Evaluating the Criticisms of Fair Trade: How strong is the argument that consumers and businesses should abandon Fair Trade as a means to socialise their economic decisions?

This article critically examines some of the most common arguments used to support the view that Fair Trade should be rejected by consumers and businesses seeking to socialise their economic decisions. Overall the paper finds that the majority of such criticisms lack evidential rigor and sophisticated theory and instead rely on a high degree of rhetorical aptitude. While this does not naturally lead to the position that Fair Trade is necessarily beneficial, the conclusion reflects on a substantial amount of positive evidence to suggest that Fair Trade should not be abandoned by consumers or businesses. Criticising Fair Trade: An ironic allegation of injustice? As the Corporate Social Responsibility (CSR) agenda expands many businesses are seeking to include Fair Trade goods in their product ranges or more general operational practices. However, despite the this huge expansion of the Fair Trade market there is considerable criticism of the claims made by proponents of these socially and environmentally responsible goods. Writing in Economic Affairs (2008, vol. 28, no. 3), Henderson argues that Fair Trade has not lived up to its name as it has been promoted using misleading and scant evidence, and this position strikes a cord with others who make a similar case (Sidwell 2008). However, when these arguments are themselves critically evaluated it emerges that having set out such a standard of ‘fairness’, critics often fail their own litmus test. 1 Alastair M. Smith is a doctoral researcher at the ESRC funded BRASS Centre at Cardiff University. He holds an M.Phil. in Development Studies from the University of Oxford and has spent time working in the field of micro-business development in Central and South America. Alastair M. Smith, The ESRC Centre for Business Relationships, Accountability, Sustainability and Society, Cardiff University, 55 Park Place, Cardiff, CF10 3AT. [email protected].