Journal of Business Ethics

, Volume 86, Supplement 1, pp 127–149

Assessing the Impact of Fair Trade Coffee: Towards an Integrative Framework

Article

DOI: 10.1007/s10551-008-9761-9

Cite this article as:
Utting, K. J Bus Ethics (2009) 86: 127. doi:10.1007/s10551-008-9761-9

Abstract

This article presents an impact assessment framework that allows for the evaluation of positive and negative local-level impacts that have resulted from “responsible trade” interventions such as fair trade and ethical trade. The framework investigates impact relating to (1) livelihood impacts on primary stakeholders; (2) socio-economic impacts on communities; (3) organizational impacts; (4) environmental impacts; (5) policies and institutional impacts; and (6) future prospects. It identifies relevant local-level stakeholders and facilitates the analysis of conflicting interests. The framework was developed in the context of, and is applied in this article to, the fair trade coffee industry in northern Nicaragua. It was designed, however, so that it can be applied across commodity sectors and responsible trade initiatives. It is able to do this by accommodating for differences in the social, environmental, political and institutional contexts of different areas, and by taking into account the distinct nature of an initiative’s overall objectives, different levels of intervention, and the full range of stakeholders involved.

Keywords

impact assessmentresponsible tradeethical tradefair tradelivelihoodsconflicts of interestsmallholderscoffeeNicaragua

Abbreviations

ATC

Asociación de Trabajadores del Campo (Association of Rural Workers)

CAFENICA

Asociación de Cooperativas de Pequeños Productores de Café en Nicaragua (Association of Co-operatives of Small Coffee Producers of Nicaragua)

CECOCAFEN

Cooperativas Cafetaleras del Norte (Coffee Co-operatives Central in the Northern Region)

COSATIN

Cooperativa de Servicios Agropecuarios Tierra Nueva (New Earth Farmer’s Co-operative)

DFID

Department for International Development

FAO

Food and Agriculture Organization

FTO

Fairtrade Labelling Organization International

PRODECOOP

Promotora de Desarollo Cooperativo de Las Segovias (Promoters of Cooperative Development)

PROCOCER

La Cooperativa Multisectorial de Productores de Café Orgánico Certificado (Co-operative Producers of Certified Organic Coffee)

SL

sustainable livelihoods

SOPPEXCCA

Sociedad de Pequenos Productores, Exportadores y Compradores de Café (Society of Small Coffee Producers, Exporters and Buyers)

SWOT

strengths, weaknesses, opportunities, and threats analysis

TNC

transnational corporation

UNDP

United Nations Development Programme

WB

World Bank

WCED

World Commission on Environment and Development

Copyright information

© Springer Science+Business Media B.V. 2008

Authors and Affiliations

  1. 1.Miami BeachU.S.A.