1. An Ethical Dilemma for Consumers & Retailers?

2. FAIRTRADE Fair Price Fair labour conditions Direct trade Democratic and transparent organizations Community development Environmental sustainability Example of a FAIRTRADE Labeling organization (FLO): Transfair

3. Ethical Dilemmas 1.Influence of FAIRTRADE label on Customer purchase intentions 2.If a wholesale firm could source, say, only 40% of its coffee from Transfair, should it bother to separate its sales into two brands? 3.Trading in FAIRTRADE products the end of wholesaler or retailer responsibility?

4. Influence on Customer purchase intentions Yes. Although this preference is linked to the price comparison of the products available Ready to pay 10-15% premium on FAIRTRADE products Adverse impact if the price difference is too high

5. Branding Issue Separate Brands Individual Vs Community Ethical Coffee is Premium Brand, higher price Caters for society where “everybody feels guilty” Consumer forced to make ethical decision in supermarket aisle Combined Brand Short Vs Long and Individual Vs Community Producer is making ethical decision for consumer (relief!) Retailers need to advertise moral high-ground

6. Is Transfair a cop-out for retailers? One hand wholesaler or retailer’s purpose is to provide its customers with a good products at the lowest price possible On the other hand, a wholesaler or retailer might need to do more in term of social responsibility and check that the supply chain is ‘fair trade’ audited for all its products in stock. Especially relevant in Quasi-monopoly for food retailing like in Australia by Coles and Woolworths

7. Ethical Dilemma Right Vs Right Paradigm Individual Vs Community Short Term Vs Long Term Truth Vs Loyalty Resolution Principles I Means to an End – Australian customers Vs millions of growers II Rule Based – Kantian principles II Golden Rule

8. Resolution Coles and Woolworths could follow the example of Whole Foods Market Whole Trade Guarantee program, their in-house fair trade program Target of more than 50% FAIRTRADE products in 10 years and in the long-term convert to only FAIRTRADE products imported from third world countries

9. Questions?