The Fair Trade System, the Socio-Economic Movement Essay

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Updated: Apr 26th, 2024

Agropur

The Agropur Dairy Cooperative, which is usually shortened to Agropur, has its headquarters in Longueuil, Quebec, Canada. According to Quarter, Mook, and Armstrong, Agropur is classified under social economy organizations as cooperative. Agropur fits the cooperative definition, as it is a member-owned business with more than five members, all of whom have equal voting rights regardless of the amount of their investment. All members are expected to contribute to the running of the business. Agropur is a voluntary opened membership with approximately 3300 dairy farmers. A democratic structure leads Agropur, and each farmer have one vote.

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Moreover, Agropur distributes its financial results, either profit or losses, in an equal and fair allocation among all farmers based on the volume of products made. Cooperative principles guide Agropur, for instance, according to the principle of cooperation, Agropur farmers work together with other dairy cooperatives, strengthening their bond and expanding productivity. In addition, education, training, and information are essential principles in a cooperative. Agropur farmers are regularly trained and educated on dairy products and how to maintain a clean and conducive environment for their cows and dairy products.

British Columbia Teachers’ Federation

The British Columbia Teachers’ Federation (BCTF) is a teachers union representing all public school teachers in the province of British Columbia, Canada. Quarter, Mook, and Armstrong would classify BC Teachers’ Federation as a social economy organization under mutual society. Such society exists intending to raise capital from its partakers or clients that may then be used to offer generic services to all members of the society. In that way memberships benefit from the facilities they offer and frequently do not pay income tax.

Hence, it is correct to say that the British Columbia Teacher’s Federation is a mutual society. Members of this organization are brought together with a common understanding and occupations, as they are all teachers. The BCTF members benefit from this organization, which is meant to take care of their needs. For instance, the BCTF offers a wide range of financial services to the teachers, e.g., savings, pensions, and insurances. The BCTF fits perfectly in the mutual society since it is located in the same geographical area, which is the province of British Columbia.

Central Okanagan Foundation

The Central Okanagan Foundation is a community foundation and, as a public foundation, it is devoted to improving people’s lives in the Central Okanagan. This is attained by combining donors’ generous gifts to make donation funds and using the investment revenue to make grants. According to Quarter, Mook, and Armstrong, the central Okanagan Foundations is under social economy as a community foundation. Community foundations are grant-making community charities that serve particular areas or counties by aiding individuals, families, and businesses create capital to benefit not-for-profit establishments and programs.

Like all community foundations, the Central Okanagan foundation acts as a grant-making foundation, with the mission of improving the quality of life in the community: “to provide an ongoing contribution to the quality of life in our community through the stewardship of entrusted funds, grant-making, and community leadership.” Just like other community foundations, it is supported by both private and public donors. For example, the Gary Bennett family is a private donor for the foundation. The COF gives opportunities to donors, who have made a significant donation to the foundation, to set up named funds, and advise the foundation, e.g., the Gary Bennett Family Fund.

The Canadian Automobile Association

The Canadian Automobile Association (CAA) is a non-profit association made up of eight clubs giving over 6.4 million members excellent emergency roadside service, comprehensive locomotive and travel services, member investments, and complete insurance services. Quarter, Mook, and Armstrong would classify CAA as a non-profit organization. A non-profit organization is a type of organization that does not profit from its owners; instead, the funds they get as the donation are used to pursue the organization’s aim and keep it running.

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Like most non-profit organizations, the Canadian Automobile Association is voluntary in participation. Members of CAA are members voluntarily, and they are not mandated to be in the association because of potential car problems or geographical areas. Moreover, just as most non-profit organizations, the Canadian Automobile Association is self-governed. They are self-managed and not directly controlled by the government. A non-profit is subjected to the non-distribution constraint, and any income that surpasses expenditures must be dedicated to the organization’s objective, not individuals and owners. Lastly, the Canadian Automobile Association provides public benefit by offering emergency roadside services to the public.

The fair trade system

The fair trade system represents one of the most dynamic systems that is usually meant to mitigate the negative effects of globalization on international business whereby most of the international corporations have often leveraged on the poor policies meant to support fair trade in the developing countries to acquire products at very low prices. Thus, the fair trade systems aim to reduce farmers’ poverty levels within developing countries by introducing policies, such as direct trade, fair price, decent working conditions for the workers, promotion of respectful relationships, environmental sustainability, and community development (Livingston, 2021). Thus, the report will analyze the suitability of the various types of vendors along with the specific factors that determine an effective Fair-trade Policy that aligns with the essential elements of Fair Trade Philosophy.

Nova Scotia Company

One of the most prevalent distinctive elements of the Nova Scotia Province, which makes it viable as a business environment, involves its focus on climate change and protecting the environment, evidenced by the development of an effective strategy to mitigate the prevailing risks of climate changes. However, the vendor exhibits a high level of community development, mainly because of the low levels of unemployment. It is worth noting that Nova’s unemployment rate is 8.30%, which is significantly lower than the national average of 9.75 as of 2020, hence indicating a socially responsible environment (Statista, 2020).

However, the vendor could be facing some moral and ethical issues which could threaten the effectiveness of the fair Trade Policies within the region. An example is the Comprehensive Economic Trade Agreement (CETA) being cost-benefit, whereby the government has often oversold the benefits of the agreement. According to Sauliner (2012), “the agreement has the potential to displace several people from their current employment, thus rendering the jobless at the end of the day.” This notion acts against the guiding principles of a fair trade agreement, which emphasizes the need for community development initiatives among organizations seeking to implement the Fair Trade Policies.

Starbucks

Starbucks represents one of the companies that support high levels of practice of the Fair Trade policies. One of the main reasons behind this notion is the support of the company towards the well-being of the general community, whereby the company has managed to support a wide range of farmers globally through different methods such as loaning farmers up to $14 million in the form of loans. Subsequently, the company has often contributed to initiatives aimed at raising farmers’ living standards.

Subsequently, the company has been involved in ethical outsourcing of products, whereby the company focuses on overcoming the challenges faced within the communities by purchasing up to 100 percent of the ethically sourced coffee. Subsequently, the vendor has been involved in supporting the environmental sustainability by providing the farmers with research distributed through the Farmer Support Centers (Starbucks Ethical Sourcing, n.d). This notion indicates the level of responsibility the company has towards the environment and community sustainability by providing research to eliminate harmful agricultural processes that could negatively impact the long-term sustainability of communities.

Apart from investment in the communities, the company is also focused on compliance with all the laws and regulations of operational areas. This notion is supported by the fact that the company frequently revises its standards of business conduct to align with the country’s laws and regulations within which it operates, hence preventing legal issues (Starbucks Law Compliance, n.d).

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Social Business: Reunion Island

However, the benefits exhibited in Nova are diluted by the listing of Reunion Island as a B-Corporation. It is worth noting that corporations certified as B-Corp are usually characterized by their high level of public transparency, legal accountability, and social and environmental performance (Certified B Corporation, n.d). This notion aligns with some of the most important factors that characterize fair trade practices by corporations.

It is also important to stress that the vendor operates within an environment that exhibits a high level of cultural diversity, with most of the people coming from France, India, Mozambique, Madagascar, and China (Reunion Island, n.d). This notion exhibits the high level of embracement of cultural diversity by the business, especially since it operates in a culturally diverse environment.

Subsequently, the company upholds the principle of environmental sustainability by partnering with various environmental movements such as The Climate Group, WWF France, Le nrg4SD, and the International Union for Conservation of Nature (UICN). The high level of participation in these groups indicates the importance of environmental sustainability within the company, which is quite a desirable feature when analyzing the organizations and departments practicing proper fair trade policies. (Reunion Green Revolution, 2017).

Additionally, the Reunion Island vendors exhibit a high level of respect and recognition towards the local culture. This notion is mainly evidenced by the presence of a wide variety of coffee types, including those named after the majority population within the Island that mainly consists of the French Nationals and the Indians, for example, the Reunion Coffee Roasters Colombia Las Hermiosas that acknowledges the local cultures found within the areas of production. This notion forms an important aspect of any Fair Trade policy or practices.

Finally, I would consider buying coffee from the vendor mainly because of the wide support of the method in bridging the gap between the producers and the consumers. It is worth noting that through its online platforms, the vendor has successfully managed to eliminate the price bias that occurs when the distribution channel is prolonged. As the primary goal of the fair trade policies, the vendor has managed to properly support them through the incorporation of strategies meant to lower the prices of products while at the same time respecting the rich coffee culture of the prevailing population. This notion has been facilitated by the online presence of the company, whereby it serves consumers directly. Subsequently, the company’s emphasis on this notion is supported by the company’s discount pricing strategy, which, apart from being a marketing strategy, supports the initiative of fair trade policies.

In conclusion, I would choose Starbucks mainly because of the high level of adherence of the vendor to Trade policies that ensure fair trade across different nations. This provision involves partnership with several non-governmental organizations that focus on environmental protection, thus increasing their oversight over the production process to support the global climate initiatives. Subsequently, the decision is further supported by the membership of the company, the American Fair Trade Organization, which lists organizations with high levels of efficiency, transparency, accountability, and legal adherence. Since the membership is normally determined by the availability of various characteristics within an organizational operations framework, Starbucks vendor presents themselves as an organization that operates within a Fair Trade environment. However, there needs to be an increased level of responsibility of the company towards community development. This is mainly because the environment exhibits significantly high unemployment levels, which reflects the organizational focus on community development.

The socio-economic movement

The most convenient business idea for such women would be the food truck business. Considering that most women have a low level of formal education, primary child care and elderly care, a job with minimal qualification like food truck business would be perfect for most of the immigrants. Moreover, most of these women work in low-paying sectors of the economy like food services, so adjusting to the food truck business would not be difficult. To ensure the long-term success of the food truck business, women should consider critical factors. Meeting clients’ demands will help the business retain customers and increase sales. Since I had a history of the socio-economic movement, I was asked to develop a business plan that would ensure long-term success and customer satisfaction.

The food truck business would be the best idea since street food has always appealed to immigrants. Moreover, considering the women’s lack of business experience, food trucks would be beneficial for beginners, ensuring a fast entrance to the food market. The food truck business could entail different kinds of foodstuff in different trucks; for instance, some would deal with foods like tacos and sushi, while others would deal with ice cream, hot dogs, and iced teas. This would provide different job opportunities for women. Food trucks are also very customer friendly, since the food truck does not wait for customers like restaurants, they go to the customers. For a business to prosper, it needs to have the vision to know what the business wants to achieve in the future.

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The food truck business’s vision will be to improve customer’s and community’s happiness and comfort. The target customers will be mostly immigrants and Canadian citizens. The food trucks will be placed near shopping centers, schools, and hospitals. They will be in these different locations through the week on a rotational program and will alter the scheduling favoring significant traffic and high demand. We will offer cheaper charges on our set menu than our opponents, supplemented by excellent quality service and food gifts. Since the plan is to have more food trucks with different food supplies, our foods will include tacos, pizza, hotdogs, fries, iced tea, and ice cream. We will use a recipe of locally obtained ingredients and guarantee that they are of the highest quality to deliver delicious food offerings.

We will use a combination of marketing approaches like social media, brochures, vouchers, and word of mouth. We will also partner with local sellers to get the word out about our food truck business. Our marketing approach is to influence relations with local food dealers to raise our customer base. We will join public events to give samples and promotional deductions. Moreover, most of our new clients will be referred to us by existing customers through the word of mouth. We also plan to get to our new and existing clients via social media and leaflets. Our charges will be lesser than our competitors, and we will also offer bigger portions while sustaining profitability. Additionally, we can retain our prices lower because of obtaining ingredients from our local markets and nurturing existing relations with local farmers’ markets.

However, there are practices that the food truck business will have to engage in to establish and operate the business. The business will need to stay on the latest trends always. As time passes, the world faces alterations in approaches to health, the environs, and society. All of these changes may affect the food truck business. Naturally friendly wrapping and packing are trends that most food truck owners ignore, but this will not be the case with this business. We will make sure that we follow all the latest trends and meet all legal requirements. As food truck businesswomen, we will have to show that we adhere to all urban rules and relevant state and national laws. These necessities include health safety, business licensing, and guidelines about zoning and parking. We will follow these regulations since they aim to promote the well-being of the public and make sure that the food sold is of the best quality.

Another practice that we will have to engage in is marketing our food truck. One of the benefits of the food truck business is that it is advertising itself. However, that will not be the only way we will advertise our food. We will also use the visual appeal of the food and drinks we will be serving, especially on Instagram, Facebook and Twitter. Since we will be operating on specific routes and places like schools and hospitals, we will target the residents with social media ads. Lastly, to ensure that the business is established and operated well, it will have to be organized. It will not be an excellent reputation for the business, in case workers show up late to an event we were hired to catering just because our truck broke down. Organization comes down to managing food-preparation activities, making to-do lists, scheduling for and gaining backup systems, and efficient time management.

The best organizational structure for the business is a partnership, to be specific, a general partnership. A general partnership is when a business has two or more partners who manage and are accountable for its debt and operations. This mean that each woman who wants to be in this food truck business will have to contribute money, time, and skill. They will all share the business’s profits and losses. The partnership will most effectively work in such a situation more than a sole proprietorship. Forming a partnership is a better choice for immigrant women who want to start a business together. This way, each woman can contribute to the business’s capital, making it better than everyone doing their own business.

Working together as a partnership means that these women will have to make decisions as a team. Sometimes partners may disagree with each other, making it difficult to make decisions; thus, it is essential to make sure that they are partnered in their preferences. Once the partnerships have been concluded, the women will have to create a partnership agreement. This agreement works to safeguard the ins and outs of the partnership together. It frameworks each partner’s roles and duties, the volume of investment of each partner to the food truck business, the date the partnership formally began, and any “what ifs?” related to matters like the exit of a partner.

References

B Corporation. (n.d.). About B Corps. Certified B Corporation. Web.

Livingston, A. (2021). What is fair trade and what does it mean? – Definition, products & facts. Money Crashers – Personal Finance Guide to Turn the Tables on Money. Web.

Quarter, J., Mook, L., & Armstrong, A. (2017). Understanding the social economy: A Canadian perspective. University of Toronto Press.

Region Reunion. (n.d.). Reunion Green Revolution. RĂ©gion RĂ©union – Site du Conseil RĂ©gional de la RĂ©union. Web.

Saulnier, C. (2012). Fast facts: The CETA and Nova Scotia. Canadian Centre for Policy Alternatives. Web.

Starbucks Ethical Sourcing. (n.d.). Responsibly grown and fair trade coffee. Starbucks Coffee Company. Web.

Starbucks Law Compliance. (n.d.). Compliance with law and regulations. Starbucks Coffee Company. Web.

Statista. (2021). Canada – unemployment rate, by province 2019 | Statista. Web.

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