Fairtrade & ethical procurement

Fairtrade Foundation Every local authority in the UK has a commitment to promote sustainable development in their area. Public procurement can make an important contribution to improving the lives of communities in developing countries.

Supporting fair trade is one, simple way to take action towards more sustainable developmental patterns, giving producers in developing countries the trade terms they need to create a more sustainable future through everyday procurement choices. It also opens up opportunities for community development through initiatives such as becoming a Fairtrade Town.

Councils, communities and individuals can contribute to international development through their buying habits. Over 4.5000 products have been licensed to carry the Fairtrade mark, developed by The Fairtrade Foundation which is the UK member of Fairtrade Labelling Organisations International (FLO). The mark is widely recognised among the general public and, indeed, communities and councils in around 500 localities in the UK have become Fairtrade Towns. Towns in the scheme commit to five goals, including the local council to pass a resolution supporting Fairtrade and helping schools, shops and churches to use and sell Fairtrade products.

Ethical procurement

Public procurement can make a huge contribution to improving the lives of farmers and their communities in developing countries: the public sector alone spends more than £1.8bn a year on the procurement of food in England, according to the Department for Environment, Food and Rural Affairs (DEFRA). Fair trade combines an organised social movement and market-based approaches to help producers in developing countries obtain better trading conditions for their goods and services and promote sustainability. By requiring companies to pay sustainable prices (which must never fall lower than the market price), fair trade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their position and have more control over their lives.

Fair trade also falls within the government’s 2003 Public Sector Food Procurement Initiative (PSFPI), which aims to encourage public sector bodies to purchase food and manage catering contracts in a way that promotes sustainable development and opens up opportunities for local and national suppliers.

>>Find out how

Fair trade in the workplace

The use of Fairtrade goods, such as tea and coffee, by staff and at council meetings is a simple, positive action that any local authority can take. These days Fairtrade hot drinks are readily available from most national suppliers, often at no extra cost.

Fair trade in procurement

By incorporating fair trade into procurement processes, councils can contribute to the achievement of key corporate objectives such as the creation of sustainable communities and economies. In this way, fair trade is an important component in sustainable procurement. The resources section of this part of the toolkit contains a number of sources of advice on fair trade and procurement.

Fair trade in the community

Becoming a Fairtrade Town provides an opportunity for the local authority to work in genuine partnership with a range of community organisations and representatives, opening new channels of communication and creating real community engagement.

>>Case studies

Newcastle has been a Fairtrade City since 2003 and since then it has increased its support both regionally and nationally, including strong representation on the North East Regional Fairtrade forum and the Hadrian’s Wall Fairtrade Campaign. www.fairtradehadrianswall.co.uk

As well as providing Fairtrade tea and coffee at all meetings, the Newcastle City Council’s Corporate Procurement Strategy has included a section on Fairtrade. In it they commit themselves to increase awareness of Fairtrade and find ways for procuring Fairtrade products.

Newcastle has made a unique commitment by funding a dedicated Fairtrade Officer for a number of years. This has enabled Fairtrade to gain continual support through the engagement of new audiences. Particular work has taken place with SMEs working with the Newcastle Business Forum and the North East Chamber of Commerce. Newcastle steered the production of the recent North East Fairtrade Purchasing Guide which recommends national and local suppliers of wholesale Fairtrade products.

MDG 1: Eradicate extreme poverty and hunger MDG 8: Develop a global partnership for development

Cumbria County Council has made progress in embedding Fairtrade into their procurement processes. With the County attaining Fairtrade status in 2006, officers have worked closely with the Cumbria Fair Trade Network to ensure their policy commitments have been translated into tangible actions.

These include the requirement that suppliers contribute to corporate objectives, including around ‘sustainable communities and economies’. Fairtrade is seen as an important component in their sustainable procurement strategy, which not only involves requesting Fairtrade components when procuring or using external venues, but also working with the Cumbria Fair Trade Network to inform stakeholders about switching to Fairtrade including schools, suppliers, commercial partners, third sector organisations and other public bodies in the county.

Key to this progress has been commitment by elected members, a strong partnership between local campaigners and officers, and a willingness to see Fairtrade as part of the wider sustainable agenda.

MDG 1: Eradicate extreme poverty and hunger MDG 8: Develop a global partnership for development

Leicester Masaya Link Group: bringing a fair trade link to life

The Leicester Masaya Link Group co-ordinates the link between Leicester and Masaya in Nicaragua and is also a Development Education Centre. They are a member of Leicester Advocating Fair Trade and have found that the link with Nicaragua provides an invaluable resource and real life stories of Nicaraguan coffee growers, which sets the trading processes in context of an active link and makes the issues more pertinent.

The Leicester Masaya Link Group also works in partnership with the University of Leicester Botanic Garden, and has developed a resource for schools called Food for Thought, which looks at how plants go from the farmer's field to the market place. This interactive project helps students to understand some of the factors that impact upon producers in developing countries like Nicaragua and as a result they are more likely to see the importance of fair trade as one mechanism for improving the lives of the growers. Being involved in this project has also encouraged schools to become Fairtrade Schools.

MDG 1: Eradicate extreme poverty and hunger MDG 7: Ensure environmental sustainability MDG 8: Develop a global partnership for development

Rotherham achieved Fairtrade Town status in 2006. There is strong commitment from Elected Members, which has proved invaluable. The Chair of the Steering Group is a Cabinet Member who has procurement and sustainability as part of his portfolio. Fairtrade is included in the Sustainable Procurement Strategy and there is also a commitment that Fairtrade is requested when booking outside venues and tendering for new contacts.

In addition to commitments around procurement, Fairtrade suppliers have been invited do lunchtime ‘roadshows’ in all the main council buildings – to promote their products and give out free samples, which has helped to change opinions within the council. Rotherham also have a successful link with local colleges, where fashion design students have put on a Fairtrade Fashion Show and the local catering college restaurant hosts an annual Fairtrade dinner. This has helped to raise awareness about Fairtrade, and encourage the students to take this learning with them when they join the commercial world.

MDG 1: Eradicate extreme poverty and hunger MDG 8: Develop a global partnership for development

>>Self assessment

1 Have you considered the ways in which fair trade activity can complement your council’s sustainability, economic development and community strategies?

2 Are you responding to local support for fair trade in a way that is showing that the council is in touch with the community and shares their priorities?

3 Are you being alert to opportunities to connect fair trade to other issues and create opportunities for active citizenship? For example, many Fairtrade Town groups have linked the aim of a better deal for farmers in developing countries with a better deal for local farmers. A Fairtrade campaign can also be an opportunity to celebrate the actions of local businesses, promote local traders and create a focus on the town centre.

4 Can you save time and effort and leverage wider implementation of fair trade by teaming up with other councils and public bodies in your region? For example, Leeds City Council developed a regional contract framework through which all local authorities in Yorkshire and the Humberside could incorporate fair trade into a joint purchasing policy.

5 Are you communicating your commitment to fair trade in a ways that make the most of its value to your council’s brand and which inform the public, businesses and organisations in your area how they can play their part?

>>Resources

Interaction factsheet

Interaction factsheet - case studies Fairtrade & Ethical Procurement (Oct 10)

Guides

Local Authorities Fairtrade Guide 2010 - published by the Fairtrade Foundation and designed to help councils maximise their Fair Trade strategies.

Fairtrade Public & Private Sector Guidelines & Case studies - published by the Fairtrade Foundation.

Example of a council motion - Fairtrade towns - Fairtrade Foundation

Action Guide - Fairtrade Towns - published by the Fairtrade Foundation on the elements of a Fairtrade Campaign.

OGC Guidance on Fairtrade & Public Procurement - published by the Office of Government Commerce

Many local authorities in other European countries avoid specifying one trademark, yet clearly define what they consider to be a fairly traded product by referring to the definition in the European Parliament Resolution on Fairtrade & Development.

Useful links

The Fairtrade Foundation provides a range of resources, information and advice about making your city, borough, town, village or area a Fairtrade Town. The website also includes advice and information on implementing Fairtrade in the workplace.

Ethical Trading Initiative is an alliance of companies, trade unions and voluntary organisations, who work in partnership to improve the lives of workers across the globe.

International Fairtrade Town movement has resources and top tips from over 760 Fairtrade Town campaigns in different countries. Fairtrade is not just UK based - if you have a ‘twin’ / link in Europe, find out if they are part of the international movement.

The European Observatory on Fair Trade Public Procurement provides advice on the wording of invitations to tender or contracts in relation to fair trade.

Buy Fair provides clear and simple advice for public authorities wishing to purchase Fair Trade products.

The Fair Trade Advocacy Office website is a useful source of information about EU policies and Fairtrade.

The Responsible Purchasing Initiative is co-ordinated by three European fair trade organisations, IDEAS, Oxfam-Wereldwinkels, and Traidcraft. It seeks to learn from and improve how international sourcing from developing countries contributes to international sustainable development.

The Wear Fair campaign for Fairtrade cotton is a campaign encouraging young people to get more Fairtrade certified cotton in to their school uniform policy and or college/university sports kit.

Online Forums

The Improvement and Development Agency for Local Government’s online community of practice for international development contains up to the minute discussion and sharing of good practice on fair trade and related activity.

International Fairtrade Towns Community - international discussion group