Assignment II

Business Ethics & Indian Ethos

Submitted To: Dr. Sudhanshu Bhushan

Submitted By: Khyati Tiwari
Roll No.: 020
Date: 25TH MARCH 2022
Q1. Set out the main arguments for and against the involvement of big business in fair
trade.
Consider the arguments from the point of view of customers, supermarkets, and
suppliers.
Fair trade has promoted goods product for the reason that, since its commencement, colourful
pukka products have planted their way to chains of big retail requests, therefore global
marketing and improvement of online shopping that minimizes the involvement of
interposers. Statistics indicate that although utmost fair-trade goods are in major brands or
specialized stores and within mainstream distribution channels. The major retailers also offer
online shopping for pukka brands therefore promoting the products. Still, the process lacks
defence due to the pricing factor. Immorally the situation creates a huge imbalance between
the patron and consumer.

Minimal pricing of fair-trade goods means that if it were above the normal equilibrium price,
also the force of the products would exceed demand, accordingly, the maturity of products
would end up being vended through the free requests. This is a common script moment, and
the directors would rather vend through free requests, other than lose while staying for fair
trade. It is not ethical to have a policy meant to promote products that end promoting free
trade.
Although Fair Trade is enabling guests to understand and appreciate both the organic and
fair- trade marker of products, consumers are made to believe that the unreasonable prices
they pay go to the goodwill directors, especially in developing countries. Fair trade is
presently grounded on dialogue, respect for produces and translucency, thus high pricing does
not inescapably restate to more global equity, fair treatment or better compensation of
directors.

Only a small chance of the prices directly reaches the patron. The maturity is supposed to
profit the community through the creation of development systems through cooperatives.
Still, the cooperatives pay high periodic enrolment or instrument freights to the fair-trade
labelling associations. The situation is not fair enough since the fresh costs leave the
Planter with veritably little profit earnings. Likewise, in fair trade, guaranteed prices do not
mean support for a certain volume of yield.

Responsibility for icing patron’s protection

Although free requests are promoting ways of reducing exploitation by the interposers, the
protection of farmers’ interests depends on the directors. A well- established free trade that
lacks infringing walls of trade for case the harsh import freights or tariffs would clearly
ameliorate the product prices.
 The challenge of managing exploitation can be provisioned for through settled patron’s
cooperatives. They would also be in a position to manage the change of prices at the
transnational commodity requests. The situation would lead to a balance between force and
demand.

Q2. Are the critics justified in condemning the involvement of major brands in the fair-
trade movement? On what ethical basis have you made this decision?
One of the most important matters that arise from the question,’ How does fair trade work?
‘Is relating the pros and cons of fair trade. In order to understand the benefits of buying fair
trade products, it is essential to understand how the system works, and how it impacts people
at both ends of the scale. How does fair trade work for growers and directors, and how does it
profit consumers?
.
Fair trade offers a different range of benefits. Then are the most significant
● Economic advantages

The fair-trade model works grounded on a minimal price. Setting a limit helps growers and
directors of products like coffee and fair-trade bananas to increase their earnings, reduce the
threat of poverty and increase the security of their jobs and ménage income.
Fair trade is also encouraging farmers and growers to work together to form stronger, more
important communities and cooperatives, which have lesser buying power. Profitable
earnings also enable farmers to invest in training to produce better quality products. The
redundant income attained from fair trade enterprise can also be fitted into communities to
develop better, more effective husbandry ways and increase the size and value of crop yields.

● Benefits for the terrain

Guarding the earth is a subject on everyone’s lips. Fair trade is not just salutary for growers
and guests with a heart. It also contributes appreciatively to the terrain. Fair trade regulations
and norms cover and shield the terrain, outlining crucial areas including reducing hothouse
emigrations, conserving wildlife species and precluding the use of dangerous chemical
fungicides.

Fair trade also laboriously encourages growers and farmers to shoulder training to help them
more understand the environmental impact of agrarian practices and to ameliorate yields
while contemporaneously doing their bit for the earth. Further and further plutocrat is also
being made available to invest in ways and styles that combat climate change.

Q3. To what extent is the price paid by consumers relevant for determining whether
growers are being treated fairly?
Traditional models in economics assume that the price of a good is determined by the
advisability of the physical characteristics of that good. Still, a lesser focus from consumers
on the conditions under which a good is produced has led to the adding fissionability of
products that display desirable on-physical characteristics. Consumers are now choosing
goods grounded on political, social, and philosophical beliefs about how a product should be
produced.
A fast- growing area of consumer concern is icing that agrarian products, especially coffee,
are produced under Fair Trade conditions. This means that agrarian directors, primarily poor
growers located in developing countries, are paid a fair price for their products and have
decent working conditions.
Some of these characteristics of a product are natural (child labour, Fair Trade, etc) and do
not directly indicate anything about the quality of the product. Still, in numerous cases, these
earth and mortal-friendly instruments lead to advanced product costs with no distinguishable
enhancement in quality. As a result, in standard models of monopolistic competition, these
advanced product costs should lead to advanced retail prices.
There is little mistrustfulness that the term" fair trade “can be commandeered and used
cynically. One frequently- cited problem of the UK Fairtrade symbol is that it certifies only
raw accoutrements and not finished goods. You can buy a T-shirt made from fair- trade
cotton that could, in proposition, have been made into a finished composition in a workshop.
There is nothing to stop the manufacturer from advertising this as an ethical shirt and
imprinting it with a fair- trade totem. According to Mark Engler, writing on works for New
Chauvinists” Consumers who suppose they are choosing an immorally untainted product
might actually be buying apparel darned with child labour or finished in a dangerous
overheated plant.

Q4. Ultimately, whose responsibility is it to ensure that growers’ interests are protected
—the growers themselves, product manufacturers, retailers, or consumers? Do these
different constituencies in the supply chain have different responsibilities towards
growers? What are these?
Many growers hire sales agents to sell and market their crops. Although arrangements vary,
agents typically receive a percentage of the sales price as their commission and should even
be entitled to deduct other expenses. additionally to selling the produce, agents invoice and
collect, affect customers’ claims, contract with carriers, and supply growers with an in-depth
accounting of the sales and expenses alongside payment of internet proceeds. These agents
perform a crucial role because the marketing link between producers and buyers of fruit and
vegetables and must therefore conduct their business within certain guidelines. The
Perishable Agricultural Commodities Act, or PACA for brief, promotes and enforces fair
trading practices within the fruit and vegetable industry. The PACA requires that growers and
their agents live up to the terms of their agreements and provides a forum which will be wont
to resolve any disputes which will arise.
Growers’ agents must maintain detailed records documenting the disposition of the grower’s
product. This responsibility includes maintaining a record of all products received, issuing
delivery receipts, assigning lot numbers to differentiate the sales of every grower’s product,
tracking the disposition of culls, and preparing accurate records that reflect the proceeds of
every sale. If the agent is working under a pool agreement with growers, the accounting must
show

how the pool costs and sales figures were calculated. Agents often handle the sales of the
many growers’ crops at an equivalent time.
Business organizations should store waste safely and securely, confirm it is treated
appropriately and even be ensured that it is collected by a licensed body like your agency or a
licensed waste contractor. you will also manage waste for recycling by separating paper,
plastic, metals and glass and for those organizations that are within the food businesses, they
have to separate garbage for recycling.
Be sure that your business activities do not cause a statutory nuisance like producing smoke,
noise, gases, odour, fumes, accumulating rubbish or light pollution which could affect
someone’s health. If your business activities pose an imminent threat to the environment,
then notify the relevant enforcing body to require steps to stop the damage and if your
activities also cause actual environmental damage then you want to take remedial action to
repair the damage. Before directing effluent detergent and waste chemicals into sewage, you
ought to get permission from the relevant body.