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Chapter 12 Ethics Question

Farmers in poor countries get very little money for crops-such as coffee, cocoa, and bananas-that they grow for export.

Some consumers in prosperous nations are willing to pay retailers higher prices for "fair trade" goods so that the farmers receive greater compensation. But critics question whether fair trade works as it should.

For example, Sainsbury's is a popular British food retailer. It was charging $2.74 per pound for "fair trade" bananas versus only $.69 per pound for regular bananas. Farmers, however, only got $.16 extra from that $2.05 price premium.

Critics charge that Sainsbury's makes more from the "fair trade" promotion than the farmers it is supposed to help. Many retailers have similar programs.

Do you think that Sainsbury's is acting ethically?

What do you think Sainsbury's and other similar retailers should do? Why?

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Operation Management, Management Studies

Category:- Operation Management
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