WFTO Membership ProcessFor New Applicants

Part I: Initial Requirements and Documents

Part II: The Guarantee System

Part I: Initial Requirements and Documents

1. Two years of legal existence

Initial Requirements

2. Compliance with the 10 Principles of Fair Trade

ASIA

Applicant Steps

• Commitment to 10 WFTO Principles

• 2 Years of Legal Existence

Requirement

• 3 References (1 WFTO member)

• In country & Network comments

Profile & Supporting Docs

• Send to Asia office for

feedback & acceptance

Reference Check

Applicant GuaranteeProvisional

* Handling Fee *

• WFTO Asia Office & Committee

make a recommendation for WFTO Global

Recommendation

• GS Manager reviews

• WFTO Global Board makes final decision

Approval • WFTO Global office sends

1st membership

invoice

Provisional Member

• Access to members only website• Attend Events

• NO use of label

ProvisionalApplicant Guaranteed

GuaranteedApplicant Provisional

• Send SAR to WFTO-Asia for a review

• Detailed & Completed Improvement Plan

Self Assessment Report (SAR)

• WFTO Global Board makes final decision

Approval

• Audit or Peer Review to be scheduled.

Guaranteed Member

PO / MO

Producer member

Casual/ Seasonal Labour

Producer Groups

Supplier

Quality ControlSystem

Employees

IntermediaryInternal

Monitoring System

Unverified / Not

Verified

Terms:

Additional Document: Constitution & Mission Statement

Integrated Development Trust:

Mission: We are women and men of diverse ethnic and geographical backgrounds who are committed to gender equality. As individuals and as an organization, we are committed to working with marginalized, oppressed, poor and exploited women and children from Thailand, Burma and some regions in Asia.

Expression of Mission Statement: Where is this written?

In the registration documents

The Profile

www.wfto.com Join WFTO ->Join Now -> membership

profile form

Ch

eck

Lis

t

Additional Document: 2 Financial Accounts

What we check for:

① Is it a requirement to have accounts audited?

② Consistency in Name?

③ Turnover and Profit

Organizational ChartProfile 2.4 Describe the governance and operational structure of your

organisation and briefly comment on the way you are organised: Please insert your organisation chart or send it in attachment.

Profile: References

Country Network | In-Country Comments | 3 References

Dear WFTO Members of India,

Happy New Year!

The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in Mumbai, India is a private company founded in 2000. The reason behind their foundation was xxxx. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. Xx has 1 store. If you would like more information please request it or visit their website at www.website.com

As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.

Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.

Thank you for your participation.

Don’t know any local WFTO members? Let us know!

Who? Choose organizations that know you

As an applicant, what steps should I follow in choosing referee organizations?

You contact 3 organizations ask if they can be listed as a reference in the profile.

All 3 have agreed to respond to WFTO-Asia’s reference request and support your application.

At least 1 reference is a local WFTO member!

….How to be a reference….

Tips for success

Complete!

Followed all the

headings

Detailed & succinct answers

Use of examples

Imagine you are explaining your organization to an alien.

Costs

Turnover/income in Euros Membership fee

Monitoring fee Regional fee Total annual

payment

< 100,000 375 25 100 500

100,001 - 135,000 375 50 100 525

136,000 - 500,0000.00275 x turnover 50 175

calculation based on turnover

500,001 - 682,0000.00275 x turnover 100 175

calculation based on turnover

683,000 - 1,000,000 1875 100 175 2150

1,000,001 - 4,000,000 1875 350 175 2400

4,000,001 - 8,000,000 1875 600 250 2725

8,000,001 – 16,000,000 1875 800 250 2925

> 16,000,000 1875 1000 250 3125

Other Costs: Handling Fee, Payment of Audit, Peer Review (alternating every 2-6 years)

Handling Fee 100-750 Euros

The Guarantee System (GS)

Self Assessment as the basic monitoring obligation for trading organizations.

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

The GS label guarantees the organization, not the product.

The emphasis is on the Internal Monitoring System the FTOs use to

monitor their supply chains.

Peer visitProfile & Self Assessment

Report (SAR)

GSGuarantee

System

Monitoring Audit

Fair Trade Accountabili

ty Watch(FTAW)

Internal Monitoring

System (IMS)

Com

pone

nts

1. Pricing Transparency

2. Producer data sheets

3. Internal Monitoring System (IMS)

4. Clear Organogram

Tip: Having systems in place that keep track and monitor the following will help you be prepared for Guarantee System

Compliance Assessment

Form

Supplier Monitoring Form

SAR Sources of Information

Improvement Plan Form

Peer Proposal Form

Profile Form

Internal Monitoring System

Fair Trade Accountability

Watch(FTAW)

Fiscal Clarity & Transparency

• FOB product breakdown

• Documenting payments to producers & buyers

• Formula for calculating a living wage

• Adjusting wages for increase in costs of living

Fair Pay means provision of socially acceptable remuneration (in local context) considered by producers themselves to be fair

Link: http://fairwageguide.org/

Internal Monitoring System (IMS)

This describes how your organization works.How and why it sources and sells the products that it does.

It references all the key documents that define your organization: the agreements in place with producers, the policies it follows, how it follows the guidelines, by who and the frequency of it happening.

The Goal of an IMS:

1. Monitoring that FT practices are happening on the ground

2. Feedback that the FTO are behaving in accordance with FT in their trade relationships

Internal Monitoring

System (IMS)

Know Your Producers!

Please give details of the producer groups or suppliers for export that you work with.

Tip: Have a preexisting documentation system in which data can be transferred into the Profile and SAR.

Name and type of group

# of Male and Females

Location of workshop

Date of Last visit

Products and volume

purchased

IMS or Other System?

FT Compliance & Weaknesses

Supplier Monitoring

Form

Full Time, Part Time, Casual

Table I

• List of suppliers/ producer groups indicating how monitored (IMS/ other system/ not)

Table II

Table III

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

The 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

We have resources for you!

• Visit our google site• Please use the handbook• Visit our webpage “FAQs”• Return to this powerpoint• Ask a fellow WFTO member• Contact us: email, skype, chat!

Contact info:Elise Hawley

Skype: elise.hawley1

Email: sustainability@wfto-asia.com

Thank youFor support and or questions

director@wfto-asia.comsustainability@wfto-asia.com

www.wfto-asia.com