The concept of conscious capitalism supports fair trade and is relevant to many types of businesses. The approach hinges on the philosophy that commercial activities can elevate humanity if they are executed cautiously through socially responsible economic and political practices. According to Kotler (2016), conscious capitalism entails a relationship between good business strategies and the generation of profits while fair trade is seen as a system that supports producers to receive reasonable prices for their merchandise. It is easier to implement this philosophy in developed than in developing nations. Conscious capitalism is widely practiced in American markets, especially in the south.
Fairtrade (FT), a renowned economic model globally, aims at enhancing the living standards of rural producers in the south by establishing mutual business engagements with consumers from the north. The aim is to implement conscious capitalism by avoiding exploitation of the southern farmers and ensuring favorable prices for their produces (Kotler, 2016). The business philosophy hinges on four fundamental principles, namely stakeholder orientation, higher purpose, conscious leadership, and conscious culture. These principles form the framework for fair trade and are their implementation challenging in the developing world due to corruption, tribal allegiances, short-term focus on profit, and influence of developed countries, such as China.
However, the FT movement has been variously accused of working with companies that embrace unethical business practices and have been marked as symbols of unfairness to the global system (Kotler, 2016). Implementing fair trade in developing countries falls short of the goal as small-scale producers continue to languish in abject poverty and inability to afford basic needs, such as healthcare and education. Many organizations in these countries still practice unacceptable, non-democratic, and biased business practices.
Reference
Kotler, P. (2016). A framework for marketing management. Pearson Education Limited.