Philanthropy and Ethical Globalization Davenport 1

Artifact: Philanthropy and Ethical Globalization

Related Course: ANTH-A411
Date of Course: Fall 2015
Instructor: Dr. Jeannette Dickerson-Putnam
Related Student Learning Outcome: #3 Understanding the role of nonprofit organizations in society

Alexis Davenport
December 9th, 2015
Philanthropy and Ethical Globalization
Dr. Jeannette Dickerson-Putnam
ANTH-A411
Philanthropy and Ethical Globalization Davenport 2

Intro

The United States is believed to be far less sustainable than any other large country in the

world. With a cornucopia of accessible retailers, we have established our freedom not only

through our democracy but also through our consumption. The Sierra Clubs David Tilford stated

that the average American will drain as many resources as 35 natives of India and consume 53

times more goods and services than someone from China (Scientific American, 2012). It was

not until the 1980s when popular brands such as Nike came under attack for child labor abuse.

Following the bad press, many elites began to speak out against the atrocities. It appeared that

Americans became more aware that our consumption was negatively effecting less developed

countries. This research paper discusses the concept of fair trade, its successes and shortcomings,

as well as its impact in countries throughout the world. Alongside with fair trade, the topic of

ethical consumption is discussed and analyzed in detail. Lastly, the idea of ethical globalization

pieces these concepts together to foreshadow what could be an ethical, for-purpose industry

that bestows more prosperity than what we have experienced before.

Fair Trade & Ethical Consumption

Fair Trade, as defined by the World Fair Trade Organization, is a trading partnership,

based on dialogue, transparency and respect, that seeks greater equity in international trade. It

contributes to sustainable development by offering better trading conditions to, and securing the

rights of, marginalized producers and workersFair Trade organizations (backed by consumers)

are engaged actively in supporting producers, raising awareness, and campaigning for changes in

the rules and practice of conventional international trade (World Fair Trade Organization:2015).

Overall, Fair Trade is a movement that overcomes exploitive Free Trade Agreements. Free
Philanthropy and Ethical Globalization Davenport 3

Trade, as defined by Green Peace International, the unrestricted purchase and sale of goods and

services between countries without the imposition of constraints such as tariffs, duties and

quotas. Many believe that Free trade is a win-win proposition enabling nations to have

competitive advantages and contributing to increased economic output. Unfortunately, while

Free Trade may appear to have many positive aspects, it is typically only wealthy countries that

benefit from this type of trade. Recently, the Fair Trade movement has been split between Fair

Trade USA and Fair Trade International.

John F. Kennedy stated that One person can make a difference, and everyone should

try. It is believed that Ethical Consumption is voting with purchases making a stance and

only making ethical purchases could change production protocol of what is demanded from the

market. Ethical Consumption, as defined by IGD, is the practice of purchasing products and

services produced in a way that minimizes social and/or environmental damage, while avoiding

products and services deemed to have a negative impact on society or the environment

(IGD:2015). The practice of Ethical Consumption can have many motivations to eliminate

sweatshops and unjust labor practices, to minimize the consumption of energy and water, or to

simply recycle resources in an attempt to reduce consumption overall. In recent years, it is

believed that our consumer choices are being impacted by care, solidarity and collective

concern (Barnett:2005).

Globalization An Ethical Relationship

Globalization, as defined by Globalization101, is a process of interaction and integration

among the people, companies, and governments of different nations, a process driven by

international trade and investment and aided by information technology

(Globalization101:2015). Currently, the world is going through a transformation that is larger

Philanthropy and Ethical Globalization Davenport 4

than any previously experienced. We are now more interconnected than ever before every

action and every decision can make a global impact. It is believed that Globalization may be

utilized to either lessen or increase the gap between rich and poor. For example, the bottom 2.5

billion, 40% of the worlds population live on less than $2 a day and receive only 5% of the

worlds income (Ehrenfeld:2008). Indeed, it is wealth, not distance, that is our largest divider.

We can promote a prosperous future through implementing ethics into Globalization practices.

Interconnected, Entwined, & Complicated

The Fair Trade movement was founded to benefit small producers located in developing

countries bringing coffee and other commodities into the global market through fair export

agreements. The Fair Trade movement has also been an reliant on the spread of Globalization.

Therefore, as the movement has expanded, it has increased its efforts to appeal to consumers.

Theoretically, Fair Trade can flourish and nurture an ethical relationship between producers and

consumers. However, tensions have emerged within the movement. In 2011, Fair Trade USA and

Fair Trade International divided due to conflicts of interest Fair Trade International

emphasizing the fair part of Fair Trade (for them, the interests of the producers are

paramount) and Fair Trade USA emphasizing the trade part (they prioritize the need to reach

consumers) (Modelo:2014). It appears that Fair Trade International is remaining true to the

principles of the Fair Trade movement while Fair Trade USA is embracing an approach that

emphasizes on consumer demands. Moreover, each approach can be implemented to benefit

producers. But even so, many concerns have been raised throughout the lifespan of the Fair

Trade movement and even more in recent years.

As stated by Peter Griffiths (a skeptic of the Fair Trade movement), it is generally

accepted that Fair Trade chooses to work with cooperatives that can easily meet their criteria and
Philanthropy and Ethical Globalization Davenport 5

produce the quality required at an acceptable price. This means well managed cooperatives, with

skilled farmers capable of producing high-quality coffee at a reasonable price and educated

farmers, capable of managing the paperwork and administration imposed by Fair Trade criteria

(Griffiths:2009). Many people believe that Fair Trade merely helps farmers that are already at an

advantage. Additionally, being a certified Fair Trade farmer does not assist marginalized

producers due to the high cost of becoming certified. There have been recent studies that have

questioned the impact of certification in general on small producers revealing various

ambiguities associated with Fair Trade.

A Space For Improvement

Clearly, there are many obstacles facing Ethical Globalization. After conducting

extensive research on the Fair Trade movement and Ethical Consumption, it appears that a new

approach is needed. A combination of the two introducing more accountability in the ways

that businesses are ran and to agree upon an understanding of fairness and universal justice.

Margaret Mead stated never doubt that a small group of concerned citizens can change the

world. Indeed its the only thing that ever has. Philanthropy, voluntary action for the public

good, is a force that can be utilized to help support Ethical Globalization (Moody:2008). Now

is the time to focus on equalizing the global market in a way that benefits small producers,

farmers in less developed countries, and those susceptible to corrupted policies. According to a

new study conduced by the International Monetary Fund, "trickle-down economics not work

and extreme income inequality actually slows economic growth leaving communities

broken (IMF:2015). This extreme inequality and unjust practices influence under-investment in

education, health and infrastructure - all of which boost productivity and benefit the poor (IMF:

2015). Additionally, the IMF found that the larger the income gap means the less social mobility
Philanthropy and Ethical Globalization Davenport 6

there is meaning that the poor stay very poor and the wealthy keep their wealth for their own

benefits.

In a study conducted by the Harvard Business School, it was stated that in the business of

globalization there are abundant signs of various forms of potentially unethical behavior. These

include greed, unreasonable amounts of leverage, subtle forms of corruption (such as ratings

agencies that appear to have had a conflict of interest), complex financial instruments that no one

really understood, and herd behavior where people just followed along and failed to exercise

independent judgment (Tella:2015). As Luetchford pointed out, throughout the years,

alternative ethical perspectives, however, are rarely systematic or coherent (Leutchford:2008).

This is a call to action for philanthropy. It is not about charity this is about dignity. For

the sake of our future, we should strive for a higher standard and care for those less fortunate

and actively combat societys problems (Sealander:2003). Individuals can begin to embrace

moral duty and start to devote substantial effort to finding solutions to these problems that are

occurring within the global market. New policies, new practices, and a new approach to global

business is required. Although we have made small steps through the Fair Trade movement and

improving the availability of ethically produced products, there is still a large space for major

improvements.

References

Luetchford, Peter, De Neve, Geert. September 2008. Hidden Hands in the Market :
Ethnographies of Fair Trade, Ethical Consumption and Corporate Social Responsibility
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Julie Irwin (2015). Ethical Consumerism Isnt Dead, It Just Needs Better Marketing. Retrieved
from https://hbr.org/2015/01/ethical-consumerism-isnt-dead-it-just-needs-better-marketing

Manel Modelo (2014). The Paradox Of Fair Trade. Retrieved from

http://ssir.org/articles/entry/the_paradox_of_fair_trade

Scientific American. Use It And Lose It. 2015.

http://www.scientificamerican.com/article/american-consumption-habits/. Retrieved on
December 1st. Web.

Green Peace International. 2015. http://www.greenpeace.org/international/en/campaigns/trade-

and-the-environment/what-is-free-trade/. Retrieved on December 1st. Web.

Barnett,C,Clarke,N,ClokeP&Malpass,A2005a,Thepoliticalethicsofconsumerism,
ConsumerPolicyReview,15(2),pp.4551.

Ehrenfeld, Sylvain. 2008. http://ethicalfocus.org/ethical-dilemmas-of-globalization/. Retrieved

on December 4th, 2015. Web.

Griffiths, Peter. 2015. http://www.griffithsspeaker.com/Fairtrade/Arnould%20et%20al

%20web.pdf. Retrieved on December 3rd, 2015. Web.

World Monetary Fund. 2015. https://www.imf.org/external/pubs/cat/longres.aspx?sk=42986.0.

Retrieved on December 6th. Web.

Tella, M. Rafael. 2015. Ethics In Globalization.

http://www.hbs.edu/centennial/businesssummit/business-society/ethics-in-globalization.pdf.
Retrieved on December 8th, 2015.

Sealander,J.(2003).CuringEvilsatTheirSource:TheArrivalOfScientificGiving.InL.
Friedman&M.McGarvie(Eds.),Charity,philanthropy,andcivilityinAmericanhistory
(pp.129159).London,England:CambridgeUniversityPress.