Ethical Trading

What is Ethical Trading?

Ethical trading means that a company takes responsibility for the labour and human rights practices within its supply chain. It has become a growing issue over recent years as companies with global supply chains, particularly in the clothing and food sectors, come under increasing pressure to ensure decent working conditions for the people that supply their raw materials.

Fair trade organisations, while supporting the principles of ethical trading, go beyond this and aim to encourage the development of disadvantaged people in poor communities.

The Ethical Trading Initiative (ETI) established in 1998 has had an important role in improving the conditions of workers in the global supply chain of corporate members.

A large number of major retail and foodservice operators including the Co-op, Tesco and Sodexo are now making it their responsibility to ensure that ethical trading is an integral part of their business.

What it might mean for a food or drink manufacturer?

With many large buying organisations committed to ethical trading practices, there is growing pressure on food & drink suppliers to adopt an ethical approach. This largely impacts on the sourcing of ingredients and packaging from developing countries.

While there are real market and consumer pressures to adopt an ethical trading approach, food and drink companies have also found it can have significant supply chain benefits. Working directly with suppliers and helping them to improve conditions for their workers can secure current (and, more importantly, future) supply of a better quality, sustainable product.

Some food and drink companies go beyond this by investing directly in the wider community and it's infrastructure by supporting improvements in key areas such as sanitation, education, communications, roads, clean water supply, etc.

The situation is summed up nicely by the late David Williamson, MD of Glasgow-based coffee roasters, Matthew Algie:

“I realise that we have moral obligation to assist people involved in producing the raw material on which our business is based…to do nothing, to sit back and let the market run its course is not an option I have ever been comfortable with".

Context within Curriculum for Excellence?

Clear 'partnership' opportunities with food & drink industry and ethical agencies (e.g. ETI, Fair-trade).

Outcomes: Very strong link with Social Studies (esp. people in society, economy and business) but, as can be seen below, possible applications across other curriculum areas, e.g.

Health & wellbeing – very limited coverage apart from maybe HWB 0-35a and HWB 2-35a within food and the consumer.

Literacy & English – listening and talking (esp. finding and using information and understanding, analysing and evaluating ), writing (esp. organising and using information) and reading (esp. finding and using information and understanding, analysing and evaluating).

Religious and moral education – specific link to equality and human rights (e.g. RME 2-02b and RME 3-02b).

Social Studies – fascinating links with people in society, economy and business around issues such as inequality, discrimination, ethical trading, cross-country interdependence, etc. (projects could be perfect to address several outcomes inc. SOC 3-17a, SOC 2-20a[1], SOC 3-20a[2], SOC 3-20b[3])

Technologies – some technology outcomes that would be a good fit , in particular, technological developments in society (TCH 3-02a[4] ), many outcomes within ICT to enhance learning and some generic outcomes within food and textiles contexts for developing technological skills and knowledge.

View more on the Learning and Teaching Scotland website Curriculum for Excellence.

Potential Study Areas

There are short courses on ethical issues but topic is more likely to be part of a wider management courses, largely under the topic of Corporate Social Responsibility (CSR).

Relevance to Possible Food & Drink Careers

• Supply Chain Management
• Corporate Social Responsibility
• Procurement
• Food Safety & Quality Control

Ethical Trading in Action in the Food & Drink Industry

• Matthew Algie
• Cream O' Galloway's
• Fair-trade ice cream
• Young's Seafood
• Findus Group
• Buchanans of Scotland

Examples of Relevant CfE Outcomes

[1] 1 SOC 2-20a - Through exploring ethical trading, I can understand how people's basic needs are the same around the world; discussing why some societies are more able to meet these needs than others.
[2] SOC 3-20a - When participating in an enterprise activity, I can explore ethical issues relating to business practice and gain an understanding of how businesses help to satisfy needs.
[3] SOC 3-20b - I can present conclusions about the impact of the globalisation of trade on patterns of work and conditions of employment in Scotland, the UK or beyond.
[4] TCH 3-02a - From my studies of sustainable development, I can reflect on the implications and ethical issues arising from technological developments for individuals and societies.