Blair Smith February 22, 2012 CMC 400 Literature Review Shopping for Activism Recently, fair trade logos and lingo have been popping up everywhere. From seeing the certification stamps at some of our favorite stores to hearing people talk about organic produce. As well as fair trade being on the rise, there is also a climb in the amount of socially responsible products on the market. Toms Shoes, a wellknown socially responsible company, bases its whole operation on being an ethical company. Toms Shoes’, stands for Tomorrow’s shoes, principle mission is to give a pair of shoes to a child in need for every one sold. In the initial year, 2006, Toms Shoes sold over 10,000 pairs. Every year since, this company has been exploding. Its impressive list of retailers includes: Nordstrom, Neiman Marcus, Urban Outfitters, Whole Foods, and many more. (Mycoskie 2011) From the impressive numbers of just this one company, clearly, consumers are presenting a demand for these products and in return, companies are supplying them. FINE, an umbrella organization that links major fair trade contributors like: the World Fair Trade Organization (WFTO) and the Fair Trade Labeling Organization (FLO), defines fair trade as: “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, disadvantaged producers and workers, especially in the South” (Spitzer 2011). Fair trade essentially functions as a challenge to the conventional market economics. (Walton 2012) The emergence of corporate licenses into the fair trade atmosphere has increased the variety, volume, and visibility of fair trade products in the marketplace. The recent dramatic growth of fair trade sales in the United States can be credited to increased fair trade practices by corporate licenses as well as by consumer pressure. If a consumer wishes to purchase fair trade, he or she now has many options. A fair trade coffee can be bought from a local café, or even from a Starbucks around the corner. Starbucks, a global well-known coffee corporation, entered the Transfair USA system in 2000. At this point, roughly 1% of its purchases were at fair trade terms. The partnership that Transfair USA now has with Starbucks blurs the line between regulated and regulator as well as raises questions regarding the certification process and the certifier’s ability to remain strict and independent. Even though such a small percentage of its products are fair trade; Starbucks still has the stamp of approval as being fair trade certified. This company has been hassled in the past because of their previous unfair practices. Because of the consumer pressure, this is a step in the right direction, even if it is only 1% fair trade. On the other hand, Equal Exchange, a well-known fair trade company that has been supporting small farmer co-ops as well as use sustainable farming methods, is proud to say that 100% of their products are fair trade. Their products are now being sold at more and more retailers making it more accessible to the socially conscious consumer. Whether it is 1% or 100%, every little bit counts and as long as each company is always progressing in the more ethical direction; progress is being made. Buying fair trade products is not the only way that a socially responsible consumer shops. Everything from a person’s shoes to their top can be bought responsibly. Corporate social responsibility is a term that has been popping up everywhere recently. Mohr, Webb, and Harris (2012) discuss the theories of Dr. Archie B. Carroll, a professor who specializes in nonprofit management at the Terry College of Business, regarding the dimensions of corporate social responsibility. He suggests that the four main responsibilities of a company include: economic, legal, ethical, and philanthropic. The socially responsible companies that follow these dimensions are guided through the societal marketing concept. According to Mohr, Webb, and Harris, the societal marketing concept is “doing business in a way that maintains or improves both the customer’s and society’s well-being” (Mohr et al. 2012). In order for a company to be termed a socially responsible company, the company must look beyond short-term profitability. Companies can then in turn have the benefit of long-term economic success because it chooses to act with socially ethical behavior. “The dimensions of CSR [Corporate social responsibility], while not included in the definition, specify important areas of responsibility, such as obeying laws and ethical norms, treating employees fairly, protecting the environment, and contributing to charities” (Mohr et al. 2012). These areas all help to promote a better global society. The companies that are coined socially responsible look beyond merely profits and continue to look at the bigger picture. Recently, there has been a major rise in these sorts of companies; which makes these types of products extremely accessible to socially conscious consumers. “Supply will inevitably follow demand and thus projects such as Fair Trade have arisen. In other words, Fair Trade is a project generated by a demand for ethically labeled goods” (Walton 2012). Who are these consumers that are presenting this demand? A socially conscious consumer is someone that has come to the realization that every purchase can have an effect on the world around them. “People’s fears are channeled into one set of neoliberal solutions. The individual is burdened with an overwhelming, rather than partial responsibility for change- what Foucauldians [Michel Foucault] call “responsibilization” (Mukherjee and BanetWeiser 2012). Whether it is in terms of punishing companies that have unfair practices or rewarding companies that pride themselves on their implications on society as well as looking into the environmental influence; consumers feel a sense of responsibility to the world around them. The socially conscious consumer seeks to aid in the establishment of justice in the global market. This can be done by buying fair trade coffee where the labor and farming practices are known, to filling your wardrobe with clothes from stores like American Apparel, that pride themselves on being sweat-shop free and made right here in America. These types of companies know their target consumers; and whether it is for marketing purposes or simply to be ethical, these companies fill the demand for these sorts of products. These types of fair trade practices and socially responsible products have given average people the opportunity to become activists. According to the book, “Commodity Activism” written by Roopali Mukherjee and Sarah Banet-Weiser, “In 2003 the average American bought fifty-seven pieces of clothing whereas in 1991 he or she bought thirty-four” (2012). This trend shows that Americans are consuming more year after year. If people are shopping anyway, why not put that shopping to good use? Time magazine, in 2006, designated “YOU” as person of the year. The magazine argued that with the aid of social networking sites, “community and collaboration” had emerged on a “scale never seen before” (Mukherjee et al. 2012). This emerging sense of community has the power to make change in our world. Ethical consumers are the initiators of this movement towards a more just market. Companies can only do so much; it is ultimately up to the consumer to decide whether or not to support these socially conscious companies. This leads in to the marketing of these brands. “Social marketing is about inspiring community-wide behavioral or ideological shifts, as well as changes in popular behavior in order to motivate individual action and social change and in some cases to influence public policy” (Mukherjee et al. 2012). A successful company knows that in order to sustain and grow; the company needs to build a relationship with the consumer. By building these successful relationships consumers then in return feel an emotional tie to the brand. Once this emotional tie is set in place, a marketing pattern can unravel on its own through the consumer. Consumers become advocates for the brand because they feel this deep emotional connection. Advertising for fair trade products and socially responsible companies such as, American Apparel and Toms, is almost nonexistent. These companies rely on their trusted “regulars” to spread the word. According to Commodity Activism, “within current branding practices, consumers’ behavior, relationships, bodies, and selves become ‘both the object and the medium of brand activity’” (Mukherjee et al. 2012). This shows that these brands trust their customers to be fully satisfied with their products that they feel one with the brand and continue to become the medium in which that brand markets itself. By looking at the popularity of these companies, clearly we can see that these “regulars” do indeed spread the word. Loyal customers to these brands “not only buy but also “live through” the brand, contributing directly to processes of social production” (Mukherjee et al. 2012). Fair trade and socially responsible companies have blossomed in part as a response to “contemporary globalisation trends, which have created a consumerist mentality demanding products offering certain ethical guarantees” (Walton 2010). Whether it be because of a company’s own wishes for more ethical practices or because of consumer pressure; fair trade and socially responsible companies are on the rise. From the current trends, it looks like these sorts of companies are going to continue to gain supportive and loyal followers, which will ultimately end in more success. “Some people are born into privilege. But privilege is relative. And what we’ve really been given is a responsibility to give back – human to human” (Mukherjee et al. 2012). Consumers are currently feeling that responsibility, and are making any effort possible to give back; whether it be buying fair trade products, shopping with social responsibility, or even just spreading the word about their favorite ethical brands. A difference is being made, whether or not we can physically see it at the current moment. Works Cited Anderson, Thomas W. Jr. and William H. Cunningham, “The Socially Conscious Consumer.”The Journal of Marketing , Vol. 36, No. 3 (Jul., 1972), pp. 23-31 Bhattacharya, C. B. and Sankar Sen, “Consumer-Company Identification: A Framework for Understanding Consumers' Relationships with Companies.” The Journal of Marketing , Vol. 67, No. 2 (Apr., 2003), pp. 76-88 Black, Leeora D., and Charmine E. J. Härtel. "The Five Capabilities Of Socially Responsible Companies." Journal Of Public Affairs (14723891) 4.2 (2004): 125-144. Academic Search Premier. Web. 25 Jan. 2012. Chen, Shih-Mei and Patricia Huddleston. 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Sabatino, Richard A. “The Responsible Corporation.” The American Journal of Economics and Sociology , Vol. 25, No. 3 (Jul., 1966), pp. 255-266. Spitzer, Randy. "Is Social Responsibility Good?." Journal For Quality & Participation 33.3 (2010): 13-17. Academic Search Premier. Web. 25 Jan. 2012. Walton, Andrew. "What Is Fair Trade?." Third World Quarterly 31.3 (2010): 431447. Academic Search Premier. Web. 25 Jan. 2012. Welford, Richard, Julia Meaton, and William Young. "Fair Trade as a Strategy for International Competitiveness." International Journal of Sustainable Development and World Ecology 10.1 (2003): 1-13. ProQuest Research Library. Web. 24 Jan. 2012. “On my honor, I have not given, nor received, nor witnessed any unauthorized assistance on this work.” Blair Smith