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  • 06.04.10

Will Tech Companies Ever Become Fair Trade?

 

 

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This morning, guests on the NPR News program, The
Takeaway
, discussed whether Apple could become the first Fair Trade tech
company, in light of the 10 worker suicides at the Taiwanese electronics
manufacturer, Foxconn. Despite being a huge PR problem for companies like Apple
who tap Foxconn for labor, lives were lost and other migrant workers at the
plant continue to be oppressed by sweatshop-like conditions.

But who will be the first to care? From a PR standpoint,
socially responsible and “green” companies reap the benefits of positive
publicity – if their intentions are genuine. Some consumer-facing companies,
such as Timberland and Stonyfield Farms, have experienced increased profit
margins and strong customer loyalty as a result of consistently responsible
words AND behaviors in the marketplace. 
Shareholders in these companies have seen the returns and have a vested
interest in supporting the corporate ethos, as well.

But how can tech companies make a similar leap? ZDNet’s Tom
Foremski also posed
a question
about who would become the first fair trade tech company, but as
one commenter on his post pointed out, there was no indication of how this
could actually happen.

Going fair trade will first require a commitment by the
company’s leadership to do so, perhaps at the sacrifice of profits. Cheap labor
often comes at the expense of fair working conditions. Shareholders will be the
major hurdles in this process – they need to realize the potential long-term
gain that comes from going Fair Trade, even if the profits suffer for the first
year or two. Complete transparency and a strong business plan at this early
stage are critical.

If tech companies can make it past the shareholders, are consistent
with their commitment, and publicize it properly, an entirely new market of
buyers will open up to them. We’ve seen it happen in the consumer products
market, and we need to see it happen in the tech industry.

Practically speaking, to be certified
Fair Trade
, a company has to go through a rigorous examination of their
pricing structure, labor conditions, trade practices, corporate transparency
policies, community development practices and environmental sustainability.
Many companies believe that “going green” is enough, but it takes more than
just recycling to create a strong socially responsible corporate brand.

Which tech company do you think will have the courage to lay
it on the line and go Fair Trade first?

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[Reposted from the LEWIS 360 Blog]

 

About the author

Erica is an account manager for LaunchSquad in Boston, working primarily with emerging growth tech companies. Follow her on Twitter @esal.

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