Dashboard

Principle 1 Opportunities for Economically Marginalized Producers

Decreasing economic inequality through trade forms a key part of the organization’s aims. The organization supports economically marginalized Producers and Workers, whether they are grouped in associations, co-operatives, or companies, employed in Fair Trade committed family businesses, or informal/self-employed Workers or Homeworkers. It seeks to enable them to move from income insecurity and poverty to social and economic empowerment. The organization has a plan of action to carry this out.

Compliance Criteria 1.1 (Mandatory)

Mission: Your constitution, bylaws, articles of association, or other legal documents confirm that decreasing economic inequality through trade, the commitment to improve the socio-economic conditions of economically marginalized Producers and Workers, and/or trade justice are your organization’s priorities. Where legal or other legitimate barriers prevent this, the primacy of the social mission must be demonstrated through other supporting evidence.

a) Your constitution, bylaws, articles of association, other legal documents, or supporting evidence expresses your commitment to Fair Trade as a core aim.

b) You express your mission and commitment to Fair Trade publicly (e.g. on your website and with your trading partners) and throughout your organization.

Compliance Criteria 1.2 (Mandatory)

Senior management responsibility: Fair Trade is recognized at the highest level as an organizational objective and the implementation of the Fair-Trade Standard is assigned to senior management. All management staff understand the Fair-Trade Principles.

a) Your management team and key management functions are aware of FTCP membership and Fair Trade standard requirements.

b) A senior management person has been designated as the overall FT manager, and is also responsible for both compliance and its documentation.

Compliance Criteria 1.3 (Mandatory)

Focus on economically marginalized Producers/Workers: You work and trade primarily with Workers, Producers and Suppliers of FT Products who are socially and/or economically marginalized, or who are buying from such groups, or otherwise demonstrate positive impact on economically marginalized groups as a central part of your business.

a) Your List of Workers, Producers/Producer groups and Suppliers of FT Products (listed in the SAR Datasheet) demonstrates that you primarily work with economically marginalized groups or with organisations that work with such groups.

Compliance Criteria 1.4 (Mandatory)

Reinvesting profits: As a Fair Trade committed organization, you re-invest the majority of your profits in your FT business and expansion of your Fair Trade activities and pay management at proportionate levels.

a) The majority of your profits is reinvested in your FT business or used for social projects in line with your mission. --> Please describe your use of profits.

b) Compensation for directors and/or owners (salary, bonus and profit share) is not extraordinarily high at proportionate levels.

Principle 2 Transparency and Accountability

The organization is transparent in its management and commercial relations. It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information. The organization finds appropriate, participatory ways to involve Workers, Producers, and members in its decision-making processes. It ensures that relevant information is provided to all its trading partners. The communication channels are good and open at all levels of the supply chain.

Compliance Criteria 2.1 (Mandatory)

Organization and governance: You have a defined and functional organizational and governance structure, and a credible accounting system.

a) You are able to provide up to date documentation of your organizational structure and governance.

b) You are able to provide financial accounts in line with the legal requirements of your Country.

Compliance Criteria 2.2 (Mandatory)

Transparency: You provide transparent and well-founded information on your Fair Trade activities, including supply chains or membership requirements, to your trading partners and the public (as appropriate).

a) You provide your trade partners with relevant information about your Producers & Suppliers of FT products as well as your FT work and impact.

b) Your public information (website, marketing materials) provides truthful information about your Fair-Trade activities and supply chains.

Principle 3 Fair Trade Practices

The Enterprise trades with concern for the social, economic, and environmental well-being of Producers and Workers, does not maximize profit at their expense and does not cause negative impact on the environment.

Compliance Criteria 3.1 (Mandatory)

Trade Agreements: You have written agreements with your Producers and/or Suppliers of products, with relevant and appropriate details. E.g. product specification, delivery and lead times, pre-finance, price and payment terms, cancellation, and problem resolution.

a) When buying from Producers or Suppliers of products, you have written documents which specify both parties’ responsibilities and all relevant details.

b) You respect your trade agreements and deliver products (or services) on time and to the desired quality and specification.

Compliance Criteria 3.2 (Mandatory)

Respecting agreements: You respect your trade agreements and deliver products (or services) on time and to the desired quality and specification.

a) You keep a register/file of quality claims and complaints made by your trade partners and how you addressed & resolved them.

b) You have a quality management system in place to manage production according to specifications and quality expectations.

Compliance Criteria 3.3 (Mandatory)

Payment: When buying products, you pay on receipt of the products/documents or within an agreed short period to allow for quality checks.

a) You maintain documentation of payments to Producers and Suppliers of Products.

b) You pay your Suppliers of Products and/or your Producers on receipt of the products and on time, as agreed.

Compliance Criteria 3.4 (Mandatory)

Use of Pre-payments: If you receive prepayment from your buyers, you use it as agreed with the buyer.

a) You are able to demonstrate that received pre-payments have been used as agreed. Please describe any disputes you had with buyers regarding pre-payments in the last 3 years, and how they were resolved.

Compliance Criteria 3.5 (Mandatory)

Long-term Relations: You maintain long-term relationships with your buyers, Producers and/or Suppliers of Products, aiming to maintain and, if possible, increase trade levels to benefit producers.

a) You maintain long-term relationships with your Producers, Suppliers of and buyers.

b) You make efforts to maintain trade levels with your Suppliers/Producers.

c) You terminate relationships or stop buying only in justified cases and do so with appropriate notice and reason.

Compliance Criteria 3.6 (Mandatory)

Unfair competition: You do not engage in unfair competition with other FTOs and respect intellectual property and associated rights regarding protected names/brands, designs, including logos, labels and culturally based designs or names.

a) You have no reported cases of unfair competition practices; if there are disputes with competitors they are documented and resolved.

b) You have a written policy where you commit to respect intellectual property and associated rights and against unfair competition practices.

Principle 4 Fair Payment

A fair payment is one that has been mutually negotiated and agreed by all through on-going dialogue and participation, which provides fair pay to the Producers and can also be sustained by the market, taking into account the principle of equal pay for equal work by women and men. The aim is always the payment of a Local Living Wage. Fair Payment is made up of Fair Prices, Fair Wages and Local Living Wages.

Principle 5 No Child Labor, No Forced Labor

The organization adheres to the UN Convention on the Rights of the Child and national/local law on the employment of children.

Compliance Criteria 5.1 (Mandatory)

No children employed: You do not employ children below the age of 15 or under the age defined by local law (whichever is higher) as Workers.

a) You know applicable legal requirements and age definitions with regard to child labor.

b) You have a procedure in place to verify the age of all your workers and have the age of all your workers on file.

c) You do not employ children below the age of 15 or under the legal minimum age of your country.

d) If any children < 15 yrs. are present in your production premises although they are not employed by you, you have adequate mechanisms to ensure they do not participate in production.

e) Children who you have taken out of your production process because of violation of the no Child labor principle cannot be left on their own; they must be monitored and appropriate measures must be taken to ensure due schooling and to prevent that they end up as child laborers again.

Compliance Criteria 5.2 (Mandatory)

Protection of young workers: If you employ young Workers (15- 17 years) you ensure that their working conditions conform to applicable national regulations.

a) You know the legal requirements and work restrictions applicable to young Workers.

b) Your management staff knows and monitors restrictions for young Workers.

c) Young Workers between the ages of 15 to 18 perform only light, age-appropriate work within legal restrictions.

Compliance Criteria 5.3 (Mandatory)

No forced labor and human trafficking: You and your Producers do not restrict Workers’ freedom of movement or employment and are not involved in human trafficking.

a) You do not withhold payments or original legal documents of your Workers.

b) Your Producers do not use forced labor and are not involved in human trafficking.

Principle 6 No Discrimination, Gender Equity, Freedom of Association

The organization does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age. Where women are employed within the organization, even where it is an informal employment situation, they receive equal pay for equal work. The organization recognizes women’s full employment rights and is committed to ensuring that women receive their full statutory employment benefits. The organization takes into account the special health and safety needs of pregnant women and breast-feeding mothers.

Compliance Criteria 6.1 (Mandatory)

No discrimination: In your employment practices you do not practice any discrimination in hiring, remuneration, access to training, promotion, disciplinary practices, termination, or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age, unless it is part of your mission to favor particular disadvantaged groups.

a) Your commitment to “no discrimination” in employment is explicitly expressed and communicated, e.g. in a Non-discrimination Policy, or a related chapter of your employee handbook.

b) In your hiring, access to training, promotion, disciplinary practices, termination and retirement, you act in accordance to your policy and do not practice any discrimination.

c) You have a transparent system to set wages and you do not practice discrimination in wages.

Compliance Criteria 6.2 (Mandatory)

Fair Selection of Producers/Suppliers: In selection of Producers and/or Suppliers of Products you do not practice any discrimination. Preferential selection of disadvantaged groups (in line with your mission) is not considered "discrimination".

a) Your selection process for new Producers/Producer Groups or Suppliers of Products is transparent and not discriminatory.

Compliance Criteria 6.3 (Mandatory)

Violence/sexual harassment in your organization: You have a system to enable confidential reporting of violence, harassment or sexual abuse and you follow up and resolve any such incidents.

a) You provide confidential reporting mechanisms for all workers to report on sexual harassment or violence.

b) You register all cases /reports received and document how you resolved any problems in a responsible manner.

Compliance Criteria 6.4 (Mandatory)

Pregnant Women and new parents: You respect all legal requirements for pregnant women and new parents.

a) You know applicable legal requirements regarding pregnancy and new parents. Your HR personnel is aware thereof.

b) Your employee handbook, contract or other information for workers describes the rights of pregnant women and new parents and you protect them accordingly.

Compliance Criteria 6.5 (Mandatory)

Freedom of Association: You respect the right of all your Workers to form and join Workers’ organisations of their choice and to bargain collectively. Where the right to join trade unions and bargain collectively is restricted by law and/or political environment, you should support alternative means of independent and free association and bargaining.

a) You allow Workers to form and join organisations of their choice and inform them of this right.

b) Workers’ representatives are not subject to discrimination in the workplace.

Principle 7: Good Working Conditions

The organization provides a safe and healthy working environment for Workers and Producers. It complies, at a minimum, with national and local laws and ILO conventions on health and safety.

Compliance Criteria 7.1 (Mandatory)

Minimum Social security: You provide your Workers with all legally required social benefits (e.g. retirement contributions, sick leave, basic social security, health care contributions, as applicable).

a) You provide all legally required social security benefits to your Workers, and pay at least the legal minimum contributions as employer.

Compliance Criteria 7.2 (Mandatory)

Paying Workers: You make payments to Workers at scheduled intervals in a form convenient to them, according to legal requirements, and documented on pay slips.

a) Payments to Workers are done on time, at scheduled intervals and as agreed.

b) Payments must be made in cash or by bank transfer, or in any other way which is legal and convenient for Workers.

c) With every payment workers receive a pay slip which includes all details of the salary calculation, including deductions, in line with legal requirements, if any.

Principle 8 Capacity Building

The organization seeks to increase positive impact on people and the planet. The organization supports the development of skills and capabilities of its workers and producers, as appropriate.

Principle 9: Promote Fair Trade

The organization raises awareness of the aims of Fair Trade and of the need for greater justice in world trade through Fair Trade. This includes, but is not limited to, advocating for SDGs, promoting alternative business models and system change, and creating awareness of ongoing climate change and the impact this has on the Fair-Trade community everywhere and especially on growers, producers and artisans who produce the lowest carbon emissions but suffer most from floods, droughts, changing rainfall patterns and rising temperature.

Compliance Criteria 9.1 (Mandatory)

Promoting FT: You promote and/or raise awareness of FT and FT Principles internally (with your Workers and Producers) as well as to your trade partners and the public (consumers, local community) according to the scope of your organization.

a) You promote your commitment to the Fair-Trade principles to all your Workers and Producers.

b) You promote Fair Trade and Fair-Trade Enterprises, at least as part of business promotion.

Compliance Criteria 9.2 (Mandatory for FTEs)

Living up to your claims: You use honest and ethical advertising and marketing techniques.

a) You employ ethical advertising and marketing methods.

Principle 10: Climate Action and Protecting Our Planet

Climate action, reduction of greenhouse gas emissions, and protection of the environment.

Compliance Criteria 10.1 (Mandatory)

Policy and Reporting: Your organization works to understand the impact of your operations on the environment. Specifically, you have:

a) You have a written environmental policy which includes reducing carbon emissions, phasing out the use of plastics and chemicals, protecting biodiversity, no pollution to air, water and soil, and having a waste management in place.

Compliance Criteria 10.2 (Mandatory for Agricultural producers)

Adapting agricultural practices: if you are an agricultural producer or work with agricultural producers, you encourage:

a) You encourage practices that minimize harm to the environment and climate, by using traditional knowledge and sustainable and/or organic production.

Data Confidentiality

FTCP will treat all information in this Application Form as strictly confidential. Once you are an Applicant, only the members’ names & contact details will be published on the FTCP website, as well as the members' Fair Trade product categories.

However, FTCP reserves the right to produce statistics about its member base, based on the data included in this application. Such data will always be aggregated for members and presented in a way that does not allow tracing information back to an individual member.

By submitting this Application Form, the organization confirms the following:

All information about the organization is correct and to the best of your knowledge.
You agree to all elements of the FTCP Application Procedure, including the above information being shared with FTCP Auditors that have signed a confidentiality agreement with FTCP.
You agree that FTCP may use the data in this Application Form for Fair Trade related statistics and studies about its members. Such data will always be published on an aggregated level for all members only, and never contain any information about individual members.

I agree to the terms & conditions indicated above

The documents that should be uploaded with the Application include:

Application form
Application Datasheet (ods. xlxs.)
A copy of your constitution, including Mission Statement
The most recent set of your Financial Accounts
Signed FTCP Code of Practice

For each document listed above, there will be a corresponding field to upload the document. Once the Application form and Supporting Documents are submitted, you will be unable to make any changes. If you have any questions before submitting your Application Form, please feel free to contact the Membership & Monitoring Team at support@fairtradepakistan.com.

Compliance Assessment