CAIRO: Hashem Brothers, a company specializing in aromatic oil production started adhering to the United Nations Global Compact of 2004, part of which is the Fair Trade program.
In line with the principles of the program that provides companies worldwide with tools to facilitate corporate social responsibility, Hashem Brothers have launched their own fair trade business that will employ 40 girls from the villages of Qalyubiya this summer.
Abiding by the fair trade standards, the price of the oil produced by this company will depend heavily on the labor cost involved in its production.
Jasmine oil requires heavy labor when it produced using traditional methods, where wax is melted and spread over a glass sheet. The jasmine flowers are then placed upside down on the sheet and left for three months, allowing the wax to absorb their juice. Traditional procedures are then used to obtain and filter the essence. “Although the traditional methods followed in producing jasmine oil in this unit are definitely slower and less cost-effective, yet, besides adhering to the principle of fair trade, it revives and preserves the tradition used by ancient Egyptians to produce that type of oil, said Mostafa Hashem, executive director of Hashem Brothers.
According to Hashem, ancient Egyptians used to coat their hair with the jasmine oil whose scent is emitted when exposed to the sun.
Hashem further explained that fair trade principles also ensure that the production process is more environmentally friendly and that the wages are set according to the actual labor standards of the local market, rather than the employer’s.
Other resonant companies and corporations, including the American Chamber of Commerce and Mansour Manufacturing and Distribution Group, have participated in the UN’s Global Compact at a time when several voices are calling for a corporate role in sustainable development locally and internationally.
Many believe that the participation of businessmen and large corporations in development is bound to start from that strong sense of responsibility inculcated by the UN Global Compact and other similar bodies targeting the same principle.
The “Communication on Progress (COP) submitted every year by each company highlights contributions ranging from fair trade ventures to schools and illiteracy and training centers established by the corporate bodies in question.
“But fair trade and related principles need to be promoted locally as well, especially when not so many are familiar with the issue, said Mai Sadek, public relations officer of Egypt Crafts, a company dedicated to the practical aspect of fair trade.
The Regional Conference for Fair Trade will take place in May at the Novotel Hotel, under the title of “Africa Shines Through Fair Trade.
“The fact that the conference will take place in Cairo is a golden opportunity to familiarize people and companies with the issue, let alone the fact that it is a chance for the networking of fair trade producers and markets in Africa who are participating in the conference, including the International Fair Trade Association (IFAT) and the Co-operation of Fair Trade in Africa (COFTA), Sadek said.
Egypt Crafts Center (ECC) is a model example of how fair trade works. The company started when a group of charity workers decided to exhibit handmade bed covers from the weavers of Akhmim, Upper Egypt at charity fairs.
Their products were in high demand, however, the weavers argued that the absence of a market where they can promote and sell their products is the reason they do not produce on a regular basis.
As a solution to this problem, ECC was launched in 1998 and made it their goal to provide a market for such skilled laborers and scarce crafts. Its premise in Zamalek is where they exhibit a wide range of products from pottery, textiles and jewelry that are produced in line with the fair trade principles. Some products are relatively expensive because the actual cost of labor is included, Sadek explained. “Chinese and Indian handicrafts are cheaper because they don’t abide by fair trade principles.
“We study the work environment and the time and effort involved in production. We take into consideration whether it takes a full day or half day’s work and how much a worker should be paid per day and set prices accordingly, she said.
Mohamed Shihab, director of producers’ affairs at ECC, pointed out that the company receives a large number offers from producers, “but the priority is given to those who live below poverty line and for whom that kind of market would offer great help, said Shihab.
“For those, the company is a launch-pad; but while we provide a market for them, we also offer guidelines on best practice. We continue to market their stuff even after they find different outlets. We are not worried about competition as much as about the producer’s welfare.
While Sadek highlighted the bureaucratic laws facing the formation of fair trade companies and other problems bearing on related subsidies and projects, she warned that many craftsmen are deserting their vocations due to absence of retirement benefits and security.
“This is because employers who manage to generate regular incomes out of benefiting from fair trade are scared to start their own companies officially for fear of taxation, said Shihab. “You can’t simply provide security to workers unless they are officially registered with the Ministry of Social Solidarity.
“I am afraid some taxes are not levied fairly and this is why those people are bound to shun taxation by opting to work in the shade, he explained.
Fair trade is now widespread all over the world. In Egypt however, its markets are restricted to tourists and expatriates, who make up the majority of clients.
Sadek explained that fair trade markets mainly depend on those clients, stressing the importance of promoting it locally among Egyptians. Echoing Sadek’s view, Hashem regretted the fact that the locally produced fair trade-labeled artifacts are only marketed abroad. “Consumer protection societies have a role to play in familiarizing people with the issue, he said.
“We have to admit that fair trade-related products are mainly those that attract tourists rather than locals, Sadek said.
“But we shouldn’t forget that if fair trade aims to protect laborers against exploitation, it makes an effort towards safeguarding them against the invasion of the machine by reviving crafts.
For more information please visit: www.globalcompact.com and www.fairtradeegypt.org Also contact Egypt Crafts Center on (02) 273 65 123.
