I stumbled across this article about incorporating the fair trade model into the production of IT (or information technology) such as computer hardware and software. The difference between this industry and other industries where fair trade has had successes is the scale of the operation; with IT production, the goods are being manufactured in a factory where there are thousands of workers as opposed to a small farming community.
Another obstacle for fair trade is economics. Implementing fair trade policies increases the cost of production (an increase many companies are unwilling to take) and ultamitely raises the price of goods. As Ang Kai Hsiang, an associate with Baker & McKenzie.Wong & Leow, noted, "It appears that consumer purchasing habits, especially in relation to IT products, are largely price-driven." Unlike other fair trades goods like coffee and apparel, the market of people willing to pay more for fair trade IT products is too small for a company to exist in such a competitive industry. "It is good to have models of responsible production, but unless there is a plan to turn those models into the norm, then you hit a dead end," as the executive director of the Worker Rights Consortium (WRC), Scott Nova, put it.
For the full article, click here.
What are your thoughts on this? Leave a comment below if you've got something to say :)
No comments:
Post a Comment