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The Ethical Dilemmas of Fairtrade

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The Ethical Dilemmas of FAIRTRADE

The economic and moral struggles that accumulate between the fields and factories to the end user continue to play havoc in the day-to-day dilemmas of society. The following message is displayed on the “About” page of the Fair Trade Association of Australia & New Zealand’s website: “By choosing products carrying the FAIRTRADE Label, consumers can support farmers, their families and communities in receiving more stable and secure incomes, better working conditions, and enhanced investment in quality and local environmental sustainability.” Analyzing “Fair Trade” through the moral, social and economic lens can blur the lines of an organization’s corporate responsibilities. In the Nike Corporation scandal of child labor laws in the 1990’s, the public outcry was heard around the globe while the organization’s stock prices continued to soar as consumers lined up to purchase the products. Today, Nike stock prices tilters around $95 per share, which is a far cry from the $3 per share price in the early 90’s or the $32 per share in 1996 during the height of the scandal. You have to ask yourself, “Can a free enterprise society, required to share a profit with its shareholders, function within the guidelines of corporate social responsibility?” A high level review the Fair Trade program can be analyzed using the profits and corporate behavior of the Green Mountain Coffee Roasters (GMCR), INC.
As noted in the article “When Is Fair Trade Not Fair?” article (p. 33, Stanwick & Stanwick), GMCR claimed that 23% of their $2.6 million (GMCR 2011 Annual Report) sales were from Fair Trade products. That equates to approximately $600,000 US dollars to local Guatemala bean growers. The $600,000 dollars exchanges into about $4.6 billion local Guatemala currency. While the cost of living in Guatemala is about 30% less than in Charlotte NC,

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