Mags Vaughan - Business Director Traidcraft Accounting for Change Mags Vaughan - Business Director Traidcraft

Starting point is scandal of world poverty Starting point is scandal of world poverty. And the number living in absolute poverty 3 billion on less than $2 / day - And the number of people living in absolute poverty is on the rise again. The UN’s Human Development Report reckons that 1.4 billion are living under the $1.25 poverty line.

Traidcraft – why we do what we do… Half the world - nearly three billion people - live on less than two dollars a day Starting point is scandal of world poverty. 3 billion on less than $2 / day And the number of people living in absolute poverty is on the rise again. The UN’s Human Development Report reckons that 1.4 billion are living under the $1.25 poverty line. Aid alone is not enough; not a sustainable solution 3

Traidcraft’s Vision Statement A world freed from the scandal of poverty, where trade is just and people and communities can flourish Traidcraft has a bold vision. We want to see justice established at a global level, but our Christian principles mean this has to go hand in hand with concern that individuals and their communities can flourish and enjoy well-being in the round, living life to the full. But in these challenging times, that vision can seem as far away as ever.

Traidcraft’s organisation Trading company (Plc) Development charity (Traidcraft Exchange) + Formed in 1979, based in Gateshead Equal partnership; mutually beneficial Each part of the organisation focused on doing what it does best Separate funding and accounts; trading company does not fund the charity, must reinvest to ensure sustainable growth Founding member of Fairtrade Foundation Queens Award for Enterprise 2006

The journey.. 1992 / 1993 Traidcraft plc produces audited social accounts Methodology developed with New Economics Foundation 1996 Traidcraft Exchange produces social accounts 2000 social accounts combined and online Various ACCA awards for Sustainability Reporting 2008 – Joint commendation for SM reporting 2007 – Commendation for SME reporting 2006 - Commendation for disclosures reporting on stakeholder engagement 2005 – Social Reporting category – best social report 2004 – Runner-up 2002 – Social Reporting category – runner up, Best Social Report 1999 – Special Award – recognition of the company’s outstanding efforts to measure and communicate the social impact of its trading activity First set is 1992. The Association of Chartered Certified Accountants (ACCA) – UK awards for Sustainability Reporting. NB: ACCA have not held the awards for 2009 and 2010 2008 – Joint commendation for SM reporting 2007 – Commendation for SME reporting 2006 - Commendation for disclosures reporting on stakeholder engagement 2005 – Social Reporting category – best social report 2004 – Runner-up 2002 – Social Reporting category – runner up, Best Social Report 1999 – Special Award – recognition of the company’s outstanding efforts to measure and communicate the social impact of its trading activity

The journey.. Challenges on the way How to embed into organisation? How to establish organisational commitment? Materiality of the indicators Cost in time and money Strengthening stakeholder engagement Balance cost vs. complexity vs. Focus Detailed consultation with one stakeholder group each year

Jute Works story – female empowerment, supplementary income, long term

Juteworks School children in the village of Sinobah, Bangladesh. The school was started by Nargis who was educated with the money her mother earned from making hammocks. After gaining a degree, Nargis returned to the village to set up a school, which now has six teachers and 175 pupils.

In two weeks time I am flying out to Kenya In two weeks time I am flying out to Kenya. So let me give you a third example of how Traidcraft’s work can transform the lives of producers and consumers in the developing world. Among the work we have done there has been assistance to informal milk traders, - small dairy farmers ...

... Milk collectors who take fresh milk into town

And milk bar owners shown such as “Mama Purity”. Such informal traders account for 80% of milk consumption in urban parts of Kenya, but under the old Dairy Industry Act were not recognised as legal and were subject to harassment. Again groups were formed to facilitate training in improving the quality and testing of milk, which has been shown to improve access to affordable and healthier milk for consumers. An independent evaluation concluded that women had been given a greater voice, and through a federation of small groups (new National Dairy Traders Association) pressure was brought to bear on the Kenyan government to change the Dairy Act and recognise the important role of this informal sector and make their trade lawful. This is real empowerment of the weak and marginalised.

The Journey – are people flourishing? Investing in developing monitoring and evaluation systems Working in partnership with others to develop indicators of flourishing Embed into trading and charity activities Establishing baselines and targets Using our social accounting tools to support strategic intent

The Journey – From Fairness to Flourishing It’s starting to challenge which countries we work in the type of groups we work with the target beneficiaries where we invest organisation time and money focus of desired outcomes

THANK YOU Agnes and Dison, whose mother, Elida Godfrey, features on Traidcraft Double Chocolate Chip Cookie packaging. The family enjoy fresh water from one of the boreholes paid for with the Fairtrade premium on sugar from Kasinthula Cane Growers Ltd, Malawi.