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For WFTO Fair Trade organisations. Why do we need an IMS for the Guarantee System? We need to ensure that Fair Trade is happening on the ground End producers.

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Presentation on theme: "For WFTO Fair Trade organisations. Why do we need an IMS for the Guarantee System? We need to ensure that Fair Trade is happening on the ground End producers."— Presentation transcript:

1 For WFTO Fair Trade organisations

2 Why do we need an IMS for the Guarantee System? We need to ensure that Fair Trade is happening on the ground End producers are target of Fair Trade If we are not sure that end producers are benefitting from FT then we cannot claim their products are ‘’Fair Trade” Therefore cannot put a label on product without this Also about checking on suppliers’ perceptions of our FT practice i.e. are we doing what we say we are doing?

3 What is an IMS? IMS refers to an FTO’s own system to monitor suppliers for compliance with the core FT Principles Fair Trade products from the following sources may carry the WFTO Product Label: producer groups/ suppliers directly monitored by the FTO as part of its Internal Monitoring System. other WFTO members suppliers certified or approved by an equivalent Fair Trade system. In the case of partially equivalent schemes, the FTO can reduce the internal monitoring of that supplier accordingly.

4 Core Fair Trade Principles 1. Creating opportunities for small producers or other marginalised groups. 2. Transparent and accountable business relations with suppliers and customers. Producers and workers are given a chance to participate in decision making processes and have a voice within their organisation. 3. Responsible and trade fairly. The organisation pays producers on time and according to mutual agreement. They handle quality problems fairly. 4. The organisation pays a fair price to producers, as mutually agreed by both sides. 5. No child labour or forced labour. 6. Commitment to non-discrimination, gender equity and freedom of association. 7. Ensuring safe and fair working conditions. The organisation pays at least the applicable minimum wage, provides legally required benefits and manages working hours responsibly. 8. Where possible, assist in developing the capacity to support the marginalised producers that they work with. 9. The organisation is expected to provide truthful information about its organisation (including prices to producers) to the FT buyer. 10. Respects the environment and where possible sources raw materials responsibly.

5 Who needs an IMS? Basically any FTO who has suppliers of Fair Trade products. A marketing FTO is expected to buy the majority of its products from suppliers who comply with the core Fair Trade Principles A producer FTO working with producers or informal producer groups outside its own premises, must develop an adapted Internal Monitoring System to monitor the application of Fair Trade standards in its operation as required in all criteria referring to “producers”.

6 Who doesn’t need an IMS? Producer organisations with no outside producers or suppliers i.e. all in house production Suppliers of raw materials are not expected to be part of this (unless it is a huge part of the product) WFTO is guaranteeing the FTO, not guaranteeing the product and its whole supply chain This doesn’t mean you should take no responsibility for where you buy your raw materials – should be ethically ok.

7 What does your IMS consist of? The FTO must demonstrate that all its FT suppliers are compliant with the WFTO core Fair Trade Principles For marketing FTOs: A site visit to the production areas at least once every 3 years (every 2 years for complex/ high risk operations). This can be sub-contracted to another FTO, local researcher or local NGO but the FTO must ensure that the person carrying out the monitoring visit understands the core Fair Trade Principles and compliance criteria and must evaluate the findings; The visits must be documented and cover the core Fair Trade Principles; There must be demonstrated follow up on identified needs for improvement (e.g. training, awareness raising).

8 What does your IMS consist of? For producer FTOs: Each producer group (or producer village) is visited (by field officers, advisors, representatives of the FTO etc.) at least once every 2 years with visits of production sites and interviews/discussions with producers. In justified cases a visit frequency of up to 4 years can be agreed with WFTO; The visit must be documented and cover the core WFTO Principles applicable to producers (in particular in relation to safe working conditions, child labour, fair prices). The visit should include site tours of production units (including a number of individual farms or homes if applicable) There must be demonstrated follow up on identified needs for improvement e.g. training, awareness raising.

9 How does WFTO check your IMS? In your Self Assessment you need to fill in the Supplier Monitoring form and have the records from your Internal Monitoring System available for peers and auditors to check. First section of SAR also has your assessment of your IMS The Monitoring Audit checks your IMS records Percentage of your unverified suppliers will also have a supplier verification visit by a local auditor.

10 SAR supplier/producer monitoring form Your suppliers 1 Please list all your Fair Trade suppliers/producer groups in descending order of volume of products (i.e. largest first). Add rows if you need to. If the supplier or producer group is verified under your own Internal Monitoring System insert ‘IMS‘: 2 Please list all suppliers/producers of products who you do not monitor and are not monitored under any other system. These products will be excluded from use of the Label: Name of FT supplier and countryWFTO Member Verified under other system (name system) Volume bought USD/ EUR (please choose) Name of supplier and countryIf not Fair Trade, reason why you buy from them ProductsVolume bought USD/ EUR

11 Supplier verification visits Supplier Verification visits are coordinated by WFTO and paid by the buying FTO (but the FTO may choose to charge the supplier). Supplier visits assess only whether the supplier meets the core Fair Trade Principles. The visit can hence focus on the ‘bigger picture’ - spot check of documents, working conditions, some interviews with producers and workers and spot checks of prices paid and payments. In the case of suppliers working with producers, the visit includes visits to producers and discussion with them i.e. end producer Also assesses the FTO’s IMS

12 Number of Supplier verification visits Number of unverified suppliersNumber of suppliers to be visited 11 2-52 6-103 More than 10Square root


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