Fair Trade
& market-based approach
that aims to help producers in developing countries,
make better trading conditions & promote sustainability
The Friendly Trading Company follows the World Fair Trade Organisation`s (WFTO) Fair Trade guidelines and the 10 Principles of Fair Trade
Principle One: Creating Opportunities for Economically Disadvantaged Producers
Principle Two: Transparency and Accountability
Principle Three: Fair Trading Practices
Principle Four: Payment of a Fair Price
Principle Five: Ensuring no Child Labour and Forced Labour
Principle Six: Commitment to Non-Discrimination, Gender Equity and Women’s Economic Empowerment, and Freedom of Association
Principle Seven: Ensuring Good Working Conditions
Principle Eight: Providing Capacity Building
Principle Nine: Promoting Fair Trade
Principle Ten: Respect for the Environment
We are proud to be a member of BAFTS, the British Association of Fair Trade Shops & Suppliers
The Voice of our Partners
The Voice of our Partners
From Samuel, who leads a Cooperative Workshop in Kisii, Kenya & from where we source our Soapstone, Olive Wood & other items
Our project is a non profit organization found in Kenya, Western part of the country, it is founded by local volunteers. It has a hundred artisans who make various handcrafts e.g. soapstone carvings, wood carvings, baskets, bags, T-shirts, Jewellery and other items.
The project has been devised to assist the development of a sustainable industry using those native resources that are readily available. Proceeds from the project go towards the project member children’s education and to raise the health of all the project participants.
This project seeks to blend the resourceful creativity of the Kenyan artisans with knowledge of western world marketing distribution brought to the project by an experienced business coach.
The vision is to develop a unique product line that will attract the interest of the world, be low cost to distribute globally and be high in unique skilled labour content but low in other production costs. The business developed must be capable of sustaining the group in the long term. With economic sustainability the health and education benefits will flow.
To meet this requirement the group is working on a unique handcrafts concept from various artisans within Kisii and neighboring. All the income generating we get from the sales 100% profit of the project will go the Project Committee, for the distribution in accordance with their constitution. In addition 50% of the project costs will be expended in the Kenyan artisan groups. The constitution and committee officers are elected by the general members annually.
HEALTH AND ENVIRONMENT
This group which is found in the western part of country faces many problems of diseases mainly Malaria, HIV/ AIDS for example 88% of the community have Malaria, 60% have HIV/AIDS - their average life expectancy has nearly halved over a period of 15 years as HIV/AIDS has taken its toll. Children born with HIV/AIDS seldom live beyond age of 15 years.
The group’s predominant industry is agriculture. The group has a main central workshop and other various home workshops where they make their products. The group rents their main workshop. There are no electricity, water or communication services installed. Their homes are predominately mud and stick buildings.
Drought is becoming a problem as a primary issue with lower rainfall generally. A secondary effect on drought in the north and west of the country is forcing human and livestock movement to find grazing further south. Anthrax is a health issue associated with the livestock movements.
EDUCATION
Education is scarce, around one third of teachers in the rural areas have been lost to HIV/AIDS. The Kenyan government has decreed universal primary education but the reality on the ground is the cost of equipment and uniforms, the need for younger family members to take care of their sick members, and the lack of teachers, all conspire to make general primary education of the group’s children currently unachievable. Secondary education is rare.
So we highly welcome any organizations e.g. fair trade organization, N.G.Os and others to partnership with us to assist as in marketing, representing and developing our communities as it is stating from above.
The WFTO 10 Principles of Fair Trade
Principle One: Creating Opportunities for Economically Disadvantaged Producers
Poverty reduction through trade forms a key part of the organisation's aims. The organisation supports marginalised small producers, whether these are independent family businesses, or grouped in associations or co-operatives. It seeks to enable them to move from income insecurity and poverty to economic self-sufficiency and ownership. The organisation has a plan of action to carry this out.
Principle Two: Transparency and Accountability
The organisation is transparent in its management and commercial relations. It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information supplied. The organisation finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes. It ensures that relevant information is provided to all its trading partners. The communication channels are good and open at all levels of the supply chain.
Principle Three: Fair Trading Practices
The organisation trades with concern for the social, economic and environmental well-being of marginalised small producers and does not maximise profit at their expense. It is responsible and professional in meeting its commitments in a timely manner. Suppliers respect contracts and deliver products on time and to the desired quality and specifications.
Fair Trade buyers, recognising the financial disadvantages producers and suppliers face, ensure orders are paid on receipt of documents and according to the attached guidelines. For Handicraft Fair Trade products, an interest free pre-payment of at least 50 % is made on request. For Food Fair Trade products, pre-payment of at least 50% at a reasonable interest is made if requested. Interest rates that the suppliers pay must not be higher than the buyers’ cost of borrowing from third parties. Charging interest is not required.
Where southern Fair Trade suppliers receive a pre payment from buyers, they ensure that this payment is passed on to the producers or farmers who make or grow their Fair Trade products.
Buyers consult with suppliers before canceling or rejecting orders. Where orders are cancelled through no fault of producers or suppliers, adequate compensation is guaranteed for work already done. Suppliers and producers consult with buyers if there is a problem with delivery, and ensure compensation is provided when delivered quantities and qualities do not match those invoiced.
The organisation maintains long term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. It maintains effective communication with its trading partners. Parties involved in a trading relationship seek to increase the volume of the trade between them and the value and diversity of their product offer as a means of growing Fair Trade for the producers in order to increase their incomes. The organisation works cooperatively with the other Fair Trade Organisations in country and avoids unfair competition. It avoids duplicating the designs of patterns of other organisations without permission.
Fair Trade recognises, promotes and protects the cultural identity and traditional skills of small producers as reflected in their craft designs, food products and other related services.
Principle Four: Payment of a Fair Price
A fair price is one that has been mutually agreed by all through dialogue and participation, which provides fair pay to the producers and can also be sustained by the market. Where Fair Trade pricing structures exist, these are used as a minimum. Fair pay means provision of socially acceptable remuneration (in the local context) considered by producers themselves to be fair and which takes into account the principle of equal pay for equal work by women and men. Fair Trade marketing and importing organisations support capacity building as required to producers, to enable them to set a fair price.
Principle Five: Ensuring no Child Labour and Forced Labour
The organisation adheres to the UN Convention on the Rights of the Child, and national / local law on the employment of children. The organisation ensures that there is no forced labour in its workforce and / or members or homeworkers.
Organisations who buy Fair Trade products from producer groups either directly or through intermediaries ensure that no forced labour is used in production and the producer complies with the UN Convention on the Rights of the Child, and national / local law on the employment of children. Any involvement of children in the production of Fair Trade products (including learning a traditional art or craft) is always disclosed and monitored and does not adversely affect the children's well-being, security, educational requirements and need for play.
Principle Six: Commitment to Non Discrimination, Gender Equity and Women’s Economic Empowerment, and Freedom of Association
The organisation does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/AIDS status or age.
The organisation has a clear policy and plan to promote gender equality that ensures that women as well as men have the ability to gain access to the resources that they need to be productive and also the ability to influence the wider policy, regulatory, and institutional environment that shapes their livelihoods and lives. Organisational constitutions and by-laws allow for and enable women to become active members of the organisation in their own right (where it is a membership based organisation), and to take up leadership positions in the governance structure regardless of women’s status in relation to ownership of assets such as land and property. Where women are employed within the organisation, even where it is an informal employment situation, they receive equal pay for equal work. The organisation recognises women’s full employment rights and is committed to ensuring that women receive their full statutory employment benefits. The organisation takes into account the special health and safety needs of pregnant women and breast-feeding mothers.
The organisation respects the right of all employees to form and join trade unions of their choice and to bargain collectively. Where the right to join trade unions and bargain collectively are restricted by law and/or political environment, the organisation will enable means of independent and free association and bargaining for employees. The organisation ensures that representatives of employees are not subject to discrimination in the workplace.
Principle Seven: Ensuring Good Working Conditions
The organisation provides a safe and healthy working environment for employees and / or members. It complies, at a minimum, with national and local laws and ILO conventions on health and safety.
Working hours and conditions for employees and / or members (and any homeworkers) comply with conditions established by national and local laws and ILO conventions.
Fair Trade Organisations are aware of the health and safety conditions in the producer groups they buy from. They seek, on an ongoing basis, to raise awareness of health and safety issues and improve health and safety practices in producer groups.
Principle Eight: Providing Capacity Building
The organisation seeks to increase positive developmental impacts for small, marginalised producers through Fair Trade.
The organisation develops the skills and capabilities of its own employees or members. Organisations working directly with small producers develop specific activities to help these producers improve their management skills, production capabilities and access to markets - local / regional / international / Fair Trade and mainstream as appropriate. Organisations which buy Fair Trade products through Fair Trade intermediaries in the South assist these organisations to develop their capacity to support the marginalised producer groups that they work with.
Principle Nine: Promoting Fair Trade
The organisation raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade. It advocates for the objectives and activities of Fair Trade according to the scope of the organisation. The organisation provides its customers with information about itself, the products it markets, and the producer organisations or members that make or harvest the products. Honest advertising and marketing techniques are always used.
Principle Ten: Respect for the Environment
Organisations which produce Fair Trade products maximise the use of raw materials from sustainably managed sources in their ranges, buying locally when possible. They use production technologies that seek to reduce energy consumption and where possible use renewable energy technologies that minimise greenhouse gas emissions. They seek to minimise the impact of their waste stream on the environment. Fair Trade agricultural commodity producers minimise their environmental impacts, by using organic or low pesticide use production methods wherever possible.
Buyers and importers of Fair Trade products give priority to buying products made from raw materials that originate from sustainably managed sources, and have the least overall impact on the environment.
All organisations use recycled or easily biodegradable materials for packing to the extent possible, and goods are dispatched by sea wherever possible.