View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by OTHES MASTERARBEIT Titel der Masterarbeit „THE FUTURE OF FAIRTRADE“ Verfasserin Kate Kemp angestrebter akademischer Grad Master (MA) Wien, 2012 Studienkennzahl lt. Studienblatt: A 067 805 Studienrichtung lt. Studienblatt: Individuelles Masterstudium: Global Studies – a European Perspective Betreuerin / Betreuer: Univ.-Prof. Alejandro Cunat, PhD MASTERARBEIT / MASTER THESIS Titel der Masterarbeit /Title of the master thesis THE FUTURE OF FAIRTRADE Verfasser /Author Kate Kemp angestrebter akademischer Grad / acadamic degree aspired Master (MA) Wien, 2012 Studienkennzahl : A 067 805 Studienrichtung: Individuelles Masterstudium: Global Studies – a European Perspective Betreuer/Supervisor: Univ.-Prof. Alejandro Cunat, PhD TABLE OF CONTENTS i. List of abbreviations ................................................................................................................................... 4 ii. List of figures ............................................................................................................................................. 5 iii. Abstract ...................................................................................................................................................... 5 1.0 Introduction ................................................................................................................................................ 8 1.1 Fairtrade: a viable solution for marginalized producers? ................................................................... 8 1.1.1 Case Specifics ................................................................................................................................... 8 1.2 Research Objectives .............................................................................................................................. 10 1.3 Research Approach ............................................................................................................................... 10 1.4 Contribution to Knowledge ................................................................................................................. 10 1.5 Structure of dissertation ....................................................................................................................... 11 2.0 Literature Review ................................................................................................................................... 12 2.1 Defining Fairtrade ................................................................................................................................. 12 2.1.1 The Evolution of Fairtrade ..................................................................................................... 15 2.1.2 The Fairtrade production chain .............................................................................................. 17 2.2 Fairtrade as ethical consumption ........................................................................................................ 19 2.3 The need for Fairtrade .......................................................................................................................... 21 2.4 Fairtrade and aid .................................................................................................................................... 24 2.5 The future of Fairtrade ......................................................................................................................... 25 2.6 Motivation behind involvement in Fairtrade..................................................................................... 27 2.6.1 Corporate Social Responsibility .............................................................................................. 27 2.6.2 Commercial Motivation. .......................................................................................................... 29 2.6.3 Consumer Motivation .............................................................................................................. 33 2.6.4 Non-Profit Organization Motivation .................................................................................... 35 2.7 The Fairtrade market in the UK .......................................................................................................... 37 2.7.1 Food retailing in the UK.......................................................................................................... 40 2.7.2 The unequal power of the supermarket. ............................................................................... 41 2.8 The mainstreaming of Fairtrade .......................................................................................................... 43 2.9 Shortcomings of Fairtrade ................................................................................................................... 44 2.9.1 Structural problems with Fairtrade ........................................................................................ 44 2.9.2 Risks to Fairtrade. ..................................................................................................................... 47 2.10 Conclusion ............................................................................................................................................ 48 3.0 Parameters of research .......................................................................................................................... 49 3.1 Research Questions ............................................................................................................................... 49 3.2 Hypothesis .............................................................................................................................................. 49 2 3.3 Research Scope ...................................................................................................................................... 50 4.0 Methodology ............................................................................................................................................ 52 4.1 Introduction ........................................................................................................................................... 52 4.2 Supermarket interviews ........................................................................................................................ 54 4.2.1 Samples ............................................................................................................................................ 54 4.2.2 Question formulation .................................................................................................................... 54 4.2.3 Conducting interviews ................................................................................................................... 56 4.3 Fairtrade agencies .................................................................................................................................. 56 4.3.1 Sample ............................................................................................................................................. 56 4.3.2 Question formulation .................................................................................................................... 58 4.3.3 Conducting interviews ................................................................................................................... 59 4.4 Data analysis ........................................................................................................................................... 59 4.5 Reliability & validity .............................................................................................................................. 60 4.6 Limitations of methodology ................................................................................................................ 60 5.0 Results ....................................................................................................................................................... 63 5.1 Introduction ........................................................................................................................................... 63 5.2 Supermarket buyer interviews ............................................................................................................. 63 5.3 Fairtrade agencies .................................................................................................................................. 72 6.0 Discussion ................................................................................................................................................ 80 6.1 How will the sales of Fairtrade progress in the future? What will help ensure continued growth? .......................................................................................................................................................... 80 6.2 What has helped Fairtrade to reach the level of sales it currently achieves? ................................ 82 6.3 Consumer motivation for purchasing Fairtrade products ............................................................... 83 6.4 Is Fairtrade a suitable tool for which poverty alleviation can count upon? .................................. 85 6.5 Risks that challenge the future viability of Fairtrade ........................................................................ 85 7.0 Conclusion ...............................................................................................................................................