Fair Trade Procurement Policy Example – Procurement Policies

Fair Trade Procurement Policy Sample

In this article, we’ll look at the key elements that make up an example Fair Trade Procurement 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 Procurement Policy Template

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

1. Title Page

• Policy Title: Fair Trade Procurement 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 Procurement 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 Procurement Policy aims to promote the acquisition of fair trade products, thereby supporting ethical labor practices and sustainable development. By prioritizing fair trade items, the policy seeks to ensure that suppliers adhere to equitable labor standards and environmentally responsible practices. This approach not only fosters social and economic justice for producers but also enhances the organization’s commitment to corporate social responsibility. The policy encourages decision-makers to consider the broader impact of their purchasing choices, ultimately contributing to a more equitable global trade system

3. Scope

• A description of who the Fair Trade Procurement 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 procurement activities within the organization, emphasizing the purchase of fair trade products. It aims to support ethical labor practices and promote sustainable development by prioritizing suppliers who adhere to fair trade standards. The policy covers all departments and requires staff to consider fair trade options when sourcing goods and services. It seeks to foster a positive impact on communities and the environment by ensuring that procurement decisions align with the organization’s commitment to social responsibility and sustainability. Compliance with this policy is mandatory for all purchasing decisions

4. Definitions

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

The Fair Trade Procurement Policy defines “Fair Trade Products” as goods certified by recognized fair trade organizations, ensuring ethical labor practices and sustainable development. “Procurement” refers to the process of acquiring these products. “Ethical Labor Practices” involve fair wages, safe working conditions, and the absence of forced or child labor. “Sustainable Development” emphasizes environmental protection, economic viability, and social equity. “Recognized Fair Trade Organizations” are entities that certify products based on these criteria. The policy aims to promote these values through responsible purchasing decisions

5. Policy Statement

• A detailed outline of the Fair Trade Procurement 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 Procurement 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 Procurement Policy outlines procedures to prioritize purchasing fair trade products, ensuring ethical labor practices and sustainable development. It mandates evaluating suppliers based on their adherence to fair trade principles and integrating these criteria into procurement processes. Staff involved in procurement are trained to recognize and select fair trade options. Regular audits and reviews are conducted to assess compliance and effectiveness. The policy also encourages collaboration with suppliers to promote fair trade practices and supports initiatives that raise awareness about the benefits of fair trade

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Fair Trade Procurement 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 Procurement Policy assigns specific roles and responsibilities to ensure ethical purchasing. Procurement officers are tasked with sourcing fair trade products, prioritizing suppliers who adhere to ethical labor practices and sustainable development. Department heads must integrate fair trade considerations into their purchasing decisions and promote awareness among staff. The finance team is responsible for tracking expenditures on fair trade products and reporting compliance. Additionally, the policy requires regular training sessions to educate employees on the importance of fair trade. Compliance officers are to monitor adherence to the policy and address any violations

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 Procurement 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 Procurement 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 Procurement Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.