Creating the new economy: business models that put people and planet first

Mainstream businesses are structured to prioritize generating profit, and therefore, they are unable to tackle social and environmental issues from rising inequality to climate change. This report looks at how alternative businesses, including members of the World Fair Trade Organizations, are structured to allow them to prioritize people and the planet over profit.

The report recommends that the Government offers:

• Tailored investment for ethical businesses;

• Support to enhance access to markets;

• Public procurement policies that support ethical businesses.

Businesses also have an important role to play. They should:

• Favour and support ethical business models in their supply chains;

• Support existing suppliers to change their business model;

• Adopt purchasing policies to support ethical businesses, including flexible order lead times and minimum order quantities;

• Report the impact of ethical supply chains on producers and communities to shareholders.

Finally, investors should:

• Develop specific investment funds for ethical businesses;

• Use investee mentoring and support to facilitate access to investment for ethical businesses;

• Report ethical business fund performance to investors and stakeholders.

The report is a collaboration between Traidcraft Exchange, the World Fair Trade Organization, Professor Bob Doherty (University of York), and Professor Helen Haugh (University of Cambridge).