THE GUARANTEE

SYSTEM(GS)

QUIZ TIME

GS COMPONENTS

The GS guarantees the compliance of members with the WFTO Standard.

The emphasis is on the Internal Monitoring System the FTOs use to monitor their supply chains.

Self Assessment as the basic monitoring obligation for trading organizations.

The GS label guarantees the organization, not the product.

GS COMPONENTS

WFTO GUARANTEE SYSTEM:

COMPONENTS

Peer visit

Self Assessment

Report (SAR)

GSGuarantee

System

Monitoring Audit

Fair Trade Accountability

Watch

(FTAW)

Internal Monitoring

System (IMS)

1

2

3

GS STEPS

BECOMING WFTO GUARANTEED: THE STEPS1. Submit a SAR & Profile form to WFTO (Global & Region)- when the SAR is due or;- at your earliest convenience to become guaranteed ASAP

2. Work with the regional office to improve the SAR if necessary- The region will forward the SAR when it is deemed “complete” and ready for an external visit- The global office will receive a recommendation from the region if the final check confirms completeness

the SAR will be accepted

3. Decide on the next step: Peer Visit or Monitoring Audit and when- A peer visit is strongly recommended to those organisations that do not have experience with audits or

feel some extra preparation is appropriate- Within one year

4. The global office appoints a peer or auditor- Information will be provided to this external party as well as the member organisation- The visit/audit needs to be planned directly between the member and the auditor/visitor- More on the details of the Audit later

5. Global office prepares a recommendation for the board6. The board votes to approve as WFTO Guaranteed Fair Trade Organisation7. Global office provides information on the Product Label

#GUARANTEED

Guaranteed Members In Asia:

1. Asha Handicrafts Association, India2. Association for Craft Producers, Nepal3. Baladarshan, India4. CRC Exports, India5. Creative Handicrafts, India6. Danyun Fair Trade Development, China7. Kumbeshwar Technical School, Nepal8. Pushpanjali, India9. Sasha Exports, India10.Selyn Exporters, Sri Lanka11.SETU, India12.Tara Projects, India13.Thanapara Swallows, Bangladesh14.TWINE, Taiwan

Globally 66

Philippines?

Initial Pilots

9

WFTO LOGO

The WFTO Logo is only the symbol and can be used on marketing material/stationery/ catalogues (but not with products)

PRODUCT LABEL

The WFTO Label is for use on products, but may also be used in place of the Logo

LABEL EXAMPLE

WHO IT APPLIES TO

CONTRACT FOR USE OF THE BUYER LABEL BY FIRST BUYER OF PRODUCTS FROM A WFTO MEMBER

• WFTO authorises its guaranteed members to use the WFTO Product Label and for their direct first buyer, which is using its own brand, also to place a WFTO Product Label (version Buyer of FTO) on products acquired directly from a WFTO Guaranteed Member if that member agrees to it. The WFTO Product Label is owned by WFTO. Only the first buyer from a member may use the Label and the right to use the Label cannot be passed on to any further buyers. The first buyer must be registered in WFTO Buyer’s Database and have signed the contract for Buyer Label use with WFTO (below) and with the WFTO member.

• Licence fee to be paid per purchase order by the Buyer (1% of purchase order value from WFTO supplier - 100 euro minimum, payable by buyer)

WHY USE THE LABEL?

6. Exclusive- its only available to WFTO members.

1. Differentiate you from others who claim to be selling fairly or ethically. This difference is based on commitment and values that make it extremely difficult for others to compete against.

2. Reinforces the strategic relationship you have with the Fair Trade movement.

3. Supports a price premium.

4. Complements your brand strategy.

5. It will provide regulatory acceptance.

GUARANTEED MEMBER TRAID AID, WHY DO WE WANT THE LABEL?

THE SELF

ASSESSMENT REPORT

(SAR)

COMPLIANCE ASSESSMENT

Compliance Assessment

Form

• Requires detailed assessment of your compliance against criteria linked to Standard

• Plus self-rating: OK / IMP/NC• In assessment you refer to evidence to

support what you claim/ also list sources of information at end of form

WFTO HAS TO BE SEEN TO ENGAGE FAIR PRICES, FAIR WAGES AND

LIVING WAGES IN A MEANINGFUL WAY:We have no choice – our Fair Trading credentials are on the line…

We don’t have to be perfect IMMEDIATELY – but we have to have a PUBLIC plan – a carefully considered strategy to

achieve what we’ve promised: Without Living Wages, we cannot claim we’re paying

Fair Prices and Fair Wages.

SAI DAWS

Find average family sizeexample: 4

Find country classificationLow Income (4,3)Middle Income (5,0)

Find ratio food/non-food costsexample: 45% / 55%

Now we have LW

FAIR PAYMENT

MANDATORY

Mandatory

Mandatory by Year XX

Continuous Improvement

• Sets the minimum level of performance.• Compliance criteria must be met for

approval.• For renewing member may lead to

disapproval or suspensions.

• Criteria must be met no later than in xx years

• Expected to improve performance as long as you are a member.

• Progress will be monitored.

IMPROVEMENT PLAN

• Purpose to improve performance against FT principles over next 2 years

• Reference number of compliance criteria• Summarise action to be taken, when it will be

done and how you will measure its achievement• Plan will be agreed or amended with WFTO

Improvement Plan Form

SAR WORKING SESSION

ASK QUESTIONS!

THE AUDIT & PEER

VISIT(MONITORING)

• Look at effectiveness of IMS • Producers’ adherence to core

FT principles• Read the Profile and SAR

beforehand• Peer visit report

• Participatory element• WFTO GS depends on the reputation of

its members – invested interest to help each other achieve and improve with compliance

PEER VISIT

OPTIONAL NOW, MANDATORY LATER

Every 2 to 6 years

* You arrange *

AUDIT

MANAGED BY GLOBAL

• Done by independent auditors approved as part of the GS.

• Check compliance with the Standard through field visits and document review.

• Every 2-6 years

COSTS

• Done by independent auditors approved as part of the GS.

• Check compliance with the Standard through field visits and document review.

• Every 2-6 years

SUPPLIER VISITS

NUMBER OF SUPPLIER VERIFICATION VISITS

# of unverified suppliers # of suppliers to be visited

1 1

2-5 2

6-10 3

More than 10 Square root

RISK

QUESTIONS?