Companies Buying Policies and Practices Companies Buying Policies and Practices

Companies Buying Policies and Practices

Income/Wages too low to live on and labour rights not respected

With little or no bargaining power, in a market dominated by just a few buyers, suppliers and farmers are forced to accept low prices. These are repeatedly passed on in the form of low wages to workers and low prices to farmers. In these circumstances, lack of respect of labour rights is widespread.

Environmental damage

The drive by food companies and supermarkets to meet – and dictate – modern (over)consumption patterns is potentially highly damaging to the environment.

Consumers not better off

Smaller and specialist suppliers can’t meet the volumes and price or quality demands of the European importing companies and supermarkets. Less choice of products and shopping places make consumers the victims of this vicious circle.

In this context, increasingly, companies operating in the EU realize the importance of having sustainable and fair supply chains. Certain companies have put in place best practices that other companies should be encouraged to follow.

 

What are FTAO´s views?

Who does FTAO work with?

Further reading

What are FTAO´s views?

The FTAO argues for EU Institutions to introduce policies and programmes to encourage and require companies to follow sustainable and fair supply chain– drawing on practical experiences of Fair Trade suppliers. 

The FTAO also advocates for a robust system to eradicate unfair commercial practices in the supply chains, which guarantees anonymity, also covers abuses of power beyond the EU borders and that can impose fines in case of infringement.

What are companies “buying policies and practices”?

Income/Wages too low to live on and labour rights not respected

With little or no bargaining power, in a market dominated by just a few buyers, suppliers and farmers are forced to accept low prices. These are repeatedly passed on in the form of low wages to workers and low prices to farmers. In these circumstances, lack of respect of labour rights is widespread.

Environmental damage

The drive by food companies and supermarkets to meet – and dictate – modern (over)consumption patterns is potentially highly damaging to the environment.

Consumers not better off

Smaller and specialist suppliers can’t meet the volumes and price or quality demands of the European importing companies and supermarkets. Less choice of products and shopping places make consumers the victims of this vicious circle.

In this context, increasingly, companies operating in the EU realize the importance of having sustainable and fair supply chains. Certain companies have put in place best practices that other companies should be encouraged to follow.

 

Who does FTAO work with?

FTAO works with a large network of Civil Society Organisations working to defend the rights of producers and workers in supply chains, such as Traidcraft, SOMO, Consumers International, Oxfam Germany and Christiliche Initiative Romero.

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