Using the resources describing conscious capitalism and fair trade, how does fair trade support the philosophy and practices of conscious capitalism? What are the challenges to implementation of fair trade in the developing world?
Conscious capitalism is a very well known theory of social responsibility, which is used as a business strategy which helps benefit people equally in the work environment. It is a great theory to use, to help try to improve things for the people working and it helps to create a higher purpose, whilst creating value for stakeholders. The company’s actions in regard to conscious capital in business normally evolve around desirable economically, socially, environmentally and ethically.
Fair trade on the other hand is a global scheme, which is made up of different networks such as producers, companies, consumers, advocates, and organizations putting the people and the planet first. It is a movement with the goal and aim to achieve better trading conditions between developing countries and the developed world. It is all about improving the trading partnership between workers and producers, this can help the farmers as it guarantees stable prices, an improvement in working conditions and sustainability (Maseland, 2002).
Some of the challenges that might be faced is that it isn’t very easy to introduce fair trade as it is quite expensive and a lot of producers don’t like it as it might cost them more money and it can be very difficult to manage and sustain.
Maseland, R. (2002). How fair is fair trade?. De Economist, 150(3), 251-272.