Answer to Question #207100 in Management for Pearl

Question

Explain the following concepts in detail:

1. Ethical Trade 2

2. Fair trade 2

3. Fair wage

Answer 1

Ethical Trade

Ethical trade implies that retail stores, product lines, and their vendors assume responsibility for enhancing the workplace conditions of the individuals who make the product and services they sell. Companies committed to ethical trade create a code of labor ethics that all of their vendors must follow. Buyers frequently disclose positive inclinations toward more ethically traded goods but are not often willing to pay the undoubtedly higher prices.

Fair Trade

Fair trade entails situations when producers in underdeveloped nations are paid a reasonable premium for their jobs by corporations in developed nations. Fair trade was established as an alternative approach to doing trade. It is founded on collaboration, which implies that producers' and employees' interests are just as essential as other business factors. It also serves as a paradigm for development and response to poverty.

Fair Wage

Fair wages relate to business strategies that result in sustainable wage growth. A fair wage is also defined as a wage that is appropriate for the type of task accomplished. Labor unions sometimes play a critical role in persuading businesses to pay their employees a fair wage.