Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATO’s)

Fair Trade related import from developing countries is quickly growing although it still represents a small share of the total import. Its influence on the development of rural areas in developing countries is related to both quantitative growth and the respect of its ethical code. Large food multi-national companies are increasingly interested in Fair Trade; part of the Fair Trade movement considers the risk of a related loss in the products’ identity; others consider the refusal of a more “professional” approach to Fair Trade management as a constraint to its growth. This debate is particularly felt in Italy. The goal of this paper is to evaluate how the most important Italian Fair Trade importers (ATO’s) business models influenced their growth strategies; transaction costs analyisis and logistics performance indicators were adopted to measure the supply chain coordination efficiency and performance. The results showed that the ATO’s growth strategies, and logistics performances, seemed more influenced by their value propositions, than the lack of managerial skill.