Responsible Retailing: Regulating Fair and Ethical Trade

Journal of International Development J. Int. Dev. 21, 1015–1026 (2009) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/jid.1635

RESPONSIBLE RETAILING: REGULATING FAIR AND ETHICAL TRADE

PAMELA K. ROBINSON* School of Social Sciences, Cardiff University, UK

Abstract: Deregulation in the 1980s and 1990s reaffirmed a market approach to the global trading of goods. Suggestions that this contributed to unfair terms of trade and poor labour conditions led to calls for greater corporate accountability. Following pressure to improve conditions, companies embraced a range of voluntary initiatives under the umbrella of fair and ethical sourcing. This article examines these commitments on the ground, in a global banana supply chain. Taking the case of bananas is significant because the major corporations at each end of the chain are in a potential position to orchestrate fair and ethical trade. Despite this potential for standards to be upheld, the case of bananas suggests that whilst supermarkets continue to drive down consumer prices, voluntary initiatives will fall short of their guarantees. This leads the paper to consider the policy implications of a more regulated approach to fair and equitable trade in the world’s supply chains. Copyright # 2009 John Wiley & Sons, Ltd. Keywords: fair and ethical trade; labour codes of conduct

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INTRODUCTION

Accusations of reputable companies selling everyday goods in the North made by exploited workers in the South has helped to mobilise companies to take greater responsibility for working conditions in the world’s supply chains. Campaigns initiated by a variety of social actors concerned with workers’ welfare, has led to the development and introduction of a number of voluntary initiatives that emphasise social responsibility in global supply chains (Jenkins et al., 2002). These initiatives include fair trade agreements, labour codes of conduct and other certifiable standards and they have...