What denotes activities that do not adhere to true fair trade practices?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

Fair-washing refers to the practice of misleading consumers about the ethical standards of a product or company, often presenting goods as 'fair trade' when they do not meet the stringent criteria associated with true fair trade practices. This can include exaggerating the benefits provided to producers or failing to disclose unethical practices in the supply chain. In essence, fair-washing serves to exploit consumers' interest in ethical purchasing without making genuine efforts to adhere to fair trade principles.

The distinction between fair-washing and true fair trade is critical, as the latter ensures equitable trade relationships, transparency, and connection with disadvantaged producers, while fair-washing undermines these objectives. Recognizing the differences helps consumers make informed choices and push for genuine ethical practices in procurement and supply.

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