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Fairtrade Organization Code

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Fairtrade Organization Code Version 0.1 Approved by the FI General Assembly on 4th July 2019 Contents INTRODUCTION 3 INTEGRITY 16 Purpose and Objectives 3 Principle 6. We are honest, trustworthy and Compliance with the Code 3 transparent about how we work 17 Annual Reporting 4 6.1 Annual Reporting 17 Code Review and Oversight 4 6.2 Communication / Public Information Disclosure 17 Fairtrade’s Vision, Mission & Values 5 6.3 Working with the Media 17 Definition of Fair Trade 5 6.4 Data Governance 17 Values and Principles underpinning 6.5 Conflict of Interest 18 the Fairtrade Organizational Code 6 Principle 7. We govern our affairs in a responsible, democratic and transparent way 19 ACCOUNTABILITY 7 7.1 Global governance and ownership 19 7.2 Member Governance 19 Principle 1. We manage resources 7.3 Legal Compliance 19 responsibly and ethically 8 7.4 Decision Making Roles and Responsibilities 19 1.1 Financial Management and Reporting 8 7.5 Membership 19 1.2 Maintaining Responsible Levels of Reserves 8 Principle 8. We practice what we preach 1.3 Fraud and Corrupt Practices 8 in relation to fair and sustainable trade 20 1.4 Value for Money 8 8.1 Procurement Policy 20 1.5 Ethical investment and fundraising 8 8.2 Ethical and Fairtrade Sourcing 20 1.6 Trademark Protection 9 8.3 Living Wages 20 Principle 2. We strive to be effective 8.4 Environmental Management and Impact 20 and deliver positive impact 10 2.1 Global Strategy 10 PARTNERSHIP 21 2.2 Key Performance Indicators 10 2.3 Impact reporting and MEL 10 Principle 9. We collaborate and coordinate Principle 3. We take responsibility for our actions 11 our efforts as one global organization 22 3.1 Complaints and allegations 11 9.1 Strategic Planning Processes 22 3.2 Whistleblowing 11 9.2 Membership roles and responsibilities 22 3.3 Risk Management 11 9.3 Territorial Rights and Interests 22 9.4 Resourcing the Global System 22 RESPECT 12 Principle 10. We build partnerships and collaborate for greater global impact 23 Principle 4. We respect, protect and champion 10.1 Farmers’ and Workers’ Organizations 23 human rights, and fight for those disadvantaged 10.2 Movement for fair and sustainable trade 23 in international trade 13 10.3 Stakeholder engagement and participation 23 4.1 Human Rights 13 10.4 Fairtrade Supply Chain Partners 24 4.2 Protection of Children and Vulnerable 10.5 Corporate Partnerships 24 Adults from violence and abuse 13 10.6 Policy, Advocacy and Global Campaigning 24 4.3 Gender Equality and Women’ 10.7 Professional networks and forums 24 Economic Empowerment 13 4.4 Workers’ Rights 13 APPENDICES 25 Principle 5. We respect, value and nurture those who work for us 14 Appendix 1: Glossary of Terms 26 5.1 Code of Conduct 14 Appendix 2: Background to Values and Principles 31 5.2 Child Protection 14 5.3 Sexual Exploitation and Abuse 14 5.4 Harassment and Anti-Bullying Policy 14 5.5 Human Resources 15 5.6 Work force Security 15 5.7 Diversity and Equal Opportunities 15 5.8 Workers’ Representation 15 Introduction Fairtrade International has adopted this Fairtrade Compliance with the Code Organization Code (hereinafter referred to as the “Code”) Once approved by the General Assembly, the Code is to provide a clear framework for how we implement our binding on all Members1. It applies equally to Fairtrade values, principles, policies and procedures across all International, FLOCERT, National/Regional Fairtrade of our work as a Global System, and to ensure that we Organizations, Fairtrade Marketing Organizations and operate with high standards of behaviour, accountability Producer Networks who are part of Fairtrade’s global and ethics. governance system. Small Producer Organizations, Hired The Code aims to deliver on Fairtrade’s vision and Labour Organizations or Traders are covered by our mission to make international trade work better for Standards and Certification System, and as such are not farmers and workers, drive positive impact in achieving covered by the Code. better livelihoods for producers and uphold and promote The Code contains commitments requiring Members to human rights and dignity for all, delivering Fairtrade’s adopt certain policies and procedures to implement the contribution to the achievement of the Sustainable Code (as specified in the support package described Development Goals. below) and to ensure that such policies and procedures are The Code sets out standards for our practice, rather than compliant with relevant national or international legislation goals or targets, which are covered by our Theory of and regulations. Members are encouraged to include Change and Strategic Plans. The Code is approved and references to local legislation or regulations in their own overseen by the Fairtrade International Board of Directors policies and procedures as part of interpreting the Code and the General Assembly. within the context of their own local or national situation. Alongside the Code, there will be a support package Purpose and Objectives for Members, including a Fairtrade Organization Code Assurance Framework document, which will provide The purpose of the Code is to deliver Fairtrade’s vision indicators to support Members to be able to demonstrate and mission to transform international trade in favour of and report compliance with the Code. Further, the disadvantaged small farmers and workers by building support package will include a schedule showing where greater trust and credibility with our stakeholders, partners, a Policy/Procedure is (i) mandatory (MP), i.e. must be funders and the general public through the adoption of implemented by Members within a certain timeframe, greater transparency, accountability and effectiveness in or (ii) recommended (RP), i.e. is recommended to be how we operate as a global System. adopted by Members voluntarily at their own discretion. Objectives Some sections will not require separate or additional policy/procedure development at Members’ level 1. To clarify and deliver against agreed standards of good but will reflect organizational Good Practices (GP) by practice expected of all Fairtrade Members (including Members. Finally, also part of the support package, the Fairtrade International, licensing and marketing Guidance Manual plus model policy templates for agreed operations, producer networks and FLOCERT). mandatory policies or procedures will aid Members in 2. To provide assurance to Fairtrade stakeholders: their implementation of the Code. partner organizations, business partners, licensees Each Member is required to designate a senior staff and trading partners, funders and donors, country member to act as their organizational champion of governments where we operate, members of our Code compliance, and to work with their own Boards/ national organizations, farmers’ and workers’ Governance bodies and leadership teams to deliver organizations, supporters of our movement, compliance and ensure timely and accurate reporting consumers and members of the general public. against the compliance indicators contained in the Code 3. To enable effective self-regulation and compliance, Assurance Framework. and deliver continuous strengthening and improvement of our system and operations. 1 When referring to “Members” or “Fairtrade Members” this means a reference every organization contributing to the delivery of Fairtrade’s governance and goals: Fairtrade International Central Office; FLOCERT; Regional and sub-regional Fairtrade Producer Networks and offices; National or Regional Fairtrade Organizations and Fairtrade Marketing Organizations. THE CODE 3 INTRODUCTION Annual Reporting Code Review and Oversight Member organizations are required to report annually Oversight of the contents of the Code and Member to Fairtrade International on their implementation of the compliance will be provided by Fairtrade International’s Code. This annual reporting will cover: Governance Committee, who will provide an annual report to the Board on overall Member compliance, • the adoption of agreed mandatory Policies and and make recommendations to the Board and General Procedures, including progress since the previous Assembly for any revisions of the Code or other actions report arising from Member non-compliance with the Code. • any breaches of the Code identified or investigated Every three years, the Governance Committee will during the previous 12 months and remediation conduct a full review of the Code itself, and of compliance measures taken and reporting patterns, and make recommendations • actions and priorities to improve compliance against to the General Assembly via the Board. Decisions over the Code, provide training or further capacity building changes to the Code or compliance process are taken by to enable its effective implementation. the General Assembly. Fairtrade International’s Ethics and Compliance Manager Members wishing to propose any amendments or will facilitate the process of reporting and collation of a revisions to the Code should raise these in the first global report drawing on each Member Organization, instance with Fairtrade International’s Ethics and against the Code Assurance Framework. Fairtrade Compliance Manager. International will provide System-wide oversight of reporting deadlines, and provide recommendations to the Governance Committee, based on the global report. The Governance Committee will review the report and submit any recommendations to the Fairtrade International Board. Failure by any Member to submit an annual report will be addressed as part of the annual Compliance reporting process above. Fairtrade International will designate a responsible person to explore the reasons with the Member concerned, and agree a plan of action. 4 THE CODE Fairtrade’s Vision, Mission & Values All Members of Fairtrade International commit to work Our vision and mission are reflected in the values, by which towards achievement of the global Fairtrade Vision and we commit to work together so that we set an example Mission, and embed these appropriately into their own for the changes we seek in others. Therefore we will work statutes/constitutions, ways of working and internal and collaboratively and seek to empower those who wish to external communications. be partners in our mission.
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