The Institutionalization of Fair Trade: More Than Just a Degraded Form of Social Action

The Institutionalization of Fair Trade: More than Just a Degraded Form of Social Action Author(s): Corinne Gendron, Véronique Bisaillon and Ana Isabel Otero Rance Source: Journal of Business Ethics, Vol. 86, Supplement 1: Fair Trade (2009), pp. 63-79 Published by: Springer Stable URL: https://www.jstor.org/stable/40294860 Accessed: 06-06-2019 16:26 UTC

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This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms Journal of Business Ethics (2009) 86:63-79 © Springer 2008 DOI 10.1007/sl0551-008-9758-4

The Institutionalization of Fair Trade: Corinne Gendron More than Just a Degraded Form Véronique Bisaillon of Social Action Ana Isabel Otero Ranee

ABSTRACT. The context of economic globalization has can be characterized as a clash between a "radical, militant" contributed to the emergence of a new form of social action pole and a "softer, more commercial" one. However, it is which has spread into the economic sphere in the form of the not the actual institutionalization of fair trade which is being new social economic movements. The emblematic figure of debated among fair trade actors on either side of the fence, this new generation of social movements is fair trade, which but rather the challenges inherent in finding an economic influences the economy towards political or social ends. institutionalization acceptable to social economic move- Having emerged from multiple alternative trade practices, ments. Therefore the institutionalization process of fair trade fair trade has gradually become institutionalized since the should not be seen as mere degradation of social action, but professionalization of World Shops, the arrival of fair trade rather as typical of the institutionalization process of new products in the food industry, and the establishment of an social economic movements. If we need to worry about the official "fair trade" label. With the strength that this institu- highjacking and alteration of the fair trade movement by the tionalization has generated, fair trade can now be considered dominant economic system, the opposite is no less likely, as a real trade system that questions, as much as it renews, the new social economic movements contribute to an ethical traditional economic system. In parallel, this transformation restructuring of markets. has exacerbated the tensions within the movement, which KEY WORDS: fair trade, globalization, institutionalization, new social economic movements, new social This article is translated from the French by Annelies Hodge movements, and social action reviewed by Claire Valade. Corinne Gendron is a professor in the Department of ABBREVIATIONS:Organi- ATO: Alternative Trade Organi- zation and Human Resource Management within the zation; School EFTA: European Fair Trade Association; FLO: Fair of Management Science at VUniversité du Québec à Montréal Labelling Organization - International; FSC: Forestry (UQAM). She has headed the research chair in StewardshipSocial Council; FTO: Fair Trade Organisatie or Fair Responsibility and Sustainable Development Centre Trade Organizations; I FAT: International Federation of (CRSDD) since 2004, directing several research programmes Alternative Trade; ISO: International Organization for on sustainable development, corporate social responsibility, Standardization; FINE: informal umbrella of FLO, /FAT, globalization, new social economic movements, and fair NEWS!, trade. EFTA; ILO: International Labour Organization; Véronique Bisaillon is a Master's student in the Environmental MCC: Mennonite Central Committee; NEWS!: Network Science institute at VUniversité du Québec à Montréal of European World Shops; S AI: Social Accountability (UQAM). She is currently writing a thesis about fair International; trade SERRV: Sales Exchange for Refugee and sustainable development while working as the Rehabilitation Social and Vocation; UCIRI: Union de Com- Responsibility and Sustainable Development Centre unidades Indigenas de la Region del Istmo; UNCTAD: (CRSDD) co-ordinator. United Nations Conference for Trade and Development Ana Isabel Otero Ranee is a PhD student in Political Science at VUniversité du Québec à Montréal (UQAM). She has been working as a researcher at the Social Responsibility and Introduction Sustainable Development Centre (CRSDD) since January 2004. Her research focuses on fair trade as a development alternative, the conventional international trade system, Since and the turn of the millennium, the fair trade the influence of the new economic and social movements. movement has left its marginal beginnings behind,

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 64 Corinne Gendron et al gaining an increasingly we reflect important on the recent evolution of the notoriety movement despite the fact that its market share remains modest. and the question it raises: does the institutionaliza- Concurrently, it is experiencing tensions that aretion of fair trade correspond to a degraded forjn of crystallized around an initial perspective, called social action, a weakened form of the movements' "radical and militant", and a second one, perceived demands? To respond to this, we propose beginning to be "softer and more commercial". These tensions with an understanding of the nature of social are more and more apparent as the movement has movements and the phenomenon of their institu- become institutionalized or formalized through a tionalization. We then reveal the concrete forms that common definition, common criteria, and, above the institutionalization of the fair trade movement all, a distribution strategy which is now symbolic of has assumed over the last decades and the challenges the two clashing perspectives. Some fear that the it faces. In the last section of this article, we reflect transformative potential of the fair trade movement on the institutionalization of fair trade and of new could be weakened through this institutionalization social economic movements in general, and how as it is progressively cut from its roots and simulta- they manifest their transformative potential in neously "contaminated" by an economic or com- advanced capitalist societies. Finally we conclude that mercial logic. it is not the institutionalization of fair trade as such Though this portrait may appear overdrawn, it that causes problems for the actors of the movement, does summarize the many contradictory positions in but rather the mode of institutionalization. By proving the fair trade movement which, according to some, to be more economic than political, this mode is is at the point of bursting. However, by placing fair typical of other social mobilizations which charac- trade within the larger context of the new social terize the era of globalization, and is not less able to mobilizations, and the transformations that they are cause important social transformations. causing, which are manifesting themselves in the era of globalization, the existing conflict at the centre of the movement can be transcended such that the From charity to a parallel commercial "militant" and "commercial" poles are seen in system a complementary way. The institutionalization of social movements took Many authors trace the origins of fair trade to craft new forms in the era of globalization by systemati- boutiques which appeared in the United States, the cally resorting to economic methods of pressure. United Kingdom, and the Netherlands in the middle "Political institutionalization" has been superseded of the 20th century.1 These initiatives not only came by what could be defined as "economic institu- from political movements of solidarity known as the tionalization" - a formalization of demands in the "solidarity trade" (IFAT, 2003), but also from economic system. This type of institutionalization isdevelopment organizations known as "develop- typical of movements that we call social economic, mental trade" (IFAT, 2003), corresponding to the of which fair trade is one of the best known, and early history of a social movement that has multiple requires a new look at the process of social trans- origins. formation in advanced capitalist societies. In this In effect, fair trade resulted from a serendipitous article, we demonstrate that, while this transforma- convergence of different local initiatives in alterna- tion is creating well-founded fears, the process of the tive commerce. Firstly, although it has not always institutionalization of fair trade does not have to be been acknowledged, fair trade has an incontestable interpreted as a simple degradation of social action relationship with the co-operative movement, initially instigated by activists, but rather can be which has its roots in nineteenth century Italy and interpreted as typical of the mode in which new the United Kingdom (IFAT, 2003) and with social economic movements are institutionalized. hundreds of later initiatives like those raised by Low The argument is built in four stages. First of all, and Davenport (2005). 2 This movement aims to we will trace the plural origins of fair trade, which develop a co-operative economy that is integrated offers an interesting and often neglected exploration from the production to the distribution of products of the current tensions within the movement. Next, (IFAT, 2003):

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The conceptual bases of fair trade are well wished understood to find outlets for the products of excluded under the umbrella of social projects put countries in place (Renard, by 2003; Malservisi and Faubert- the pioneers of the cooperative movement. Mailloux, 2000). The founders of the Rochdale Equitable Pioneer Finally Society towards the end of the 1960s, international had already developed the principle of eliminating the development agencies and religious organizations excessive profit of intermediaries. They also wished to transform the nature of commercial relations into a initiated a "developmental trade", which consisted of assisting Southern producers in production and way for the civil society to organize itself while making the citizen-consumer an actor of social change. exportation (Kocken, 2003; Malservisi and Faubert- (Malservisi and Faubert-MaiUoux, 2000, p. 2, our Mailloux, 2000). The international development translation) organizations supported development objectives such as the eradication of poverty and aiding Secondly, fair trade can also be linked to another populations threatened by natural catastrophes type of practice that came to the forefront of the (Kocken, 2003; Malservisi and Faubert-Mailloux, solidarity movement after the Second World War: 2000), to which the celebrated slogan "trade, not the charity business. Beginning in 1950, religious aid", from the 1960s United Nations Conference for organizations and other NGOs had the idea of Trade and Development (UNCTAD), was applied. financing their development projects through the This slogan strongly portrays Southern demands for sale of craft products, at the same time aiding more just rules of commerce, without which aid is communities and refugees in the South as well as often rendered useless. It has since been reused as a neglected populations in the North (Low and slogan for a number of international solidarity net- Davenport, 2005). In the beginning, there were no works (Solagral, 2002), 4 with many fair trade actors systematic links between the crafts sold and the today accepting it as the movements raison d'être. communities who benefited from the assistance; this These four different practices (see Figure 1) principle imposed itself towards the end of the 1950s demonstrate the multiple origins of fair trade, which (Low and Davenport, 2005). Le Velly refers to as the "trade of benevolence"5 Thirdly, fair trade can be linked to solidarity trade (2004). According to Le Velly, such commerce has which emerged from the political movements of two main characteristics. On the one hand, it is a solidarity and which imported products from polit- niche commerce where buyers are already aware and ically or economically marginalized Southern convinced of the pertinence of the projects countries (Kocken, 2003; Renard, 2003) in the supported by their purchases; new buyers are not decades that followed, namely the 1960s and 1970s necessarily sought unless they are known to be (Kocken, 2003). This alternative commerce was not already supporting similar causes. On the other hand, so much based on the commitment of religious the product can be sold at a price higher than missionaries, but on that of activists who opposed comparable conventional products, regardless of its capitalism and neo-imperialism by preaching alter- quality. The purchase of benevolence trade products native ways of life (Low and Davenport, 2005; corresponds above all to an act of charity seeking to Renard, 2003). Before contributing towards aid producers or support the political causes of improving the quality of producers' lives, they Southern countries. We acknowledge and recognize

Figure 1. The movements at the origin of fair trade.

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 66 Corinne Gendron et al. these two ideological market.positions This change whichresulted from still the needs mark of the fair trade movement producerstoday, facing and the coffee which, crisis, the necessity according to to some, might even threaten counter difficulties to within tear the craft thesector, the movement rise of apart. ethical consumerism, and the creation of the fair The 1980s and 1990s marked a turning point trade label (Low and Davenport, 2005). when the different practices of benevolence trade Facing a limited alternative distribution network, consolidated themselves around the idea of a "just in 1988 Dutch clergyman Frans Van der Hoff and equitable" alternative to conventional trade. (i.e., Francisco VanderHoff Boersma) and Nico This evolution occurred as a reaction to the com- Roozen created the Max Havelaar association as well mercial context at the time. Firstly, towards the end as the fair trade label carrying the same name. In of the 1980s, the fair trade craft sector had to address parallel to the "professionalization" of alternative several important difficulties. In terms of what was commerce networks through fair trade boutiques, a on offer, the arrival of new commercial players (such completely new strategy of distribution was born: as Pier 1 Imports) and the rise of catalogue orders inlabelling effectively opened the doors to large-scale ethnic products destroyed the exclusivity of the fair distribution. This label originated from a reflection trade movement (Littrell and Dickson, 1999; Low made by the peasants of the Union de Comunidades and Davenport, 2005). In terms of the demand, the Indigenas de la Region del Istmo (UCIRI), as de- recession reduced consumer buying power, with scribed by the founders of Max Havelaar. To have a people becoming more demanding regarding the real effect on the peasants' life, the sale of fair trade quality of goods. Marketing, which the organizers ofcoffee was not just a matter of price but also of scale alternative commerce were largely not familiar with, and volume: sold in small quantities, it remained became unavoidable while the products had to only a symbolic policy. "For the peasants of UCIRI, satisfy new international health and safety standards the solution was evident: 'Our coffee must be sold in (Low and Davenport, 2005). This context encour- supermarkets at a fair price. Our coffee had to be aged a triple evolution of the movement, charac- within range of the average consumer, and made terized by the "professionalization" of World Shops, available specifically where they shop"' (Roozen and the arrival of fair trade products in the food industry, Van der Hoff, 2002, pp. 99-100, our translation). and the establishment of the fair trade label. It was through negotiations with a distributor that By the end of the 1980s, World Shops were the promoters of Max Havelaar decided to establish a becoming more professionalized, through an label instead of a brand name (Roozen and Van der emphasis on commercial activities, which began to Hoff, 2002, p. 109). The label's criteria were dis- take a place similar to information and education, cussed by a commission which gathered together and through improving the quality and the diversity both distributors and Solidaridad, a development of products being offered (Veit, 1997). The "pro- organization where Mr. Roozen worked. The fessionalization" of alternative distribution networks introduction of Max Havelaar coffee in 1988 was a accompanied the creation and consolidation of success and its market share rapidly reached 2 per different fair trade networks, aiming to expand fair cent.6 This labelling system was adopted in Belgium trade and position it in the political scene. The two years later, followed by Switzerland in 1992. International Federation of Alternative Trade Other labels soon followed, such as: Fair Trade (the (IFAT), the European Fair Trade Association United Kingdom, Ireland, and Canada), Transfair (EFTA), and the Network of European World (Austria, Germany, Italy, Luxemburg, Japan, the Shops (NEWS!) are the principal examples. United States, and Canada), and Rättvisenmärkt Fair trade products also appeared in the (Sweden).food In 1997, seventeen certification organi- industry towards the end of the 1980s. Although zationsthe joined together in an international federa- Dutch fair trade organization Fair Trade Organisatie tion, the Fair Labelling Organization-International (FTO) had already imported fair trade coffee for (FLO). the Today, national initiatives from Australia, first time from Guatemala in 1973 (Kocken, 2003;New Zealand, and Mexico are also included. Veit, 1997), it was not until the end of the 1980s Throughthat this federation, the labelling organizations the movement made a significant entry into gatheredthis their resources by sharing their expertise

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and making their certification criteria Fair uniform Trade is a trading partnership based on dialogue, (Buccolo, 2000). transparency and respect, that seeks greater equity in The wave of World Shop "professionalization", international trade. It contributes to sustainable the arrival of fair trade in the food industry, development and the by offering better trading conditions to, development of a fair trade labelling strategy and securing paved the rights of, marginalized producers and workers - especially in the South. Fair Trade organi- the way from alternative trade to fair trade. This zations (backed by consumers) are actively engaged in change, which occurred in the 1990s,8 had supporting producers, in raising awareness and in marketing aims, according to Low and Davenport campaigning for changes in the rules and practices of (2005). "Alternative commerce" refers above conventional all to international a trade. (EFTA, 2001) commerce that occurs on the margins of traditional commerce, taking on the characteristics Fair of Trade's benevo- strategic intent is to: lent commerce, while "fair trade" proposes a new form of commerce with the specific aim of • workreserving deliberately with marginalized produc- a just price for producers (Low and Davenport, ers and workers in order to help them move 2005). 9 It is even more important to note, however, from a position of vulnerability to one of that this new name is within the same movement of security and economic self-sufficiency; • empower producers and workers as stake- practices sharing diverse origins that call themselves "fair". Also, the heterogeneity of fair trade is testi- holders in their own organizations; mony to this plural heritage, even if many interpret • play a wider, active role in the global arena it as a fragmentation of a movement that was once in order to achieve greater equity in international trade. (FINE, cited in EFTA, 2001)10 unified. Fair trade originates from a triple evolution that has led to its institutionalization which, while Fair trade poses itself as an alternative to the tradi- guaranteeing its success according to some, has cut it tional trade system which it denounces as oligopo- off from its roots, leading to a loss of significance and listic and inequitable. It proposes an alternative way transformative potential according to others. It is to trade by establishing a series of principles at the precisely this question that we propose to reflect base of commercial relations. Relationships are no upon in this article: Has the institutionalization of longer a question of compromises reached through fair trade cut it off from its social roots to the point economic agents who are looking to justify a certain that we can no longer speak of a social fair trade marginal utility, but rather a question of people who movement? In order to respond to this, it is are anchored in specific societies and who, through important, firstly, to recall the difficulties posed by commercial transactions, seek to establish a real the institutionalization of social movements and, relationship of solidarity. This relationship of soli- secondly, to study the particular challenges that this darity takes form through an alternative commercial institutionalization poses for the fair trade move- framework that is situated on the margins of tradi- ment. Finally, we conclude the article by demon- tional markets. It is based both on principles and new strating that the debate is not so much concerned institutions: "The idea of the 'invisible hand' has with the effect of the institutionalization of the fair given way to the idea of working 'hand in hand,' trade social movement, but rather on how it should the market is regulated by democratic authorities" be achieved. (Lemaigre and Verbeeren, 1997 in Bo wen, 2001, p. 25). Regarding principles, fair trade defines several The institutionalization of fair trade criteria, several of which address producers and others of which address Northern organizations. At the turn of the twenty-first century, fair Generally,trade the producers must guarantee that their actors arrived relatively easily at a common defini- organizations have democratic decision-making tion of fair trade envisaged as, above all, an alter-procedures and operations (Bo wen, 2001). More native to the traditional market in opposition specifically, to the FLO defines two series of criteria for usual economic practices: producers: those which apply to small producers and

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 68 Corinne Gendron et al. those which apply toorganizations, workers in theyplantations may offer or technical assistance, industries (FLO, 2004). financing In the first and case, training, the pro- and organize educational ducer must function eithercampaigns in co-operative to raise awareness form or among Northern in another form of participatory consumers. Theyand democratically may also promote more advanta- structured organization. geous international In the second commercial case, rules for Southern employers must pay countries. decent salaries to workers, guarantee the right of Inworkers the fair trade system, to the unionize, criteria are comple- and offer adequate lodging if mentedapplicable. by two distinct distribution They strategies: also an have to respect health, safety, alternative and commercialization environmental network, that is, standards. Finally, forced labour shops,and which child offer fair labourtrade products exclusively;are forbidden (FLO, 2004). and fair trade labelling, which permits the identifi- There are two levels cationof of producerfair trade products sold criteria:on the traditional firstly, minimum standards that market. The must first strategy be is part respected of what we have in order to obtain certification; described and, as the prehistory secondly, of fair trade, at which progressive standards which encourage time the initiators producers of the movement began toto offer continually improve working conditions products from the South and in specialized product shops run by quality as well as the environmental activists and volunteers. sustainability Since these beginnings, such of their activities or their investment shops have developed from in meeting the points todevelopment, more the organization, and professional the selling well-being spots, structured through theof workers (FLO, 2004). formalization of operating rules and the establish- Organizations in the ment North, of national organizations that oris, networks. buyers, These must respect the following shops guidelines: are now connected to central merchandizing networks (the Alternative Trading Organizations to provide direct [ATOs] access or Fair Trade ...Organizations to [FTOs]),producers' which products, avoiding work - directlyto thewith Southern greatest producers and guar- extent possible - middlemen antee the respect and of fair tradespeculators criteria regarding the (Bo- wen, 2001, p. 25); products that they import. to pay a fair price for In alternative the distribution products networks, the devel-that covers the basic needs opment of ofproducers markets is paramount. Craftsand are theproduc- tion costs, and also principal productsleaves that are being a commercialized margin in for investment; the fair trade network. This presents a particular to pay part of the challenge price because (40-50it relates to a sector per where cent)sales in advance so that producers possibilities are limited. can Such products purchase are purchased the necessary raw materials occasionally, compared to complete to food products that arean order without falling into consumed debt; regularly. Also, the renewal of products is to establish long-term crucial in this working sector, a criterion that relationshipsfew fair trade and contracts with producer producers. groups can satisfy. The alternative network has created its own Specific criteria concerning the quality, procedure, or price may be added strategy for assuringto thethese credibility of itsgeneric distribution ones system, a form of fair trade institutionalization. depending on the product.11 The trade partners may Compared to labelled food products, craft products also agree to a series of other criteria, such as the are involved in a longer production chain. The application of a sustainable perspective, the diversi- certification model of fair trade products that is used fication of production, the respect of the conventions of the International for food products cannotLabour be used for Organizationcraft goods (ILO), the security aimed of at penetrating local large food, distribution networks,the as balance controlling the more complex chain of value is very between local and export market access, and the act difficult. After the 6th biennial conference of IFAT of favouring local transformation of products (Bowen, 2001, pp. in29-30). Tanzania in 2001, Asproper standardsfor forNorthern such fair

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trade organizations were established12 offer regardless a more efficient of means to assist the greatest whether they were producers, distributors, number export-of Southern producers possible. ers, importers, or retailers. IFAT also established For labelling organizations,a co-operation between three-step monitoring system to allow fair for trade verifica- actors and traditional actors is a win-win tion of these criteria among its members. strategy: Finally, in 2004 IFAT launched the "FTO Mark", which is a label provided to IFAT member organizations It is in the interest after of all actors in a society that new and successful monitoring. This label aims efficientto reassure models are established, which help address the consumers, conventional trade actors, and general political gap between the rich and the poor, based not authorities about the commitment of these onmembers charity, but on fair exchanges and dignity. In truth, the interests of Third World producers coincide with towards fair trade (IFAT, 2004). It is therefore not a the long-term interests of consumers, commerce, certification for the products of organizations but industry and the governments of those countries. In rather for the organizations themselves. the case of coffee, we are convinced that coffee mer- This labelling has allowed fair trade to chants, penetrate roasters and supermarket chains can, and must, the market by infiltrating conventional distribution play a crucial role based on converging interests. channels. It should be noted that this distribution (Transfair, 2001, our translation) strategy had profound repercussions on the definition and the practices of fair trade, opening the way Labelling organizations have also focused on to real paradoxes that are causing concerns and addressing another commercial problem: the quality tensions within the movement. As we have dem- and image of fair trade. By associating themselves onstrated, the introduction of the fair trade label was with well-known brands of roasters, fair trade labels a response to a simple logical premise: If the fair could not only benefit from their knowledge but trade movement really wishes to support Southern also from their image of quality, thus overcoming producers, it must focus on volume, without which prejudices concerning the "solidarity" coffee results remain marginal and insignificant. The (Renard, 2003, p. 90): greater the volume of fair trade products, the more For the lasting success of our common objectives, it is producers will be able to benefit from its advanta- crucially important to combat all the widespread geous conditions. The rising volume of sales raises prejudices relating to alternative trade. The coffee commercial challenges regarding product access: offered by small producers is excellent, small producers are trustworthy commercial partners, and roasters and To be efficient, we must effectively assure that our coffee merchants are not necessarily exploitative. We consumers have an optimal access to the products we must construct a public image of quality and trust promote. This means, in practice, that alternative regarding fair trade. (Transfair, 2001, our translation) commerce can only be a real alternative if products are available in every supermarket, every grocery store, on Reading such statements, one notes that resorting to every street corner, in places of business where con- the labelling process and to large distribution net- sumers shop, and not only in specialized World Shops, works as a favoured strategy marks a new orientation where alternative trade products are generally sold. in fair trade; it is no longer an alternative to the (Transfair, 2001, our translation) conventional market, it is an option within that Widespread access to fair trade products broadens market: "Alternative trade must develop itself within the client base, moving it from a restricted circle of 'normal' trade", Transfàir noted on its Web site activists to the larger segment of consumers who are (2001). In short, the "intention of the Fair Trade aware or conscious of the situation. It is only labelling organizations was to create a reality within through conventional distribution channels that this the market, instead of constructing an alternative larger market can be reached; it is therefore necessary outside the market" (Renard, 2003, p. 90). to infiltrate these channels by reaching agreements It is this positioning with regard to the conven- with large distributors. The labelling organizations tional market that causes the greatest tensions within themselves are not against collaborating with tradi- the fair trade movement. As the founders of Max tional economic actors, as they recognize that they Havelaar state, the idea of introducing fair trade

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 70 Corinne Gendron et al. products through large respond distribution to the demand of a new channelswave of ethical caused distrust and reservations consumers? among Behind this questionfair lies trade the unavoid- actors.14 Even though labelling able reached paradox that occurs the when entire a social movement movement, tensions between actors integrates focusing itself within the economicon volume arena: (which preceded the creation of the label) and actors The tension does reflect ... a real ambivalence of the focusing on alternative distribution networks remain: Fair Trade Labeling Model, one that acts both inside and outside the market, a contradiction between the

Though blurred by the identity uniform of the groups linkedterm to activism "Fair and their Trade* \ tension remains between reality astwo business. Indeed,visions: "equity" products One, respond a more radical conception that to commercialsees logic"fair" from the momenttrade of their asinser- a tool for modifying the dominant tion into economicthe market: what is "ethical" model, is a selling point and the other, more pragmatic, andthat profits emphasizescome from the social significance the insertionthe of products from the South products under carry. That is, fair these products conditions occupy a niche in the markets of the North.... in the market,For but the this niche first also responds group, to a logic more politically and ideologically contrary to linkedmarket logic in thatto the militant way it escapes movements, the label is merely purely mercantilea tool considerations. of transition, (Renard, 2003, and the challenge consists of making p. 92) fair trade the general rule. Thus, it is an alternative to the dominant model or, in This ambivalence between the militant identity and other words, the aim is to make all exchanges fair. The the reality of the business does not limit itself to the second group attempts to penetrate the market and the lifestyle of consumers labellingin order strategy. Specialized to fair sell trade shopslarger also quantities of fair products and to occupy strengthen a place in the market, and arethe therefore producer organizations of the South, subject demonstrating to a typical commercial logic that has by this route that the dominant model modified their is relationship not with monolithic the conventional (Renard, 2003, p. 91). market:

For those who participate in alternative distribution Ironically, since World Shops, which form a large part networks, collaborating with large distribution of the social base of alternative trade organizations channels is contrary to the principles and the alter- (ATOs), have seen their sales double and even triple as native ideology of fair trade. Furthermore, providing a result of advertising and national labelling campaigns, access to fair trade products in supermarkets risks they have been pushed to become more efficient and are less inclined to criticize conventional business standardizing what was meant to be consumption aimed at activists. Even Max Havelaar members practice as they were in the past. (Thomson cited in Malservisi and Faubert-Mailloux, 2000, our transla- agree that the commercialization across large distri- tion) bution channels required a change in the fair trade message: "To broaden the spectrum of the public In short, while seeking to utilize trade for militant interested in buying these products, it was necessary ends, does the fair trade movement not inevitably to appeal more to humanitarian sentiments than run to the risk of diluting its own cause for commercial political convictions" (Renard, 2003, p. 90). One ends? Partnering with conventional economic actors can therefore ponder the emergence of an apolitical, already requires compromises between ethical prin- ethical consumption where the equitable dimension ciples and commercial considerations, and one can of the product is concerned less with the denunci- fear that the desire for an even larger presence on the ation of an international trading system which market is may be achieved to the detriment of the unjust and is instead more focused on simple quali- values and ideology of fair trade (Renard, 2003, p. tative attributes, as with organic, home-made, 92).or The second danger is the highjacking of that cholesterol-free products. In short, is fair trade ideology by large actors within the conventional aiming to transform the rules of international com- market who, due to their interest in the growing merce by educating the public about the establish- segment of responsible consumers, decide to offer ment of an alternative, or is it simply aiming theirto own "fair trade" products without necessarily

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responding to the strict requirements defined 1978a). Accordingby the to the actionalist perspective, the movement. As is already the case inspecificity the food of new social as compared to traditional industry where all sorts of labels proliferate, working-class movementsthe rests in the fact that their multiplication of fair trade labels risks social causing base "is con- constituted mainly of a new middle fusion and undermining fair trade. This classis the that reasonis exhibiting more of a class sensibility than why the movement is lobbying for the a class fair consciousness trade so that, while possessing a label to be protected by official institutions, structurally as is determined the potential for mobilization, its case for the certified organic label. In demands fact, are these either very specific, or universalist, and questions highlight the concerns caused in any caseby utterly the foreign to the notion of class institutionalization of fair trade, an institutionaliza- specificity" (Gendron, 2005, p. 399, our translation). tion that no longer solely operates in Finally, the political the work of new social movements may sphere as envisaged by both traditional create demandsand new for institutions, but it is at the level social movements, but also in the economic of historicity, sphere, that is, of society's cultural orienta- thus justifying the concept of "new social tions, economicinstead of the institutional level, that their movement". essence as social movements is expressed (Touraine, 1978b). The school of new social movements thus disassociates itself from the theory of resource Social movements and institutionalization mobilization which is completely oriented towards the quest for State institutionalization. For Touraine, Fair trade is generally presented by its actors institutionalization as a appears to be a degraded form of social movement which claims greater justice the forsocial movement's action and the movement Southern countries. The character of the fair trade thus seems transformed by this process: social movement can be understood in several ways depending on the theoretical perspective chosen. The study of social movements shows that, after an Over the last decades, a number of theories about initial phase of global opposition between competing social movements have been formed, with the Utopias, a phase of direct confrontation between the principal schools being resource mobilization and social adversaries occurs, followed by a phase of new social movements. The school of resource institutionalization of the conflict .... This type of mobilization considers social movements as interest institutionalization cannot operate without a transformation of the actors or without the intervention of groups which fight among themselves so that political forces .... (Touraine, 1973, p. 241, our demands are recognized and integrated by the offi- translation) cial apparatus, that is, so that they are institutionalized. This perspective sees social movements from a For other actionalist authors, the question of insti- strategic and utilitarian perspective that, while tutionalization poses itself differently depending on interesting, does not allow for an understanding of the nature of the demands of new social movements mobilizations centred on normative projects or and the framework of political representation. As universal principles (Cohen, 1985) such as fair trade, demonstrated by Melucci, organizational forms of because, within this perspective, social action is new social movements escape traditional political strictly viewed as defending private interests within categories, corresponding in their latent phase to "a an organizational structure (Gendron, 2005). nebula of variable density, with unclear borders", The school of new social movements appears and they become explicit only in moments of more appropriate for understanding the phenome- mobilization by which they cannot be defined non of fair trade. It defines social movement as the (Melucci, 1983, p. 13, our translation). Thus, on the collective control of an alternative societal project, a one hand, political organizations answer more to fight that is not directed towards the State but against stable interests that rest on a clearly defined social a social class opponent. This struggle seeks to control base. On the other hand, social movements risk the historicity, that is, the means by which a society fragmenting and disappearing without a certain form acts upon itself and through which actors strive to of political representation. For Offe, the inability of merge with the normative foundations (Touraine, political systems to accept the demands of new social

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 72 Corinne Gendron et al. movements is the very institutional reason sphere why of world politicsthese and instead movements is deploy their resources able toin influence non-institutional the rules of economic systems. fields, outside of the State These (1985). last two perspectives The open questionthe way for a new of the "institutionalization" of social movements does not social economic movement, which we will explore take into consideration the transformations that they after presenting the concrete forms that the institu- evoke, which, as explained by Eder, touch both the tionalization of fair trade has recently taken. institutional and the non-institutional fields:

The commonplace that social movements are under- The institutionalization of new social going a process of institutionalization (which normally economic movements means integration into existing political and social institutions) has at least to be corrected. Institutional- Over the past few years, a new mode of social action izing social movements has led to effects that are has caught the interest of many researchers: the use changing the institutional system itself .... [Social of economic mechanisms to respond to social movements] represent a new type of institution which demands. Micheletti, for example, developed the forces the institutional system to adapt discursive structures. (Eder, 1993, pp. 16-17; 19) concept of political consumerism (2003), while Cashore proposed the expression "Non-State According to the theories that we have presented, Market-Driven (NSMD) Governance Systems" to the institutionalization of social movements can thus explain the systematization of economic forms of be explained in three ways: in terms of the mobili- social pressure (2002). Thus, following the new social zation of resources, it corresponds to both the rec- movements, which broadened their action beyond the ognition of the interests of actors and the integration political sphere to the social sphere at the end of the of these same interests into the political structure; 1960s, today's social movements focus primarily on according to Touraine, as it formalizes social conflict the economic sphere (Gendron, 2001). To reinforce within the political system, institutionalization cor- the actionalist heritage of our theoretical perspective, responds to a degraded form of social action which we have chosen to develop the concept of the new loses its transformative potential. Lastly, if we social economic movement. We present it as a new extrapolate from Eder, Offe, and Melucci, we could generation of the social movement, not in its essence posit that the issue of the institutionalization of social as such but more through its methods of action, movements needs to find transcendence in order to which involves different tools that have become realize their transformational potential for institu- refined and diversified over the years. Boycotting tional structures. Even if these theoretical perspec- campaigns have been replaced by buycotting strategies tives seem contradictory, they at least shed light on (see Micheletti, 2003), based not only on the edu- the fair trade movement and also on its strategies and cation and awareness of consumers but also on on the tensions that are crystallizing within them. measures of traceability and labelling. Initiated by The first perspective takes into consideration the religious communities, ethical investment and its reservations that international economic authorities strategy of negative filtering in the selection of have towards this movement, which aims to trans- investments or threats of disinvestment have paved form commercial rules and make them more just in the way for socially responsible investment based on relation to Southern countries. The second both filters and dialogue with the management of perspective takes into account the fears of abusinesses. part of In both cases, we observe that social the movement which sees this "economic" institu- movements use economic status (that of the con- tionalization as degrading social mobilization and sumer or the investor) to pressure businesses on a weakening its political message communicated socio-political level. They adapt the economic to the authorities of world economic governance mechanisms, modelling them according to their (an issue which we will return to later in this arti- values. In short, the arrival of social movements in cle). The third perspective allows an understand- the economic sphere leads to a redefinition, a ing of the transformations that fair trade causes, as it re-politicization, and a re-socialization of economic is no longer restrained within the "traditional" transactions, thus regaining its status as a real social

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relationship so that it may be analysed and as the judged most efficient as means to state one's beliefs such. considering that those of us in the North consume It is interesting to note that the arrival every ofday socialbut only vote once every four years.15 In movements in the economic sphere is addition, concomitant responsible consumption influences prac- with the sudden preoccupation with socialtices beyond respon- the national jurisdictions to which a sibility that companies have had over citizen the islast subjected, few thus presiding over a real glob- years. A marginal concern during the alization late 1970s,of social mobilization. Nevertheless, polit- referring to social responsibility when presenting ical consumption the is not an alternative to traditional activities of a business to the public, has political now become action; it is used as a complementary strat- the rule (Stark, 1993). We no longer egy countto more traditionalthe forms of political activity, number of initiatives taken by companies with responsible to dem- consumers also being highly active onstrate their social responsibility and their citizens corporate within traditional political institutions (Stolle citizenship. The value of this process et al., depends, 2003). In short, it is not the consumer who however, on the credibility of the company. takes the place Only of the citizen, but rather the citizen alliances with civil groups may guarantee, who stands in behind the the consumer, with the limits and public eye, the veracity and legitimacy the potentialof a com- that this status offers. In addition, pany's socially responsible actions that politicalgo beyond consumerism its is also based on a system of original mandate and mission as a private, traceability large-scale and labelling, which requires the inter- company. In the forestry sector, for example,vention of the com- State to incorporate fair trade con- panies that are certified ISO 14001, an ditions essentially within existing economic mechanisms and industrial standard, will aim towards institutions; sustainable thus "political institutionalization" is management of their forests in order neededto qualify to support for "economic institutionalization". the FSC certification, a more demanding According standard to Offe (1985), citizens seek to con- developed by NGOs (Maurais and Lafrance, struct political 2003). action within society in order to In the textile sector, some enterprises expresstry to demands, obtain through new social movements the SA 8000 certification from Social Accountabilitythat remain unsatisfied by the system of the welfare International (SAI) to demonstrate their State. respectThus, to follow of up on that thought, it appears fundamental human and worker rights, that and new socialto pre- economic movements have become pare themselves for verification by a meanslocal forNGOs citizens to construct political action (O'Rourque, 2000, p. 15). Far from within isolated the market where unsatisfied demands on the examples, these two cases demonstrate political how systema new can be expressed in the era of dynamic is structuring the market on globalization. the basis In ofaddition, in response to Eder who values. Social responsibility has become argues more that than new sociala movements have transformed differentiation criterion in terms of marketing;public space with by a new logic of institutional action reaching into the socio-political scene, thatit has supports become forms of self-organization beyond the the necessary ingredient to legitimize State companies (1993), we can note that new social economic whose sphere of influence has greatly movements expanded are transforming economic space with a thanks to the process of the merchandizing new logicof social of action that supports forms of self- issues (Champion, 2003). organization in the market within which the insti- The incursion of social movements into the tutional system must position itself. In light of this economic arena thus appeared to be a countermea- theoretical perspective, one can reflect on the most sure for the merchandizing processes that were recent pe- evolutions and tensions that exist within the netrating the most hidden spheres of our lives - afterfair trade movement, at a time when several fear that all, political consumption takes root in consumer fair trade is becoming a degraded form of its original societies. However, this incursion is also linked incarnation to and losing its power of transformation. the transformation of regulatory methods inherent Together in with shareholder activism, fair trade is the process of globalization and the redefinition certainly of the most symbolic of the new social eco- official institutions. Responsible consumption isnomic of- movements. As for other movements, its ten presented by actors within the social movement action cannot be seen strictly in economic terms

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because it is mainly However,from this capacitythe issocial also intrinsically and linked political spheres that it draws itsto the raisonperformance ofà'etre. fair trade withStrict regard to economicits analysis, as proposed by main some objective: authors,the development offers of Southern limited interest as it concludes communities.that fair One musttrade, note thatbased only a smallon its very modest market share, number plays of Southern only producers havea accessmarginal to the fair role (Perna, 2000, p. 365). While trade network, we and cannot that often only ignore a part of their the fair trade market when evaluating production is distributed its as fair impacttrade. The portion on of North- South relations, other theparameters, product sold through the like fair trade the market impactpro- on the workforce, show the vides theratio producer ofwith stabilityfair andtrade the ability to to international trade as being predict not revenues, 1 to as well10,000 as providing but access ratherto pre- 1 to 150 (Perna, 2000, pp. financing 360-361). programmes orIn a bonus our that canopinion, be rein- the real impact of fair trade vested onin his orinternational her organization and in community trade is best demonstrated in terms development of quality (Barratt ratherBrown and Adam,than 1999, quantity. p. 115). The price offered within the fair trade [The] implications [of network fair can trade] also have an effectgo whenwell average beyond prices its own sales .... [It is] a permanentoffered to producers in awarenessthe traditional market campaign rise. encouraging consumers to pay a just price for the However, the impact of fair trade goes beyond the products they buy, where social and environmental bonus offered for fair trade products. Integration into costs are included in the price, and working and social the network requires organizational criteria such as conditions as defined by ILO standards are respected. (Barratt Brown and Adam, the implementation 1999, of a p.democratic 116, structure our astransla- tion; see also Bowen, 2001)well as reinvestment in individual development in the organization and in the community. These The existence of fair trade itself serves as an ethical requirements strengthen producers, placing them in reference, fixing the standards of social responsibility a better position to negotiate with their traditional by which large businesses and their operations intermediaries, or even to bypass them in certain are now judged. The more we educate Northern cases (Auroi, 2000, p. 205). Finally, integration into consumers about international trade issues and the fair trade network often allows access to new North-South inequalities, the more important techniquesthis and knowledge, improving the quality of normative role becomes: production and reinforcing the competitiveness of producers in the market. These advantages all con- Its power [i.e., the power of fair trade] clearly emanates tribute towards empowering Southern producers from the social relationships that sustain it, which and improving their position in the international constitute its social capital, and from the strength of the marketplace. But is this the only ambition of fair [fair trade] label, its symbolic capital .... It is essential, trade? This would mean that fair trade is only a tool therefore, to preserve the relationship between the for correcting market imperfections which restrict "equity" market and the social organizations that Southern economic actors from fully benefiting incubated it. "Without the original linkage to social from free trade (Perna, 2000, pp. 363-364). movements, alternative products lose their capacity to affect consumer's and producer's identities, and By fixing the objective of aiding neglected therefore the capacity to generate social change". Southern communities through the establishment of (Brunori, cited in Renard, 2003, p. 94) more just commercial rules, fair trade raises certain fundamental questions. The first is to know if The qualitative impact of fair trade is therefore a development necessarily occurs through trade. By tribute to the work of activists who dedicated emphasizing exclusively the reinforcement of the themselves to awareness campaigns, and can thus trade be positions of Southern producers, does fair trade measured in terms of notoriety rather than market not risk deepening the actual inequalities of inter- share. In this regard, it is interesting to note that nationalthe trade, thus encouraging specialization and rate of awareness has often exceeded 50 per cent dependence in on cash crops at the expense of food certain countries, and as much as 80 per cent in crops?the Must fair trade continue to encourage a Netherlands. commercial situation whereby Southern countries

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supply exotic products to their Northern risk, counter-and that commercial logic may alter social parts to the detriment of their own food movements. security? However, the opposite is also true: The Finally, what position should fair trade market take canregard- be transformed by the arrival of new ing the transport of food products acton over responding long to different market logic and free distances within the perspective of from sustainable a typical economic rationality. Following the development? Divergent opinions example within of other the new social economic movements, movement regarding these questions highlightfair trade contributes the to the ethical restructuring of tensions between its "militant" and "commercial" the market by imposing a framework of reference wings. For many, fair trade must, above all, be which will inevitably confront traditional economic thought of in terms of local development, favouring actors. Fair trade criteria also impose themselves as "local commercial flows, as demonstrated in the the criteria to which many companies engaged in criteria proposed by certain certification organiza- international trade and claiming to be responsible tions. The impact may also be seen in the long run in should aim for and by which they will be judged. terms of its progressive separation from a depen- Fair trade transforms economic institutions, seeking dence on exportation, and thus on the fluctuations to institutionalize its economic governance while its and variations in the demand coming from foreign actors demand greater equity in North-South ex- Northern markets" (Bucolo, 2003, p. 115, our changes. It is therefore not the institutionalization of translation). In light of this, we can understand ini- the movement as such that poses a problem for tiatives like Commerdo Justo, a Mexican fair trade certain factions of the movement but rather how this label for Mexico, and also make a beneficial com- should occur; while a certain faction of activists parison between the fair trade movement and perceived as more radical wish that the institution- Northern initiatives such as community-supported alization restrict itself to political institutions, thus agriculture. To sum up, the question that remains is: remaining marginal from the economic point of view, the majority appear committed to the idea of How can one not be an accomplice to the great world an "economic institutionalization", in full under- bazaar? This is where the great challenge of fair trade standing of the risk that capitalism and its key actors resides. In a way, it should aim to destroy itself, in the sense that it should contribute to the reconstruction of may claim it for themselves. Balancing this double process of institutionalization certainly represents the broken Southern societies and encourage, for example, the re-conversion of speculative crops delivered by greatest current challenge of the fair trade movement world commerce towards food crops necessary to feed that draws an unquestionable force from its unity. famished local communities. Also, it must incite the craft industry to respond to the needs of local clients Conclusion rather than exporting its trinkets to Westerners thirsty for exoticism. (Latouche, 2000, p. 352, our translation) During the era of trade liberalization and globaliza- The fair trade movement could address these delicate tion, a new form of social action has emerged to contradictions by accompanying its action with a find, in the economic sphere, a way of expressing reflection on its objectives and the ways it intends to demands that are not addressed by official national achieve them. Considering its roots in the social authorities. The transformations caused by this social movement with its socio-political character, such a action are evident, not just through the implemen- reflection cannot be avoided. Some fair trade orga- tation of public policies, but also in the economic nizations, such as Équiterre,16 are already doing this. system. Even if the market continues to function Equiterre made the deliberate choice not to promote according to a certain immutable logic, like profit the importation of certain food products that are also maximization, it and its actors are no less trans- produced locally in Québec and thereby adhere to formed by the actions of these new social economic 3N-J principles: Nude, Natural, Not-far and Just movements. (Waridel et al., 1998). 17 The emblematic figure of this new generation of In short, one must recognize that the incursion of social movements is fair trade, which focuses its militant action in the economic arena is not without demands around a more just and advantageous

This content downloaded from 132.208.246.237 on Thu, 06 Jun 2019 16:26:12 UTC All use subject to https://about.jstor.org/terms 76 Corinne Gendron et al. trading system with Notes Southern countries. Since its institutionalization in the 1990s, fair trade has become a true commercial system which questions 1 At the end of the 1940s, Sales Exchange for Refu- as much as it renews the traditional economic sys- gee Rehabilitation and Vocation (SERRV) and the tem, while offering producers up to double prices for Mennonite Central Committee Self Help Crafts offered Americans crafts that came from poor Southern com- their harvest. This system drains the opportunistic, munities, with sales helping to finance development competitive ideology through which the dominant projects (Bowen, 2001, p. 23). A decade later, Oxfam economic actors justify offering ridiculous prices to U.K. had the idea of selling pincushions and other Southern producers. However, these same actors are products made by Chinese refugees; at the same time, a now adapting in order to reach the niche of con- Dutch Catholic association sold Southern products via sumers who are conscious of ethical issues. This correspondence, an initiative that was the origin for the "economic institutionalization" worries a faction of first "World Shop", which opened in Breukelen, Neth- the fair trade movement which sees it as an act of erlands, in 1969 (Veit, 1997). highjacking, which dilutes their message of justice 2 Low and Davenport (2005) highlighted different and weakens, if not destroys, fair trade's power to initiatives aimed towards creating international trade transform. Whether political or economic, this alternatives that can be traced back to the Indian co- institutionalization has the power to transform and, operatives and Khadi movements of the 1920s. The Khadi movement promoted self-sufficiency and the as demonstrated in studies on working-class move- boycotting of exported goods (Office of the Commis- ments, it does not destroy the social movement that sioners for Khadi and Village Industries, 2005). drives it even with the modification of its discourse 3 SERRV was created in 1949 with the objective of and strategies. aiding European refugees after the Second World War. In this perspective, one must understand the Cuckoo clocks were imported from Germany to Mary- current tensions within the fair trade movement; it is land and sold in the United States. Later, the organiza- not the actual institutionalization of fair trade which tion focused on importing crafts from developing is being debated but rather the challenges inherent in countries (SERRV, 2005). The first activities of the finding an economic institutionalization acceptable Mennonite Central Committee (MCC) in the United to social economic movements. However, this States (which became Ten Thousand Villages in 1996), institutionalization does not replace political insti- Oxfam U.K., and the S.O.S. organization from the tutionalization and the transformations which it Netherlands, also joined the wave of charity trade. entails do not manifest themselves in the same 4 For example, in the Netherlands towards the end of the 1960s, a group of Dutch activists sold sugar cane manner. One cannot deny that, even if new social from the Third World with the message: "In buying economic movements like fair trade may produce sugar cane, you assist populations from poor countries less spectacular transformations than an improbable to have a place under the sun of prosperity" (Kocken, revolution of international commercial rules and 2003, p. 1). worldwide economic governance, they are no less In reference to the benevolence of Adams Smith's capable of provoking transformations. Thus, com- butcher. panies must now work with a definition of their 6 These results are nonetheless well below those social performance fixed not only by their public indicated in the market studies used by promoters, relations specialists but also by myriad NGOs com- which promised a market share of between 7 per cent prising both Southern actors and Northern activists. and 14 per cent (Roozen and Van der Hoff, 2002, The new social economic movements also participate p. 121). 7 An initiative of EFTA. in an ethical restructuring of the market, such as fair 8 Malservisi and Faubert-Mailloux (2000) estimated trade, through which the treatment of Southern that this change in terminology occurred in the 1980s. producers can be used as a commercial differentiation 9 Even though today we speak more about fair trade factor. Trade logic and social responsibility can thus than alternative trade, this change is still a subject of de- converge while supporting strategies for more polit- bate within the movement. For example, at the IFAT ical institutionalization and reinforcing the process of general assembly in 2005, members were against a name transforming the rules of international trade. change which would have integrated the term "fair".

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The stakes of this name change were also 16discussed Équiterre is andur- NGO from Quebec which is dedi- ing the previous general assembly. Surprisingly, cated to building how- a citizens' movement by promoting ever, IFATs Web site uses the name "International individual and collective Fair choices, such as fair trade, that Trade Association" instead of "International Federation are both environmentally and socially responsible (Équi- of Alternative Trade". Despite such differences of opin- terre, 2005). ion within the movement, changes in terminology mark According to these principles, one should favour the emergence of a trade which may now be consid- products that are sold without packaging (Nude), are ered as a sector in its own right (Malservisi and organic (Natural), are produced locally (Not-far), and Faubert-Mailloux, 2000). are produced according to fair trade criteria (Just). 10 This definition was created by the FINE network (created in 1998), which, like the Fair Trade Advocacy Office, unites the large international fair trade organizations (FLO-I, IFAT, NEWS!, and EFTA) (EFTA, Acknowledgements 2001). 1 * The FLO defines several standards for each of the We would like to thank the Fonds québécois de la recher- following products: bananas, cocoa, coffee, dried fruit, che sur la société et la culture (FQRSC) who financed the fresh fruit and vegetables, honey, juice, nuts, rice, spi- research on which this article is based, as well as our ces, sugar, tea, wine, and even sports balls (FLO, 2004). colleagues Olga Navarro-Flores and Marie-France Tur- 12 These standards are: the creation of opportunities cotte for their comments, ideas, and participation in all for economically disadvantaged producers within the the stages of our reflection. We also would like to conventional system; transparency and accountability in thank Annelies Hodge for the translation. management and commercial relations; the reinforcement of producer capabilities; gender equality; safe and References secure working conditions; restrictions on child labour (the tasks being performed may not compromise their well-being, their security, or their education); the Auroi, C: 2000, 'Le commerce équitable, un créneau improvement of environmental practices; the payment potentiel pour les petits producteurs des pays en voie of a just price that covers the cost of socially and envi- de développement', Économies et Société, Série Système ronmentally sustainable production; and the promotion agroalimentaires 24(10-11), 199-211. of fair trade (IFAT, 2004). Barrât Brown, M. and S. Adam: 1999, 'Le commerce The first step is a self-assessment that organization équitable dans les échanges Nord-Sud', in J. Defourny, members conduct biennially, based on a guide provided P. Develtere and B. Fonteneau (eds.), L'économie sociale by IFAT. The second stage is a mutual review with au Nord et au Sud, pp. 105-122. members sharing their self-assessment reports with their Bowen, B.: 2001, 'Let's Go Fair', Fair Trade Yearbook commercial partners. Finally, an external evaluation is 2001 (Gand, EFTA). conducted each year when a certain number of mem- Bucolo, E.: 2003, 'Le commerce équitable', Economie bers receive an unannounced visit from an independent Solidaire et Démocratie, Hermès 36, 109-118. inspector (IFAT, 2004). Buccolo, E.: 2000, Le commerce équitable, coll. Les notes de 14 The promoters of the Max Havelaar label explained l'Institut Karl Polanyi (Impatiences démocratiques, the initial challenges: "A different group rose up, on Arles. France). political principles, against the collaboration with roasters Cashore, B.: 2002, 'Legitimacy and the Privatization of and supermarkets .... In World Shops, we put a great va- Environmental Governance: How Non-State Market- lue on informing and raising awareness. Selling is a way Driven Governance Systems Gain Rule-Making to implicate citizens. A supermarket isn't a place of infor- Authority', Governance: An International Journal of Policy, mation and we question whether a consumer of a Max Administration, and Institutions 15(4), 503-529. Havelaar product does so consciously .... A motion was Champion, E.: 2003, 'De la responsabilité sociale adopted by a very small majority: it decided against the corporative à la citoyenneté corporative: l'entreprise adoption of a Max Havelaar label" (Roozen and Van der en quête de légitimité pour assurer un nouveau rôle Hoff, 2002, pp. 111-112, our translation). social', Symposium international sur l'équité, l'efficience ou 15 In the words of Laure Waridel, co-founder of l'éthique: les codes de conduite et la régulation sociale de Équiterre, in the video "Le café à saveur equitable" l'entreprise mondialisée (organized by CRIMT, Mont- (Gutierrez, 2000). réal, HEC Montréal, 30 April-2 May).

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