The Accounting and Accountability Practices of Fairtrade International (FLO)

Abstract

This study examines the accounting and accountability practices of Fairtrade International (FLO), one of the largest Fair Trade umbrella organizations. Our aim is to explore whether new forms of accounting and related disclosures emerge in the reporting practices of FLO and how these reflect their self-declared social mission towards the emancipation and sustainability of producers. Using thematic analysis and reflecting on Bourdieu's theory of symbolic power, we analyse FLO's reporting practices from 2006 to 2013. Our findings reveal that FLO mobilises the taken-forgranted images and symbols of 'fairness' in the Fair Trade system by using descriptive statistics of Fair Trade premium distributions and pictures of producers but keeps silent to current concerns surrounding the limitations of Fair Trade. Such findings extend important insights into how new forms of accounting and related disclosure are used to legitimise the practice of Fair Trade.

Social impact disclosure and symbolic power: Evidence from UK fair trade organizations

“…While Semeen et al (2016) focused on FLO's social accounts and disclosures, in this paper we have extended that study by examining persuasive narratives (rhetoric) associated with the FLO's social accounts and disclosures and exploring how FLO's activities created a platform to perpetuate domination and the symbolic power of its affiliated full and partly fair trade organizations.…”

“…For example, the full fair trade organization Social impact disclosures became a key symbolic power of FLO to strengthen its support to both full and partly fair trade organizations. FLO has introduced new accounting, reporting, and legitimation processes, which have been documented by Semeen, Islam, & Quayle (2016).…”

Budgeting as practice and knowing in action: experimenting with Bourdieu's theory of practice: an empirical evidence from a public university

“…Further, Bourdieu's theorisation of social practices illustrated how individuals/groups are enabled to choose strategies of actions in budgetary control as a product of specific dispositions and interests associated with the particular power position in a given field (Battilana, 2006;Boedker, 2010;Carter et al, 2011;Hutaibat, 2019;Khanchel and Kahla, 2013;Vaughan, 2008). Taking into account Bourdieu's practice insights, as the dispositions of general academics are informed by symbolic power, doxa and self-evident understanding in the particular setting, the subversion strategies are evident in the budget-setting phase (C el erier and Botey, 2015;Emirbayer and Johnson, 2008;Emirbayer and Williams, 2005;Hutaibat, 2019;Semeen et al, 2016).…”

“…We have to manage both sides". Further substantiating these views, bursar 4 voiced her grievances about how the symbolic power of departmental agents creates conflicting interests in managing the budget within the preplanned budget limits (Semeen et al, 2016). According to Farjaudon and Morales (2013), it is clear that the dominated, i.e.…”

Accountability in transnational governance: The partial organization of voluntary sustainability standards in long‐term account‐giving

“…FI defines rules for fair production and trade, asserts auditing practices, and promotes Fairtrade-labeled products in the consumer countries. Interestingly, the accountability of the Fairtrade program has rarely been studied, and related knowledge remains limited to that provided by a critical study on the appropriateness of voluntary standards to account for fair trading partnerships (Davenport & Low 2013) and a detailed description of FI's recent account-giving practices (Semeen et al 2016). This is astonishing as the historical study of the Fairtrade program brings auspicious opportunities for theory development on accountability.…”