World Fair Trade Organization Understanding the WFTO Guarantee System 3 April 2014 Fair Trade Federation Conference Indianapolis, IN WFTO.COM
Who we are & what we do A ‘ membership organisation ’: members decide! Overarching goal (Strategic Plan 2013-17): Together, building a more just world economy . • Membership and Monitoring (the Guarantee System) • Advocacy • Communications • Capacity-building • Market access • Campaigns and Events WFTO.COM 1
WFTO’s vision: A sustainable and fair economy The World Fair Trade Organization has a vision of a world in which trade structures and practices have been transformed to work in favour of small producers and promote sustainable development and justice. WFTO.COM 2
WFTO’s Mission WFTO’s mission is to enable small producers to improve their livelihoods and communities through Fair Trade. WFTO is the global network and advocate for Fair Trade, ensuring produces’ voices are heard. The interest of producers, especially small farmers and artisans, is the main focus in all the policies, governance, structures and decision-making within the WFTO. WFTO.COM 12
WFTO • A ‘membership association’, established in 1989 • More than 350 member organisations 100% committed to Fair Trade, in around 70 countries (trading org., nat. networks and support org.), representing the entire supply-chain • AGM, Board of Directors, Global Office/Secretariat, Working Groups, Committees and Task Forces • 5 regional branches (Europe, Africa, Asia, Latin America and Pacific Rim) • Headquarters/main office: Culemborg, the Netherlands • Biennial Conference (next one: Milan May 2015): start planning! WFTO.COM 4
Broad Strategic Goals (2013-2017) Goal 1: To be the global membership body for Fair Trade Organizations seeking to empower groups of vulnerable producers, farmers and workers through trade Goal 2: To be a space where members connect with each other – to work together, to cooperate, collaborate and share innovative ideas and learning. Goal 3: To enable members to access tools and training to improve market access locally, regionally and internationally. WFTO.COM 5
Broad Strategic Goals (2013-2017) Goal 4: To create a common voice that shouts loudly about Fair Trade and trade justice - and is heard. Goal 5 (internal, extra): To have the leadership, capacity, resources and structures for good network governance which enable the WFTO to be dynamic, flexible and healthy. WFTO.COM 6
The 10 Principles of Fair Trade (I) 1. Creating opportunities and market access for economically disadvantaged producers 2. Transparency and accountability 3. Fair trading practices (long-term, solidarity, pre-financing, assistance) 4. Payment of a fair price, fair trade terms 5. No Child Labour or Forced Labour (Respect of UN Conventions) WFTO.COM 7
The 10 Principles of Fair Trade (II) 6. Non-discrimination, gender equity and women’s economic empowerment, and freedom of association 7. Safe and healthy working environment 8. Providing capacity-building of small producers 9. Promotion of Fair Trade and trade justice 10.Respect for the environment WFTO.COM 8
WFTO Fair Trade Standard Set of compliance criteria to assess members against each FT principles Principle 1 Principle Principles 10 2 Principle Principle 9 3 WFTO Fair Trade Standard Principle Principle 8 4 Principle Principle 7 5 Principle 6 WFTO.COM 9
The new WFTO Guarantee System (GS)
The WFTO’s new Guarantee System: Ownership! • WFTO principles = our core values/brand values • WFTO (AGM) = owner of the WFTO FT Principles • WFTO Guarantee System = how we implement & protect our values • WFTO (AGM) = material & intellectual owner of the system. WFTO is the Standard-Setting Body by and for its membership WFTO.COM 11
The WFTO’s new Guarantee System: A 2-step approach! WFTO.COM 12
WFTO Guarantee System: Components components of WFTO system self assessment C P O E M E T P R peer visit I L M A W E I A N T monitoring audit T C H ext. evaluation WFTO.COM 13
WFTO Guarantee System: Steps for members Membership admission procedure Fair Trade Self- Accountabi assessment lity Watch The Guarantee System Monitoring Peer visit audit WFTO.COM 14
WFTO GS: FTO Risk level and tools WFTO.COM 15
New applications: Steps for new FTO members (I) • 2 years of legal existence • Commitment to WFTO FT Principles REQUIREMENTS: (check WFTO FT Standard compliance criteria) • Regional Office checks for Step 1a: PROFILE FORM completeness and sends feedback to Submit Profile Form + applicant as necessary • Cost: 100 Euros (handling fee) supporting docs. • Regional Office collects Step 1b: references + in-country REFERENCES comments (FTAW) WFTO.COM 16
New applications: Steps for new FTO members (II) • Global Office assesses Step 2: application and makes RECOMMENDATIO recommendation for WFTO N Board Step 3: • WFTO Board makes APPROVAL final decision (or rejection) • WFTO Office sends 1st membership Step 4: fee invoice • Cost: annual fee; variable depending Pay WFTO fee on size and type of member Result: PROVISIONAL MEMBER WFTO.COM 17
Guarantee System: 1 st cycle/steps for FTO members (I) • Submit Self-Assessment Report, incl. Improvement Plan + updated Profile Form (if Step 1: more than 6 months old) SAR • Regional Office checks for completeness of SAR Step 2: • Member proposes peers; WFTO selects • Member arranges and pays for peer visit Peer Visit • Peer report (+ Improvement Plan) sent to (recommended) WFTO Office • WFTO Office selects auditor Step 3: • Members arranges and pays for audit Monitoring • Audit report is sent to WFTO Office • GS Manager assesses reports and makes Audit recommendation for WFTO Board WFTO.COM 18
Guarantee System: 1 st cycle/steps for FTO members (II) Step 3: • ... • GS Manager assesses reports and Monitoring Audit makes recommendation for WFTO Board (cont.) Step 4: • WFTO Board makes final decision Approval (rejection) • WFTO sends Monitoring Result: Schedule to member GUARANTEED FAIR • Cost: annual membership fee TRADE ORGANISATION WFTO.COM 19
Guarantee System: Steps for FTO members 1. Self- assessment report (SAR) Monitoring Peer visit audit SAR WFTO.COM 20
The WFTO’s new Guarantee System: Conclusion • Credible • Sustainable (affordable and transparent) • Simple WFTO.COM 21
Benefits for WFTO Guaranteed Members WFTO Product Label • The WFTO Product Label is an organisational label that can be used on products. WFTO members that successfully pass the WFTO Guarantee System have the option to use the WFTO Product Label to differentiate their products as Fair Trade in the market. Global and Regional networks • The world’s only network of artisans, farmers, producers, brands and businesses. Our membership represents the Fair Trade chain from production to sale, spread across five regions. WFTO.COM 22
Benefits for WFTO Guaranteed Members A Voice in Fair Trade • Advocacy and campaigning, World Fair Trade Day and policy impact through our cooperation with other major Fair Trade bodies. Continuous Learning • WFTO global and regional conferences focus on networking, capacity building and discussion and decision-making on our global strategy. Favourable credit & payment facilities • Access to the Shared Interest Clearing House program and other support and business services. WFTO.COM 23
Benefits for non-WFTO Members AS A BUYER • Having a ‘WFTO Guaranteed’ supplier – less work to confirm the FT credentials of your suppliers – increased credibility! - No need for an Internal Monitoring System?! • Using a monitoring system that is common to several FT actors, means no need to repeat assessments AS A SUPPLIER • Being a supplier to a WFTO Guaranteed member – stronger identity, better credibility, more market access! WFTO.COM 24
What the WFTO product label means The WFTO Product Label is an organisational label that can be used on products. WFTO members have successfully passed the WFTO Guarantee System. Guaranteed members are regularly monitored. WFTO.COM 25
Thank you! Questions? WFTO.COM
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