Fair trade coffee and inclusive globalization: a metamorphosis of institutional entrepreneurship

Purpose Initiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement within international trade. In the matter of fair trade coffee, this global social movement has transformed the traditional coffee trade structure of inequality and unfairness into a conglomerate of international institutions that embrace equity and inclusivity – a metamorphosis that can be attributed to NGOs’ institutional entrepreneurship. Design/methodology/approach In this exploratory study, the authors examine the fair trade coffee industry and trace the actions of NGOs along with other stakeholders at the organizational field level, in moving toward an inclusive model of globalization. Findings Departing from exploitative globalization, fair trade practices advocate inclusive growth through the promotion and establishment of greater equity for all as well as higher environmental standards in global value chains. Research limitations/implications This study contributes to nascent research on inclusive growth by analyzing how fair trade promotes inclusive growth and trade in GVCs. This study also contributes to research on institutional entrepreneurship by examining two enabling conditions – the shift in institutional logics and the peripheral social position of NGOs – that enabled NGOs to serve as institutional entrepreneurs in the initiation phase of institutional entrepreneurship. Practical implications Policymakers may encourage collaboration between profit organizations and nonprofit organizations to provide entrepreneurial opportunities for trials, errors, and revisions. The evolution of fair trade coffee provides such an example. Social implications The coevolution of NGOs and MNEs has made the globalization of fair trade practices possible. The collaboration between NGOs as institutional entrepreneurs (operating on the community logic) and MNEs as institutional followers (operating on the financial logic) support inclusive globalization and sustain fair trade practices. Originality/value Drawing on the process model of institutional entrepreneurship, the authors seek to understand the role of NGOs as institutional entrepreneurs in the dynamics of initiating, diffusing and sustaining fair trade coffee practices.

Harnessing Globalization: An Everlasting Challenge

In this chapter, President Tarja Halonen reflects on her experience serving as co-chair of the ILO World Commission on the Social Dimension of Globalization from 2002 to 2004. The World Commission’s work in achieving fair and inclusive globalization, and promoting decent work are discussed in detail. Major challenges to and prospects of the ILO as an international organization are reflected even more broadly, to build a view of the future of labour.

The Deceptive Game of Today's Capitalist Globalisation Evidence from Malaysia's Experience

Globalization is the economic policy of integration of national economies with global economy on the basis of free market competition. It is a neoliberal prescription for industrialization and growth of the emerging economies of the South and a project of capital accumulation for the capitalist North through a process of securing disproportionate share of benefits at the expense of the developing South. The content analysis and Malaysia’s globalization experience poise to support the hypothesis that globalization has high potential to contribute to industrialization and growth of the emerging economies, but at the same time, the way it is practiced, it is a deceptive game of the North and cannot be trusted wholeheartedly for emancipation of the developing economies. The paper suggests for a policy of target oriented ‘inclusive globalization’ to ensure equitable share of benefits of specialization and globalization.