FAIR TRADE USA® Impact Management System (IMS) Overview
Version 2.0.0, November 2020 FAIR TRADE USA / IMS Overview
Mohamed Rihan, 25, from Saharanpur, Uttar Pradesh has worked as a wood carver at Sumitra Woodwork in Hapur, Uttar Pradesh, India for 4 years.
“I enjoy working on handicraft and fine carving—it’s proof of the quality we can produce here. I like the friendly atmosphere at the workplace. The tools and handling machines are all top-notch.”
Contents
About Fair Trade USA 3
Impact Management System (IMS) 3
What is a Theory of Change? 4
Who Are the Primary Stakeholders in a Theory of Change? 5
How Does Fair Trade USA Create Change? 6
How to Read the Theory of Change 7
Theory of Change 8
Diving into Outcomes and Key Performance Indicators (KPIs) 9
Outcomes and Key Performance Indicators:
COMMUNITIES 10
INDIVIDUALS 11 (cover) Elu Valdez, 78, a life-long cacao grower, INDUSTRIES 12 holds a cacao pod while sitting on her steps with her Program Measurement Approach 13 great-granddaughter Yaritza Berberan, 5. Fortaleza Collection Methods 14 del Valle: Canuto, Chone, Manabi, Ecuador. Communication of Fair Trade USA’s Impact 15
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About Fair Trade USA
Fair trade is a movement that empowers farmers, workers, and fishers to fight poverty in ways that improve lives and protect the environment. Founded in 1998, Fair Trade USA is the leading 501(c) (3) nonprofit, third party certifier of fair trade products in North America. We are building an innovative model of responsible business, conscious consumerism, and shared value to eliminate poverty and enable sustainable development for farmers, workers, their families, and their communities around the world. We achieve our mission by empowering producers around the world with the business training, environmental knowledge, and capital investment necessary to create high-quality products that can compete in global markets, and by certifying and promoting fair trade products.
Impact Management System (IMS)
The IMS is Fair Trade USA’s approach to defining, measuring, and communicating the impact of our model. The foundation of the IMS is the organization’s Theory of Change. It also includes the indicators, processes, and technologies used to monitor and evaluate its programs and report on progress toward achieving its outcomes over time.
The objectives of the IMS are:
De ne the outcomes and impact that Fair Trade USA aims to achieve and 1 the methodology for measuring it
Evaluate the effectiveness of program strategies and activities (e.g. 2 standards, market support, consumer activation programs) in realizing goals and desired outcomes
Use our internal and external evaluations to re ne our programs and 3 improve results
Communicate the change Fair Trade USA is enabling for producers, 4 communities, businesses, and consumers
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Segundo Cuevas Villalobos checks his coffee plants. Segundo is a member of the Peruvian coffee cooperative Agua Azul that used part of the Fair Trade Community Development Funds to pay for an adobe home that is used as an office, meeting area, and local communal bank.
What is a Theory of Change?
The Fair Trade USA Theory of Change describes the vision of how the fair trade programs catalyze change in the lives of people around the globe. The Theory of Change is also the foundation of the IMS.
The Theory of Change is a visual and narrative representation of how the strategies and activities of Fair Trade USA impact the livelihoods of
DE STA RA ND T A small farmers, fishermen, and hired workers on farms and in factories R R I D A S F
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T S R P (collectively referred to as producers) over time. I A T H E S GI ER C PARTN In many global supply chains value is not shared equitably, and producers have limited ability to control whether they receive a fair exchange for their goods or services. Labor is still commoditized, and producers may not receive payment (wages or prices) that covers their basic needs or costs of production. Despite increasing awareness of these inequalities, global systems change is needed to create fair trading relationships.
To create a better model of trade, Fair Trade USA, with support from our Full-size model on page 8 strategic partners, advocates for and implements decent work in order to drive more equitable supply chains. This model empowers producers and enables businesses to more transparently support sustainable Fair Trade USA’s Theory of Change frames livelihoods. a model where people prosper in resilient and sustainable communities through Fair Trade USA’s Theory of Change frames a model in which people building a market for responsible business prosper in resilient and sustainable communities by building a market and mutually benecial trade that for responsible business and mutually beneficial trade that cultivates cultivates conscious consumption. conscious consumption.
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Who Are the Primary Stakeholders in the Theory of Change?
The Fair Trade USA vision manifests across four main groups of stakeholders: individual producers, the communities where producers MAIN STAKEHOLDER GROUPS work and live, the industries that buy and sell their goods, and the consumers who purchase products with the Fair Trade Certified™ seal.
Each stakeholder on the graphic is represented by a color; each color Communities Consumers blends into the adjacent color, indicating that these stakeholders are not exclusive in how they contribute to and benefit from the model, but rather how they share the impact that is created.
There are two primary types of producer stakeholders at origin: Individual Industries • Small producers (farmers and fishers) Producers • Hired workers (agricultural and factory)
Fair Trade USA consumers, and the industries that produce Fair Trade Certified products and goods, are also global actors in the model.T hese industries are comprised of: • Brand and retail partners SMALLHOLDERS INDUSTRY STAKEHOLDERS • Farms, factories, fisheries, and cooperatives that hold a Fair Trade
Certificate (also known collectively as Certificate Holders) Farmers Fishers Brand and retail partners These business entities partner with Fair Trade USA to preserve HIRED WORKERS human rights in their supply chains. Consumers are able to choose Fair
Trade Certified products with the confidence that the individuals and Certificate Holders communities behind the seal are treated equitably and empowered (farm & factory management, Agricultural Factory fisheries, cooperatives) through the program.
The ability of Fair Trade USA to create value for producers is dependent on the value created by businesses and consumers. Growing consumer and business demand for fair trade products is a key component in the impact of the model.
(left) The results from Fair Trade Committee election day are announced at Connoisseur Fashions, a Fair Trade Certified factory, in Chennai, Tamil Nadu, India.
The responsibility of the Fair Trade Committee is to effectively manage Fair Trade Community Development Funds and perform related activities such as conducting worker needs surveys, identifying community needs, and implementing community development projects.
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How Does Fair Trade USA Create Change?
Fair Trade USA’s impact results from two primary mechanisms: Certificate Holders’ adherence to rigorous standards and the investment of Community Development Funds, an output of the standard. To amplify the impact at origin, Fair Trade USA provides producer support services such as education and training on human rights, leadership, gender equity, and financial resilience.
Fair Trade USA implements fair trade standards that drive Certificate Holders to operate ethically and fairly. These standards are designed to protect the livelihoods of those who produce goods by requiring decent and safe working conditions, supporting economic well-being, advocating for gender equity, requiring fair prices*, and protecting human rights. “Fair Trade Community Development Funds are a really good incentive for us; plus we feel like Through adherence to the Trade Standard, each industry and brand we are better supporting our community with this program. For example, this year we partner commits to pay an additional sum of money above the purchase bought air conditioners for the local primary price of the Fair Trade Certified product. These funds are then returned to school. That was pretty special.” the producer community in the form of Community Development Funds. —Gabriel Tiburcio García Inzunza, Each producer community organizes into a committee that democratically Cooperative Pescadores del Puerto de Altata, votes on the administration of these funds, supporting empowerment and Sinaloa, Mexico agency over the impact on their communities and livelihoods.
Ultimately, these stakeholder journeys culminate in shifting the global IMPLEMENTATION SUPPORT SERVICES systems of inequity to create a model where producers, as well as their communities, thrive under strong social protections and fair trading Investment Implementing rigorous relationships supported by a movement of conscious consumers. of Community Fair Trade USA Developmentstandards Businesses are in turn rewarded by consumers for responsible sourcing Standards Fundsmet and supporting the people producing the products they buy and sell.
Impact
“Before the renovation women had to walk really far to get water. It was dirty and unsafe. Now, the water pump area is clean, efficient, and safer for our community to use.” —Michel Yao Kouassi, Chief of Kpatabonou Village
(left) In 2018, the Kpatabonou Village, in the Oumé section of Côte d’Ivoire, completely renovated its water pump using Community Development Funds received through the local cooperatives' partnerships with Fair Trade USA.
*in certain supply chains
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How to Read the Theory of Change THE CENTER OF THE DIAL (INPUTS) Fair Trade USA’s logo represents the The Theory of Change is graphically intended to represent a dial that inputs used to implement the model. Two critical inputs that drive impact are the visualizes change across the four main stakeholders and their outcomes, Fair Trade USA standards, as well as the which are intertwined, or overlapping, as each outcome many strategic partnerships such as affects the others. auditors, businesses, and philanthropic donors that support the implementation of the model. This dial is meant to be read from the center outwards, beginning with “Inputs” in the center and progressing outward to “Outputs”,
“Outcomes”, and finally to “System-Wide Impact Goals.” OUTPUTS include the creation of the Fair Trade Committee, the administration of the Community Development Funds to invest in producer communities, and, in some supply chains such as coffee and SYSTEM-WIDE cocoa, the governance of the Fair Trade IMPACTS Minimum Price. S CO IE N IT SC N IO U U M OUTCOMES S M C O O OUTCOMES As outputs develop over C N T S time, outcomes emerge. These include N U E I M empowered individuals, resilient supply L I E chains, responsible business production, S R OUTPUTS E S ethical trade, and increased consumer R demand for products supporting the health and well-being of all communities
E STA at origin. AD ND R A T R Detailed on pages 9, 10, and 11 IR D A S
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S T P R I A H T S SYSTEM-WIDE IMPACT GOALS EG R IC NE PART The goals stated in the outside ring of the circle cross over several sections of the
P E dial as the outputs and outcomes listed R D are not exclusive to one stakeholder, but O A S R rather drive impact for all. The colors of P T E L the dial fade into the adjacent section to R A O I represent that all stakeholders mutually U IC S F benefit from different outcomes of the E IN N model; what positively impacts a farmer D E IV B can also impact their community as well ID LY UA AL as the consumer of their product and the LS TU MU businesses who are partners in creating change.
STAKEHOLDER JOURNEYS
The COLOR LEGEND at the bottom is to guide the reader through the Fair Trade USA model and the different STAKEHOLDER JOURNEYS that work together to drive system-wide impact.
Inputs Outputs Outcomes Impact
Tools, resources, The volume or quantity Short, interim, and long System-wide long term activities, and strategies of work accomplished term benefits or changes fundamental change of dedicated to the project by the project for participants after the intervention project activities Detailed on pages 9, 10, and 11
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Theory of Change Theory of Change
FairFair Trade Trade USA’s USA’s Theory Theory of Changeof Change frames frames a model a model where where people people prosper prosper in resilient in resilient and sustainable and sustainable communities communities throughthrough building building a marketa market for forresponsible responsible business business & mutually & mutually beneficial beneficial trade that trade cultivates that cultivates conscious conscious consumption. consumption.
SYSTEM-WIDE IMPACTS S CO IE N IT SC N C on IO U su a of m U at s , fa e M th i ity UTCOMES c ir t r a S e ee qu O on ra w M t itt r e su d a da e s, m e re C n m d tie e d n O a m en ni rs ev e m o g u a e s O C C s rt n lo s s e e o d p a N rd d at p a s n T a a v p . d d r ti o g v lo d T c ip n o y u S n ir a h i c a n N a a s e a l d t F h r b U s c e ll- te fa e E e e i d i r I v h a e s r s M d i w . t t a t w le r a r a , y n L t l, t a I t d a i d d E ir n e t n e e i u in a h p R S f s is g e l a m e r c TPUTS b l m OU E h p a S T t a o e i c r s c E F R e o d D A s n E C IR B A E O a t a R N r T T c p a n T T S R I U r o p n e R A e i , I M M g n e d D c m e A M E h s a s r E o F t u l p O R w n s u r m t o o C S l t o , o t o i t e e c f m e h e t u t r v . h s E ST r A i h s D F e N c m s A e t d D i R w a c D s o e o A r i T g i c e a a t r o R h y i R r r T F s l n I t P T D o o h f i i C n t i Y i A N r l E A R w S l r n n a u T E i p i d a F I e e E D I O R i d u r R e d n v S n m d i i A N M D e
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We support producer and We protect our WORKERS, We change INDUSTRIES and We engage CONSUMERS by worker COMMUNITIES through FARMERS, and FISHERS empower communities by celebrating brands that sell Fair stakeholder engagement, through certification, auditing, educating our farms, factories, Trade Certified products capacity building, and and compliance with our fisheries, and brands on produced in the fair trade participatory and equitable standards which grant access responsible business practices process, as well as educating decision making, all of which to safe environments, and developing ethical supply consumers to advocate for lead to increased social capital additional capital and chains. sustainable supply chains. and community resilience. resources, and education along their fair trade journey.
*in certain supply chains
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Kokowa Gayo cooperative members (from left to right) Rubiah, 32, Naimah, 38, and Fitri, 28, display freshly picked coffee cherries at a farm associated with Kokowa Gayo in Aceh, Sumatra, Indonesia. Collectively, the women have almost thirty years of coffee farming experience.
Diving into Outcomes and Key Performance Indicators (KPIs)
The next few pages of this document provide greater detail about the outcomes Fair Trade USA is driving and the KPIs we use to help us understand how those outcomes are being achieved.
A KPI is a quantifiable measure used to evaluate the success of meeting an objective for performance. In the case of Fair Trade USA, KPIs are used to better quantify and understand the progress made towards achieving impact outcomes. The outcomes are the objectives that need to be met in order to achieve impact goals as stated in the Theory of Change.
Each key performance indicator is associated with one or more outcomes referenced in the Theory of Change in order to quantify the success of our programs in driving toward the outcome and overall impact goals for the individual, community, and industry partner.
Fair Trade USA works in many countries, commodities, and production systems, with smallholder farmers and fishers, as well as hired labor. The KPIs on the following pages often relate to producers and Fair Trade program participants. Depending on the context, the term producer may refer to farmers, fishers, workers, and/or Certificate Holders. While some KPIs are universal, not all KPIs are applicable to all situations.
The key performance indicators listed for each outcome are a sampled overview and not the comprehensive list of the indicators that will be collected to assess progress towards that outcome. In addition, certain outcomes are applicable across the different types of stakeholder’s and are repeated. Finally, some KPIs may also repeat given that they measure progress that is relevant to more than one outcome. Individual KPIs may be achieved prior to the theorized timeline for each outcome.
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OutcomesOutcomes and and Key Key Performance Performance Indicators: Indicators: Communities COMMUNITIES
We support producer and worker COMMUNITIES through stakeholder engagement, capacity building, and We support producer and worker COMMUNITIES through stakeholder engagement, capacity building, and participatory participatory and equitable decision making, all of which lead to increased social capital and community resilience. and equitable decision making, all of which lead to increased social capital and community resilience.
OUTCOMES IMPACT GOAL
Short Term Interim Long Term System Wide
Community Organization Community Action or Community Well-Being • % of producers who report fair Infrastructure • % of Community Development trade enables sense of community • % of producers who report they Funds spent on community and organization have access to potable drinking infrastructure water • % of producers who voted for Community Development Community Development Funds • % of Community Development project plan Funds spent on community • % of producers who report they infrastructure access health care Fair Trade Community Develop- • % of producers who report ment Funds Project/Payout Social Capital benefiting from trainings • % of producers who voted for • % of producers who perceive Community Development Funds positive change in trust at the Community Empowerment project plan workplace since engaging in fair • % of producers who are satisfied trade • Average amount of Community with Community Development Development Funds invested per • % of producers who have served Funds spending project on a Fair Trade Committee, Social • % of producers who voted for Engagement Team, Health & Community Development Funds Fair Representation Safety Committee project plan • % of Fair Trade USA Committees • % of producers who have served on that are representative of Knowledge Transfer a Fair Trade committee, Social producers’ gender • % of Community Development Engagement Team, Health & Safety Funds spent on trainings • % of producers who feel they can Committee take a suggestion to Fair Trade • % of Certificate Holders who USA Committee access digital and/or in person Sustainable Livelihood trainings developed with Fair • % of producers who report that fair Increased Education Trade USA trade earnings cover their • % of producers who have children household’s basic expenses enrolled in school Gender Equity • % of producers who report the • % of women producers who feel ability to address financial • % Fair Trade USA Committee they are compensated for their shock/emergency members who report learning new work equally to their male skills as a result of serving on a counterpart committee Workplace Well-Being • % of Fair Trade USA Committees • % of producers who plan to return to Gender Awareness that are representative of work on current farm/plant the • % of women producers who producers’ gender following season identify as a co-farmer of the land • % of promoters of Certificate Holder they farm Leadership (ie. would recommend the CH as a • % of producers who have served good place to work) • % of producer members who are on a Fair Trade USA Committee, (via Net Promoter Score) women Social Engagement Team, Health Resilient Communities Resilient & Safety Committee Individual Well-Being • % of Fair Trade USA Committee • % of producers who feel their life members that report gaining has improved since Fair Trade USA leadership skills as a result of Certification serving on a committee • % of producers who report there was not enough food of any kind in the last year due to a lack of resources
1 to 3 years 3 to 7 years 7 to 10+ years
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Outcomes and Key Performance Indicators: INDIVIDUALS
We protect our WORKERS, FARMERS, and FISHERS through certification, auditing, and compliance with our standards which grant access to safe environments, additional capital and resources, and education along their fair trade journey.
OUTCOMES IMPACT GOAL
Short Term Interim Long Term System Wide
Fair Representation Knowledge Transfer Community Well-Being • % of Fair Trade USA Committees that • % of Community Development • % of Community Development are representative of producers’ Funds spent on trainings Funds spent on community gender infrastructure • % of Certificate Holders who access • % of producers who feel they can digital and/or in person trainings Community Development take a suggestion to Fair Trade USA developed with Fair Trade USA Committee • % of producers who report they Gender Equity access health care Increased Education • % women producers who feel they • % of producers who report • % of producers who have children are compensated for their work benefiting from trainings enrolled in school equally to their male counterpart Community Empowerment • % Fair Trade USA Committee • % of Fair Trade USA Committees members who report learning new that are representative of • % of producers who are satisfied skills as a result of serving on a producers’ gender with Community Development committee Funds spending Leadership Sustainable Livelihood Gender Awareness • % of producers who have served on • % of women producers who identify a Fair Trade USA committee, Social • % of producers who report that as a co-farmer of the land they farm Engagement Team, Health & Safety Fair Trade earnings cover their Committee household's basic expenses • % of producer members who are women • % of committee members who • % of producers who report the report gaining leadership skills as a ability to address financial Legally Required Wages & Benefits result of serving on a committee shock/emergency • % of Certificate Holders who pay at Workplace Well-Being least minimum wage Income Diversification • % of producers who rely on a fair • % of producers who plan to return • % of workers who report their wages trade crop for all household income to work on current farm/plant the and/or benefits have improved since following season fair trade was implemented • % of producers who report other sources of income in addition to fair • % of promoters of Certificate Credit Access trade Holder (ie. would recommend the CH as a good place to work) • % of Certificate Holders who report (via Net Promoter Score) that access to credit or pre-finance Individual Empowerment has helped improve financial health • % of producers who feel their Individual Well-Being opinion was considered in deciding • % of Certificate Holders who have how to spend Community • % of producers who feel their life credit programs available to farmers Development Funds has improved since Fair Trade USA Certification Worker Management Dialogue • % of producers who feel they can • % of producers reporting there was • % of producers who think their take a suggestion to Fair Trade USA Committee not enough food of any kind in the suggestion would be taken seriously last year due to a lack of resources by management/cooperative leadership Protected Environments Ethical Supply Chain • % of Certificate Holders who report Environmental Management maintaining buffer zones to protect • % of workers who report their waterways wages and/or benefits have • % of Certificate Holders who report improved since Fair Trade USA using Community Development implementation Funds in their operations to protect Safe and Secure Workplace the environment • % of workers who feel physically Strong & Successful Businesses safe working at current farm or Individuals Prosperous • % of Certificate Holders that ensure facility • % of Certificate Holders who report areas used or converted for Fair Trade USA services have production of fair trade crops • % of workers who are satisfied with contributed to the strength of the comply with national legislation in their working conditions organization regards to agricultural land use Resource Efficiency • % of Certificate Holders who report Transparency in Sourcing/Sales improved worker retention/ • % of Certificate Holders who dispose cooperative membership since Agreements of waste properly Fair Trade USA Certification • % of Certificate Holders who are • % of fishers who are aware how to compliant with sourcing contracts reduce by-catch Sustainable Resource Use • % of farmers who report payment • % of farmers/fishers who are • % of fishers who understand the receipts are distributed by aware of the waste management effects of overfishing in their region Certificate Holders plan for their group Efficiencies in Production • % of producers who implement Transparency in Labor • Organization yield per harvest cycle technology and/or practices to Agreements improve efficiency of water use • % of workers who understand their • % of Certificate Holders who report terms of employment using Community Development Environmental Stewardship Funds on productivity and/or • % of producers who understand • % Certificate Holders who have efficiency written contracts with clear the benefits of enhancing employment conditions biodiversity Income Stabilization • % of producers who actively Market Access & Linkage • % of producers who report positive net income change practice procedures to protect • % of Certificate Holders who report endangered species new relationships via Fair Trade USA • % of producers who report the Certification ability to save each month
1 to 3 years 3 to 7 years 7 to 10+ years
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Outcomes and Key Performance Indicators: INDUSTRIES
We change INDUSTRIES and empower communities by educating our farms, factories, fisheries, and brands on responsible business practices and developing ethical supply chains.
OUTCOMES IMPACT GOAL
Short Term Interim Long Term System Wide
Worker Management Dialogue Protected Environments Ethical Supply Chain • % of producers who think their • % of Certificate Holders who report • % of workers who report their suggestion would be taken seriously maintaining buffer zones to wages and/or benefits have by management/cooperative protect waterways improved since Fair Trade USA leadership implementation Safe and Secure Workplace Environmental Management • % of workers who feel physically Strong & Successful Businesses • % of Certificate Holders who report safe working at current farm or • % of Certificate Holders who report using Community Development facility Fair Trade USA services have Funds in their operations to protect contributed to the strength of the the environment • % of workers who are satisfied with organization their working conditions • % of Certificate Holders that ensure • % of Certificate Holders who report areas used or converted for Resource Efficiency improved worker retention/ production of fair trade crops • % of Certificate Holders who cooperative membership since Fair comply with national legislation in dispose of waste properly Trade USA Certification regards to agricultural land use • % of fishers who are aware of how Sustainable Resource Use Transparency in Sourcing/Sales to reduce by-catch • % of farmers/fishers who are aware Agreements • % of fishers who understand the of the waste management plan for • % of Certificate Holders who are effects of overfishing in their their group compliant with sourcing contracts region • % of producers who implement • % of farmers reporting payment technology and/or practices to receipts are distributed by Efficiencies in Production improve efficiency of water use Certificate Holders • Organization yield per harvest cycle Environmental Stewardship Transparency in Labor • % of Certificate Holders who report • % of producers who understand the Agreements using Community Development benefits of enhancing biodiversity • % of workers that understand their Funds on productivity and/or • % of producers who actively terms of employment efficiency practice procedures to protect • % Certificate Holders who have endangered species Income Stabilization written contracts with clear employment conditions • % of producers who report positive Resilient Supply Chain net income change • % of cooperatives that report a Market Access & Linkage • % of producers who report the more resilient supply chain • % of Certificate Holders who report ability to save each month • % of Certificate Holders who report new relationships via Fair Trade USA the ability to withstand supply Certification Supply Chain Transparency chain demand fluctuations as part • % of annual increase of traceability of fair trade Supply Chain Investments • % of partners who access the • % Certificate Holders who report that Responsible Business Practices Fair Trade USA services helped them Producer Recognition Program for supply chain visibility • % of Certificate Holders who to understand their market perceive improved worker/ • % of Certificate Holders who report Brand Advocacy manager dialogue or communication that Fair Trade USA services helped • Number of brand partner them to understand where to invest
sponsorships with • % of Certificate Holders who feel Beneficial Trade Mutually in their business product/contribution or donation they have fair terms of trade with (conference, universities etc.) their fair trade buyers Audit Compliance • % of Certificate Holders who pass Fair Pricing/True Costing audits with zero non-compliances • Amount of annual minimum price differential paid Brand Engagement • Number of partners/brands who participate in Fair Trade USA Campaigns events
Fair Trade Labeled Sales • % total production volume sold as fair trade
1 to 3 years 3 to 7 years 7 to 10+ years
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Program Measurement Approach
Our approach to monitoring and evaluation includes a variety of methods and tools to collect data and to measure the outputs, outcomes, and impact of our programs. The Data Collection Pyramid below breaks down the IMS data sources into different collection levels and methods based on their content and frequency of collection.
Level 1 – Systematic Data Data collected from all producer organizations.
Level 2 – Sampled Data Data collected periodically across a selected group of producer organizations, preferably a representative sample. Where appropriate, these results can be extrapolated to draw conclusions at an organizational level.
Level 3 – In-depth Studies Deeper research studies on a specific topic or for a carefully chosen subset of producer organizations. The goal is depth over breadth. They can also include a “control” group of similar, non-certified entities to enable comparison.
Data Collection Pyramid
IN-DEPTH STUDIES 3 • Topical studies / Internal Evaluations • Partnered / Academic Research • External Evaluations 3 SAMPLED DATA IN-DEPTH 2 • Household Baseline & Progress Surveys • Premium Questionnaires • Digital Platform* 2 SAMPLED SYSTEMATIC DATA 1 • Member Information • Transaction data • Audit Data 1 • Digital Platform* SYSTEMATIC
*Not applicable for all supply chains
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Wu Lusun, 55, from Chetian, is the manager of the Wucun organic tea farm and processing plant in Dazhangshan, Jiangxi, China.
“Working with Fair Trade USA for 11 years, as one of the first farmers to join, I have seen the wide-ranging benefits this cooperation has brought to our community— everything from education and medical support through scholarships and grants to installing street lamps. By helping raise tea sales through stable buying relationships, our community has grown!”
Collection Methods
Level 1: Systematic Data Collection Methods Fair Trade USA collects certain datasets systematically across all programs and producer groups via audits, transactions, and the newly developed Digital Platform.
In order to gain and maintain fair trade certification, producer organizations are audited by third- party Conformity Assessment Bodies (CABs) against fair trade standards. These audits evaluate adherence to the requirements of the fair trade standard, and they also provide compliance data which support insights into the supply chain. Once they pass the audit and become certified, these producer organizations are considered Certificate Holders.
Certificate Holders also share information such as demographics, production volume data, and information about the use of Fair Trade Community Development Funds through audits and questionnaires.
Business partners are required to report on fair trade purchases, sales, and payments on a * Fair Trade Premium: For periodic basis. These transaction reports are analyzed to assess business partners’ compliance every Fair Trade Certified product sold, the business with the Trade Standard. Transaction reporting also enables insights on volume sold and Fair or importer pays a Trade Premium* paid. premium that goes into a worker/farmer/fisher- Fair Trade USA standards require Certificate Holders to form a Fair Trade Committee, which controlled Community consists of democratically-elected representatives of the workforce, to assess their workers’ and Development Fund at community’s needs holistically and decide how to invest the Fair Trade Community Development origin. From there, a Fair Trade Committee Funds. These Needs Assessments provide data to inform how Community Development Funds decides together how to are being utilized to drive impact goals. spend the funds.
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Level 2: Sampled Data Collection Methods
Fair Trade USA collects survey data from Fair Trade Premium Participants (fishers, workers, and farmers) and Certificate Holders.
Surveys of Fair Trade Premium Participants in a subset of supply chains are an important component of Fair Trade USA’s approach to monitoring and evaluation. Our Impact, Research, and Learning team designs and implements the surveys in collaboration with the Producer Services team and the Field team.
Depending on the context, surveys may be conducted in-person or remotely. In-person interviews are led by trained enumerators (interviewers) equipped with tablets who conduct the surveys in the local language. Remote surveys are conducted through LaborLink, a phone-based Interactive Voice Response (IVR) survey system. In these surveys, producers and workers receive instructions and submit their answers anonymously.
Surveys collect individual- and household-level data that is evaluated to monitor and measure progress toward Fair Trade USA’s impact goals as stated in our Theory of Change. Surveys are performed with a sample of stakeholders. The rigor of statistical and representative sampling of Premium Participants allows inferences to be made about the populations as a whole.
In addition to individual- and household-level surveys, Fair Trade USA also surveys a sample of Certificate Holders to collect information about Community Development Fund spending. Fair Trade USA is developing new capabilities and technologies to better reach Certificate Holders and will leverage those to develop future surveys to gain additional supply chain insights. Fair Trade USA will also develop a survey to collect information from a sample of business partners and measure progress for the industry, as stated in the Theory of Change.
Level 3: In-Depth Studies Fair Trade USA utilizes topical studies, internal evaluations, partnered/academic studies, and external evaluations to assess outcomes and evaluate programs in connection with our Theory of Change. In-depth studies can consist of large-scale program evaluations or smaller, more focused, topical studies. These evaluations can be executed internally or externally. Internal evaluations are conducted by our Impact, Research, and Learning team. External evaluations are managed by Fair Trade USA and conducted in partnership with academic institutions, grantors, expert consultants from the field, other NGOs, or business partners.
Communication of Fair Trade USA’s Impact
At Fair Trade USA, we are committed to sharing the results of our work. We utilize multiple channels to communicate the outcomes of our programs, including internal and external evaluations, brand impact reports, academic studies, and various monitoring reports. As we evolve our IMS, we will continue to build out our reporting mechanisms, including supporting our producers and Certificate Holders with survey insights and data sharing. Additionally, we remain committed to working with our partners on opportunities to support their Corporate Social Responsibility commitments.
For any additional inquiries, please contact [email protected].
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