Co-op Sound Sourcing - Differences between 'Ethical' & 'Fair'

Fair trade differs from ethical trading in it focuses on improving trading relationships rather than labour practices. Fair Trade engages primarily with marginal producers, and aims to establish an alternative trading model - rather than trying to improve conventional international trading relationships.

Ethical Trade

Fair Trade

Helps to reduce poverty by improving labour practices for workers in global supply chains in all products worldwide.

Verifies labour standards in whole supply chains.

Does not require direct consumer awareness and support.

Has no label guaranteeing added 'social value'.

Primarily concerned with trading relationship and with involving small producers in developing countries.

Ensures producers are paid a fair price covering costs of production, irrespective of fluctuations in commodity prices.

Verifies social standards for specific products.

Passes premium onto consumer and relies on consumer awareness and support.

Has a label guaranteeing added 'social value'.