Ethics of Consumption
Regarding the ethics of consumption, it is important to consider the origins and the manufacture of the products we buy. The international division of labour and cost rationalisation, when taken to extremes as part of globalisation, has led to reprehensible solutions as far as ethics are concerned (child labour, trade of health-noxious products, appalling working conditions…). We cannot deny that the act of purchasing also marks our support, more or less consciously, to a business or organisation as well as to their production methods.
Through the Fair Beauty organics project, AFESIP Social Enterprise (ASE) acts to raise awareness about the inequalities existing on the world trading exchange system. We maintain that consumers should have the choice to spend their money with a social conscience knowing that the producers of the goods they buy have been working in good conditions, and receiving fair salaries. This philosophy is the origin of Fair Beauty’s motto; EMPOWER. Nature. Women. Yourself.
What is Fair Trade?
Fair trade is another way of trading which implements fair treatment and fair pay for the workers/farmers who have created the product.
Under fair trade production, your money goes directly to the producer - usually an independent farmer, member of a small co-operative or an artisan. Consequently, the price will be fair because there is no ‘middleman’ to pay. This means you know that your money is helping to improve the incomes of regular people.
Wondering about the origins and the manufacture of one’s purchases can be in line with a humanist reasoning process, which meets nowadays to a response with the development of fair trade.
ASE commitment to Fair Trade ethics
· The producer is paid a fair price/salary
· The consumer pays a fair price, limiting profit margins of middlemen
· The production process is socially just and environmentally sound
· Production capacity for producers is improved and developed
· Safe, happy and hygienic working conditions are ensured
· Training and skills-development is prioritised
· Women's work is properly valued and rewarded
· No child labour
· Equality is established between workers, without regard to their health, education, social situation or past
· Health insurance is provided for workers
· International quality standards of production are respected
· Transparency is imperative and consumers are informed
· 28% of all product sales go directly to beneficiaries, while 72% covers production costs
ASE played an important role in the establishment of a committed member of the newly formed Fair Trade Laos network; an affiliation of organisations based in Laos who are committed to practicing Fair Trade principles in their business activities. The group also aims to create local awareness of Fair Trade to encourage sustainable development and better trading conditions for workers and producers in Laos.
Price Transparency
When looking at products coming from so-called ‘fair trade’, it is alarming to see how many are sold well above their cost price. For example, while ASE/LOPPA produces and sells a 250ml bottle of shampoo for 30,000 LAK (3.50 USD), many retailers would sell this product with an increase of more than 50%. In such a case, the worker still gets paid the same; but the retailer, or ‘middleman’, earns an extra 50% margin under the guise of ‘fair trade’ production, simply because the product has beenproduced under fair trade ethics.
ASE stands up against such practice and upholds absolute price transparency for our consumers. For all of our products, you can see the cost break-down and know the real contribution of your purchase.So Please be Watchful and give Priority to Transparency!
Price break-down for ASE products:
Raw materials and production costs | 38% |
Production salary (ASE beneficaires) | 10% |
Sale commission for ASE beneficaires | 6% |
Profit reinvested into the ASE project | 12% |
ASE operational & admin costs (inc,marketing) | 10% |
Distribution costs | 24% |
TOTAL | 100% |
This means that 28% (production salaries, sale commission and profit reinvestment) of the money you spend on Fair Beauty products goes directly to ASE beneficiaries.
