What It Is
In the 1980s and 1990s, a growing number of consumers, advocates, and procurement professionals began asking a question that had rarely been asked before: who actually made this product, and under what conditions? The answer, in many cases, was troubling. Farmers growing coffee, cocoa, and bananas in developing countries were often paid prices so low that they could not cover their own costs, while the products they grew sold for significant markups in wealthier markets. The fair trade movement emerged as a direct response, establishing certification standards that guaranteed farmers and workers minimum prices, safe working conditions, and community investment funds in exchange for meeting quality and transparency requirements. By the early 2000s, fair trade-certified products were appearing on the shelves of major retailers worldwide, and procurement specialists at some of the largest companies were being asked to make sourcing decisions that reflected not just cost and quality but also the human conditions behind every product they bought.
Why It Matters
The fair trade movement changed what it means to be a good procurement professional. Before it, purchasing decisions were evaluated almost entirely on price, reliability, and quality. After it, a new standard began to take hold: that where something comes from, and who benefits from its production, is a legitimate and important part of any purchasing decision. Today, ethical sourcing policies are standard practice at major corporations, governments, and institutions around the world, and procurement specialists are often the people responsible for enforcing them. The movement demonstrated that the purchasing decisions made inside organizations have consequences that extend far beyond the balance sheet, and that the people who make those decisions carry real responsibility for the impact they create.
