People Tree's Social Review

This is People Tree's 4th biennial Social Review based on data from surveys and discussions held in September, 2006. People Tree is a Fair Trade company and prides itself on best practice within the Fair Trade movement and being Fair Trade throughout its trading.

Definition of Fair Trade - International Fair Trade Association (IFAT)

Fair Trade is 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 the rights of, marginalized producers and workers - especially in the South.

Fair Trade organizations and companies are committed to Fair Trade as the principal core of their mission. They, backed by consumers, are actively engaged in supporting producers, raising awareness and in campaigning for changes in the rules and practice of conventional international trade. They can be recognised by the FTO (Fair Trade Organization) Mark.

Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first. (www.ifat.org) People Tree became a member of IFAT in 1996 and follows the 10 standards of Fair Trade as sanctioned by IFAT International Fair Trade Association. This Social Review monitors People Tree's activities against the following:

IFAT'S mission is to improve the livelihoods and well being of disadvantaged producers by linking and promoting Fair Trade Organizations and speaking out for greater justice in world trade. More than 265 members in 60 countries across the world have come together in solidarity and mutual cooperation to create an alternative and fairer way of doing business.

IFAT prescribes 10 standards that Fair Trade organizations must follow in their day-to-day work and carries out continuous monitoring to ensure these standards are upheld:

Creating opportunities for economically disadvantaged producers
Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
Transparency and accountability
Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
Capacity building
Fair Trade is a means to develop producers' independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
Promoting Fair Trade
Fair Trade Organizations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.
Payment of a fair price
A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.
Gender Equity
Fair Trade means that women's work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.
Working conditions
Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
Child Labour
Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms 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.
The environment
Fair Trade actively encourages better environmental practices and the application of responsible methods of production.
Trade Relations - This standard was added in October 2006
Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. Whenever possible producers are assisted with access to pre-harvest or pre-production advance payment.

How does People Tree support partners to become IFAT members

Keya Palm, Bangladesh.

How does People Tree support partners to become IFAT members?

People Tree supports its Fair Trade partners to become IFAT members. IFAT is a global network of Fair Trade organizations; it is member based and acts as a network for debate and the promotion of Fair Trade. It is a monitoring and accrediting organization. To become a member, Fair Trade organizations applications must be seconded by two other IFAT members and they must commit to meeting Fair Trade standards. They must also submit biennual Self Assessment Reviews of their activities and pay annual membership and monitoring fees. These can be financially challenging even for larger established Fair Trade organizations.

People Tree sees IFAT as integral to building the international Fair Trade movement but recognises that membership to IFAT can be a barrier for small producer groups genuinely committed to social development and Fair Trade. For this reason People Tree helps small groups build capacity to become IFAT members.

Developing Partner Awareness and capacity for Fair Trade

People Tree organizes workshops on Fair Trade and encourages partners to advocate and campaign for Fair Trade too. People Tree also helps to develop Fair Trade standards using its practical experience, working in partnership with producer organizations. People Tree has been involved with the development of the standards for Fair Trade cotton and Fair Trade manufacturing of clothing, as well as setting best practice standard for environmental production methods.

Through close partnership and the development of partners' organizational capacity. We work to high Fair Trade standards together and pioneer environmental projects like organic cotton, hand woven organic cotton and the development of natural dyes.

Weavers from Artisan Hut holding Fair Trade IFAT standards.

Children attending Thanapara Swallows' new daycare center in Bangladesh.

To help build partner capacity for Fair Trade People Tree has supported several social projects including the building of a daycare center in Bangladesh for working parents' babies and young children. Currently there are 36 children between the ages of 4 months and 5 years attending the center. The building of a dormitory and dining area for 20 weavers, and provides economic support to run schools in Kathmandu, Nepal and Swallows in Bangladesh.

Together with Global Village, its sister organization, People Tree initiated and runs World Fair Trade Day (2nd Saturday of May). Indorsed by IFAT the Secretariat People Tree also runs the website of international events, providing campaign materials and supporting Fair Trade organizations in planning World Fair Trade Day events around the world.

In short, People Tree aims high - to show best practice in Fair Trade based on passion, commitment and professionalism, at the same time as being at the forefront of promoting the Fair Trade movement globally.