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Ethical Marketing

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Ethical Marketing
Introduction
It is well acknowledged that fair trade works to re-embed commodity chains in a framework of social and ecological responsibility. By having a business model that embodies the principles of fair trade, Cafedirect coffee presents an alternative to the prevailing model of international trade and agricultural production (Raynolds, 2009), and the success of Cafedirect has made a significant contribution to the mainstreaming of fair trade in the UK (Nicholls and Opal, 2005). Critically, this essay will examine how cafedirect incorporate social, ecological and long-term relationships into its marketing approach as well as identify the limits and challenges of its expansion might have, and finally, provide some effective recommendations on its future ethical and sustainability marketing.

The Success of Cafedict’s Sustainability Marketing Approach
Firstly, the founding of cafedirect is the representative of social justice issues of international agricultural production. In response to the coffee crisis in 1989, cafedirect built the long-term relationships and supply contracts with coffee producers who were small family-owned farms (Davies, et al., 2010). This company paid a fair trade minimum price as well as an additional social premium to producers in order to get the economic justice in terms of distribution of value to farmers, which is in line with the traditional ethical theory of rights and justice. The fair trade minimum price aims to cover the cost of sustainable production and living. Its ‘Gold Standard’ allowed producers to invest in community infrastructure projects such as digging water wells (Barratt Brown, 2007). Particularly, the early years marketing communication approach of cafedirect fully reflected its social and sustainable marketing objectives. For example, its advertising and packaging focused on presenting photographs of coffee producers and the intensive labour of growing coffee. As Raynolds suggested that rather than build



References: Barratt Brown, M. (2007) ‘Fair trade with Africa’ Review of African Political Economy, 112, pp. 267–277. Becker, C. (2004), ‘Sustainable consumption: marketing and communications’. Avaiable at http://www.unglobalcompact.org/Issues/sustainable_consumption/gc_pd_sc2004report.pdf Bob Doherty & Daniel Wade Clarke (2012) ‘Drawing on “Producer-Tours”: A Technique for Addressing Consumer Uncertainty Surrounding the Consumption of Fair Trade Food Products?’ Journal of Nonprofit & Public Sector Marketing, 24(4), pp. 296-320. Belz F.M. and Peattie, K. (2010) Sustainability Marketing: A Global Perspective. Second Edition, Wiley, Chichester Davies, I.A., Doherty, B., and Knox, S. (2010) ‘The Rise and Stall of a Fair Trade Pioneer: The CaféDirect Story’ Journal of Business Ethics, 92, pp. 127-147. Moore, G. (2004) ‘The fair trade movement: Parameters, issues and future research’ Journal of Business Ethics, 53, 73–86. Nicholls, A. and C. Opal (2005) Fair Trade: Market-Driven Ethical Consumption. Sage Publications, London. Raynolds, L.T. (2009) ‘Mainstreaming Fair Trade Coffee: From Partnership to Traceability’ World Development, 37 (6), pp. 1083-1093. Wilkinson, J. (2007) ‘Fair Trade: Dynamic and Dilemmas of a Market Oriented Global Social Movement’ Journal of Consumer Policy, 30(3), pp. 219-239.

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