Chapter 16 The Inclusive Workplace Level IV Inclusion

Chapter 16: The Inclusive Workplace: Level IV Inclusion Through International Collaborations

Inclusion Through International Collaborations • Level IV Inclusion: • refers to the organization’s positions and practices related to the fair exchange of economic goods and services and the respectful cultural relationship with individuals and groups in other countries • reflects the “macro” system level of international relations Mor Barak, Managing Diversity. SAGE Publications, 2017 2

Figure 16. 1: The Inclusive Workplace: The Value Base for Level IV Inclusion Through Global Collaborations Mor Barak, Managing Diversity. SAGE Publications, 2017 3

Figure 16. 2: The Inclusive Workplace Model: Barriers and Benefits for Level IV Inclusion Through Global Collaborations Mor Barak, Managing Diversity. SAGE Publications, 2017 4

Level IV Case Illustration: The “Fair Trade” Company • A History of Fair Trade • There has been a growing movement to eliminate poor working conditions, not through laws or trade penalties, but through positive trading relations, known as fair trade (originated in the late 1950 s). Mor Barak, Managing Diversity. SAGE Publications, 2017 5

Level IV Case Illustration: The Fair Trade Company • Principles of Fair Trade. The key principles of Fair Trade, as defined by The Fair Trade Federation (2008): • The creation of opportunities for economically disadvantaged producers • Gender equity • Transparency and accountability • Capacity building Mor Barak, Managing Diversity. SAGE Publications, 2017 6

Level IV Case Illustration: The Fair Trade Company • • Payment of a fair price Improved working conditions Environmental sustainability Promoting fairer trade by educating consumers about the importance up purchasing fairly traded products Mor Barak, Managing Diversity. SAGE Publications, 2017 7

Level IV Case Illustration: The Fair Trade Company • Market Expansion • The fair trade market has grown considerably since its start with craft items in the United Kingdom. • The demand for fair trade products exists in 58 countries world wide. Mor Barak, Managing Diversity. SAGE Publications, 2017 8

Level IV Case Illustration: The Fair Trade Company • New fair trade products continue to get introduced around the world. The world’s first fair trade mangoes entered the market in 2002. Ecuadorean farmers sold to the European market. Mor Barak, Managing Diversity. SAGE Publications, 2017 9

Level IV Case Illustration: The Fair Trade Company • • Coffee continues to experience strong growth worldwide. Proctor & Gamble introduced a fair trade coffee line available via the internet. Mor Barak, Managing Diversity. SAGE Publications, 2017 10

Level IV Case Illustration: The Fair Trade Company • What are the extra costs to purchase fair trade products cost? • The costs varies by product and company. Nonetheless costs can often be kept relatively close to the price of non-fair trade products, as illustrated by the coffee market. Mor Barak, Managing Diversity. SAGE Publications, 2017 11

Level IV Case Illustration: The Fair Trade Company • Starbucks, one of the largest coffee chains in the United States, offers 1 lb. bags of fair trade coffee beans (mild blend) for $11. 45 per pound compared with $9. 95 per pound for comparable non–fair trade beans, a 15% difference. Mor Barak, Managing Diversity. SAGE Publications, 2017 12

Level IV Case Illustration: The Fair Trade Company • Global Village and the Fair Trade Company • Need for Options in Japan • Fair Trade and Gender Inequality in Less -Developed Countries • Formula for Success Mor Barak, Managing Diversity. SAGE Publications, 2017 13

Level IV Case Illustration: The Fair Trade Company • Fair Trade Future • Fair Trade Product Certifications • Fair Trade Impact on Producing Countries • Fair Trade Cities Mor Barak, Managing Diversity. SAGE Publications, 2017 14

Level IV Case Illustration: The Fair Trade Company Questions for Discussion and Further Analysis 1. Which method do you think would work better for improving worldwide working conditions: voluntary methods via fair trade products, or laws mandating fair working conditions for imports? What would be the benefit and drawbacks of each approach? Mor Barak, Managing Diversity. SAGE Publications, 2017 15

Level IV Case Illustration: The Fair Trade Company Questions for Discussion and Further Analysis 2. What impact do you think Fair Trade Company’s higher prices have on sales? What might be some of the reasons that Fair Trade Company is paying a higher premium to producers than that paid by importers of fair trade coffee? Mor Barak, Managing Diversity. SAGE Publications, 2017 16

Level IV Case Illustration: The Fair Trade Company Questions for Discussion and Further Analysis 3. If you consulted for another clothing company wanting to implement fair trade practices, how would you use the experience of People Tree to assist this company? How would you use both to improve the company’s image internally (with its employees) and externally (with customers, financial institutions, and stock owners)? Mor Barak, Managing Diversity. SAGE Publications, 2017 17

Level IV Case Illustration: The Fair Trade Company Questions for Discussion and Further Analysis 4. Some might claim that the use of a high percentage of volunteers in the fair trade industry is trading one group of low-wage workers for another. What are your opinions on the topic? Is this a fair analogy? Why or why not? Mor Barak, Managing Diversity. SAGE Publications, 2017 18

Level IV Case Illustration: The Fair Trade Company Questions for Discussion and Further Analysis 5. How can we better understand the relationship between fair trade and gender inequality in less developed countries? Mor Barak, Managing Diversity. SAGE Publications, 2017 19