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    ME Assignment Coursera

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    Sourav Jain
    Sainsbury's announced a phase out of its house brand tea following a workshop on Fairtrade Africa due to concerns about financial waste from fairtrade premiums. This decision harmed 25,000 farmers. While fairtrade premiums can help improve standards of living through community projects, more transparency is needed around how premium money is used. Many companies have now developed their own certification programs instead of using fairtrade, confusing customers and negatively impacting farmers, biodiversity, and supply chains. Starbucks initially supported fairtrade but then created its own ethical sourcing standards through CAFE Practices.

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    ME Assignment Coursera

    Uploaded by

    Sourav Jain
    30 views1 page
    Sainsbury's announced a phase out of its house brand tea following a workshop on Fairtrade Africa due to concerns about financial waste from fairtrade premiums. This decision harmed 25,000 farmers. While fairtrade premiums can help improve standards of living through community projects, more transparency is needed around how premium money is used. Many companies have now developed their own certification programs instead of using fairtrade, confusing customers and negatively impacting farmers, biodiversity, and supply chains. Starbucks initially supported fairtrade but then created its own ethical sourcing standards through CAFE Practices.

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    Sainsbury's announced a phase out of its house brand tea following a workshop on Fairtrade Africa due to concerns about financial waste from fairtrade premiums. This decision harmed 25,000 farmers. While fairtrade premiums can help improve standards of living through community projects, more transparency is needed around how premium money is used. Many companies have now developed their own certification programs instead of using fairtrade, confusing customers and negatively impacting farmers, biodiversity, and supply chains. Starbucks initially supported fairtrade but then created its own ethical sourcing standards through CAFE Practices.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views1 page

    ME Assignment Coursera

    Uploaded by

    Sourav Jain
    Sainsbury's announced a phase out of its house brand tea following a workshop on Fairtrade Africa due to concerns about financial waste from fairtrade premiums. This decision harmed 25,000 farmers. While fairtrade premiums can help improve standards of living through community projects, more transparency is needed around how premium money is used. Many companies have now developed their own certification programs instead of using fairtrade, confusing customers and negatively impacting farmers, biodiversity, and supply chains. Starbucks initially supported fairtrade but then created its own ethical sourcing standards through CAFE Practices.

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    © All Rights Reserved
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    of 1

    Following the workshop on Fairtrade Africa, a phase-out of Sainsbury's house brand of tea has been

    announced. 25.000 farmers were harmed by this choice.

    1. Sainsbury's executives emphasised one of the tenets of the Fairtrade ideology. "Premium
    fairtrade" refers to the amount of money cooperatives and enterprises are obligated to
    contribute in order to build structures, run clinics, and otherwise improve their communities.
    Sainsbury's was concerned about the abuse of premiums and the ensuing financial waste.

    I disagree with Sainsbury's criticism of fairtrade because paying more than the minimum price
    may be seen as a CSR endeavour. Corporations help farmers raise their standard of living by
    building schools and running clinics.

    But I believe Sainsbury would have stuck with fair trade if it had been transparent about how the
    premium money collected from businesses was used to improve the welfare of farmers..

    2. They want to stop using fairtrade because it appears to be a costly and inferior alternative in
    light of the numerous new labels that businesses and NGOs have established.

    My perspective is that we shouldn't create our own certification procedure simply because some
    businesses claim to have their own labelling. Since fair commerce was the norm, both
    consumers and producers were content. Consumers only need to be aware of one certification
    before making a purchase, yet even they are perplexed by the variety of labels now in use.

    As a result, several important companies ceased assisting the fair trade industry. Several companies,
    like Coca-Cola, McDonald's, and Nestle, have started their own internal certification programmes. A
    society in instability was the outcome. Due to the abundance of new logos, customers may find it
    difficult to become familiar with each one before making a purchase. To control the situation,
    businesses have created internal certification programmes. The supply chain, the climate, and
    agricultural biodiversity are all impacted by this. Prior to the adoption of fairtrade, the market only
    offered one type of product.

    Companies that promote fair trade include Blends for Life, Theo Chocolate, Fair Indigo, Rishi Tea,
    and Ben & Jerry's Ice Cream.

    Starbucks' use of fairtrade: Starbucks first joined together with TransFair USA and FLO to buy and
    market Fairtrade-certified items. Starbucks created the Coffee and Farmer Equity (CAFE) Practices
    shopping standards to specify a specific set of requirements for espresso that is sourced ethically,
    with the ultimate goal of guaranteeing that all espresso that Starbucks imports is produced ethically.

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