Ethical vs Fair Trade

Stephanie Chong @ noodPR
3 min readSep 12, 2020

“Subtlety may deceive you; integrity never will,” said Oliver Cromwell.

Every business should endeavour to live, breathe and work by this quote. While being a ‘fair trade’ certified business is subtle, being a truly ‘ethical’ business shows its strength, character and integrity.

As the globalized economy is growing at the cost of marginalized and poor labour, consumers have started to question whether the people behind the products they consume are treated well and paid fairly. Fair trade and ethical practices focus on improving the overall conditions of marginalized workers.

While ‘fair trade’ and ‘ethical’ business practices sound almost synonymous, there is a thin line between the two. Many companies choose to be certified by the World Fair Trade Organization as a ‘fair trade business’. However, there is no official certification provided for being an ‘ethical trade business.’ Being ethical is something that each business decides for itself. They can be ethical, or they can earn ‘fair trade’ certification meanwhile still having labourers work in unsafe conditions!

Being ‘fair trade’ or ‘ethical’ has been a hot topic in the coffee industry since its inception. When it comes to coffee, most of the money is earned by the middlemen and the businesses. Farmers are often paid the bare minimum. An ethical brand ensures judicious payments to the farmers and looks after the working conditions of the farms. An ethical business feels the pain points of a farmer’s labour, costs and working conditions and ensures they are not burning their hands with pesticides and are able to live a healthy and safe lifestyle. Ethical businesses are concerned not only with making profits but with the wellness of the poor labourers and field workers.

Being ‘fair trade’ and ‘ethically made’ is the new trend in the coffee industry. When it comes to coffee, most of the money is earned by the middlemen and the businesses. Farmers are paid the bare minimum. An ethical brand ensures judicious payments to the farmers as well as looks after the working conditions of the farms. It feels the pain of the farmers and ensures they are not burning their hands with pesticides and are able to live a healthy and safe lifestyle. Ethical businesses are concerned not only with making profits but also with the wellness of the poor labourers and field workers.

It is very common for big brands to trap the poor labourers into a vicious cycle. These brands are only concerned with their production quantity and not with the sweat and blood that goes into making the products. Big brands with the label of ‘fair trade’ pay minimal salaries to their workers and promise them a school in their town to help children study. These workers don’t want a school right now. They want decent salries so that they can pay their debts and move ahead in their lives. Big businesses rip the poor workers from their buying power.

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Stephanie Chong @ noodPR

Founder of noodPR. Lifestyle, business, sustainability and social impact. Inspired by the pitches that never quite “made it.”