A new economy is emerging, one populated
by enterprises born to put people and planet
first. These businesses are a stark contrast
to today’s mainstream businesses, who largely
remain trapped in a model of profit-primacy.
Based on new research, this report uncovers
insights from one of the most global and deep-rooted communities of mission-led enterprises:
Fair Trade Enterprises. Key insights about Fair
Trade Enterprises include:
• 92 per cent reinvest all profits in their social
mission;
• 52 per cent are led by women;
• 4 times less likely to go bankrupt; and
• 85 per cent report actively sacrificing financial
goals to pursue social or environmental
goals, while retaining commercial viability.
The time has come for governments,
investors and all companies to support such enterprise models to spread them far and wide.
Authors
Prof. Bob Doherty (University of York), Prof. Helen Haugh (Cambridge University), Dr. Simon Croft (Stockholm Environment Institute), Dr. Erinch Sahan (WFTO) and Mr. Tom Wills (Traidcraft Exchange).
Pioneering new business models to put people
and planet first
Fair Trade Enterprises exist to create opportunities for economically marginalised people and communities. By using their profits to benefit them and by holistically practicing Fair Trade, they fight inequality every day.
Women make up 52% of CEOs, 54% of senior managers and 51% of boards in Fair Trade Enterprises. Whereas in mainstream business, the figures are 8%, 24% and 12% respectively.
Fair Trade Enterprises, who knowingly prioritise social or environmental goals over the desire to accrue greater profits, have more flexibility to develop investments that minimise environmental impact.
As they prioritise social goals over profits, Fair Trade Enterprises invest in and support communities that mainstream businesses don’t and go places other businesses won’t.
Fair Trade Enterprises retain a stable turnover over many years. Their pursuit of social and environmental goals does not undermine their ability to operate in a competitive market.
From gender equality to businesses designed to live in harmony with their environmet, these case studies are proof that an alternative to mainstream business exists.
The 11 strong board is made-up of four males and seven females. ACP employs 120 people directly,
95 per
cent of whom are women
Ecoffins leads the way for eco-friendly coffins through innovation in material-use. Their products are 100 per cent natural and biodegradable
All profits are reinvested in the business, invested into projects or distributed among producers and staff
Mahaguthi reinvest 100% of their profit into supporting their producers and communities, building capacity, new product development
An enterprise that exists to serve these producers, prioritising this mission over any other consideration, with all profits reinvested to benefit, or redistributed to these producers
The Board of Directors is 80 per cent female and the women workers are paid 40% more than the minimum wage
Explore all case studies and see how society can embrace sustainable business.