Branded Ethical Products to Increased Social Exclusion - Coursework Example

2. Examine the extent to which branded ethical products such as Fair Trade, contribute to increased social exclusion Introduction Increased social exclusion in the modern times is an unheard of entity. This is because the business world of present times emphasizes a great deal of significance on building long term and sustaining relationships – linkages which will help develop the basis of growth and opportunities for one another. Social exclusion could be experienced if there are measures by a product (or organization) which are against the norms of the society, region or trade and hence ambiguities could arise which would eventually mar the whole basis of fair trade so to speak. It is in the best interest of such a player as well as the industrial players to be on board as per the fair trade regimes and measures. Fair trade is a social movement which is organized in nature and it basically presents a model which is accepted worldwide. (Miles, 2006) It comes directly under the norms of the international trade regimes whereby it promotes payment of a fair price in accordance with the social and environmental standards in different areas of production related with goods and supplies. Fair trade has the emphasis on exporting goods and supplies from the developing nations to the ones which are already developed. The goods which come under the ranks of the fair trade include the handicrafts, fresh fruit, coffee, bananas, tea, honey, cocoa, wine and a host of other products. (Hayes, 2006) Fair Trade Regimes The basic intention of having fair trade is to move the works of the producers from the developing markets down towards the more urbanized quarters of the world, which suggests that the works of these developing countries are appreciated and allotted with revenues in return. This also helps the developing regimes to move from a position of vulnerability to security as well as economic self-sufficiency. The aspect of empowerment is also apparent from these undertakings since it allows for these developing nations to have more stakes in their produced goods over a period of time and thus allow them far more share in their own wealth. What this in essence does is to provide a greater share of equity which marginalizes the world trade levels as well as brings an end to the exploitation that has been happening over a long period of time, more so under the international trade tenets. Branded products and organizational ethical values will be discussed at length within this paper as will the avenue of Corporate Social Responsibility, bringing about a positive change in the mindset of organizations nonetheless. (Allen, 2006) Economic Scenarios A number of different global organizations work in close unison with fair trade regimes since this brings in aid for the poor countries, uplift in economic levels for the ones which are on the development curve and an overall prosperity scenario for the countries that have already been established and are making both ends meet in an economically self-efficient manner. These social and environmental organizations include Oxfam, Amnesty International and Caritas International to name a few. What these organizations try to do is to devise ways and means through which fair trade could be bolstered between different world regions and the societies could benefit from these steps that are taken under such levels. Also there is unity of purpose and actions are carried out in a manner which works to the advantage of the whole globe rather than a single entity at the very end. Because of these very steps, there are critics present under the banner of the fair trade regimes which suggests that the close quarters under which fair trade is being carried out, there are certain weaknesses and potential threats which have marked the whole fabric of fair trade itself. (Grimwade, 2000) However what is most important in this discussion is to comprehend that fair trade could actually work to the advantage of one and all when the talk goes out loud of having a greater deal of equity within the different nations of the world. The critics view fair trade as providing subsidy in the wake of impeding growth levels within the different nations of the world. Then there are certain segments of the left which time and again state in a negative connotation the whole meaning related with fair trade. (Bahadur, 2002) Trade Linkages This is in line with the absence of meeting regimes for challenges under the trading systems already in place and which are doing their utmost to meet the present day problems occurring every now and then. The significant fair trade principles and rules are in line with the varied trading relationships which seem to exist under any setting, society, country or region for that matter. These principles imply that there is a definitive provision for creating opportunities and similar avenues for the economically disadvantaged producers. Also efforts are made under the umbrella of the fair trade to have transparency and accountability within the ranks of fair trade itself. Capacity building is another significant principle which keeps the proponents of fair trade on their toes at all possible times. The producers’ independence is ensured and they are given the license to develop fair trade relationships through continuity as well as a chance to get access towards the new markets. (Otis, 1998) Within a particular region or setting, payment of a fair price for the goods and supplies through dialogue and participation on the part of all the stakeholders is another significant undertaking that is remarked as a principle for fair trade. Fair Trade Policies Gender equality similarly accounts for a significant principle of the fair trade basis. There is also a provision for having suitable working conditions for the above-mentioned stakeholders, no matter at whichever level they exist within the hierarchy. Lastly, there is the environmental protection principle embedded within the fair trade policy which acts as a rescuing act since it gives a chance to one and all to be at their best and to work in the most feasible of circumstances at all times. Fair trade has a huge role to play within the corporate world of present times. Speaking from a truly organizational standpoint, one must understand that fair trade is in essence inviting the industrial players to react in a manner which will only put the aspect of competition in a pretty health and rigorous zone. (Weber, 2007) The dollars earned out of the competitive activity are there to see for one and all and one could expect a great deal of financial returns to happen in the wake of ethical measures once undertaken by fair trade regimes. Branded Products Discussion Branded products come to the fore with the passage of time since they have a lot of say in the way fair trade actually shapes up. This means that fair trade will eventually put pressure on the branded products coming under the realms of the organizational domains to be ethical, competitive as well as provide value to the customers – all at the same time. Ethically speaking, it is duty bound for any business that exists to satisfy a customer through its products to be responsive towards their needs and defer the financial sides concerned with the company. This essentially comes under the discussion of the fair trade regime. It is important though not to ignore the monetary aspect but to remain in the business in the first place for the ones the business is being done, it is essential to situate the resources onto them and then move on forward expanding the market share and the like. Corporate Social Responsibility In relation to the same, there is the phenomenon of Corporate Social Responsibility that fair trade has a close association with. (Banfield, 1998) Corporate Social Responsibility is internal to an organization; it dictates the manner in which it has to plan about the courses of action it has to carry out with respect to the society. This term basically deals with the organization’s set of operations that it carries out for the welfare of the society while existing within itself. It helps the humanity in more than one ways, to train and educate them and to ponder upon issues, which can really change the fate of coming civilizations. It all comes under this heading of Corporate Social Responsibility. Learning within Organizations An organization which can learn can understand what are its responsibilities with regards to the society, the environment, its stakeholders and customers, its functions and different processes which have to be looked down up at with a legal and ethical perspective. This means that the organization emancipates its working methodologies in line with its already set values and moral principles. Moreover, it knows what are its obligations and compulsions towards all the above-mentioned. The organization is always willing and eager to learn from its mistakes, ready to bring in newer and fresh processes within its folds and always encouraging its stakeholders and employees to invest more money and time, respectively. Fair trade suggests that managing an organization is also an important function which comes under the learning principles. It has case studies and best case scenarios to look up to whenever there is a problem or trouble at hand and it knows who the right person is to contact whenever there is some discrepancy within the system. Add to that the organization tries to keep its contacts, no matter in which capacity they are, at a maximal point and always keeps on increasing so as to become a socially active player within the relevant industry. The management aspect also stems from the fact that its knowledge base is intact and knows what is required of it. This knowledge base has the role of continuously improving the systems and working methodologies. (Weyer, 2005) It also has the best available middle management employees who know the technical basis of running the organization and whose potential can largely benefit the sound workings of the company. Thus it is very important to understand that an organization which is willing to place the knowledge base at level with the top management when it comes to calling the shots (taking the decisions), is willing to experiment in a very proactive manner; one that can reap rich dividends in the near future. Continuing with the debate of the fair trade movements, learning within an organization can be an intrinsic entity when there are special trainings and in house courses and seminars for the employees and stakeholders. By this process, these people come to know of the industry norms and what new activities are taking place in the world of relevant business paradigms. Also it helps to improve the understanding and knowledge levels of these people who are tied in closely with the very organization in the first place. (Mosley, 2003) An organization which is willing to learn is such that can create value for its customers and provide more investment opportunities as far as its stakeholders are concerned. What this does is that it creates a competitive environment and spirit within the organization and each entity that functions within it, is ready and willing to give in their very best so that the eventual goals of the organization could be met in a positive and safe manner. The steps that the organization takes all this while are proactive which indeed works as a positive sign and the same should be the case at all possible times as well. We can easily summarize that an organization which is open to learning is a winner and can have all sorts of benefits and revenues up its sleeves, no matter when we speak of the short term activities or the long run processes. All of this is pretty significant to understand, more so when the talk goes out loud regarding the fair trade regimes. (Landau, 2004) Example of Corporate Social Responsibility Corporate Social Responsibility can be applied to a business in a very innovative way. The company can invest in the social arena with much return in mind, not in the short-term but of course in the long run. Such is the example of Shell, which has introduced education programs for children all over the globe thus acting as a consumer-friendly company. People in return like to buy products of Shell because it gives them the pleasure that some proportion of the money earned by Shell would be spent on its different social and literary programs. (Lynas, 2004) Culturally, Corporate Social Responsibility can prove to be a very vital agent that can really highlight the problem areas of different people within a particular society and then go about correcting and reforming them in the best manner possible with the aid of funds and grants. This is the basic way in which Corporate Social Responsibility has been acting to do something for the sake of community welfare. The companies from the economic aspects can earn a due share with arranging all sorts of cultural activities in the name of charity that will benefit their cause and help the poor and needy. However what is most desirable to have a fair trade system in place which helps the economic well being of the organizations concerned, their stakeholders and more than anyone else – the customers. Fair Trade in Business The pertinent issues for the business world of today in the wake of the growing role of fair trade is one that is considered immense right from the onset. First and foremost, the business world must realize that fair trade exists in essence. When this realization is made, then only the business world could get their act together and work towards the betterment of each other. The business corporations, organizations and conglomerates have to play a positive and intrinsic role in line with the business levels so that the end result is one which manifests the hard work and dedication of the stakeholders, no matter at which level they put in their best – best for the sake of having fair trade implemented within the world order. There still is a long way to go before one could remark fair trade as being a successful undertaking on the part of the parties concerned. What this there in the future is something that can only be envisaged upon with a sense of optimism and in the sight of a better prosperous world of tomorrow. (Conti, 1998) Conclusion Social exclusion issues could be avoided if proper and adequate measures are taken by the people at the helm of affairs – those running the show in essence. This means that organizational heads need to get their act right so that fair trade could be further bolstered within their pertinent domains and social exclusion discussions be avoided in entirety. This eventually would dispel the impression which relates itself with the branded phobia – to earn more in the most unethical of ways. It is important that organizations understand their role in such a context and do their best at changing the present day situation. (Pierson, 2002) All said and done, social exclusion will continue to hang as a sword of dispelling impressions related with the non-compliance of fair trade standards and practices within the industrial domains. In the end, fair trade would be the winner since its basis is pretty strong and its attachments could help develop further stability within the social set up present on an organization to organization or one on one level. (Amster, 2003) Bibliography ALLEN, David B. (2006). Corporate Social Responsibility in the Multinational Enterprise: Strategic and Institutional Approaches. Journal of International Business Studies, Vol. 37 AMSTER, Randall. (2003). Patterns of Exclusion: Sanitizing Space, Criminalizing Homelessness. Social Justice, Vol. 30 BAHADUR, Chandrika. (2002). Toward Free and Fair Trade: A Global Public Good Perspective. Challenge, Vol. 45 BANFIELD, Jessie. (1998). The Corporate Responsibility Debate. African Business CONTI, Delia B. (1998). Reconciling Free Trade, Fair Trade, and Interdependence: The Rhetoric of Presidential Economic Leadership. Praeger Publishers GRIMWADE, Nigel. (2000). International Trade: New Patterns of Trade, Production & Investment. Routledge HAYES, Mark. (2006). On the Efficiency of Fair Trade. Review of Social Economy, Vol. 64 LANDAU, Alice. (2004). The International Trade System. Routledge LYNAS, Mark. (2004). Global Responsibility: Fair-Trade Represents a Step in the Right Direction, but the Only Way to Make a Significant, Lasting Difference Is to Reform the International Trading System. Geographical, Vol. 76 MILES, Marc A. (2006). Trade and Justice; Marc A. Miles Reviews Fair Trade for All: How Trade Can Promote Development. Harvard International Review, Vol. 28 MOSLEY, Paul. (2003). Poverty and Social Exclusion in North and South: Essays on Social Policy and Global Poverty Reduction. Routledge OTIS, Lauren. (1998). A Square Deal: Fair Trade Is Good Business for Third World Producers. E, Vol. 9 PIERSON, John. (2002). Tackling Social Exclusion. Routledge WEBER, Jeremy. (2007). Fair Trade Coffee Enthusiasts Should Confront Reality. The Cato Journal, Vol. 27 WEYER, Martin Vander. (2005). Can Free Trade Be Fair Trade? Its Unfair When Poor Countries Cant Sell Their Goods Here. Its Also Unfair That, When They Do, Low Prices Depend on Sweated Labour. Martin Vander Weyer Tackles the Confusing Moral Issues. New Statesman, Vol. 134, February 28 Word Count: 2,580 Read More