What is the difference between Fair Trade & Ethical Trade?

As the first and only World Fair Trade Organization (WFTO) certified company in Malaysia, at Indochine Natural we are often asked this question.

Firstly, the term “ethical trade” is a fairly broad term that covers a range of business practices that are designed to promote more socially and environmentally responsible business practices. For example, this includes adherence to internationally recognized codes of practice for labor and ethical business behavior, plus other practices that minimizes harm that may be caused by trade.

On the other hand, “Fair Trade,” while embracing the principles of ethical trade, goes one step further and seeks to encourage and find opportunities for the economic development of disadvantaged people. This is not in the form of charity, but positive capacity development to enable these disadvantaged people to take part in business and generate income to help them along the road to economic independence.

In Viet Nam, Indochine Natural worked with poor farmers to develop capacity in growing and producing loofah products. In Malaysia we work with a group of rural based intellectually disabled people to produce a range of household cleaning products made from recycled oil collected from local restaurants. In both cases the capacity development provided by Indochine Natural has helped these groups to become more finically independent and has made a positive contribution to their lives.

As a consumer you cal also make a positive impact on these people's lives by purchasing these Fair Trade products from all JustLifestores in Malaysia, or from our online store.

More details of our Fair Trade activities are available on our website