Answer to Question #211177 in Management for Lesego

Question

Explain the following concepts in detail:

1. Ethical Trade
2. Fair Trade
3. Fair Wage

Answer 1

Ethical trade

Ethical trade is the practice by organizations and/or companies which ensure codes of conduct are followed and workers labour rights are respected. Ethical trade helps motivate and maintain staff loyalty as well as attract investment from investors that are ethically motivated.

Fair trade

Fair trade refers to trade between producers in countries that are developing and companies in countries that are developed in which the producers are paid fair prices.

Fair wage

Fair wage refers to a reasonable wage for an employee for a particular task or work that is done. Fair wage policy intends to protect employees from exploitation.