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Helpful prior knowledge and learning objectives
Helpful prior knowledge and learning objectives
Helpful prior learning:
Section 1.1.1 The economy and you, which explains what an economy is and how it is relevant to students’ lives
Section 1.1.2 The embedded economy, which explains the relationship between the economy and society and Earth’s systems
Section 1.1.4 Regenerative economies, which explains how circular, distributive and caring, needs-based and sufficient economies can meet human needs within planetary boundaries
Section 3.3.3 The networks and governance of firms, which explains the relationships of business to internal and external stakeholders and how good governance can ensure that value is shared in networks
Section S.1 What are systems?, which explains what a system is, the importance of systems boundaries, the difference between open and closed systems and the importance of systems thinking
Section S.2 Systems thinking patterns, which outlines the core components of systems thinking: distinctions (thing/other), systems (part/whole), relationships (action/reaction), and perspectives (point/view)
Learning objectives:
describe various external certification and support organisations
explain the role of the role of external certification programmes in supporting business transition to regenerative practices, distinguishing between whole business certifications and supply chain certifications
explain the uses and limitations of external certification programmes
When you or your family go shopping, you probably want to choose products that don’t harm people or the planet. But how can you know which brands are truly doing good in the world?
Thankfully, there are organisations that certify businesses based on their impact on people and the environment, helping you make informed choices. One such organisation is Fairtrade, described in the short video below.
What role do certification programmes play in regenerative businesses?
What role do certification programmes play in regenerative businesses?
Certification programs set standards for businesses and provide guidelines for continuous improvement. In fact, your school is probably certified by the state or some other educational certification organisation.
Some certifications look at the whole business, from how it treats workers to its environmental impact. Others focus on specific areas like whether the business pays its fair amount of taxes, pays workers living wages, or evaluating the business’s carbon dioxide (CO2) emissions.
Whole business certifications
Whole business certifications
Whole business certifications evaluate a company’s entire operation, including its social and environmental impact and governance. Two well-known examples of whole business certifications are the B Corporation (B Corp) certification and People & Planet First. B Corp certifies all kinds of businesses (Section 3.3.4), while People & Planet First focuses on social enterprises with a clear social and environmental mission.
Another example of a whole business certification is World Fair Trade Organization (WFTO) Fair Trade Enterprises. WFTO certification covers the entire business, ensuring it follows fair trade practices in all areas, from sourcing materials to dealing with workers.
Figure 1. Logos of (left) B Corp and (right) People & Planet First
(Credit: B Corp and People & Planet First)
Figure 2. The World Fair Trade Organization logo (Credit: WFTO)
Supply chain certifications
Supply chain certifications
Supply chain certifications focus on ensuring that a business’s materials and products are sourced ethically and sustainably.
Fairtrade certification (Figure 3 - different from WFTO certification) ensures that producers receive a minimum price for their goods, regardless of market price fluctuations. This can help producers plan for the future and make long-term investments in their businesses and communities. Additionally, producers receive a Fairtrade Premium, which is an extra sum of money paid on top of the selling price that farmers and workers can invest in community projects, such as education, healthcare, and infrastructure. Fairtrade certification also guarantees that the farmers and workers who produce goods like coffee, cocoa, and bananas are paid fairly and work under safe conditions.
Another example is the Rainforest Alliance certification (Figure 4), which also focuses on the social and ecological impact of businesses, but with a particular focus on the world’s rainforests and biodiversity.
Figure 3. The Fairtrade certification logo
(Credit: Fairtrade International)
Figure 4. The certification logo of Rainforest Alliance
(Credit: Rainforest Alliance)
What are the uses and limitations of certification programmes?
What are the uses and limitations of certification programmes?
Certification programs offer several benefits for businesses and consumers. For businesses, certification can improve their reputation, attract socially conscious customers, and increase their market share. Certification also helps businesses identify areas for improvement and offers a framework for becoming more sustainable.
For consumers, certifications make it easier to find products that align with their values. Instead of spending hours researching a company’s practices, you can look for trusted certification labels that confirm a company meets specific standards.
Figure 5. Certifications can make it easier for you to choose products that are good for people and planet
(Credit: Los Muertos Crew, Pexels licence)
However, certifications have limitations. Getting certified can be costly and time-consuming, especially for small businesses. Certifications are not a one-time fix. They require ongoing commitment, with companies needing to meet standards through regular checks.
Additionally, not all certifications are equally strict, making some less reliable. The large number of certification organisations can be confusing, making it hard for consumers to know which ones to trust. There’s also a risk of greenwashing, where companies use certifications to appear more sustainable than they really are.
Another challenge is the co-dependency between certifiers and businesses. Social businesses rely on certifications to showcase their efforts, but certification organisations depend on these businesses for their own income. This can lead to an unhealthy relationship where certifiers may lower standards to keep clients. People are looking more closely at certification organisations and their decisions, particularly after a string of controversial decisions. For example, B Corp faced criticism for certifying Nespresso, a Nestlé-owned company, despite concerns over its human rights record.
Activity 3.4.4
Activity 3.4.4
Concept: Regeneration
Skills: Thinking skills (transfer)
Time: 40 minutes
Type: Individual, pairs, or group
Option 1: How does Fairtrade address key problems in global supply chains?
If you can divide into pairs or small groups
Access the Fairtrade website Issues page.
Each group should choose or be assigned one issue from the page to focus on (child labour, decent livelihoods, climate and environment, forced labour, etc).
Read through the material and:
Identify the key points about the issue - what is the problem that Fairtrade is trying to address?
Identify the key points about how Fairtrade is addressing the issue
What could be some limitations of Fairtrade’s approaches for the businesses and people involved? Consider the limitations mentioned in this section and how they might apply in the issue you examined
Share what you found out with other groups or the entire class.
Option 2: Exploring BCorp certified enterprises
It is interesting to see the diverse businesses that certification organisations have confirmed are working for people and the planet. Choose a business from the BCorp website and:
Outline the purpose of the business - what human need does it meet? What problem is it solving? How is it respecting planetary boundaries?
According to the certification, where is the business performing well on its social and/or ecological commitments? Where does it need to improve?
After learning more about a business and how it is certified, how much of a difference would having BCorp certification make to your decisions as a consumer?
Option 3: Evaluating a promotion for Rainforest Alliance
Watch the short promotional video below for the Rainforest Alliance
Reflect individually in writing, or audio/video recording, or discuss with a partner or small group: To what extent do you think this kind of promotion is effective at getting people to search for and buy products with the Rainforest Alliance certification?
Ideas for longer activities and projects are listed in Subtopic 3.5 Taking action
Checking for understanding
Checking for understanding
Further exploration
Further exploration
World Fair Trade Organisation - the website of the WFTO, which has a wealth of information about the fair trade system and how it supports human and ecological wellbeing. Difficulty level: medium
B Corp website - with information on the B Corp certification requirements and a searchable database of B Corp certified businesses. This short video also provides an overview of the B Corp requirements. Difficulty level: medium
Come On In to Coobana Fairtrade Banana Plantation | Fairtrade - a short video showcasing a Fairtrade banana plantation in Panama. Difficulty level: easy
Fair Tax Mark - a certification organisation that focuses on tax paid by businesses. Have a look at what the organisation examines - why might this certification be important to consumers and the wider society? Difficulty level: easy.
Sources
Sources
BCorp. (n.d.). https://www.bcorporation.net/en-us/
Fairtrade. (n.d.). https://www.fairtrade.net/
People & Planet First. (n.d.). https://peopleandplanetfirst.org/
Rainforest Alliance. (n.d.). https://www.rainforest-alliance.org/
Raval, A. (2023, February 19). “The struggle for the soul of the B Corp movement”. Financial Times. https://www.ft.com/content/0b632709-afda-4bdc-a6f3-bb0b02eb5a62
World Fair Trade Organization. (n.d.). https://wfto.com/
Terminology
Terminology
Link to Quizlet interactive flashcards and terminology games for Section 3.4.4 The role of external certification and support organisations - in order of appearance
certification: recognition by a professional organization of certain types of business practices
carbon dioxide (CO2): gas produced by burning carbon or organic compounds and through respiration, naturally present in the atmosphere and absorbed by plants in photosynthesis
governance: the process of overseeing the control and direction of something
social enterprise: a business that operates for a social or environmental purpose
sustainability: meeting people’s needs within the means of the planet
market share: the portion of a market controlled by a particular business or product
greenwashing: making false or misleading statements about the environmental benefits of a product or practice
income: money received from work or investments
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