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Fair trade clause: Copy, customize, and use instantly

Introduction

A fair trade clause outlines the company’s commitment to sourcing products and materials from suppliers that adhere to fair trade standards. This ensures that the goods purchased meet ethical standards related to labor rights, environmental sustainability, and social responsibility. It promotes equitable treatment for workers and fosters transparency within the supply chain.

Below are templates for fair trade clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Standard fair trade clause

This version includes basic fair trade commitments.

The [Company] commits to sourcing all materials and products from suppliers who are certified under recognized fair trade standards. The company will ensure that these suppliers meet the requirements for fair wages, safe working conditions, and environmental sustainability as outlined by the fair trade certification process.

Fair trade clause with third-party verification

This version includes third-party verification.

The [Company] will engage third-party auditors to verify that its suppliers adhere to fair trade practices, including proper wages, safe working conditions, and sustainable sourcing methods. The results of these audits will be made available to stakeholders upon request to ensure transparency in the supply chain.

Fair trade clause with supplier obligations

This version includes supplier obligations.

The [Company] requires all suppliers to adhere to fair trade principles, including providing fair wages, ensuring safe working conditions, and adopting environmentally sustainable practices. The [Company] will work closely with suppliers to ensure that these standards are met and will take corrective action if any supplier fails to comply.

Fair trade clause with commitment to sustainable sourcing

This version includes a commitment to sustainable sourcing.

The [Company] will prioritize sourcing products and materials that are certified by fair trade organizations. Additionally, the company will ensure that these products are sourced from farms, factories, and communities that follow environmentally sustainable practices, reducing harm to the planet while supporting fair wages for workers.

Fair trade clause with environmental impact considerations

This version includes environmental impact considerations.

The [Company] will only engage with fair trade suppliers who follow environmentally sustainable practices, including reducing carbon emissions, using renewable energy, and minimizing waste. This aligns with the company’s commitment to reducing its overall environmental impact while supporting fair trade initiatives.

Fair trade clause with monitoring and compliance

This version includes monitoring and compliance.

The [Company] will implement a system to monitor its supply chain for compliance with fair trade standards. This includes regular audits and evaluations of supplier practices to ensure that they meet fair trade requirements. Any supplier found in violation of these standards will be required to take corrective action or face termination of the business relationship.

Fair trade clause with focus on local community development

This version includes a focus on local community development.

The [Company] will prioritize suppliers who invest in local community development through fair trade initiatives. This includes contributing to the health, education, and welfare of local workers, as well as providing economic opportunities that promote long-term sustainability and growth in underserved communities.

Fair trade clause with commitment to worker rights

This version includes a commitment to worker rights.

The [Company] is committed to ensuring that all workers involved in the production of its goods are treated fairly, with respect for their fundamental human rights. This includes providing workers with fair wages, safe working conditions, and the right to form or join trade unions, as outlined in fair trade agreements.

Fair trade clause with certification requirements

This version includes certification requirements.

The [Company] will only source products from suppliers who are certified by a recognized fair trade certification body. This certification ensures that the supplier meets rigorous standards related to worker welfare, environmental sustainability, and ethical business practices.

Fair trade clause with traceability in the supply chain

This version includes traceability in the supply chain.

The [Company] will ensure full traceability of all products and materials sourced from fair trade suppliers. This includes providing transparent documentation regarding the origin of materials, the treatment of workers, and the environmental impact of production processes. The company will share this information with customers and stakeholders to promote accountability.

Fair trade clause with long-term partnerships

This version includes long-term partnerships.

The [Company] will foster long-term relationships with fair trade certified suppliers, supporting their growth and ensuring sustainable practices over time. The company will prioritize stability in these partnerships, providing consistent demand for ethically sourced goods and collaborating on projects that promote both social and environmental benefits.

Fair trade clause with fair trade premium

This version includes a fair trade premium.

The [Company] agrees to pay a fair trade premium to suppliers, which will be used to benefit workers and their communities. This premium will be invested in improving the quality of life for local workers, funding community development programs, and enhancing environmental sustainability efforts.

Fair trade clause with training and capacity building

This version includes training and capacity building.

The [Company] will collaborate with fair trade suppliers to provide training and capacity building programs for workers and community members. These programs will focus on improving skills, enhancing workplace safety, and promoting sustainable agricultural or manufacturing practices.

Fair trade clause with anti-discrimination policies

This version includes anti-discrimination policies.

The [Company] will require that all suppliers adhere to non-discriminatory practices in the workplace, ensuring that workers are not subject to discrimination based on race, gender, age, or other factors. This policy aligns with fair trade principles that promote equality and respect for all workers.

This version includes community-driven social impact projects.

The [Company] will support fair trade suppliers that implement community-driven social impact projects, such as building schools, healthcare facilities, or providing financial support to local entrepreneurs. These projects aim to improve the standard of living and provide lasting benefits to the communities involved.

Fair trade clause with collaboration for capacity building in supply chains

This version includes collaboration for capacity building in supply chains.

The [Company] will collaborate with fair trade organizations and suppliers to build the capacity of the supply chain, focusing on enhancing the ability of local producers to meet global demand while maintaining ethical practices and sustainable production methods.

Fair trade clause with transparency in pricing

This version includes transparency in pricing.

The [Company] will ensure transparency in the pricing of fair trade products, ensuring that consumers are informed about the true cost of goods and the fair compensation received by workers involved in their production. This pricing transparency will reinforce the company’s commitment to fair trade values.

Fair trade clause with collaborative impact assessments

This version includes collaborative impact assessments.

The [Company] will work with fair trade certification bodies, suppliers, and external auditors to conduct regular assessments of its social and environmental impact. These assessments will be shared with stakeholders and will inform future business decisions to ensure continuous alignment with fair trade standards.

Fair trade clause with ethical labor practices in global supply chains

This version includes ethical labor practices in global supply chains.

The [Company] is committed to ensuring that its entire global supply chain adheres to ethical labor practices, including providing safe working conditions, fair wages, and the right to organize. The company will monitor labor conditions regularly and take corrective actions if any violations are found.

Fair trade clause with focus on reducing supply chain inequalities

This version includes reducing supply chain inequalities.

The [Company] will work to reduce inequalities within its supply chain by prioritizing partnerships with suppliers who empower workers and promote fair wages and benefits. The company will focus on improving the livelihoods of workers in low-income regions and reducing social disparities within its supply chain.

Fair trade clause with supplier empowerment

This version focuses on supplier empowerment.

The [Company] will work directly with its suppliers to empower them by offering technical support, training, and access to financial resources. This initiative aims to enhance the operational capacity of suppliers, enabling them to meet fair trade standards while fostering sustainable growth.

Fair trade clause with community reinvestment program

This version includes a community reinvestment program.

The [Company] will implement a community reinvestment program that allocates a percentage of profits from fair trade purchases to fund local development projects. These projects may include educational programs, healthcare facilities, or infrastructure improvements in the communities where the suppliers operate.

This version includes a commitment to social equity.

The [Company] will ensure that all employees, suppliers, and partners operate with a commitment to social equity. The company will take proactive steps to eliminate any barriers to equal opportunities, ensuring that all individuals are treated fairly and respectfully, regardless of background or identity.

Fair trade clause with waste reduction in production

This version includes waste reduction in production.

The [Company] will work with suppliers to minimize waste generation during the production process. This includes the implementation of efficient manufacturing techniques, recycling programs, and waste-to-energy strategies, ensuring that the environmental impact of production is minimized.

Fair trade clause with payment of living wages

This version includes the payment of living wages.

The [Company] ensures that all workers involved in its supply chain are paid a living wage that meets the basic cost of living in the local area. The company will regularly assess wage levels to ensure that workers are compensated fairly, in line with fair trade principles.

Fair trade clause with anti-child labor policies

This version includes anti-child labor policies.

The [Company] strictly prohibits the use of child labor in its supply chain. The company will only work with suppliers that adhere to international labor standards, ensuring that all workers are of legal working age and that children are not involved in any form of labor.

Fair trade clause with gender equality in the supply chain

This version includes gender equality in the supply chain.

The [Company] commits to promoting gender equality within its supply chain by working with suppliers that offer equal pay for equal work and foster an inclusive workplace environment. The company will actively monitor gender diversity in hiring and ensure equal opportunities for all employees.

Fair trade clause with long-term supplier partnerships

This version includes long-term supplier partnerships.

The [Company] will prioritize long-term partnerships with fair trade suppliers, ensuring that both parties are committed to mutual growth and sustainable business practices. These partnerships will be based on trust, shared values, and a focus on social and environmental impact.

Fair trade clause with fair trade certification renewal

This version includes fair trade certification renewal.

The [Company] will require its suppliers to maintain their fair trade certification through periodic renewals. The company will collaborate with suppliers to ensure that the necessary standards are upheld throughout the certification process and that any changes to certification requirements are met promptly.

Fair trade clause with transparency in sourcing practices

This version includes transparency in sourcing practices.

The [Company] will maintain transparency in its sourcing practices by providing detailed information on the origins of materials, the production process, and the working conditions of employees involved. This transparency will ensure that consumers are informed about the ethical standards adhered to by the company.

Fair trade clause with capacity building in underserved regions

This version includes capacity building in underserved regions.

The [Company] will invest in capacity-building initiatives in underserved regions, helping local producers adopt fair trade practices and improve their business operations. This includes offering training on sustainable farming, ethical labor practices, and supply chain management.

Fair trade clause with environmental sustainability in sourcing

This version includes environmental sustainability in sourcing.

The [Company] will ensure that all materials sourced from suppliers are produced in an environmentally sustainable manner. This includes sourcing from suppliers who follow eco-friendly practices, such as reducing pesticide use, conserving water, and minimizing carbon emissions during production.

Fair trade clause with community-based worker welfare programs

This version includes community-based worker welfare programs.

The [Company] will implement worker welfare programs in collaboration with fair trade suppliers to improve the well-being of employees and their families. These programs may include healthcare, education, housing, and social security benefits, fostering long-term positive impact within the community.

Fair trade clause with ethical packaging practices

This version includes ethical packaging practices.

The [Company] will prioritize the use of ethically sourced, recyclable, or biodegradable packaging materials in its products. The company will work with suppliers to reduce plastic waste and explore innovative packaging solutions that align with its commitment to sustainability and fair trade principles.

This version includes social impact metrics.

The [Company] will measure and report on the social impact of its fair trade efforts using metrics such as wages paid, working conditions, community development contributions, and environmental outcomes. These metrics will be used to assess the effectiveness of fair trade practices and inform future decision-making.

Fair trade clause with conflict-free sourcing

This version includes conflict-free sourcing.

The [Company] will ensure that all materials and products are sourced from conflict-free regions, avoiding suppliers linked to human rights violations or armed conflict. The company will implement a due diligence process to verify that its supply chain does not contribute to social or political instability.

Fair trade clause with supply chain diversification

This version includes supply chain diversification.

The [Company] will diversify its supply chain to include a broad range of fair trade-certified suppliers, reducing dependency on any single source and increasing resilience. This will help ensure that products are ethically sourced from a variety of regions and communities, promoting global sustainability.

Fair trade clause with supplier training on labor rights

This version includes supplier training on labor rights.

The [Company] will provide its suppliers with training on labor rights, including fair wages, working hours, and employee safety. The training will ensure that all suppliers understand and adhere to the labor rights outlined in fair trade standards, ensuring compliance with international labor regulations.

Fair trade clause with commitment to sustainable raw materials

This version includes a commitment to sustainable raw materials.

The [Company] will prioritize sourcing raw materials from suppliers who use sustainable farming and extraction methods. The company will ensure that materials are harvested in a way that protects biodiversity, conserves natural resources, and reduces environmental harm, aligning with fair trade and sustainability goals.

Fair trade clause with fair trade payment terms

This version includes fair trade payment terms.

The [Company] will ensure that all payments to suppliers are made on fair terms, including timely payments for goods and services. This will help ensure that suppliers can pay their workers on time and invest in sustainable practices, fostering a fair and reliable supply chain.

Fair trade clause with focus on small-scale producers

This version includes a focus on small-scale producers.

The [Company] will prioritize working with small-scale producers and cooperatives that meet fair trade standards. This focus on local producers supports community empowerment, promotes fair wages, and provides equitable opportunities for small businesses to grow and thrive in the global market.

Fair trade clause with gender equity in supplier relationships

This version includes gender equity in supplier relationships.

The [Company] will work with suppliers who promote gender equity in their workforce. The company will ensure that women have equal access to job opportunities, training, and leadership positions within the supplier organizations, supporting fair trade principles and gender equality.

Fair trade clause with commitment to poverty alleviation

This version includes a commitment to poverty alleviation.

The [Company] will contribute to poverty alleviation by sourcing products from communities that are committed to lifting individuals and families out of poverty. The company will invest in initiatives that provide economic opportunities, promote sustainable livelihoods, and improve living conditions in low-income areas.

Fair trade clause with independent supplier audits

This version includes independent supplier audits.

The [Company] will require its fair trade suppliers to undergo independent audits to verify compliance with fair trade standards. These audits will focus on labor conditions, environmental impact, and social responsibility, and will be conducted by recognized third-party organizations.

Fair trade clause with support for ethical fashion

This version includes support for ethical fashion.

The [Company] will prioritize the use of ethically sourced materials in its fashion products, ensuring that all clothing and accessories are made using sustainable practices, fair labor conditions, and environmentally friendly production methods. The company will support fair trade-certified fashion producers and artisans.

Fair trade clause with fair pricing policies

This version includes fair pricing policies.

The [Company] will implement fair pricing policies to ensure that suppliers are paid a reasonable price for their goods. This includes offering prices that reflect the true cost of production, considering the welfare of workers, and ensuring that prices align with fair trade principles.

Fair trade clause with fair trade certification renewal process

This version includes the fair trade certification renewal process.

The [Company] will require that all suppliers undergo the fair trade certification renewal process every [X] years. The company will support suppliers in meeting certification requirements and provide assistance to help them maintain their certification status.

Fair trade clause with commitment to renewable energy sourcing

This version includes a commitment to renewable energy sourcing.

The [Company] will work with fair trade suppliers who are committed to sourcing renewable energy for their operations. The company will encourage the use of solar, wind, or other renewable energy sources to reduce the environmental footprint of its supply chain and promote sustainable energy practices.

Fair trade clause with focus on women’s empowerment through sourcing

This version includes women’s empowerment through sourcing.

The [Company] will prioritize sourcing products from fair trade suppliers that focus on empowering women in their workforce. This includes providing equal pay, career development opportunities, and leadership roles for women, ensuring gender equity throughout the supply chain.

Fair trade clause with transparent cost breakdowns

This version includes transparent cost breakdowns.

The [Company] will provide transparent cost breakdowns for all fair trade products, clearly showing the allocation of costs such as wages, materials, and environmental costs. This transparency helps ensure that workers and producers receive fair compensation for their contributions.

Fair trade clause with compliance with international labor standards

This version includes compliance with international labor standards.

The [Company] will ensure that all fair trade suppliers comply with international labor standards, including those set by the International Labour Organization (ILO). These standards will cover areas such as fair wages, working hours, child labor, and workplace safety.

Fair trade clause with traceability of raw materials

This version includes traceability of raw materials.

The [Company] will ensure that all raw materials used in its products are traceable to their origin, allowing for full transparency in sourcing. The company will track the path of materials from their source to the final product, ensuring they are ethically sourced and meet fair trade standards.

Fair trade clause with sustainability targets in supply chain

This version includes sustainability targets in the supply chain.

The [Company] will set specific sustainability targets for its supply chain, focusing on reducing the environmental impact of sourcing and production. These targets will be reviewed annually and adjusted as necessary to ensure continuous improvement toward sustainable, fair trade practices.

Fair trade clause with protection of indigenous rights

This version includes protection of indigenous rights.

The [Company] will ensure that all suppliers respect the rights of indigenous communities involved in the production of materials. This includes protecting land rights, ensuring fair compensation for land use, and maintaining culturally sensitive practices that align with fair trade principles.

Fair trade clause with living wage guarantee

This version includes a living wage guarantee.

The [Company] guarantees that all workers involved in the supply chain will receive a living wage, defined as a wage sufficient to cover the basic cost of living, including housing, food, healthcare, and education. This ensures that workers are paid fairly and can meet their basic needs.

Fair trade clause with child labor prohibition

This version includes child labor prohibition.

The [Company] prohibits any form of child labor in its supply chain, ensuring that all workers meet the legal working age requirements. The company will regularly audit suppliers to ensure compliance with child labor laws and fair trade standards.

Fair trade clause with support for local agricultural communities

This version includes support for local agricultural communities.

The [Company] will prioritize sourcing agricultural products from local fair trade-certified farmers, providing them with fair wages and supporting sustainable farming practices. The company will also invest in training and resources to help these communities improve their agricultural practices and reduce environmental impact.

Fair trade clause with environmental impact reduction in production

This version includes environmental impact reduction in production.

The [Company] will work with fair trade suppliers to reduce the environmental impact of their production processes, including minimizing waste, reducing water usage, and adopting renewable energy sources. This aligns with the company’s broader goal of reducing its carbon footprint and promoting sustainable practices.

Fair trade clause with support for fair trade certification organizations

This version includes support for fair trade certification organizations.

The [Company] will support fair trade certification organizations by paying certification fees and contributing to advocacy efforts that promote fair trade standards. The company will also encourage suppliers to pursue fair trade certification to enhance the overall impact of the supply chain.

Fair trade clause with equitable terms for small-scale producers

This version includes equitable terms for small-scale producers.

The [Company] will ensure that small-scale producers in its supply chain receive equitable terms, including fair payment and access to markets. The company will prioritize working with cooperatives and small businesses that meet fair trade standards, promoting economic opportunities in underdeveloped regions.

This version includes investment in social development projects.

The [Company] will invest in social development projects in the communities where it sources products, focusing on initiatives that improve education, healthcare, and infrastructure. These projects will be aligned with fair trade principles and aim to uplift local communities economically and socially.

Fair trade clause with sustainable forestry practices

This version includes sustainable forestry practices.

The [Company] will source wood and paper products exclusively from suppliers that practice sustainable forestry, ensuring that forests are managed in an environmentally responsible way. The company will prioritize suppliers with certifications such as FSC (Forest Stewardship Council) to ensure responsible sourcing.

Fair trade clause with focus on long-term supplier relationships

This version includes a focus on long-term supplier relationships.

The [Company] will prioritize building long-term relationships with fair trade suppliers, providing stability and consistent demand for their products. These relationships will be based on mutual respect, transparency, and a shared commitment to sustainability and ethical business practices.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 18 Mar 2025