Fair trade is a system that promotes the production and
trade of certified goods that support fair labor practices and promote
sustainability. It fosters stable trading partnerships between suppliers and
retailers and minimizes the involvement of intermediaries. The involvement
of big business in fair trade has both advantages and disadvantages. While
it promotes the growth of online shopping and global marketing, it
frequently fails to support and encourage producers.
One of the primary advantages of fair trade is that customers receive
certified products of high quality that they can trust. It also helps
suppliers and supermarkets form straightforward and cost-effective
partnerships, which can lead to long-term stability. This system also
promotes the development of global marketing and online shopping, making it
easier for consumers to access these products. However, big retailers
involved in fair trade frequently fail to support producers, which can lead
to limiting investments in processing facilities and promoting higher
tariffs for profit.
Critics of big business involvement in fair trade argue that it generates
profit without the support of producers’ manufacturing and standards of
living. In addition, big business unethically promotes free-market trade
when producers sell goods through free markets as they cannot wait for fair
trade in which minimal pricing is guaranteed. This generates a considerable
imbalance between prices for consumers and producers. Moreover, consumers
are often misinformed about the companies’ promotion of fair trade.
In general, prices paid by consumers are not relevant to the provision of
producers’ fair treatment. Although people believe that high prices are
justified by investments in growers’ well-being, in reality, the
compensation and profit of producers are low. The major percentage of prices
should support communities through cooperatives, but these cooperatives pay
high certification or registration fees to receive an opportunity to
participate in fair trade.
In fair trade, manufacturers, retailers, and consumers are responsible for
growers' welfare and the creation of opportunities to sell products for a
reasonable price. However, growers must protect their interests by entering
the free market through cooperatives. In this way, they will be free of
harsh tariffs and various fees, manage price fluctuation, and contribute to
the balance between demand and supply.
In conclusion, the involvement of big business in fair trade has both
advantages and disadvantages. While it helps promote the production and
trade of certified goods, it can also lead to limitations in processing
facilities and higher tariffs for profit, which can harm producers'
standards of living. Cooperatives should play a more significant role in
protecting growers' interests and promoting fair trade. The fair trade
system should work towards a better balance between prices for consumers and
fair compensation for producers. |