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10 Principles of Fair Trade①Creating
Opportunities for Economically Disadvantaged
②Transparency & Accountability
③Fair Trading Practices④Payment of a Fair
Price⑤No Child or Forced
Labour
⑥ Commitment to Non Discrimination, Gender Equity & Freedom of Assoc.
⑦ Good Working Conditions
⑧ Capacity Building⑨ Promotion of Fair
Trade⑩ Environment
WFTO Fair Trade Standard
Plus more: Google Site,
Tools, Marginalization tool,
Living wage calculator,
Translations, ETC
Activity: Rate the 10 Principles in
Order of Importance
Link: https://www.facebook.com/WFTOASIA/videos/vb.165100023523412/1018953241471415/?type=2&theater
Activity: Rate the 10 Principles in
Order of ImportanceOur Turn
WFTO Membership Monitoring:
Guarantee System
Development:• Rio AGM 2013 – agreement on financing of
system & external certification in due course
• December 2015 – all members will have completed the WFTO Guarantee System Self Assessment Report
The GS guarantees the compliance of members with the WFTO Standard.
The GS label guarantees the organization, not the product.
Monitoring
Credible | Accessible | Affordable
Peer visitProfile & Self Assessment
Report (SAR)
GSGuarantee
System
Monitoring Audit
Fair Trade Accountabili
ty Watch(FTAW)
Internal Monitoring
System (IMS)
Com
pone
nts
WFTO Membership Process
Applicant Information
Download necessary
forms from
WFTO.com
Fair Trade Network
FTN
Trading Organization
FTO
TradingNon
TradingSome
Trading
Fair Trade Support
OrganizationFTSO
FTN and FTSO with
minor tradingTy
pes o
f M
embe
rs
FTO50% of
turnover is from Sales
FTNFT network, membership organization
sales <50% of turnover
FTSO Advocacy, Support, Research, Promotion, sales <50% of turnover
* Must comply with trading
requirements *
Applicant
REQUIREMENTS:
• Registration document with Mission
• 2 years of legal existence + 2 years of accounts
• Commitment to WFTO FT Principles (check WFTO FT Standard compliance criteria)
• List 3 references
3 stages to become a member
GuaranteedProvisional
“The _________strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed
to continuously strengthening our brands and products to improve our competitive position.”
“__________ provides dignified training and employment opportunities for vulnerable young people, empowering them with the personal and professional skills to overcome socio-economic limitations and inspire community regeneration.”
Adidas Group
JW Productions
Mission Statement Quiz
Expression of Mission Statement: Where is this written?
DISCUSSION:
1. Exchange with your peers your organizational mission statement
2. Review of types of registration
3. Changing the legal registration document – how?
Registration Document + Mission continued…
What we check for:
1. Is it a Pakistani requirement to audit accounts?
2. Consistency in Name?
3. Turnover and Profit
Years of existence Financial Accounts2
Applicant
REQUIREMENTS:
• Registration document with Mission• 2 years of legal existence + 2 years of accounts• Commitment to WFTO FT Principles (check
WFTO FT Standard compliance criteria)• List 3 references
Step 1a: PROFILE FORMSubmit Profile Form +
supporting docs.
• Cost: Handling fee • Regional Office checks for
completeness, sends feedback to applicant as necessary
Step 1b: REFERENCES
• Regional Office collects:• 3 supportive references• in-country comments • Network recommendation
ReferencesCountry Network | In-Country Comments | 3 References
Dear WFTO Members of Pakistan,
The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in XXX, India is a private company founded in 2000. The reason behind their foundation was XXX. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. XXX has 1 store. If you would like more information please request it or visit their website at www.website.com
As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.
Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.
Thank you for your participation.
Role Play:Christine = Reference
Elise = Applicant
ProvisionalApplicant
Step 2: RECOMMENDATION
Step 3:APPROVAL (or rejection)
• WFTO Board makes final decision
Step 4: Pay WFTO fee
• WFTO Office sends 1st membership fee invoice
• Cost: annual fee; variable depending on size and type of member
Result: PROVISIONAL MEMBER
No Use of Label/Logo
• Regional office and committee make a recommendation
• Global Office assesses application and makes recommendation for WFTO Global Board
Tamara Cobussen, GS Manager
ProvisionalApplicant
Provisional does not
equal Member
Self Assessment Report
Step 2: Peer Visit
(recommended)
• Member proposes peers; WFTO selects• Member arranges and pays for peer visit • Peer report (+ Improvement Plan) sent to
WFTO Global Office
Step 3: Monitoring
Audit
• WFTO Office selects auditor• Members arranges and pays for audit• Audit report is sent to WFTO Office• GS Manager assesses and makes recommendation for WFTO Board
• Submit SAR w/ Improvement Plan + Peers for Visit• Regional Office checks for completeness of SAR, sends
feedback to be amended by organization• Regional Office sends final SAR to Global Office for
approval
ProvisionalApplicantSame Cycle
for Renewing
Followed all the
headings
Detailed & succinct answers
Complete!Use of
examples
Tips for Success
Your Verified + IMS Fair Trade Suppliers
FT SUPPLIERS
EXCLUDED
Non Fair Trade Suppliers
Suppliers in your Internal Monitoring
System
YOUR SUPPLIERS
Compliance Assessment
Form• Requires detailed assessment of your
compliance against criteria linked to Standard• Plus self-rating: OK / IMP/NC• In assessment you refer to evidence to
support what you claim/ also list sources of information at end of form
Principle 10 Environment
The Improvement Plan
• Purpose to improve performance against FT principles over next 2 years
• Reference number of compliance criteria• Summarise action to be taken, when it will be done
and how you will measure its achievement• Plan will be agreed or amended with WFTO
Improvement Plan Form
Self Assessment Report
Step 2: Peer Visit
(recommended)
• Member proposes peers; WFTO selects• Member arranges and pays for peer visit • Peer report (+ Improvement Plan) sent to
WFTO Global Office
Step 3: Monitoring
Audit
• WFTO Office selects auditor• Members arranges and pays for audit• Audit report is sent to WFTO Office• GS Manager assesses and makes recommendation for WFTO Board
• Submit SAR w/ Improvement Plan + Peers for Visit• Regional Office checks for completeness of SAR, sends
feedback to be amended by organization• Regional Office sends final SAR to Global Office for
approval
ProvisionalApplicantSame Cycle
for Renewing
Monitoring Audit
FTOs must propose peers who can check their practice against the
Standard. This will involve field visits to verify what is happening on
the ground and the claims in their Self Assessment Reports, as well
as some review of documents. Peers can be trading partners, FTOs
from regional or country WFTO networks, or local NGOs etc.
This will be done by independent auditors approved by WFTO as
part of the WFTO Guarantee System. They will check compliance
against the requirements of the Standard through field visits and
document review.
Peer Visit
Lombok of Indonesia Peer Visit, October 2015
Monitoring Audit
FTOs must propose peers who can check their practice against the
Standard. This will involve field visits to verify what is happening on
the ground and the claims in their Self Assessment Reports, as well
as some review of documents. Peers can be trading partners, FTOs
from regional or country WFTO networks, or local NGOs etc.
This will be done by independent auditors approved by WFTO as
part of the WFTO Guarantee System. They will check compliance
against the requirements of the Standard through field visits and
document review.
Peer Visit
Step 3: Monitoring Audit
(cont.)
• GS Manager assesses reports and makes recommendation for WFTO Board
Step 4: Approval (rejection)
• WFTO Board makes final decision
Result: GUARANTEED FAIR TRADE
ORGANISATION
• WFTO sends Monitoring Schedule to member
• Cost: annual membership fee
GuaranteedApplicant Provisional
Application Time As fast as the applicant(Applicant with ID upon receiving Profile) Average: 3 months
Applicant AssessingRegional Membership Committee About 2 weeks, may send feedbackGlobal Office and Board 1 Month
SAR Submission Must be within 12 months
Regional feedback Sent to org. within 1 weekGlobal Processing 1 Month
Peer Visit (First time optional) Completed within 12 months of SAR
Monitoring Audit If Peer visit first: 12 Months after Peer Visit accepted
If no peer visit: 12 Months after SAR acceptedMinimum: 10 Months Max (after application): 2 Years
Leng
th o
f Tim
e
Internal Monitoring System
Fair Trade Accountability
Watch(FTAW)
CostsTurnover/income in Euros Membershi
p feeMonitoring
fee Regional fee Total annual payment
< 100,000 375 25 100 500
100,001 - 135,000 375 50 100 525
136,000 - 500,0000.00275 x turnover 50 175
calculation based on turnover
500,001 - 682,0000.00275 x turnover 100 175
calculation based on turnover
683,000 - 1,000,000 1875 100 175 2150
1,000,001 - 4,000,000 1875 350 175 2400
4,000,001 - 8,000,000 1875 600 250 2725
8,000,001 – 16,000,000 1875 800 250 2925
> 16,000,000 1875 1000 250 3125
Other Costs:• Payment of Audit & Peer Visit (alternating every 2-6 years)• Handling Fee 100-750 Euros
Discussion: What worries you the most & least about WFTO membership?
So Now You Are
Guaranteed!
The WFTO Logo is only the symbol and can be used on marketing material/stationery/ catalogues (but not with products)
WFTO Logo
WFTO Product Labels
The WFTO Label is for use on products, but may also be used in place of the Logo
Label Example
6. Exclusive- its only available to WFTO members.
1. Differentiate you from others who claim to be selling fairly or ethically. This difference is based on commitment and values that make it extremely difficult for others to compete against.
2. Reinforces the strategic relationship you have with the Fair Trade movement.
3. Supports a price premium.
4. Complements your brand strategy.
5. It will provide regulatory acceptance.
GUARANTEED MEMBER TRAID AID, WHY DO WE WANT THE LABEL?
CONTRACT FOR USE OF THE BUYER LABEL BY FIRST BUYER OF PRODUCTS FROM A WFTO MEMBER
WFTO authorises its guaranteed members to use the WFTO Product Label and for their direct first buyer, which is using its own brand, also to place a WFTO Product Label (version Buyer of FTO) on products acquired directly from a WFTO Guaranteed Member if that member agrees to it. The WFTO Product Label is owned by WFTO. Only the first buyer from a member may use the Label and the right to use the Label cannot be passed on to any further buyers. The first buyer must be registered in WFTO Buyer’s Database andhave signed the contract for Buyer Label use with WFTO (below) and with the WFTO member.
License fee to be paid per purchase order by the Buyer (1% of purchase order value from WFTO supplier - 100 euro minimum, payable by buyer)
**Please fill out + return the reflection handout
Q & A
We have resources for you!
• Visit our google site• Uuse the handbook• Visit our webpage “FAQs”• Return to this powerpoint• Ask a WFTO member• Contact us: email, skype, chat!
GS Support Contact info:Elise Hawley
Skype: elise.hawley1
Email: [email protected]
