Presentation Type
Poster
Keywords
Fair Trade, Price Floor, Social Premium, Market Driven Restoration
Department
Economics
Major
Finance
Abstract
In 2015, a study done by Cone Communications found that millennials are "universally more engaged in corporate social responsibility." In fact, 87% of millennials are willing to purchase a product with social or environmental benefits. Enter, the fair trade label. The fair trade label, which is attached to products which meet the previously mentioned consumer demands, has emerged over the last three decades. Products like organic produce, textiles, and natural commodities have entered into global retailers and supermarkets through these non-traditional distribution channels, supported by increased consumption as well as changing consumer preferences. In order to uncover the underlying economic and social benefits and potential disadvantages, an analysis of the fair trade model has been conducted. Additionally, this paper will examine the future outlook of fair trade labels and how companies are creating niche business strategies within the model to develop sustained competitive advantages.
Faculty Mentor
Julia R Norgaard
Funding Source or Research Program
Summer Undergraduate Research Program
Location
Waves Cafeteria
Start Date
29-3-2019 2:00 PM
End Date
29-3-2019 3:00 PM
Included in
Growth and Development Commons, International Economics Commons, Other Economics Commons
The Fairness of Fair Trade: An Analysis of the Economics of Fair Trade
Waves Cafeteria
In 2015, a study done by Cone Communications found that millennials are "universally more engaged in corporate social responsibility." In fact, 87% of millennials are willing to purchase a product with social or environmental benefits. Enter, the fair trade label. The fair trade label, which is attached to products which meet the previously mentioned consumer demands, has emerged over the last three decades. Products like organic produce, textiles, and natural commodities have entered into global retailers and supermarkets through these non-traditional distribution channels, supported by increased consumption as well as changing consumer preferences. In order to uncover the underlying economic and social benefits and potential disadvantages, an analysis of the fair trade model has been conducted. Additionally, this paper will examine the future outlook of fair trade labels and how companies are creating niche business strategies within the model to develop sustained competitive advantages.