Fair trade is an alternative to conventional trade that seeks to promote social, economic and environmental justice in trade relations. The 10 principles of fair trade are a fundamental guide guiding the practices of this movement, ensuring that ethical and equitable standards are met at all stages of the supply chain.
The 10 principles of fair trade
1. Creating opportunities for stakeholders:
To move from a situation of vulnerability to a situation of labor and social security, organizations need to get involved and engage with all stakeholders; these are workers, customers, providers (service or raw materials) and the community. There should be no confusion between the creation of opportunities and welfare.
- We work together with our suppliers, customers, raw material suppliers, service providers and the community to contribute to a sustainable and healthy diet.
- We have an action plan to create opportunities with 4 activities a year minimally, which involves all our stakeholders.
2. Internal and external transparency:
It is imperative for organizations to ensure maximum transparency in labor and commercial economic transactions to their stakeholders and customers. They are committed to transparent commercial management and facilitate the participation of workers in their internal decision-making processes
- As part of a policy of transparency, we aim to communicate to all our stakeholders the mission and the progress in the management of the company. This communication process is carried out through digital channels (web, social networks, mail) and print media (triatics, newsletters, etc.)
- We have employment policies and they are available to all our stakeholders on the website.
- There are instances of participation for workers and other interest groups (whatsapp groups, suggestion boxes) the latter has a procedure for handling complaints, complaints, suggestions or acknowledgements whose opening is periodic.
- There is a traceability procedure that allows us to track the product for our customers.
- We have a list of suppliers.
3. Good business practices:
Organizations should commit to long-term business relationships with their suppliers and customers, formalize and comply with their business agreements.
- In order to formalize and guarantee our business relationship with our suppliers, we use contracts and service orders. The clauses stipulate not only the conditions of sale, delivery time and modality, but also clauses relating to the prohibition of child labour, equal treatment, non-discrimination and care for the environment.
- We fulfill the payment on the dates agreed within the contracts or service orders.
- A system of financing to suppliers has been created through which we facilitate advances in monetary units, seeds or fertilizer on the agreed value of the order.
- If we cancel an order for reasons beyond our control, we proceed according to the terms of the service contracts or orders.
4. Capacity building:
Information, training and training are needed to improve the skills of workers and suppliers. That is why organisations must be committed to this.
- We provide access to free courses in e-commerce and photography for our marketing area with support from Promperu.
- We train in logistics, finance, corporate social responsibility, digital marketing and business. Through the program «She exports» from Promperu.
- We perform a service contract to form a strategic alliance with the processing plant.
- We provide training in organic production to our Sachabamba producers.
5. Promotion of fair trade:
Good Practices of Fair Trade are promoted both by organizations and in the community, civil society and public opinion
- We recorded a song «I sing for a fair trade» that brings together the principles of Fair Trade and we broadcast it on the radio.
- We distribute leaflets and newsletters in the Sachabamba area about Good Fair Trade Practices.
- Communication through social networks and mailing about Fair Trade Best Practices.
- We held a fair trade workshop for Sachabamba producers.
6. Payment of the fair price:
Organizations need to set a price for the products they buy from their suppliers that allows them to cover their production costs and still make a profit. As far as their workers are concerned, remuneration should be defined in such a way as to ensure that their basic needs are covered.
- Our salaried workers receive at least the minimum living wage in force.
- The payment for temporary service or for the production of a unit in a certain time is in relation to the minimum living wage in force.
- The price of the product or service paid to the service provider covers at least its cost of production.
7. Equal treatment:
Despite differences in gender, age, religion, political and ethnic affiliation, organizations must guarantee equal working conditions for their workers. The same organizations must give women access to the same opportunities as men and recognize their specific needs.
- We establish policies for the non-discrimination of wages by sex, age, religion, political affiliation, ethnicity and/or social status.
- There is access to training services without discrimination.
- We establish non-discrimination policies and equal opportunities for promotions within the organization.
- We promote practices for gender participation.
8. Good working conditions:
Organisations should promote safe working conditions in their premises and in their suppliers’ workshops, respect national and international labour laws and raise workers’ awareness to adopt these practices.
- We promote safe working conditions in accordance with national and/or international legislation.
- We respect working hours in accordance with current labor law.
- Overtime hours are paid under the current labour law.
- We are up to date in the payment of social benefits.
9. Child labour:
The protection of child labour and the right to develop and enjoy a full and healthy life must be respected by local organizations. These were established by UN conventions and current regulations.
- We do not allow anyone under the age of 18 to be part of our team.
- We promote the practice of combating child labour.
10. Respect for the environment:
To achieve a circular economy, organizations must use clean technologies, promote the use of renewable sources and reduce their environmental impacts along the production chain.
- We implement color waste bins.
- We use biodegradable and recycled bags.
- We promote an internal campaign «Give him the opportunity to have another life» in order to recycle and reuse paper. In addition to an external awareness campaign in environmental care in schools in Huancapi, Ayacucho.
- We use the waste from the warehouse for animal consumption.
- We minimize the use of synthetic fertilizers and pesticides.
Information rescued from the Regulation 2021 of the Good Practices of Fair Trade Peru and its Certification Mark (BPCJ).