Money Well Spent? Operations, Mainstreaming, and Fairness of Fair Trade

Lim, Michael K.; Mak, Ho‐Yin; Park, Seung Jae

doi:10.1111/poms.13011

Cited by 10 publications

(8 citation statements)

References 45 publications

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“…In addition to personnel-management decisions, this research adds to the sparse literature on fair multi-site scheduling (Erhard et al 2018, Van den Bergh et al 2013, a subset of the similarly sparse literature on fair multi-resource allocation (Joe-Wong et al 2013, Karsu andMorton 2015). Allocation problems span a broad array of fields, such as air-traffic management (Bertsimas et al 2012), humanitarian operations (McCoy and Lee 2014, Orgut et al 2018, wage determination (Anderson et al 2019), appointment systems (Qi 2016, Samorani et al 2021, service systems (Geng et al 2015), portfolio management (Iancu and Trichakis 2014), supply chains (Lim et al 2019, Yi et al 2018, contracts (Burg and Oorschot 2013, Cesaret et al 2019, Katok and Pavlov 2013, communication networks (Ogryczak et al 2014), facility location (Barbati and Piccolo 2016), and organ allocation (Bertsimas et al 2013). In general, equality-centric models are the dominant paradigm across these contexts.…”

Section: Discussionmentioning

confidence: 99%

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Unequal but Fair: Incorporating Distributive Justice in Operational Allocation Models

Rea

Froehle

Masterson

et al. 2021

Production and Operations Management

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Fairness is a natural concern when model‐based decisions affect human beings. In personnel‐management decisions, employees’ perceptions of fairness depend both upon the decision processes as well as the resulting outcomes. Acting as a key part of decision processes, operational models often emphasize equality, or sameness, of outcomes among individuals. Fair outcomes, as a manifestation of distributive justice, involve balancing two competing aspects: equality and equity. Equity, in opposition to equality, is concerned with an individual’s outcomes being commensurate with their inputs. While both aspects of distributive justice can be an expectation of members of an organization, they present an inherent trade‐off; more of one requires less of the other. In order to balance the trade‐off between equity and equality, we propose a bi‐objective, non‐linear optimization model, which is then extended to a mixed‐integer formulation in a service‐oriented case study. Specifically, the case study model allocates physicians’ contracted clinical time across multiple emergency department locations. Deviations from physicians’ equity‐weighted preferences for where they work are minimized and a Pareto frontier of objectively fair solutions is derived. As a result, the time physicians were allocated to locations they did not prefer was substantially reduced. In addition, pre‐ and post‐implementation surveys revealed statistically significant improvements in employee reported perceptions of fairness, transparency, and overall satisfaction with the work‐time‐allocation process. The evidence supports the conclusion that decision models designed to result in unequal outcomes can still be perceived as fair by the employees they affect.

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Section: Discussionmentioning

confidence: 99%

“…2015), portfolio management (Iancu and Trichakis 2014), supply chains (Lim et al. 2019, Yi et al. 2018), contracts (Burg and Oorschot 2013, Cesaret et al.…”

Section: Discussionmentioning

confidence: 99%

Unequal but Fair: Incorporating Distributive Justice in Operational Allocation Models

Rea

Froehle

Masterson

et al. 2021

Production and Operations Management

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“…The main themes include, for example, food security, quality, and safety (Ata et al., 2019; Alizamir et al., 2019; Levi, Singhvi, et al., 2020; Mu et al., 2016, 2019); inclusive value chain (An et al., 2015; Y.‐J. Chen et al., 2013; Dawande et al., 2013; M. Hu et al., 2019; Liao et al., 2019; Lim et al., 2019; Levi, Rajan, et al., 2020); eco‐friendly agriculture (Akkaya et al., 2021; Boyabatlı et al., 2019; de Zegher et al., 2018, 2019; Dong et al., 2021; Huh & Lall, 2013); procurement (Boyabatlı et al., 2011; Devalkar et al., 2011; Ferreira et al., 2017), and risk management (Allen & Schuster, 2004; Bansal & Nagarajan, 2017; Boyabatlı et al., 2017; Y.‐J. Chen & Tang, 2015; Federgruen et al., 2019; Jones et al., 2001; Maatman et al., 2002; Kazaz & Webster, 2011; Kouvelis et al., 2021; Swaminathan & Zhang, 2020; Y. Zhang & Swaminathan, 2020).…”

mentioning

confidence: 99%

Dynamic incentives for sustainable contract farming

Zhang

Gao

Zolghadr

et al. 2023

Production and Operations Management

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The rise of contract farming has transformed millions of farmers' lives. We study a new class of contract farming problems, where the farmer holds superior information and can invest effort to improve productivity over time. Despite their prevalence, the literature offers little guidance on how to manage such farmers with dynamic incentives. We build a game-theoretic model that captures the dynamic incentives of learning and gaming, with hidden action and information. We characterize the optimal contract: it internalizes both the vertical and intertemporal externalities, with performance pay and deferred payment; the performance pay is to motivate the farmer to invest and improve the relationship-specific productivity; the deferred payment is to ensure that the farmer is willing to share information and behave honestly over time. Even with random yield, the optimal contract can still have a simple implementation of a yieldadjusted revenue-sharing policy. Using real data, we show that the learning effect is significant. We then quantify when and how contract farming can improve smallholder farmers' productivity and income, creating shared value. We find when buyers have a long-term perspective and can internalize the benefit of farmer improvement, they will pay higher prices to ensure farmers' long-term viability. Our results inform the policy debate on contract farming: traditional procompetitive policies (based on spot transactions) can be counterproductive for modern agrifood value chains, hurting both buyers and farmers.

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“…Para los agricultores y trabajadores de los países en desarrollo, el Comercio Justo ofrece mejores precios, mejores términos de intercambio y las habilidades comerciales necesarias para producir productos de alta calidad que puedan competir en el mercado global. Por otro lado, el estudio explica que, para obtener la etiqueta de Comercio Justo en un producto se debe cumplir con otorgar una prima al agricultor (Lim, Mak & Park ,2019).…”

Section: A Revisión De La Literatura Científica a Nivel Internacionalunclassified

“…Borsellino et al (2020) yLim et al (2019) indica que las normas del Comercio Justo tienen como objetivo tener un comercio equitativo y para esto, empodera a los agricultores a través de capacitaciones y los prepara para producir un bien con alta calidad para que pueda competir en el mercado global. Además, al tener una mayor preparación podrán mejorar sus ingresos y, por lo tanto, su calidad de vida.El precio justo ha repercutido favorablemente en las exportaciones de banano orgánico a los Países Bajos.Como ya se había mencionado, el Comercio Justo cuenta con estándares obligatorios para poder certificar los productos bajo este sello.…”

unclassified

Efectos de la certificación de comercio justo en el departamento de Piura con respecto a las exportaciones de banano orgánico con partida arancelaria 0803.90.11.00 a los Países Bajos durante el periodo de 2013-2018

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La certificación de Comercio Justo ha transformado el comercio convencional e impactado en la forma de trabajar de agricultores, exportadores y trabajadores dedicados al sector agroalimentario. La creciente demanda de productos sostenibles ha impulsado una mayor cantidad de productos certificados, entre ellos el banano. A pesar de que, este movimiento enfocado en los seres humanos y la sostenibilidad social, económica y medio ambiental de las sociedades no es un modelo comercial nuevo, aún existen personas que no tienen conocimiento de la existencia de los productos certificados por el Comercio Justo ni la labor que cumple mediante sus reglas establecidas. El objetivo del presente estudio es analizar el efecto del Comercio Justo en las exportaciones de bananos orgánicos producidos en Piura hacia Países Bajos durante el periodo 2013-2018, haciendo énfasis principalmente en 3 principios que deben cumplir las empresas exportadoras y asociaciones si desean comercializar sus productos con el sello de certificación, los cuales son creación de oportunidades para productores desfavorecidos, precio justo y respeto por el medio ambiente. La metodología de la investigación es de enfoque mixto. La información cuantitativa se analizó a través del modelo, en tanto que, para el desarrollo cualitativo se realizó entrevistas semi estructuradas a exportadores del sector. A partir, de la discusión de resultados del desarrollo cuantitativo y cualitativo se concluyó que la creación de oportunidades y el respeto por el medio ambiente tuvieron un efecto positivo en las exportaciones de banano orgánico de Piura hacia Países Bajos durante el periodo 2013-2018.

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Money Well Spent? Operations, Mainstreaming, and Fairness of Fair Trade

Cited by 10 publications

References 45 publications

Unequal but Fair: Incorporating Distributive Justice in Operational Allocation Models

Unequal but Fair: Incorporating Distributive Justice in Operational Allocation Models

Dynamic incentives for sustainable contract farming

Efectos de la certificación de comercio justo en el departamento de Piura con respecto a las exportaciones de banano orgánico con partida arancelaria 0803.90.11.00 a los Países Bajos durante el periodo de 2013-2018

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