Fair Trade Policy Example – Social Responsibility Policies

Fair Trade Policy Sample

In this article, we’ll look at the key elements that make up an example Fair Trade Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Fair Trade Policy Template

The following are the main elements that should be included in your Fair Trade Policy:

1. Title Page

• Policy Title: Fair Trade Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Fair Trade Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Fair Trade Policy aims to encourage the use of products that ensure fair wages and safe working conditions for workers. It supports suppliers committed to ethical practices, fostering a more equitable global trade environment. By prioritizing fair trade products, the policy seeks to enhance social responsibility within the organization and contribute to sustainable development. This approach not only benefits workers in developing regions but also aligns the organization with ethical consumer expectations, promoting a positive brand image and long-term sustainability

3. Scope

• A description of who the Fair Trade Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy applies to all purchasing and procurement activities within the organization, ensuring that only fair trade products are prioritized. It mandates collaboration with suppliers who adhere to fair trade principles, including providing fair wages and maintaining safe working conditions for their workers. The policy extends to all departments involved in sourcing and supply chain management, emphasizing the organization’s commitment to social responsibility. It also encourages regular assessments and audits of supplier practices to ensure compliance with fair trade standards, fostering ethical and sustainable business practices throughout the supply chain

4. Definitions

• Clarify any key terms or jargon used within the Fair Trade Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Fair Trade Policy encourages the use of products that adhere to fair trade principles. It supports suppliers committed to providing fair wages and ensuring safe working conditions for their employees. This policy falls under the category of Social Responsibility Policies, emphasizing ethical sourcing and the well-being of workers in the supply chain. By prioritizing these standards, the policy aims to foster equitable trade practices and contribute to sustainable development

5. Policy Statement

• A detailed outline of the Fair Trade Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Fair Trade Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

The Fair Trade Policy outlines procedures to prioritize purchasing fair trade products and engaging with suppliers committed to fair wages and safe working conditions. It mandates regular assessments of supplier practices to ensure compliance with fair trade standards. Employees involved in procurement receive training on identifying and selecting fair trade products. The policy encourages collaboration with certified fair trade organizations and requires transparent reporting on fair trade initiatives. Regular reviews are conducted to evaluate the policy’s effectiveness and make necessary adjustments. Compliance with this policy is monitored, and non-compliance may result in reevaluation of supplier relationships

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Fair Trade Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

The Fair Trade Policy mandates the promotion and use of fair trade products, ensuring suppliers offer fair wages and safe working conditions. It requires the organization to prioritize partnerships with suppliers who adhere to fair trade principles. Employees involved in procurement must verify supplier compliance with fair trade standards. Management is responsible for integrating fair trade practices into business operations and reporting on progress. Regular training sessions are conducted to educate staff about the importance of fair trade. The policy also involves monitoring and evaluating supplier performance to ensure ongoing adherence to fair trade criteria

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Fair Trade Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Fair Trade Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Fair Trade Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.