A clear set of Social Accounts leads to the building of confidence in the reader- confidence that the organisation is seeking to illuminate rather than conceal, confidence that the organisation takes its mission seriously.
We have been truly reassured that Traidcraft is meeting its aims and objectives to a very large degree. However, we note the very real difficulties that an increasingly competitive market place has bought about in ensuring that the work of Traidcraft can go forward in a sustainable manner.
In some ways Traidcraft is something of a victim of its own success. The real breakthrough in mainstreaming fair trade has resulted in a significant increase in retailer own brand fair trade offerings. Following a year of intense political and media attention in the Make Poverty History campaign, Traidcraft was perhaps lulled into setting budget levels rather higher than were likely to be sustainable, and this has had inevitable consequences in meaning that the spend in material from the developing world has fallen back to the 2005 level.
We are reassured that the Board of Traidcraft is seeking to address this in a coherent manner, as we are conscious that producers need the level of comfort that a reasonable steady take-up of their goods provides. We are reassured that on average about 20% of the price paid for goods is going back to producer countries and that some 88% of goods have at least a percentage of developing world content, hitting the target set and as high as it has ever been.
We commend Traidcraft that, notwithstanding the competitive marketplace, it has continued to place a high value on maintaining its values driven approach. This is best seen in its fair treatment of creditors, so often an area where values are squeezed out when times are rather tougher, and indeed in the appointment of a Purchasing & Ethical Sales Manager.
The Trustees note with pleasure that there have been a number of appointments that reinforce the values led approach that so characterises the organisation at every level.
Firstly, we note the new role of UK Church Relations Manager. We welcome this and also the emphasis that seems to be following this in engaging with young people through the “see the flipside” initiative. It is evident that some arguments in respect of fair trade have been oversimplified to enable people to engage with them and there is a need now to unpack some of the wider arguments in support of it, and it is clearly an excellent way to engage with younger people to carry this through. In due course we look forward to seeing an assessment of this work reflected in the Social Accounts
Secondly, we welcome the increased level of supplier support to plc-linked producers, with the appointment of an additional staff member to the team, and this seems too to have been well integrated with the work of the Traidcraft Market Access Centre. We note, however, that the producer voice in the Social Accounts might be strengthened, and would welcome the development of further means of assessing the scale and nature of Traidcraft’s impact on producers.
We note that the Traidcraft Exchange regional offices are coming into their own at ensuring that the organisation remains “earthed” in the very areas so in need of the support the organisation seeks to provide. It is encouraging to note the growth in the level of project activity being sustained through Traidcraft’s regional programmes, as well as the work of the Market Access Centre in improving marketing and business performance and wellbeing in a range of producer countries. To build further on this work, it may be useful to consider how Traidcraft staff might engage with emerging approaches to development in other Christian agencies
We commend the continuing success of the work of the Policy Unit and note their own, almost brutal, self-assessment of their impact. We are reassured that their work is worthwhile, not only in changing attitudes at the political level, but also in helping to raise the profile of fair trade as a whole with consumers in this country.
It is in this context that we note that the brand recognition of Traidcraft, whilst in itself stubbornly difficult to move forward in absolute terms, was close to that of M&S and Bodyshop as ethically minded businesses. Perhaps we should not be surprised therefore, although nonetheless pleased to see, that M&S are working closely with Traidcraft on the range of fair trade cards and other paper products.
We support the concept of well planned and executed longitudinal studies that seek to measure the long term impact of Traidcraft interventions on the lives of those most marginalised by unfair trading practices. The gender impact of these studies is of vital importance as we observe that empowered women can make a very impact at transformation within their communities. The use of qualitative studies in Bangladesh and Malawi continues to demonstrate the value of fair trade beyond metrics, and is to be commended as providing a balanced all round view of the impact of Traidcraft.
Overall, we are pleased to see this encouraging picture that the Social Accounts provide.
Part of the role that the Trustees' fulfil is to present challenges to the Board of the Traidcraft organisation. In the past, we have been listened to and the challenges we have presented have been addressed in a very positive manner. We do not believe this year to be any different, and our challenge to the Traidcraft team is one that they are already striving to deal with. It is that of raising the percentage of our in country spend.
In some ways, this a challenge for every part of the organisation:
- If trade barriers are the main obstacles then there is a challenge for the Policy Unit, if necessary by mobilising our supporter and consumer base:
- If product development is a contributory factor then there is a challenge to which the team at Traidcraft are more than equal:
- If market access is an issue, then there is a challenge to seek imaginative solutions to the opportunities presented.
The Trustees are certain that the success of Traidcraft will continue, that the core work of the organisation as it remains faithful to its foundation principles will enable us to look forward to next year’s Social Accounts with eager anticipation.
Reg Bailey
Chair of the Foundation Trustees
August 2007
