Ethical Purchasing

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  • Ethical Purchasing
    • when the customer has considered the social and environmental costs of production of food, goods or services when purchasing
    • Fair Trade
      • strategy to decrease the economic unfairness of globalisation
      • consumers can choose to buy fair trade coffee so more of they money goes to the producers of the coffee beans
        • Other examples: chocolate, bananas, wine and some clothing
      • this means more money goes to poorer workers
      • as number of schemes grow it becomes hard to monitor how "fair" they are
    • Ethically Sourced Goods
      • people can avoid purchasing items that have been produced by exploited workers in "sweatshops"
      • Gap received bad publicity in 1990s due to poor working conditions of Indonesian staff
        • made them introduce stricter regulations for overseas operations
      • goods produced by a "third party" for TNCs may have used "sweatshop" labour
      • outsourcing and supply chains among TNCs make codes of practice hard to enforce
    • Charitable Donations and  International Aid
      • Governments give aid
      • NGO's  e.g. Oxfam and Christian Aid collect money from public to address the economic unfairness of globalisation
      • Band Aid
        • Raised money for famine relief in Ethiopia
          • raised around £100 million in 1980's
        • 2004-2005 money given to people living in Sudan's Darfur region
      • poor nations can become dependent on aid
      • can make it difficult for emerging businesses to profit
        • Zambia - clothing manufacturers have gone bankrupt due to free 2nd hand clothing donated by OECD charities
    • Trade Reforms
      • Governments and international lobbying organisations have attempted to improve trade for poor nations
        • such as rules regulating import and exports of agricultural produce
      • Protesters make their case for change at World Trade Organisations and G8 confrences
      • hiuge subsidies paid to European farmers under the Common Agricultural Policy (CAP)
        • protective trade tariffs encircling the EU force up the cost of imported African goods.
          • changing the rules would help African farmers
      • Commission for Africa
        • drawn attention for the need for reforms of subsidies, tariffs and non-tariff barriers to poorer nations
        • European farmers resist measures that open markets for greater competition as it could threaten their livelihoods

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