Understanding the Difference: Ethical Trade, Fair Trade, Sustainable Consumption, Social Responsibility

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1 Understanding the Difference: Ethical Trade, Fair Trade, Sustainable Consumption, Social Responsibility Linda F. Golodner, President National Consumers League, ANSI, USA COPOLCO Workshop, May 23, 2007 Salvador de Bahia,, Brazil

2 Member of ANSI Delegation ANSI Board of Directors and its Consumer Interest Forum

3 National Consumers League NCL Mission: Protect and promote social and economic justice for consumers and workers in the United States and abroad.

4 NCL International Fair Labor Standards Initiatives Fair Labor Association International Cocoa Initiative Global March Against Child Labor Child Labor Coalition

5 2007 Survey on Corporate Social Responsibility National Consumers League partnership with Fleishman-Hillard Hillard, global public relations firm Random Sample National Survey in U. S. with 2,078 adults Sampling error plus or minus one to two percentage points at the 95% confidence level

6 Meaning of Corporate Social Responsibility Community 23 Employees Environment Quality Products

7 Which of the following is most important to consumers? Treats Employees Well 29 Beyond Law to Protect Environment Responds to Customers Contributes to Community Beyond Taxes

8 Influence of Global Standards on Purchase Behavior Extremely Very Somewhat Not very Not at all Don't Know 43

9 International Standards Consumers want an international standard to outline what companies need to do in order to be socially responsible

10 CSR Survey Online forms of communication continue to change the landscape in which consumers gather and communicate information about social responsibility.

11 Consumers Actively Seeking Information All the time Sometimes Hardly ever Never 31

12 Understanding the Difference Ethical Trade Fair Trade Sustainable Consumption Social Responsibility

13 Ethical Trade or Ethical Sourcing These terms refer to labor practices in a company s s supply chain. Others use the term to refer to other business practices Treating customers and vendors fairly Providing transparency of financial practices Being environmentally responsible

14 Ethical Trading Initiative ETI brings together NGOs, trade unions, and corporations Purpose: to improve lives of poor working people globally Promotes and improves implementation of corporate codes of practice which cover supply chain working conditions Encourage companies to adopt ETI Base Code which reflects the most relevant international standards on labour practices

15 Ethical Sourcing This term is used in many ways Companies refer to ethical sourcing With factories Vendors Supply chain

16 Sustainable Consumption The use of goods and services that satisfy basic needs and improve quality of life while minimizing the use of irreplaceable natural resources and the byproducts of toxic materials, waste and pollution.

17 Sustainable Consumption can be practiced by Consumers, Businesses and Other Organizations Involves actions taken by designers, producers and consumers All are interdependent and have an impact on the environment and quality of life

18 Fair Trade A trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to and securing rights of marginalized producers and workers especially in the South.

19 Today s s Discussion Others will talk about what the term means to them and to consumers. Some fair trade groups claim that they can assure Fair labour standards Environmentally sound and sustainable production Socially responsible practices

20 Social Responsibility, Corporate Social Responsibility, Corporate Responsibility All of these terms refer to an organizations impact on others and on the natural environment and being accountable for actions and decisions

21 ISO/WG/SR Core Issues Environment Human Rights Labour Practices Organizational Governance Fair Operating Practices Consumer Issues Community Involvement/Society Development

22 Principles of Social Responsibility ILO Core Conventions on Labour Standards United Nations Universal Declaration of Human Rights ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy Global Compact, Global Reporting Initiative

23 Simple Difference From a Consumer Point of View: Sustainable Consumption making and/or using a product with concern about environmental impact Ethical Trading fair labor and socially responsible practices reaching throughout supply chain Social Responsibility being accountable for actions and decisions on others and the natural environment Fair Trade greater equity in international trade by offering better trading conditions and securing rights for marginalized producers and workers

24 Contact Information Linda F. Golodner, President National Consumers League

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