in care? Nursing Older People, 17(5), 6-5.

The article focuses on the concept of fair trade in the medical field. The concept is now well established as a way of describing relations between Great Britain and countries in the developing world. This approach is intended to be ethically sound, to ensure that producers receive a price that reflects their real costs, a reasonable amount of profit for living expenses, and funds to reinvest in building a healthy business. Around 70 per cent of the 410,000 care home places currently occupied by older people are paid for by a combination of care budgets and individuals' state retirement pension. (Bright, 2005)

Castaldo, S., Perrini, F., Misani, N., & Tencati, A. (2009). The missing link between corporate social responsibility and consumer trust: The case of fair trade products. Journal of Business Ethics, 84(1), 1-15.

This paper investigates the link between the consumer perception that a company is socially oriented and the consumer intention to buy products marketed by that company. We suggest that this link exists when at least two conditions prevail: (1) the products sold by that company comply with ethical and social requirements; (2) the company has an acknowledged commitment to protect consumer rights and interests. To test these hypotheses, we conducted a survey among the clients of retail chains offering Fair Trade products. The results show that socially oriented companies can successfully leverage their reputation to market products with high symbolic values. (Castaldo and all., 2009)

Available online: http://www.springerlink.com/content/7w6411q0413660w5/fulltext.pdf

Chatzidakis, A., Hibbert, S., & Smith, A. P. (2007). Why people don't take their concerns about fair trade to the supermarket: The role of neutralisation. Journal of Business Ethics, 74(1), 89.

This article explores how neutralisation can explain people's lack of commitment to buying Fair Trade (FT) products, even when they identify FT as an ethical concern. It examines the theoretical tenets of neutralisation theory and critically assesses its applicability to the purchase of FT products. Exploratory research provides illustrative examples of neutralisation techniques being used in the FT consumer context. A conceptual framework and research propositions delineate the role of neutralisation in explaining the attitude-behaviour discrepancies evident in relation to consumers' FT purchase behaviour, providing direction for further research that will generate new knowledge of consumers' FT purchase behaviour and other aspects of ethical consumer behaviour. (Chatzidakis and all., 2007)

Coles, A., & Harris, L. (2006). Ethical consumers and e-commerce: The emergence and growth of fair trade in the UK. Journal of Research for Consumers, (10), 1.

In this article we seek to investigate the claim that active consumer choice can influence societal transformation through study of the growth in the market for 'fair trade' goods in the UK, and by evaluating the effect of their availability through e-commerce. We assess this phenomenon with reference to the literature on ethical consumerism locating it within consumer studies, and discuss the role played by the use of information and communication technologies. Changes in the nature of consumerism have been identified, and the issue of the impact of the consumer in societal and global change is discussed here in relation to the wider issue of sustainable development. (Coles & Haris, 2006)

Available online: http://www.jrconsumers.com/academic_articles/issue_10,_2006?f=8854

Covel, S. (2008). Tours to fair-trade farms help coffee sellers spread word. Wall Street Journal - Eastern Edition, 251(58), B5.

The article focuses on small coffee companies that are espousing fair trade, a practice that works to treat third-world workers and the environment fairly. Their dedication to fair trade, the article says, is the way they set themselves apart from less socially conscious competitors. Just Coffee Cooperative, Higher Grounds Trading Co. and Pura Vida Coffee use tours to coffee farms observing fair-trade practices as a way to strengthen their mission and build a firmer connection with current and potential clients who are also committed to the cause. (Covel, 2008)

Davies, I. A., & Crane, A. (2003). Ethical decision making in fair trade companies. Journal of Business Ethics, 45(1/2), 79.

This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of ) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson's proposal for a more contextualist understanding rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make. (abstract from the authors)

De Pelsmacker, P., Driesen, L., & Rayp, G. (2005). Do consumers care about ethics? willingness to pay for fair-trade coffee. The Journal of Consumer Affairs, 39(2), 363.

Consumers' buying behavior is not consistent with their positive attitude toward ethical products. In a survey of 808 Belgian respondents, the actual willingness to pay for fair-trade coffee was measured. It was found that the average price premium that the consumers were willing to pay for a fair-trade label was 10%. Ten percent of the sample was prepared to pay the current price premium of 27% in Belgium. Fair-trade lovers (11%) were more idealistic, aged between 31 and 44 years and less "conventional." Fair-trade likers (40%) were more idealistic but sociodemographically not significantly different from the average consumer. [PUBLICATION ABSTRACT]

Free and fair trade is good for business.(2001). Industry Week/IW, 250(8), 7.

Comments on the formation of Free Trade Area of the Americas (FTAA) by leaders in the Western Hemisphere. Purpose of FTAA; Demand for laws to protect manufacturers from unfair trade practices; Reference to the success of North American Free Trade Agreement.

Available online: http://www.industryweek.com/articles/the_editors_page_--_free_and_fair_trade_is_good_for_business_2126.aspx

Fridell, M., Hudson, I., & Hudson, M. (2008). With friends like these: The corporate response to fair trade coffee. Review of Radical Political Economics, 40(1), 8.

Capitalist agriculture is highly exploitative of both producers and the environment. Fair trade is a movement attempting to mitigate this exploitation, partly by baiting corporate actors into the arena of "ethical production." In the coffee industry, major corporations are responding by discrediting fair trade and branding themselves as ethical. While falling well short of addressing the real demands of the movement, the proliferation of "ethical" labels resulting from this response threatens to destroy fair trade's own ethical brand. [PUBLICATION ABSTRACT]

Hayes, L. (2004). Fair trade fits ethical billing. Times Higher Education Supplement, (1667), 54-54.

Reports on the tips provided by Oxford Brookes University in conducting conference on achieving fair-trade status in London, England. Basis of the fair trade movement; Events included in the conference.

Available online: http://www.timeshighereducation.co.uk/story.asp?storyCode=192562&sectioncode=26

Loureiro, M. L., & Lotade, J. (2005). Do fair trade and eco-labels in coffee wake up the consumer conscience? Ecological Economics, 53(1), 129-138.

In this study, a face-to-face survey was conducted in order to reveal consumer preferences for ethical and environmentally sound labeling programs in coffee. Valuation questions regarding the fair trade, shade grown, and organic coffee labels were asked using a payment card format, after consumers were previously informed about each of the labeling programs. Results suggest that consumers are very receptive toward both fair trade and shade grown coffee labels, and consequently are willing to pay higher premiums for these labeling programs than for the organic coffee.(Loureiro and Lotade, 2005)

Obermiller, C., Burke, C., Talbott, E., & Green, G. (2009). 'Taste great or more fulfilling': The effect of brand reputation on consumer social responsibility advertising for fair trade coffee. Corporate Reputation Review, 12(2), 159.

There are numerous retailers in the specialty coffee market that sell Fair Trade Coffee (FTC). Some retailers sell FTC to meet the demand of socially responsible consumers, some are motivated by their own concern for small coffee producers and others sell FTC because of the taste profile of a particular FTC grower's coffee. A critical question facing these retailers is how best to position FTC: as good tasting or as socially responsible? This study examines consumers' coffee preferences, their comprehension of labels, the price they are willing to pay for FTC and tests the effectiveness of advertising socially responsible consumption as primary benefit of purchasing FTC. The implications for managing company reputation and communication of social responsibility for FTC are discussed and suggestions are given for advertising strategy and management of Fair Trade products. [PUBLICATION ABSTRACT]

Ozcaglar-Toulouse, N., Shiu, E., & Shaw, D. (2006). In search of fair trade: Ethical consumer decision making in france. International Journal of Consumer Studies, 30(5), 502.

While the market for fair trade products has been growing in many countries, this paper examines the French market where fair trade remains marginal but is experiencing growth. Using a modified Theory of Planned Behaviour framework the research examines consumer intention to purchase fair trade grocery products in order to explain the pertinent decision-making criteria of both consumers of and potential consumers of fair trade. Results reveal that concerned consumers should not be treated as one homogeneous group, rather, the distinct variations in the factors that influence their decision making must be considered when promoting, labelling and distributing fair trade products. Implications for both sustaining and developing the market for fair trade products in the future are highlighted and discussed. [PUBLICATION ABSTRACT]

Robinson, P. (2009). Responsible retailing: Regulating fair and ethical trade. Journal of International Development, 21(7), 1015.

Deregulation in the 1980s and 1990s reaffirmed a market approach to the global trading of goods. Suggestions that this contributed to unfair terms of trade and poor labour conditions led to calls for greater corporate accountability. Following pressure to improve conditions, companies embraced a range of voluntary initiatives under the umbrella of fair and ethical sourcing. This article examines these commitments on the ground, in a global banana supply chain. Taking the case of bananas is significant because the major corporations at each end of the chain are in a potential position to orchestrate fair and ethical trade. Despite this potential for standards to be upheld, the case of bananas suggests that whilst supermarkets continue to drive down consumer prices, voluntary initiatives will fall short of their guarantees. This leads the paper to consider the policy implications of a more regulated approach to fair and equitable trade in the world's supply chains. [PUBLICATION ABSTRACT]

Watson, M. (2007). Trade justice and individual consumption choices: Adam smith's spectator theory and the moral constitution of the fair trade consumer. European Journal of International Relations, 13(2), 263.

A consistent theme of the existing literature is that fair trade consumption practices represent acts of justice. In this article I investigate such an equation from the perspective of the moral theory of Adam Smith. Smith explains the development of moral sensibilities via an imaginative act he calls 'sympathy'. For Smith, justice prevails in interpersonal relationships in which the potential for one person to do harm to another is ruled out because their respective imaginations are in perfect accord, thus creating a situation of mutual sympathy. (Watson, 2007)