Archive for the ‘Business’ Category

Putting On a Pretty Face: Ethical Cosmetics

Now your smile can be shared with others as the first Trans Fair
certified cosmetic line have arrived in the US. Queen Helene Naturals,
which has
produced natural cosmetics since 1940, has developed a line of
four organic skin care products made from Fair Trade cocoa butter.
While natural and organic cosmetics have been appearing on more
and more shelves, including giants such as WalMart and Target, this is
the first line that
has ethcially sourced its ingredient and obtained certification. This
is an important new area for Fair Trade, as Americans spend 8 billion a year on cosmetics.

Scarlet Macaw in BelizeAfter
your skin is cleansed and soft from Queen Helene, grab some Peace Keeper make-up to put on more than just a pretty face. Peace Keeper uses all profits (after taxes) to
support "women’s
health advocacy and human rights issues." They do not have a set group
to which they provide financial support, but rather find organizations
that follow their ideals. Peace Keeper will periodically publish to
whom their donations are given for consumers to view. They have one
product, the lip gloss, which is specific for the United Nations
Development Fund For Women (
UNIFEM). The ingredients of each product is published so that you can be sure what you are putting on.
Regardless of which cosmetics you choose, be sure to check out what might be lurking in your blush or lotion at
Skin Deep. With many chemicals found in our morning routine being linked to allergies, birth defects and even cancer
, it is important we know exactly what we are putting onto our
bodies. Many companies have heard the cry for safer cosmetics and have
signed onto the Campaign for Safe Cosmetics. If your favorite brand is
missing, be sure to let them know you demand more.

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Putting On a Pretty Face: Ethical Cosmetics image needed

Now your smile can be shared with others as the first Trans Fair
certified cosmetic line have arrived in the US. Queen Helene Naturals,
which has
produced natural cosmetics since 1940,  has developed a line of
four organic skin care products made from Fair Trade cocoa butter.
While natural and organic cosmetics have been appearing on more
and more shelves, including giants such as WalMart and Target, this is
the first line that
has ethcially sourced it’s ingredient and obtained certification. This
is an important new area for Fair Trade, as Americans spend 8 billion a year on cosmetics.

Scarlet Macaw in BelizeAfter your skin is cleansed and soft from Queen Helene, grab some Peace Keeper make-up to put on more than just a pretty face. Peace Keeper uses all profits (after taxes) to
support "women’s
health advocacy and human rights issues." They do not have a set group
to which they provide financial support, but rather find organizations
that follow their ideals. Peace Keeper will periodically publish to
whom their donations are given for consumers to view. They have one
product, the lip gloss, which is specific for the United Nations
Development Fund For Women (
UNIFEM). The ingredients of each product is published so that you can be sure what you are putting on.

Regardless of which cosmetics you choose, be sure to check out what might be lurking in your blush or lotion at
Skin Deep. With many chemicals found in our morning routine being linked to allergies, birth defects and even cancer
, it is important we know exactly what we are putting onto our
bodies. Many companies have heard the cry for safer cosmetics and have
signed onto the Campaign for Safe Cosmetics. If your favorite brand is
missing, be sure to let them know you demand more.

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Dean’s Beans and the Fairer Trade

Brady provided a detailed description of the various Fair Trade labels and to which products they can be applied, but what is the real difference between them? Labels such as the TransFairUSA are applied to specific transactions, so you can be assured that the coffee or banana you are buying has met the Fair Trade criteria. However, this label does not ensure the company is committed to the goals and ideals behind Fair Trade in all their business.

Conversely, the Fair Trade Federation looks at the entire company, whether it is producer, wholesaler or retailer, and requires that they commit 100% to the Fair Trade ideals. Why does this make a difference? Unfortunately, as Fair Trade has gained popularity, some companies have taken advantage and used a few Fair Trade transactions as a marketing boost for their entire company’s public image.

One coffee company, Dean's Beans, has taken a different approach towards their Fair Trade model. Seeing some of the failings of the traditional certification labels and unhappy with the "great pretenders," they have chosen to become members of the Fair Trade Federation and commit 100% as a company to those ideals, and forego the TransFairUSA certification. They have found that there are less than "a dozen Fair Trade coffee companies in the USA." In fact, some of the larger companies (Starbucks, Seattle's Best, Green Mountain) that could make a significant impact in thousands of farmers lives have committed only to buying Fair Trade beans for 1-12% of their total purchases. And while farmers must meet stringent transparency and accountability guidelines, the companies purchasing the coffee are not held to the same standard, and often refuse to release the actual percentage of their coffee that is Fair Trade (a conspicuous requirement missing from TransFair).

While any size commitment to Fair Trade purchases is certainly positive, it sits a bit poorly when some of the loudest and proudest are sometimes the companies doing the least. "It's important to remember that Fair Trade is an economic agreement, it's not a type of coffee." With only 20% of Fair Trade eligible coffee being sold as such and the remainder going at conventional pricing, there is certainly a great opportunity for these companies to increase their purchases.

Dean's Beans has laid out a business model they hope others will adopt and raise practices above Fair Trade standards:

While it is positive such large companies from Starbucks to Wal-Mart to McDonalds have begun offering Fair Trade options, it is not enough. As consumers, it is our responsibility to seize the opportunity and demand more of a commitment to the entire idea of Fair Trade, and not be sedated with their small offerings, but rather push them to higher standards of business throughout their company.

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Fair Trade: Transparency

Get Naked!Get Naked! This is the first in a series of posts that will explore the stated principles of Fair Trade and the requirements for certification.

The first of the major components of fair trade we will look at is transparency. In order to obtain Fair Trade certification, the producer must, among other requirements, be “organized into cooperatives or associations that are transparent, accountable and democratic.” IFAT defines transparency and accountability as “transparent management and commercial relations to deal fairly and respectfully with trading partners.” Transparency appeals to me as a consumer. If you need to cover your operations you have something to hide, right?

Wired magazine agrees that transparency has high potential commercial value. Wired used a very literal take on transparency in the March 2007 issue with their lead article “Get Naked and Rule the World” featuring a transparent cover that pulls away to reveal a naked Jenna Fisher from The Office… along with a strategically placed sign. While it is the image that garnered a lot of attention, it is the article that is truly controversial. It features a series of stories about "radical transparency, our notion that the next model of business success is laying your company bare to the world—sharing secrets with your rivals, blogging about ideas as you have them, and copping to fumbles and foibles as you make them.”

Sharing secrets (gasp), owning up to mistakes (no!), utter madness! What could possibly come from such openness? Perhaps consumer trust? Maybe innovation and advancement? Perhaps even ethical business?

The requirement that producer cooperatives be transparent and accountable has proven to benefit the Fair Trade movement greatly by establishing trust amongst members of the cooperatives and providing a means to account for the spending of Fair Trade social premiums, which are to be used only for community development purposes. One of Fair Trade's major shortcomings is that this requirement is not extended to the purveyors of the products in Western markets. Many Fair Trade retailers and wholesalers have chosen to emulate the transparent cooperative model (perhaps the best example is coffee roaster Equal Exchange), and all retailers and wholesalers who are members of the Fair Trade Federation are commited to transparency. However, since transparency is not strictly required, large retailers that offer Fair Trade certified goods are not living up to the same standard required of the producers of those goods. JustThings.info has a good example of this failing:

While 100% fair-trade roasters like Just Coffee are proud to post their producer contracts on their website and share solidarity stories of the relationships they’ve developed with communities from Chiapas to Ethiopia over the years, this is not the case for a player like Starbucks. Instead, one hears tales of price gouging, corruption, insider trading, racketeering, ghost buyers – all the worst hallmarks of corporate capitalism.

All of this is to say that despite the many successes of the Fair Trade movement, until it requires the same standard of transparency and accountability from retailers that is required of producers, the burden of holding all companies accountable still rests squarely on the shoulders of the consumer. There are plenty of retailers and wholesalers from which to choose that do meet this standard. As Fair Trade has moved into the mainstream, popping up everywhere from McDonalds to Wal-Mart, there is great oportunity for such companies to take advantage of the marketing edge available through the Fair Trade label without committing to the true purposes of the movement. Should these companies be forbidden from selling fair trade? Perhaps not, as we can seize this opportunity to get a foot in the door and demand that these companies commit 100% to the ideals and criteria of fair trade, transparency included. I want to see every business standing naked and proud before the world, their fair and just business practices stripped bare for the entire world to see and respect.

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