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Journal of Business Ethics (2010) 93:143162 Springer 2010 DOI 10.1007/s10551-010-0558-2
Fairtrade Facts and Fancies: What Kenyan Fairtrade Tea Tells us About Business Role as Development Agent
Michael E. Bloweld Catherine Dolan
ABSTRACT. Various promising claims have been made that business can help alleviate poverty, and can do so in ways that add value to the bottom line. This article begins by highlighting that the evidence for such claims is not especially strong, particularly if business is thought of as a development agent, i.e. an organization that consciously and accountably contributes towards pro-poor outcomes. It goes on to ask whether, if we did know more about either the business case or the poverty alleviation case, would this give cause for greater optimism that business could make a significant contribution to development. By exploring the experiences of producers of Fairtrade tea in Kenya, we reveal the complex nature of what constitutes a beneficial outcome for the poor and marginalized, and the gap that can exist between ethical intentions and the experience of their intended beneficiaries. The lessons of these experiences are relevant for Fairtrade and any commercial initiative that seeks to achieve outcomes beneficial and recognizable to the poor, and raise questions about the integration of social and instrumental outcomes that a future generation of ethical entrepreneurship will need to address.
KEY WORDS: corporate social responsibility, Fair-trade, international development, poverty alleviation
ABBREVIATIONS: ATO: alternative trade organization; DFID: British Department for International Development; ETP: Ethical Tea Partnership; FLO: Fairtrade Labelling Organizations International; FOB: free on board; IFAT: International Federation for Alternative Trade; IFOAM: International Federation of Organic Agriculture Movements; ILO: International Labour Organization; KTDA: Kenya Tea Development Agency Ltd; NGO: non-government organization; RA: Rainforest Alliance; SAI: Social Accountability International; SPC: Social Premium Committee
Introduction
Can business play a role in tackling the sort of poverty and marginalization that is held up as one of the downsides of economic globalization? This question is increasingly asked, both by those who favour greater private sector participation (e.g. Easterly, 2006; Moyo, 2009; Nelson, 2007; Ruggie et al., 2006; Wilson, 2006), and by those who are more sceptical (e.g. Bond, 2006; Karnani, 2007; Newell and Frynas, 2007; Utting, 2007). There are two ways to go about answering that question: one is to enquire...