Fair Trade Monitoring Standard...

as established by the International Fair Trade Association

1.  Creating opportunities for economically disadvantaged producers

Poverty reduction through trade forms a key part of the organization’s aims. The organization supports economically disadvantaged or marginalized producers; whether these are independent, family businesses or grouped in associations or co-operatives.

It seeks to enable them to move from a position of vulnerability to one of security and from material poverty to income and ownership. The organization has a plan of action to carry this out.

2.  Transparency and accountability

The organization is transparent in its management and commercial relations and deals fairly and respectfully with its trading partners. It is accountable to all its stakeholders in a process that respects the sensitivity and confidentiality of commercial information supplied.

The organization finds appropriate, participatory ways to involve employees/staff and producers in its decision-making processes and gives special attention to the dissemination of relevant information to all its trading partners. The communication channels are good and open at all levels of the supply chain.

3.  Capacity building

The organization seeks to develop producers' skills. It develops specific activities to provide assistance to producers and commits to providing continuity in its trading relationships with its partners in the supply chain over an agreed given period.

The organization takes responsibility as appropriate to assisting producers and marketing organizations (both exporting and importing) to improve their management skills and their access to international, regional and/or local markets, both Fair Trade and mainstream as appropriate. The organization also develops the skills of its own employees/ staff.

4.  Promoting Fair Trade

The organization raises awareness of the aim of Fair Trade and of the possibility for greater justice in world trade through Fair Trade. It advocates the objectives and activities of Fair Trade according to the scope of the organization.

It acknowledges the importance of customers for the growth and effectiveness of its movement. Customers are provided with information about the organization, the products, and in what conditions they are made. Honest advertising and marketing techniques are used. The organization aims for the highest standards in product quality and packing.

 5.  Payment of a fair price

A fair price is one that has been mutually agreed by all through dialogue and participation, which provides fair pay to the producers and can also be sustained by the market. Where Fair Trade pricing structures exist, these are used as a minimum.

Fair pay means provision of socially acceptable remuneration (in the local context) considered by producers themselves to be fair and which takes into account the principle of equal pay for equal work by women and men.

Fair Trade marketing organizations support capacity building as required to producers in costing and pricing products to enable them to set a fair price.

Fair Trade buyers, importers and intermediaries ensure prompt payment to their producers and other partners and, whenever possible, help producers with access to pre-harvest or pre-production financing (advance payments). The production of high value-added products is encouraged.

5.  Gender Equity

The organization provides opportunities for women and men to develop their skills and actively promotes applications from women for job vacancies. Women employees are provided with leadership training and encouraged to seek leadership roles.

Organizations working directly with producers ensure that women's work is properly valued and rewarded. Women are always paid for their contribution to the production process. The organization takes into account the special health and safety needs of pregnant women and breast-feeding mothers.

Women participate in decisions concerning the use of benefits accruing from the production process. Local cultures and traditions are respected and steps taken to avoid discrimination on the grounds of religion, disability, caste or age.

7.  Working conditions

The organization is taking steps to promote a safe and healthy working environment for producers with clean water to drink, adequate sanitation and access to essential medical support. Working hours are in line with the conditions established by the law and ILO convention. The organization raises awareness of health and safety issues with producers on a regular basis.

8.  Child Labor

The organization and its members respect the UN Convention on the Rights of the Child, as well as the law and social norms in the local context, in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play.

Organizations working directly with informally organized producers disclose the involvement of children in production.

9.  The environment

The organization maximizes the use of raw materials from sustainably managed sources buying locally when possible. In the case of buyers or importers, priority is given to buying products made from raw materials made from sustainably managed sources where these are available and to encouraging its suppliers to look for such materials.

Recycled or easily biodegradable materials are used for packing and goods are dispatched by sea wherever possible.

The organization promotes the use of technology that respects the environment as well as the use of initiatives to reduce energy consumption, and creates awareness of environmental hazards.