10 Principles of Fair Trade
Principles that Fair-Trade Organisations must follow in
Principle One: Creating Opportunities for Economically Disadvantaged Producers The organisation supports marginalised small producers, whether these are independent family businesses, or grouped in associations or co-operatives. It seeks to enable them to move to economic self-sufficiency and ownership
Principle Two: Transparency and Accountability The organisation is transparent in its management and commercial relations. The organisation finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes.
Principle Three: Fair Trading Practices The organisation trades with concern for the social, economic, and environmental well-being of marginalised small producers and does not maximize profit at their expense. Producers and Suppliers of FT products, ensure orders are paid on receipt of documents. For Handicraft and food FT products, pre-payment of at least 50% at a reasonable interest is made if requested.
Principle Four: Fair Payment A fair payment is one that has been mutually negotiated and agreed by all through on-going dialogue and participation, which provides fair pay to the producers and can also be sustained by the market, taking into account the principle of equal pay for equal work by women and men. The aim is always the payment of a Local Living Wage. care, transport, clothing, and other essential needs, including provision for unexpected events
Principle Five: Ensuring no Child Labour and Forced Labour The organisation adheres to the UN Convention on the Rights of the Child, and local law on the employment of children. The organisation ensures that there is no forced labour in its workforce.
Principle Six: Commitment to Non Discrimination, Gender Equity and Women’s Economic Empowerment and Freedom of Association The organisation does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age.
Principle Seven: Ensuring Good Working Conditions The organisation provides a safe and healthy working environment for employees and / or members. It complies, at a minimum, with national and local laws and ILO conventions on health and safety.
Principle Eight: Providing Capacity Building The organisation seeks to increase positive developmental impacts for small, marginalised producers through Fair Trade. The organisation develops the skills and capabilities of its own employees or members.
Principle Nine: Promoting Fair Trade The organisation raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade.
Principle Ten: Respect for the Environment Organisations which produce Fair Trade products maximize the use of raw materials from sustainably managed sources, buying locally when possible. They use production methods that reduce energy consumption and use renewable energy technologies. They seek to minimize the impact of their waste stream on the environment. Goods are dispatched by sea wherever possible.