FLOCERT

Social Impact Statements

The Social Enterprise Mark criteria includes a requirement that the applicant can demonstrate that social and/or environmental objectives are being achieved.

In support of this, new applicants and renewing Mark holders are asked to respond to a set of social impact questions, which are designed to help them think about the social impact they create, and to articulate this clearly and succinctly.

Updated October 2019

1) What social differences and changes have you aimed to create (or supported)?

When a consumer sees the Fairtrade mark on a product they're buying, they can be sure it has been through a supply chain that is responsible every step of the way. On the most basic level, Fairtrade ensures that small-scale farmers and workers in developing countries around the world have the opportunity to earn a sustainable living.

An alternative to conventional trade, Fairtrade guarantees that producers receive a minimum price for their Fairtrade products and a premium payment, which they can spend on projects they decided on democratically - such as improving their farming, businesses, or health and education in their community.

As the global certifier of Fairtrade, FLOCERT carries out independent inspections of producers and traders around the world to verify that they're complying with the Fairtrade Standards. In doing this, FLOCERT makes sure the Fairtrade system remains credible to its core.

Here is an example: The Sukambizi Association used Fairtrade Premium money to support the construction of a maternity wing (saving expectant mothers from a 40km journey), the purchase of an ambulance, and the extension of clean-water systems to over 4000 families.

2) What actions have you taken to address the above social aims?

Given that FLOCERT is the global certifier of Fairtrade, our role is to carry out audits to check whether all the actors of a supply chain fulfil the Fairtrade standards and are thus entitled to the benefits of Fairtrade. In 2018 we carried out 3,001 audits worldwide (175 of which were unannounced). In these audits we often find potential for improvement – and all these findings must be corrected by the organisations before they can be certified. This means that our findings lead to improved conditions for farmers and workers in the global south. Our services also include trainings for small-scale producer organisations.

3) What has changed and what benefits have been realised as a result of your actions?

Communities and individuals have benefitted through the Fairtrade minimum price and premium, besides also benefitting through the developments that come with the fulfilment of Fairtrade requirements (e.g. better internal management, empowerment through democratic decision making, production methods, etc.)

Since 2014, Fairtrade farmers and workers have received well over half a billion euros in Fairtrade Premium, funding countless activities benefitting the producers at the heart of the system.

Taking an average, that would work out to €111,000 in Fairtrade Premium for each producer organization in 2017 (our latest complete data set).

4) How do you and other people know your aims are being achieved? Or how will you know?

• The number of Fairtrade certified producer organizations – whether smallholder farming cooperatives or plantations with hired labour – is expanding each year. This means more farmers and workers want to be part of Fairtrade and the benefits it can bring to them (1,713,117 farmers and workers in 2017).
• During our audits we collect data which we analyse and use as a basis for the Fairtrade impact monitoring. The results are published regularly and show our impact on the overall producer level (see MEL report).
• Furthermore we also regularly ask our customers and stakeholders for their feedback and needs.
• Fairtrade commissions two or three impact evaluations each year. Evaluations are typically conducted for each major product every three years. These are led by independent research institutions with expertise in researching the effects of certification.
• Evaluations and research give us in-depth insight into how and to what extent individual farmers and workers benefit by being part of Fairtrade. They also enable us to identify and understand challenge areas where we can take action to improve our effectiveness.

Supplementary details

The below questions are not mandatory, but Mark holders are encouraged to answer them where possible, to provide a fuller account of their social outcomes and the social value they create.

5) How many people have benefitted from your actions?

We serve almost 5,000 customers representing 1,7 m farmers and workers.