Marking guidelines:

CONTENT

A. Concepts 6 Explain the following concepts in detail:

1. Ethical Trade 2

2. Fair trade 2

3. Fair wage 2

B. Fair trade

1. Discuss the early example of fair trade linked to the Salvation Army. Why and how was it started?

What were their objectives and do they still follow the same objectives? How did their products change over time?

2. Discuss who or what Max Havelaar is.

What role did Max Havelaar play in establishing fair trade in Europe? 3

25

3 2

3 2 1 2

10 5

3

2

3 6

3. Fairtrade in coffee

Fairtrade tries to address a number of issues. Explain three of these

issues.

What is meant by a Fairtrade Minimum Price (floor price) for coffee beans? How did the fixing of a Fairtrade Minimum Price lead to unethical practices

by coffee farmers?

Added to the Fairtrade Minimum Price, coffee bean buyers must also pay a

fixed premium. What should this premium be used for?

Explain what was found when researchers tried to establish how the

premiums were used.

Not everybody is convinced that Fairtrade is working and achieving its

objectives. Explain two reasons why people feel this way.

Discuss how the following alternatives to Fairtrade works, and how it is different from the principles followed by Fairtrade.

SPP-coop

Equal Exchange

Coffee and farmer equity

C. Case study

4 4 4

2 3

2 3

3

10

In March 2020 an expos of Britain's Channel 4's Dispatches program revealed an ethical breach in Guatemala in which both Starbucks and Nespresso were involved

1. Describe what the expos found on the coffee farms and how both companies' ethical principles were violated.

2. How did Starbucks respond to the charges?

3. If a coffee company should find that a farmer not complying to ethical standards they often feel that banning the farmer and not buying from that farm would be appropriate punishment

3.1 Describe John Stuart Mill's greatest happiness principle

3.2 Evaluate the reaction of the large coffee companies' to farmers'

transgressions of ethical values in light of Utilitarian ethics.

D. Conclusion

Getting the most for your money in whatever you buy seems to be the norm. As a student who now knows about ethical theory and ethical decision making, can you in good conscience still follow the norm? Motivate your answer.

CONTENT TOTAL

60

TECHNICAL

Technical requirements (submission name of the assignment, correct font and spacing, index, headings, page numbers etc.) and general language use (paragraphs, sentences, is/are, was/were, etc.)

(1 mark will be deducted for each non-compliance with a technical requirement up to a maximum of 10)

Spelling

(1 mark will be deducted for each spelling error up to a maximum of 10)

Bibliography: 4 marks for every reference used correctly in the text as well as listed correctly in the bibliography (4 x 5 references)

10 10

20

100

GRAND TOTAL

TECHNICAL TOTAL

40