Ethical Trade, Transparent Trade, Fair Trade
Ethical trade is linked to the concept of transparent trade, that is to say the practice by which companies give consumers free access to information regarding its operations and importation and supply chains (e.g. financial and social investments, raw material traceability, production, transportation, storage and distribution, etc.). However, unlike ethical trade, transparent trade does not require a company to follow any pre-established norms.
Ethical trade and
fair trade go hand-in-hand for those who want to shop with a conscience. Both practices aim to benefit the lives of workers in some of the world's poorest countries, yet they are based on different principles. Ethical trade is about improving the conditions in which goods are produced, whereas
fair trade is about improving the income that goes to the farm workers at the beginning of a supply chain, thus ensuring that the producers receive fair compensation and sustainable employment.
(adapted from the
Transparent Trade Association and from
The Site.org, from Duncombe, R. and R. Heeks,
An Information Systems Perspective on Ethical Trade and Self-Regulation,
Information Technology for Development, 10, 2003, visited 2009-08-10)