Fairtrade Case Study

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Fair trade case study

According to Mullins (2010), ‘the stakeholders may be considered under six main headings of: employees, providers of finance, customers, community and environment, government and other organizations or groups’ (such as suppliers, trade unions). Furthermore, it can be said that for the Fairtrade Foundation the stakeholders are: the charity shareholders (Banana Link, Christian Aid, Shared Interest Foundation, etc.), board members, Certification Committee members (http://www.fairtrade.org.uk, 2012). The producers, traders, suppliers, farmers’ organizations, employees and customers are also the stakeholders of the Fairtrade Foundation. The internal stakeholders ‘who are directly involved in the developing the project’ (Bonner, 2010) are board members, employees, volunteers, farmers’ organizations. The external stakeholders are customers, suppliers, outside organizations, retailers. According to Mayhew (n.d.) there are four different types of stakeholders that are: Legal Stakeholder, Individuals, Community Interest, and Corporate Investment. For the Fairtrade Foundation the Legal Stakeholders are retailers and producers. The Individuals are shareholders and investors. The Community Interest includes investors. Examples of the Corporate Investment are the employees. The interests of the stakeholders can coincide as well as conflict. Considering the interests of the retailers and customers, it can be said that from one hand their interest are similar, but from another hand they are not. The interest of the retailer is to make a profit. ‘When the market price is higher than the Fairtrade minimum price, the buyer must pay the market price.’ (http://www.fairtrade.org.uk, 2012), and it is not in the customers’ interest. Another example is the small-producers and supermarkets. It can be difficult for the small-producers to organize consistent and regular supplies for the supermarket, ‘without which the growing consumer awareness will come to...
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