What is Fair Trade?

Fairtrade is  the Fair Trade Program . This is a program of the World Fair Trade Organization (WFTO) to ensure fair trade, with a focus on better prices, good working conditions, sustainable development of geographical areas. and fair trade terms for farmers and workers in developing countries.

The World Fair Trade Organization (WFTO), with a global network of Fair Trade Organizations and members in more than 70 countries, has established 10 standard principles that any Fair Trade organization should adhere to. must also comply. Furthermore, each Fair Trade organization must contribute to their community in ways that are relevant to the unique local social needs.

Fair Trade consulting and training services:

To help businesses / organizations implement the fair trade program - ITVC Global offers the following Fair Trade training and consulting service package:

- Training to understand and apply Fair Trade requirements

- Training on skills of internal assessment according to Fair Trade

- Consulting on setting up and applying the social responsibility management system according to Fair Trade.

Our success:

With knowledge and experience in consulting and training on social responsibility (CSR) - ITVC Global has carried out consulting projects for most of the main suppliers in the supply chain of SAMSUNG ELECTRONIC in Vietnam. We have had great success in helping our clients comply with the RBA code of conduct in their operations and have been successfully assessed by DNV, TUV Rheinland.

Learn more about Fair Trade:

10 Principles of Fair Trade The World Fair Trade

Organization (WFTO) prescribes 10 standards that Fair Trade organizations must apply in their daily work, and implements oversight to ensure these principles are met. This rule is maintained.

Principle 1: Creating opportunities for economically disadvantaged smallholders

Reducing poverty through entrepreneurship is a very important part of the organization's goals. Organizations that support disadvantaged smallholders can be family businesses, associations, or community organizations. The organization seeks to advocate for the transition from poverty and income insecurity to economic independence and ownership. Business must support the development of the community. The organization has an individual action plan to implement the above goal.

Principle 2: Open and transparent information

Organizations should be open about their governance and commercial relationships. The organization must be transparent to all relevant partners, and respect the sensitivity and confidentiality of the commercial information it provides. The organization finds reasonable ways to give employees, members and producers the opportunity to participate in the decision-making process. The organization ensures that relevant information is made available to their trading partners. Communication channels are smooth and open to all positions in the supply chain.

Principle 3: Business Conduct Business

organizations must ensure social, economic, and environmental health for small producers, and must not maximize their profits. The organization must be responsible and professional in keeping its time commitments. Suppliers honor contracts, deliver on time, guarantee the quality and specification of the goods.

Fair Trade shoppers, fully aware that manufacturers are financially disadvantaged, as well as suppliers, ensure that orders are paid for on the day of delivery, and in accordance with agreements. . Prepayment of 50% interest free is possible if required.

Fair Trade suppliers, upon receipt of payment from a shopper, ensure that this payment is passed on to the producer or farmer who makes Fair Trade products.

Buyer must consult with supplier before canceling or not accepting shipment. In case the order is canceled through no fault of the manufacturer or supplier, an equivalent amount must be compensated for the products already made. Suppliers and manufacturers discuss with the buyer if there is a problem with the delivery, guaranteeing an equivalent compensation when the quality and quantity of the goods do not match the order.

The organization strives to maintain long-term relationships based on unity, trust and mutual respect, contributing to the development of Fair Trade. Organizations strive to maintain effective communications with their business partners. The parties involved in the business relationship all strive to increase the volume of goods exchanged, increase the value and variety of the goods they order, as a way to develop Fair Trade and increase income for manufacturers. The organization works in partnership with other Fair Trade organizations in the country and avoids unfair competition. The organization avoids using other organizations' design patterns without permission.

Principle 4: Fairness in payment

The parties agree on a fair price through negotiation, ensuring fair payment to the producer and in line with the market. Once an agreement has been reached on the structure of the price, this is considered the lowest price.
Fair payment means remuneration that is socially acceptable (in the local context), recognized as fair by producers, and also applied in the principle of gender equality, payment equality for female and male workers.

Fair Trade organizations responsible for marketing and importing help build and develop the capacity of producers, allowing them to set a fair price for themselves.

Principle 5: Child and Forced Labor

The Organization shall respect the United Nations Agreement on the Rights of the Child, and national/local laws on child labour.

Organizations shall ensure that there is no forced labor in their workforce, among their members or in their home workers.

Organizations that purchase Fair Trade products directly from manufacturers or through intermediaries, must ensure that there is no forced labor in the production process, and that manufacturers comply with the United Nations Agreements Children's Rights, and national/local laws on child labor.

Any involvement of children in the production of Fair Trade products (including learning a traditional art or craft) will be exposed and monitored, and shall not cause harm. adversely affect the health, safety, and right to education and play of children.

Principle 6: Non-Discrimination, Gender Equality and Freedoms

Organizations must not discriminate in hiring, compensation, training, promotion, termination, or retirement based on difference about race, caste, origin, creed, disability, gender, sexual orientation, union membership, political opinion, HIV/Aids status or age.

The organization provides opportunities for women and men to develop their skills, and proactively promote vacancies for female workers, as well as place them in leadership positions within organization. The organization shall take into account the special health and safety requirements of pregnant women and nursing mothers. Women are allowed to participate fully in decisions regarding the use of profits from the production process.

The organization respects the rights of all employees in forming and joining a trade union of their choice, or at the request of the collective. Where the right to unionize and the demands of the collective are limited by law and/or the political environment, the organization must ensure the ways of an independent and free association and the right to have a voice. workers. The organization ensures that workers' representatives are not discriminated against in the workplace.

The organization works directly with producers to ensure that women are always compensated for their contributions in the production process. When women do the same work as men, they are paid the same as men. Organizations ensure that in productive environments where women are undervalued compared to men, women's work is reassessed to equalize pay rates; and women are allowed to do jobs according to their capacity and ability.

Principle 7: Working conditions

The organization shall provide a safe and healthy working environment for its workers, and for its members. The organization must comply with national and local laws, and the ILO Agreement on occupational health and safety.

Working hours and conditions of workers/or members/or home-based workers must comply with the conditions in national and local legislation, as well as the ILO Agreement.

Fair Trade organizations are aware of the health and safety conditions of the producers from which they purchase products. They strive, on the basis of existing foundations, to increase the producer's understanding of health and safety issues, as well as improve health and safety conditions.

Principle 8: Capability to develop production scale and producer capacity

The organization strives to increase positive developmental influences on producers through Fair Trade.

The organization strives to develop the skills and capabilities of its employees and members alike.

Organizations that work directly with small producers try to develop special activities to help these small producers improve their management skills, production capacity and access to local markets. regional / regional / international / Fair Trade and relevant market trends.

Organizations that purchase Fair Trade products through intermediary Fair Trade organizations help these organizations develop their capacity to support the small producer groups they directly work with.

Principle 9: Promote Fair Trade

The organization raises awareness of the goals of Fair Trade and the need for fair trade in world trade through Fair Trade. The organization advocates for the goals and activities of Fair Trade based on its scope. The organization provides its customers with information about the organization, its products, the manufacturers or the members who make or harvest the products. Advertising and marketing methods should always be honest.

Principle 10: Protecting the environment

Organizations that make Fair Trade products should maximize the use of raw materials from sustainable sources in their sector, purchasing locally where possible. They use production technologies that can reduce energy consumption, and where possible, renewable energy technologies to reduce the greenhouse effect. They look for ways to reduce the impact of waste on the environment.

Fair Trade agricultural producers strive to minimize their impact on the environment, by using organic matter or production methods that use less pesticides whenever possible.

Buyers and importers of Fair Trade products prefer to buy products made from raw materials that are sourced from sustainably managed sources, and have the lowest overall environmental impact.

All organizations strive to use recycled or compostable materials for packaging, shipping, and shipping whenever possible.