The Institutionalization of Fair Trade: More than Just a Degraded Form of Social Action

The context of economic globalization has contributed to the emergence of a new form of social action which has spread into the economic sphere in the form of the new social economic movements. The emblematic figure of this new generation of social movements is fair trade, which influences the economy towards political or social ends. Having emerged from multiple alternative trade practices, fair trade has gradually become institutionalized since the professionalization of World Shops, the arrival of fair trade products in the food industry, and the establishment of an official “fair trade” label. With the strength that this institutionalization has generated, fair trade can now be considered a real trade system that questions, as much as it renews, the traditional economic system. In parallel, this transformation has exacerbated the tensions within the movement, which can be characterized as a clash between a “radical, militant” pole and a “softer, more commercial” one. However, it is not the actual institutionalization of fair trade which is being debated among fair trade actors on either side of the fence, but rather the challenges inherent in finding an economic institutionalization acceptable to social economic movements. Therefore the institutionalization process of fair trade should not be seen as mere degradation of social action, but rather as typical of the institutionalization process of new social economic movements. If we need to worry about the highjacking and alteration of the fair trade movement by the dominant economic system, the opposite is no less likely, as new social economic movements contribute to an ethical restructuring of markets.     

The Showrooming Phenomenon: It's More than Just About Price

This paper examines the factors that influence competitive showrooming, whereby consumers visit an offline retail store to gather information but make their purchase online at a competing retailer. We survey 556 respondents to study how the benefits and costs of showrooming influence the consumer's decision to showroom. Not surprisingly, we find that expected average price savings from showrooming are positively associated with showrooming. In addition, however, the perceived dispersion in online prices is also positively related to showrooming. Moreover, we find that non-price factors play a key role in consumers' showrooming decisions: perceived gains in the quality of the product purchased when showrooming (measured as the fit with a consumer's need) and waiting time for service in the brick-and-mortar store are positively associated with showrooming. Online search costs are negatively related to showrooming. Time pressure that consumers face when shopping is negatively associated with their propensity to showroom. We discuss implications for researchers and retail managers. For example, managers of offline retail stores can curtail showrooming by increasing the number of sales personnel available in-store instead of providing currently employed personnel with more training. To encourage showrooming, managers of online retailers should make it easier for the customer to search online.     

The Fair Trade Idea: Towards an Economics of Social Labels

The concept of Fair Trade is applied to the marketing of a variety of goods. In recent years it has met a continually increasing interest among consumers. Different Fair Trade organizations are trying to accomplish an improvement in working and living conditions in developing countries by means of Fair Trade certificates and by paying a price markedly above world market standard. This is meant to lead to the attainment of basic social standards, especially in agricultural production. The article deals with how Fair Trade works and whether the social aims can be achieved by the application of this trade concept. Our main result is that even though efficiency of redistribution through the Fair Trade institutions is lower than through traditional relief organizations, the Fair Trade concept provides an additional incentive to support better living conditions in the Third World. Moreover, it provides a stimulus for producers to reorganize the production process in a socially more acceptable manner even when this is not rewarded by the Fair Trade company.

Fair Trade: Dynamic and Dilemmas of a Market Oriented Global Social Movement

Fair Trade is analysed as a new economic social movement to the extent that it is based on new forms of collective action and directs its demands primarily to the market rather than to the State. In addition, it is intrinsically a global movement harnessing development goals to new market relations. It differs, however, from similar movements (organics, animal welfare) to the extent that it focuses primarily on traditional issues of redistributive justice rather than a new generation of rights and duties. Fair Trade is understood as having three components: (i) the organization of alternative trading networks; (ii) the marketing of Fair Trade labelled products through licensed conventional traders and retailers; and (iii) the campaign-based promotion of Fair Trade to change both purchasing practices and the rules of conventional trade. As a market oriented movement, Fair Trade relies crucially on the emergence of a new politicization of consumer activity comprising not only “consumer-activists” but also the State as consumer and a new layer of political consumers sensitive to issues of social justice in their daily purchasing practices.

More than Just an Opinion: The Effect of Verbal Self‐Expression on Consumer Choice

In an ever‐widening range of occasions, consumers have the opportunity to comment and express their opinions on brands and products. However, little is known about how voicing opinions about the choice options before actually choosing might affect consumer choice, and specifically liking of choice. This paper proposes that pre‐choice opinion expression undermines the effect of post‐choice bolstering, because opinion sufficiently satisfies self‐expressive needs and therefore supersedes the use of subsequent choice as a self‐expressive resource. This proposition is based on the assumption that opinion can psychologically substitute for choice, because the two represent alternative routes to self‐expression. Two experiments provide empirical support for this hypothesis. Study 1 showed that after articulating their opinions about the choice options, participants were less likely to idealize their choices, and this effect was mediated by a change in the construal of choice as self‐expression. Study 2 further showed that this effect is moderated by public versus private occasions of opinion voicing and by individual differences in the value of expression. Together, findings support that opinion is enough to express the self, and if such an opportunity is made available prior to choosing, consumers’ liking of their choices is weakened.     

The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products

This paper investigates the link between the consumer perception that a company is socially oriented and the consumer intention to buy products marketed by that company. We suggest that this link exists when at least two conditions prevail: (1) the products sold by that company comply with ethical and social requirements; (2) the company has an acknowledged commitment to protect consumer rights and interests. To test these hypotheses, we conducted a survey among the clients of retail chains offering Fair Trade products. The results show that socially oriented companies can successfully leverage their reputation to market products with high symbolic values.     

The Dynamics of Fair Trade as a Mixed-form Market

This article analyses the Fair Trade sector as a “mixed-form market,” i.e., a market in which different types of players (in this case, nonprofit, co-operative and for-profit organizations) coexist and compete. The purposes of this article are (1) to understand the factors that have led Fair Trade to become a mixed-form market and (2) to propose some trails to understand the market dynamics that result from the interactions between the different types of players. We start by defining briefly Fair Trade, its different dimensions (including the “fair” quality of the products) and its organizational landscape, focusing on the distinction between the pioneer “Alternative Trading Organizations” and the second-mover companies. Then, we recall the theoretical emergence factors for each type of organization (nonprofit, co-operative and for-profit) and apply these emergence factors to the context of Fair Trade. This analysis allows us to capture the specificities of each type of operator with regard to Fair Trade and, thus, to have a better understanding of the dynamics in the sector. Such dynamics includes competition, but also conflict and partnership. Our analysis includes elements on ethical imitation, consumers’ behaviors, effects on welfare and the role of the government.     

国际公平贸易运动:一个南北贸易的新潮流

公平贸易作为南北贸易的一种新型贸易形式,走过了70多年的发展历程,并取得了瞩目的成绩。公平贸易促进了南方国家的可持续发展,其产品成为南方国家小生产者和劳动工人开辟北方国家市场的主要工具。本文从公平贸易的发展历程、公平贸易网络和成员组织、公平贸易的参与者和运作机制三个方面展现出公平贸易的全貌,并对公平贸易在原则、标签、消费市场、发展中国家长期比较优势方面所面临的挑战进行分析。     

广交会:品牌效应铸就辉煌

新年伊始,笔者就第95届广交会的筹备情况采访了中国机电产品进出口商会展览部刘永强副处长,据介绍,琶洲展馆经过第94届试运行后,本届将要全面投入使用。第95届广交会将如期在琶洲展馆和流花路展馆两地分两期同时举办,本届广交会展览毛面积54万平方米,展览净面积24.3万平方米,展位总体规模为27000个(含两期户外展场     

Energy conservation: More than a good idea

To conserve energy is to save money, ensure the ability to deliver guest services, and contribute to the community and environment     

Fair Trade and the consumer interest: a personal account

Abject poverty and rampant consumerism are twin ills of global capitalism. This short paper serves to encourage discussion on the role of Fair Trade in healing those ills. After describing the benefits of Fair Trade for producers, a paradox concerning the joys and blights of contemporary consumption is presented. Drawing on an autoethnographic method, the author indicates how Fair Trade resolves this paradox in the consumer interest.     

The Economic Effects of Repealing Fair Trade Laws

Legislation in 1976 abolishing fair trade appears to have led to limited price cutting among retailers. In particular, stores identified by their managers as being “discount” outlets were found to have undercut the prices of other stores in most product groups while the pricing policies of chain stores and multi-line stores have not become more aggressive on fair trade items since repeal. Limited evidence indicates that a reduction in nonprice competition in the form of newspaper advertising and sales personnel has also attended repeal. Finally, a substantial increase in the frequency of business failures in fair trade states during 1976 indicates that a consolidation among retailers may have coincided with the abolishment of uniform, manufacturer-specified retail prices.     

The Role of Personal Values in Fair Trade Consumption

Research in the U.S. on fair trade consumption is sparse. Therefore, little is known as to what motivates U.S. consumers to buy fair trade products. This study sought to determine which values are salient to American fair trade consumption. The data were gathered via a Web-based version of the Schwartz Value Survey (SVS) and were gleaned from actual consumers who purchase fair trade products from a range of Internet-based fair trade retailers. This study established that indeed there are significant interactions between personal values and fair trade consumption and that demographics proved to be useless in creating a profile of the American fair trade consumer.     

Demystifying Fair Trade in France: The History of an Ambiguous Project

In France, Fair Trade arrived on the scene in the late twentieth century, and since then has passed through several experimental phases before becoming an enduring “realistic” economic alternative. To understand the transformation, this article defines Fair Trade as a social construct issues and tensions of which change depending on the point of entry. By conducting a secondary analysis of several data sets from varied sources, including documentary material, interviews, and observations, the authors trace the history of Fair Trade in France, define its introduction as a system, describe its institutionalization, and contribute to a greater understanding of how its ideals have changed and become more professional over time. The analyses reveal that the term “Fair Trade” has become ambiguous, spanning divergent and conflicting ideas and projects, including opening and closing conventional market systems and alter-globalization and anti-globalization.     

The Inhibitory Effect of Political Conservatism on Consumption: The Case of Fair Trade

Journal of Business Ethics - By synthesizing the argumentation theory of new rhetoric with research on heuristics and motivated reasoning, we develop a conceptual view of argumentation based on...     

Fair Trade Consumption: In Support of the Out-Group

Two sets of self-transcendence values – universalism and benevolence – act as a source of motivation for the promotion of the welfare of the other rather than the self. This article sought to determine the exact nature of the interaction between these sets of values and the consumption of fair trade products. In an earlier study, universalism values were found to have a significant influence on fair trade consumption whereas benevolence values did not, despite their shared goal and values theory. Additionally, there was supporting evidence in the extant literature that benevolence values should influence fair trade consumption behavior. This study took a closer look at the individual values that make up the value categories universalism and benevolence to better understand and describe this universalism–benevolence distinction in fair trade consumption. It was established that perhaps group membership has an influence on the decision to buy fair trade products. Specifically, it seems that an overriding sense of responsibility to one’s own group – the in-group – prevents some consumers from identifying with, empathizing with, and subsequently sharing resources with fair trade producers; members of out-groups in far-flung corners of the globe. It appears that the universalism–benevolence distinction in fair trade consumption might also be described as an in-group–out-group distinction.     

The Curse of Being Landlocked: Institutions Rather than Trade

This article revisits the long‐term economic effects of being landlocked. The conventional wisdom, which also prevails in policy circles, is that landlockedness hurts development by reducing trade. Gravity models of bilateral trade seem to confirm this view. However, there is no evidence in cross‐country data of a systematic relationship between landlockedness and country's trade to GDP ratio. Drawing on this stylised fact, the paper explores the possibility that landlockedness might affect GDP independently from its effect on trade. Theoretical considerations suggest that institutional quality could be a relevant transmission mechanism. The estimation of a system of three equations confirms that landlockedness has a negative effect on GDP and that this negative effect is transmitted through institutions rather than trade. Moreover, after controlling for the transmission via institutions and trade, landlockedness has a further negative effect on GDP. These findings call for a review of the policy approach to the development of landlocked countries.