Fair Trade?

Fair Trade is a very new term for me. I mean, I have been hearing about it for years but I wasn’t really sure about its definition. According to the Advocates for Philippine Fair Trade, Fair Trade is…

Fair Trade is a trading partnership which aims at sustainable development for excluded and disadvantaged entrepreneurs, producers, workers and communities.

As equally important, Fair Trade makes sure that products especially food and crafts are safe, of world-class quality, reasonably priced, environment-friendly and consumer-responsive.

Fairly-traded products can be no less!

Fair Trade, therefore, is an alternative approach to conventional international trade. Advocating for Fair Trade is a way to end poverty and put in place just business partnerships, relationships, networks, structures and systems. (http://www.apfti.org.ph/index.html)

When I dug further into the world of Fair Trade, a saw a glimmer of hope. Finally, something that is sustainable, dependable, scalable for the job and value-creation of the Filipino people. I hoped that Fair Trade would eventually become a norm rather than just an advocacy.

I made some research and found out that there are some criteria for one to be considered “Fair”. And rightly so. I expected a set of ethical standards and principles that would indeed promote the common good and dignify the marginalized and forgotten. So I stumbled upon the following Fair Trade Principles from the Fair Trade Challenges and Opportunities paper I found in www.buyfair.org.

These principles form the backbone of Fair Trade:     

 

transparency and accountability – Trading partners commit to transparent management and commercial relations.

capacity-building – In Fair Trade, producers and workers are empowered in the process to ensure sustainability. They are provided with management and marketing skills and access to new markets.

payment of a fair price – A fair price is agreed upon by the producers and traders based on the cost of production, social costs and environmental costs. The amount is determined through dialogue and participation. Fair Trade also guarantees the principle of equal pay for equal work bywomen and men. Traders confer punctual payment to the producers, and whenever possible, provides financial support for pre-production costs.

gender equity – Aside from getting paid for their contributions in the production process, women are empowered as valued members of the organization and community. They are given equal rights on participation, access to information, management and decision-making.. 

 

working conditions – Safe and healthy working conditions are made available to workers and producers. The participation of children in the workforce is also sanctioned by the UN Convention Rights of the Child as well as international labor laws.  

ecological integrity – Environmentally-sound methods of production are observed, by taking into account factors such as the maximum utilization of raw materials, efficiency in energy consumption, and pollution costs.

These principles really sounded great. That glimmer of hope sparkled even more as I read through the file. But after the high, the bubble popped slowly and painfully. I found out that Fair Trade in the Philippines started during the 1980s. 28 years ago. 28 long years ago. Enough for our adjacent countries to prosper, but apparently not enough for us to even be a speck of glittering dust on map of the world.

It took one visit to a Fair Trade organization in the Philippines and weeks and weeks of disturbance to help me understand why we are still in this rut after 28 years. There may be some other reasons I’m sure. It could be that it would take a LOT of time for any culture to accept a different kind of practice such as Fair Trade. But it could also be that we sell ourselves short at all times that other people buy us for the price tag we put on ourselves. Allow me to explain.

I entered the modest office of this Philippine-based Fair Trade organization. My jaw almost dropped when I saw the marvelous products that were handmade by Filipinos. They were beautiful. As a co-founder and officer of our one year old Social Enterprise, Rags2Riches, I was compelled to ask questions… to learn more about how they manage to put things all together.

That is when the whole thing snapped.

The person refused to answer any of my questions regarding who the producers are, what they do, how their lives were improved. He said that if he tells me, I would go straight to the communities instead of go to him. Makes good business sense perhaps but I was utterly disturbed. He also said that they take out the community-brand and even the Filipino identity of the products just so they would be more attractive to the international market. So we strip away our identity, our people’s identity, our pride, just for some money and we call that development.

I went home with a heavy heart. He is just one person of course, and there should be many who are creating innovations and not settling for status quo. It was still sad though since he spoke like he was trapped in some vacuum. I was having the impression that “this is the way it is.. and as long as we are helping, that should be fine”. Selling ourselves short.

I do not see anything Fair about that at all.

It is sad that “Fairness” right now has ifs and buts and compromises. It is subjected to subjectivity for the sake of survival. But from the point of view of a Social Entrepreneur who saw the impact of having a name, brand, identity, and pride in the global market, identifying and acknowledging identity is Just and Fair.

Two Points.

First, no one could argue with results. I have seen it work. The dignity of the Rags2Riches brand is something that we were very particular of right from the start. All of my co-founders believed that if we are going to create something for the marginalized of the country, we have to do it with pride and a determination to not compromise values for sustainability or the other way around.

Along our one-year journey of not settling for compromises, we realized the importance of acknowledgement and recognition. We proudly carry the Rags2Riches Brand and Story everywhere we go. As a result, each member of our community is empowered. Our community believes that their products are worth it and that they are worth recognizing as the artists that create the products with their own hands. No amount of training could make them actually “own” the business. But a face and name to live up to for themselves could make them move and shake their worlds.   

Second, by virtue of the term itself, “Fair” should be a value that is fairly shared by everyone regardless of social status, race, or religion. It is striking how we go through all pains just to protect our rights and our name and brand on a piece of art, novel, haiku, invention, or product. Our standard for ourselves should be no different from the standards we demand for others. That is giving justice to the “Fair” in “Fair Trade”.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifestyle of a Social Entrepreneur

Whenever I am asked about my profession or what I do for a living, and I answer “social entrepreneurship” or “social entrepreneur”, I can’t help but notice flinches. The next questions that I would have to answer would be about the definition of “social entrepreneurship”, some further explanations on each word of the definition, and finally, the financial viability on my part. Or in other words, “How am I surviving?”

See, the usual misconception is that Social Entrepreneurship is equal to a.) Non-Profit, b.) Foundation, c.) NGO, d.) Charitable institution, e.) Profit-generation that is solely for social cause. Thus, people assume that I am such a noble, self-sacrificing martyr who left worldly possessions for deeper meaning.

Perhaps because of different definitions, the entire concept of Social Entrepreneurship became lost in translation. Or it is possible that we have yet to dissect and further develop the definition itself.

Whatever the definition is or whatever it will be, the point is, I have discovered that these perceptions are misconceptions. I should know. I am living the life of a Social Entrepreneur. It is not my part time job. It is not a hobby. It is the air I breathe. And although yes, there were some sacrifices made because I chose this path, I must also admit, that it is a viable and potentially lucrative career path.

Here are the reasons why:

Food: I go for home cooked meals. I don’t eat excessively or lavishly. The best tasting meals too are prepared by our Nanays from Rags2Riches, Inc, (or bought from one of Cubao’s carinderias) and shared with friends.

Clothing: The good thing about being a social entrepreneur is that I am compelled to integrate my lifestyle with the causes I advocate for. Thus, vintage shops which have the best brands, best styles, and provides the most exciting shopping experience, are my clothing suppliers.

Rest and Recreation: I love watching movies at home. It saves on gas, reduces my carbon footprint, and gives me the best view too! Nature trips are also very relaxing and affordable too (in fact, one of the things I enjoy most is strolling around my school, Ateneo… I just need my ID of course. No entrance fee.).

What about savings? I would like to refer to this as “investments” instead. For putting in my efforts, love, passion, understanding, patience, and expertise in my social enterprise, I create jobs, dreams, and futures. I consider these priceless. And in terms of these, my current profession/vocation is indeed lucrative.

I know, I know, these may sound up-in-the-clouds. As for going beyond these so-called “lofty” ideals, let me also say that Social Enterprises, if handled the right way, could be potentially big, profitable, and invest-able.

Take Rags2Riches for example. Our company started as a Php100,000 company with no full time employee, no office, no other resources but the minds and hearts of several young professionals. Now, it has almost 2 Million in Sales, 5 full-time employees, a modest office, International recognition, and lots of partners. All these in less than one year.

Social Entrepreneurship may have several definitions right now. And there would be some few more years that I would have to explain my profession in great, excruciating detail. It is really quite simple but it entails a lot of detailed explanations unlike when you say “financial analyst”. Honestly, I don’t even know what that is but it sounds normal enough so I won’t ask either.

The sad part is, people around the world generally still think that in order to “do good”, one must sacrifice a great deal. Profit is mostly considered a bad word. I believe that do-gooders have every right to a bright and promising future just like other businessmen do. I believe that we have to work together and nourish each other in order to make the world a better place. We can’t starve our social workers just because they are working towards social development. In fact, we have to nourish them for the skills, heart, and soul they are pouring on their vocations. We have to reward entrepreneurs who choose to go beyond profit and look into the social impact of every process of their business.

I would like to see the day when social cause would be considered a business-norm… just like a business registration or an official receipt. I would like to see the day when business models would be considered a social-work norm as well. Until that day though… I would tirelessly continue to explain what I am and what I do.

I am a social entrepreneur. Social Entrepreneurship is not about self-deprivation or self-sacrifice… it is about choosing to look beyond profit and see value created and potential value instead.