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What is Fair Trade?
Pachacuti has a vision of a world in which justice and sustainable development are at the heart of trade so that everyone can maintain a decent and dignified livelihood and develop their full potential. The core mission of Fair Trade is to alleviate poverty and to contribute to the achievement of the Millennium Development Goals.
According to theWorld Fair Trade Organization “Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.”
To achieve this goal, Pachacuti is the first Fair Trade company in the world to complete the Pilot for the new World Fair Trade Organization (WFTO) certification and labelling sheme. Known as the The Sustainable Fair Trade Management System (SFTMS,) it is the first audited certification which verifies the entire supply chain. Compliance with the SFTMS means that Pachacuti has integrated into our business strategy a proven set of practices, procedures and processes that demonstrate sound behaviour from a social, economic and environmental point of view.
To find out more about Pachacuti's work towards addressing Millenium Development Goals, please visit Business in the Community and download the booklet Transforming the Pace of Change which details the sustainable programmes established by 15 international companies, including Pachacuti, in order to inspire and support other businesses to meet these goals. In 2010 Pachacuti was Highly Commended in the International category of the Awards for Excellence for our impact on Millenium Goals. We were HIghly Commended alongside Reuters and the category was won by Barclays/The Guardian for the Katine Project.
For a small Derbyshire company with only 10 employees, up against multinational companies, we are delighted with this commendation!
You can also find out more by downloading Pachacuti's Fair Trade and Sustainability Report 2009-10 on our Certification Page
Fair Trade Principles
Pachacuti felt hatters
Pachacuti cotton shirt producers
Pachacuti bag embroiderer
Pachacuti cotton shirt producers
Naturally Dyed Alpaca
Pachacuti is a registered member of the WFTO and is certified under the Sustainable Fair Trade Management System. Pachacuti adheres to the World Fair Trade Organization's Charter of Fair Trade Principles in all of our business activities.
1 Opportunities for marginalised producers
Pachacuti works to create opportunities for economically, geographically and socially marginalised producers in the Andes of South America.
2 Transparency and accountability
Pachacuti works in a transparent, respectful manner with our producer groups. We work together with each group on an annual action plan which holds us mutually accountable for improvements in our trading practices and in social and community development. In order to demonstrate transparency, we are now working on the EU Geo Fair Trade project which will provide visual evidence and indicators showing Pachacuti's Fair Trade impact on our Panama hat producers.
3 Capacity building
Fair Trade is a means to develop our producers' independence and improve the viability of their business. Pachacuti is committed to promoting the use of designs and traditional creative techniques which reflect the rich artistic heritage of the Andean region. We create designs which provide a new market for traditional skills at a time when the wearing of traditional dress is in decline and many artisans have lost their local market. We also provide grants to our producers for capacity building, such as the provision of new hat blocks. We work closely with our artisans in providing training sessions, visiting Latin America frequently to train our producer groups in Health & Safety, Production, Quality Control, Pricing and other business development topics.
4 Promoting Fair Trade
Pachacuti works to raise awareness of Fair Trade both in the fashion industry and within our local community. We give talks and provide placements for students with the aim of encouraging the next generation of designers to work more ethically. We provide our customers with information about the origins and production process of our garments and accessories.
5 Payment of a fair price
Pachacuti agrees a fair price with our Andean producers through dialogue and participation. The price we pay enables production which is socially just and environmentally sound. We ensure prompt payment and pay at least 50% in advance when requested. We monitor the price we pay against an analysis of local cost of living and against the canasta familiar, the monthly basket of essentials for a family of 4.
6 Gender Equity
Fair Trade means that women's work is properly valued and rewarded. Pachacuti works principally with organisations of women in rural areas, including single mothers, wives of alcoholics, wives of miners, teenage mothers and other socially marginalised women. In partnership with our producer groups, we are committed to their empowerment and the provision of training in issues such as self-esteem and human development.
7 Working conditions
Pachacuti ensures a safe and healthy working environment and regularly visits the premises of our producer groups. As part of the Eco Mapping process, we check for odours, emissions, use of appropriate protection equipment and, where non-conformances or potential problems are detected, we create an Action Plan with each group in order to remedy the issue. In April 2011 we purchased professional respirators and heavy duty gloves for the women who are dyeing the straw as they were unable to obtains satisfactory equipment in Ecuador.
8 Child Labour
Pachacuti and our producer groups respect the UN Convention on the Rights of the Child, as well as local laws and social norms. Any participation of children in the production process does not adversely affect their well-being, security, education and need for play. Our producer groups all believe that it is important to pass traditional skills onto their children, who are keen to learn this family activity. However, the high quality of Pachacuti's products means that children do not generally participate in the production process.
9 The environment
Pachacuti encourages the use of resources and production methods which are environmentally sustainable and appropriate to the region. We Eco-map all of our producers' premises to check water and energy use, disposal of waste, recycling and environmental management. Over 90% of the raw materials for our products are sourced from within the country of production, incuding the use of rainforest-friendly tagua nut buttons.
10 Trade Relations
Pachacuti trades with concern for the social, economic and environmental well-being of our producers and we do not maximise profit at their expense. Pachacuti maintains long term relationships based on solidarity, trust and mutual respect and we have been working for over 10 years with more than 50% of our producer groups.
11 Cultural Identity
Pachacuti affirms the value and identity of indigenous cultures and encourages the preservation of cultural skills and knowledge.
In addition to these Standards, Pachacuti's Fair Trade Policy commits to:
12 Community Development
Pachacuti supports community development in rural areas and we encourage our producers in their own social projects.
