Fair Trade and the Triple Bottom Line: Seeking Equilibrium as the Eagle Meets the Condor

1. Fair Trade and the Triple Bottom Line:Seeking Equilibrium as the Eagle Meets the Condor by Paulette L. Stenzel stenzelp@bus.msu.edu • tradeandsustainability.com Professor of International Business Law, Michigan State University March 19, 2009

2. Pachamama • Mother Earth • Time • Universe

3. The Eagle and The Condor • Eagle: reliance on head and brain • Manifested in materialism, technology, and intellect • Much of the world has gone too much in this direction • Condor:reliance on heart and attention toPachamama • People in Andes Mountains & South America have stayed closer to ways of heart

4. The Prophesy of the Eagle & the CondorAs Told by the Indigenous People of the Andes Mountains It is time for the North & the South, the head and the heart, to meet and find the good in each other to protect the Earth and all sentient beings. Integration - Not Just Balance Reaching Equilibrium Seeking the Best of Both

5. What is Fair Trade? “Fair Trade is a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair Trade [o]rganizations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practices of conventional international trade.Fair Trade products are produced and traded in accordance with these principles -wherever possible verified by credible, independent assurance systems.” Definition is from F.I.N.E., an information organization that includes four major Fair Trade networks:  Fairtrade Labeling Organizations International (FLO), the International Fair Trade Association, the European Fair Trade Association, and the Network of World Shops.

6. Characteristics of Fair Trade Fair Wages Cooperative Workplaces Consumer Education Environmental Sustainability Financial & Technical Support for Producers Giving Back to the Community Respect for Cultural Identity Public Accountability

7. What is the Goal of Fair Trade?To Create a Fair & Just System • Alternative Way of Doing Business • Paying People a Fair Price  • Building equitable, long-term partnerships • Connecting consumers in developed regions & producers in developing regions • Goods come from anywhere: including the U.S. & countries throughout the world

8. Fair Trade: A Tool to Pursue Sustainable Development The Ecuadorian woman packaging fair trade soaps obtains her product ingredients from the nearby gardens.

9. Defining Sustainable Development The 1987 United Nations Brundlandt report - published as Our Common Future – calls it: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

10. What is the Triple Bottom Line (TBL)? Recognizes need to consider economic, social, and environmental business decisions People, Planet, Profit • Equity, Ecology, Economy • Social Equity, Environment, Economy

11. How Can We Recognize Sustainability?The Triple Bottom Line The TBL is a tool to measure progress toward sustainable development.

12. What is Free Trade? Not Synonymous with Fair Trade. In theory…Free trade allows goods and services to flow across international borders without government-imposed restrictions. In practice…Free trade agreements remove or lessen government restrictions on trade crossing international borders. There are many exceptions for “sensitive products.” • Example: U.S. protects producers of sugar, rice, corn, beans, and other agricultural goods.

13. Unsustainable Development Cement Company, LAFARGE, stripping Ecuador’s Cotacachi Ecological Preserve for lime.

14. How Does Fair Trade Fitinto theTriple Bottom Line (TBL)? A TBL Business • Returns a greater share of profits to the producer (i.e., farmer, seamstress, or artist) • Avoids use of child labor (in most cases) • Pays fair salaries to workers • Maintains a safe work environment and tolerable working hours • Does not otherwise exploit a community or its labor force. Which are all Fair Trade Characteristics

15. How Fair Trade Coincideswith Indigenous Paradigm Rejects Privatization • Reestablishes a “commons” • Recognizes community rights & self-determination • Uses cooperatives and collectives Seeks Local Products Emphasizes Harmonization • Takes plants only as needed. • Uses land wisely (rotates crops) • Organics not pesticides

16. Prophesy of the Eagle and the CondorSeeking Harmony & Learning from Each Other

17. Conclusion We are connected to the Earth locally and globally Fair Trade provides a way to respect our fellow human beings One significant tool to promote sustainability: Fair Trade

18. “We Are All One” Email: stenzelp@bus.msu.edu tradeandsustainability.com