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

Share

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Mar 29th, 2:00 PM Mar 29th, 3:00 PM

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.