Operations - ethical and environmental

Question 1

Advantages of fairtrade

Answer 1

• businesses awarded fairtrade mark which appeals to customers
• stocking fairtrade creates good reputation as shows ethical
• positive impact on producers and better relationship with supply chain

Question 2

Disadvantages of fairtrade

Answer 2

• losing fairtrade mark will cause bad publicity
• more expensive, can’t target cheapest segment
• limited choice of suppliers