Analysis of Background of Fair Trade and Pillars of Sustainability

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Fair trade is defined as when third-world countries pay producers in third-world states a fair price for their work. It is when the price is paid for products that give producers enough to offer life's basics like food, education, and healthcare. How fair trade works is essential as the identity in understanding the benefits of purchasing appropriate trade products. It is critical to know how the system works and how it affects both ends of the scale. The benefits of fair trade are so many, as discussed here below ((Naylor 2017, p.816-835). Fairtrade works on a model of the least price. Having a bond benefits farmers and producers of products like coffee and fair trade bananas to increase their pay, lowering the risk of scarcity, and upturning the security of their jobs and household income.

Background of Fairtrade and what it aims to achieve in terms of Elkington's (2001)'s three pillars of sustainability.

The fair trade movement has undergone numerous modifications since its early days after World War II. The first formal Fair Trade shop opened its doors in 1958 in the USA. Fairtrade is a model innate out of a need to produce equality for farmers, growers, and producers in third-world countries. Fairtrade strives to ensure that fairer terms of trade between buyers and farmers have been achieved (Lernoud and Willer, 2017, p.143-148). They further offer protection for workers' rights and offer producers a framework for building farms and organizations that will thrive. Among the primary purposes of Fairtrade standards is to guarantee those producers get prices that shield their regular, sustainable production costs. Offer extra Fairtrade Premium that can be capitalized in projects that will boost social, economic, and eco-friendly development. It further hints to allow pre-financing for producers who need it. Provide mechanisms for long-term trading partnerships and assist more considerable producer control over the trading process.

Sustainability is usually viewed as an objective of companies, nonprofits, and management in the past decades. However, quantifying the grade to which a society is being sustainable or pursuing sustainable development can be challenging. Fairtrade through John Ellington's stove to measuring sustainability has been achieved. This involves the triple bottom line. The three principles sound in the process includes the economic measures where the economic variable is supposed to be a variable that works with the bottom line and the flow of money, with specific examples being personal income and job growth. The second pillar is the Environmental measures, where the environmental variables signify natural resources' capacities and replicate possible encouragements on their viability (Mason and Doherty, 2016, p.451-469). The social standards have some social dimensions applied by fair trade in various regions and include but are not limited to education, equity, and social resources access.

Contribution of a Fairtrade organization to long-term global sustainability.

Fairtrade, through its efforts, ensures that it has long-lasting plans that contribute to global sustainability. There is a Fairtrade Least price that is a safety net for almost 1.7 million agriculturalists and employees in more than 75 states, safeguarding them from unpredictable marketplaces and making sure that they can improve their justifiable production costs to accomplish the objective. A good example is the coffee farmers affected by the global price crash; this ensures that poverty-related cases have been eradicated (Wang and Chen, 2019, p.66-72). The fair trade Access fund has been millions of dollars to date, benefitting small-scale farmers in 18 states leading to the end of hunger and attaining food security, and refining nutrition while upholding justifiable agriculture. It also supports some smallholder’s associations like the Zawadi Women coffee farmers.

Fairtrade standards contribute to sustainability by advocating for gender fairness and women and girls' authorization by fighting all forms of discrimination and advocating for parental leave. Lot is achieved, aiming for the future by having gender leadership schools that facilitate seed funding for women enterprises through the fair trade premium. Inequalities are also a long-lasting project that honest trade endeavors to achieve ((Mook, and Overdevest, 2018, p.269-280). The organizations strive to ensure that youths and migrant employees in rural societies are well-fortified and more self-assured to participate in decision-making in their companies and farms. Among those fair trade has helped is the Haitian migrant banana workers in the Dominion Republic. Goal 13 on the workable development of fair trade is to combat climate change and its impacts on employees and farmers who take part as front liners on climate risks.

Fairtrade sponsors climate-resilient farming through its ideals and plans to safeguard the environment and biodiversity. More and more farmers are harvesting freshwater, planting shade trees, swapping to biogas and green energy sources, and capitalizing on combined pest management, organic fertilizers, and dynamic agroforestry. The Fairtrade Climate Standard is the first to report inequities in the carbon market and ensure a fair financial return for the producers. Fairtrade has established inclusive institutions that are accountable in their internal administrations ((Cater, Collins, and Beal, 2017, p.185-201). Fairtrade remains the only world ethical label, 50 percent maintained and run by farmers and workers alone. Fairtrade allows rural communities to have an investment and develop other world objectives of sustainable growth. Since the SDGs were launched in 2015, many financial resources have been channeled to fund schools and hospitals and ensure safe and clean drinking water. The trade leads to benefits for the environment since it contributes entirely to the ground. The concept of fair trade encourages fairness as those who produce their products have to control them, and they work in good, safe, secure environments. They cannot be subjected to discrimination or prejudice.

Some advantages and disadvantages are related to fair trade. Among the advantages are that fair trade offers an excellent wage system in place. Society gets some extended benefits that exceed just basic needs. Fait trade allows some small business owners to become internationally competitive. Organic techniques applied by fair trade create some suitable products. Under fair trade, products are offered with an assured minimum price no matter what happens. Multiple products are always available (Schenk, 2019, P.397-423). There exists no perfect system, and therefore, flaws are always there. Among the disadvantages related to the discourse is that producers' slight responsibility, is that significant purchasers are not usually concerned with the fair trade ideal. The standard of society's development continues to diminish over the years. There is no drive to form better capabilities.

Fairtrade supports climate-resilient agriculture through its standards and courses to guard the environment and biodiversity. They make their resolutions on spending the Fairtrade Premium, whether refining output or addressing their community's sustainable development priorities. Fairtrade exists as the only organization adhering to ethical standards working on both ends of the supply chain towards goal 12 on workable consumption and invention forms. At one end, producer societies are supported to adhere to the organization's environmental and social standards (including no GMO and no child or forced labor. On the other end, buyers and sellers are held responsible through the Fairtrade Trader Standard, which shields clear contracts, fair prices, frankness about finding and market predictions, pre-financing for producers, and agreement with environmental labor law.

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Fairtrade has established ways of fighting climate change and its influences on farmers and employees at the vanguard of weather risks. A substantial number of farmers harvest rainwater, plant shade trees, switch to biogas and renewable energy sources, and invest in cohesive pest management, organic fertilizers, and vibrant agroforestry (Ruggeri and Corsi, 2019, P.118-191). The Fairtrade Climate Standard is the first to address disparities in the carbon market and guarantee a reasonable monetary return for the producers.

Compare fairtrade with at least one other VEP and critically discuss the advantages and disadvantages of Voluntary Environmental Programs and their role in facilitating environmental sustainability – is it a short-term temporary approach or a proper solution to the problems we face?

Fairtrade takes a different approach from many other VEP that focuses on a system that is long-term and yields sustainable decent livelihoods for all the stakeholders. Fairtrade has continued to set some social, environmental, and economic standards that progressively raise the bar in various sectors. Compare to Rainforest; Fairtrade is doing better and realizing its goals effectively and efficiently. The most significant difference between fair trade and Rainforest is high in the paid price of products. A good example is a guarantee that Fairtrade makes $ 1.21 (65p) per pound of green coffee beans ((Bhavsar, Diallo, and 'like, 2021, p.124). The Rain forest Alliance guarantees no minimum price on the products and leaves the sellers and buyers hanging with no anticipation of the costs.

Rainforest Alliance permits small entities a helpful entry point onto the ethical market since there is no 100% RA certification and further offers entities an opportunity to become more honest in the future if they want to be. The Fairtrade mark does not in any way afford ways in which companies can join the ethical market. Fairtrade is offering a new sourcing program that allows products to contain only Fairtrade agreements.

Voluntary environmental programs are initiatives meant to advance the environment by reassuring, moderately than assigning, companies and other establishments to implement ecologically caring measures. The creativities through Fairtrade help firms to be able to enhance their reputation with a wide range of constituents. The plans lead states to have similar ways to deal with any challenge and new industries, occasionally with more all-inclusive tactics than the media-specific, end-of-pipe focus of most current laws. On the other side of the book, voluntary plans are inadequate by the absence of clear price or controlling indications to push changes in company or purchaser action or inspire demand for domestic know-how. 'Free riding,' where some companies avoid making any effort while others willingly address a problem and keep more directives at bay, may be an issue in some cases (Dragusanu, Giovannucci, and Nunn, 2018,p.276). Debatably, a volunteer method may change considerably from the principal contaminators- that may be both the source of more production and more low-cost release reductions- to cleaner firms that emit less and have already taken substantial action. Some in the eco-friendly community see voluntary programs as a disruption from the real work of taking compulsory action.

Wide-ranging work has been done on the enthusiasm for firms to contribute; doing so may help pre-empt the danger of rule, affect future administration, improve stakeholder affairs, or gain practical benefit. EPs can have difficulty establishing their credibility with consumers, who may be skeptical about the label's significance. Furthermore, consumers end up buying less polluting products without buying more from eco-friendly businesses. With this in mind, VEPs needs to engage with customers and establish their reputation to ensure that the system works as planned. (Meemken et al, 2019, 635-642) Fair Trade efforts on Voluntary Environmental programs are long-term to transform communities positively. The issues of climate, equality and better working conditions, wages for workers, and reasonable market prices for products produced go a long way in simply transforming a state and leaving an indelible mark. The approach thus set a trajectory that is followed and turns the challenges encountered into opportunities.


Fairtrade has contributed significantly to sustainable development through various actions and continues to be in the lead on ensuring that fairness, equity, and equality have been achieved for sellers, buyers, and other concerned stakeholders. While playing the role of leadership, Fairtrade has been supporting and offering a challenge to governments and commercial entities in connecting farmers and employees with buyers who can purchase their products. Fairtrade enables farmers' groups to develop and establish more substantial businesses while encouraging democracy, accountability, and administrative efficiency.

Environment conservation is a fundamental concept well appreciated by fair trade. Fairtrade calls upon small-scale farmers and large-scale farmers to adhere to environmental conservation measures. The access to essential service opportunities brought about by Fairtrade enables farmers and communities to benefit from grants that lead to the eradication of poverty. Voluntary environmental initiatives are so important since they ensure that buyers and consumers buy less polluting products. The creativities involved in VEP aids entities in implementation.

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