Welcome to Traidcraft Exchange's1995/96 Social Accounts

Welcome to tbe first set of socitzl accounts

for Traidcraft Excbange. Tbese accounts (rrebotb a milestone for tbe organisation and amajor stepfonactrdfor social accounting. Fortbe first time, financial auditors baueprouided standard audit rigour to tbecollection and presentation of tbeinformation. We belieue that tbis step forwardtaill make it easierfor more organisations toproduce tbeir own social accounts.

Tbefollowing tuo pa.ges detail tbemetbodologj,' and procedures ue used. The restof tbe document is tbe full social a.ccount asproduced b1,, Murdocb Gatward, TraidcraftExcbange's Social Accounts Manager a.ndaudited by Rainbou Gillespie, TraidcraftExchange's financial and social auditors. Itt,ould be uery interested in your uiews aboutthese accounts-from botb the perspectiue oftbeir content and tbe underlying metbodologjt.Please let us know tuhat you tbink.

Graham YoungGeneral Director, Tnfdctaft Exchange

Contents

Introduction to Social Accouting. page 4

Audit Methodology . . . . . . . . . . . . . . . . page 4-5

Introduction to Traidcraft Exchange ........ page 6

The Foundation Principles ......... pageT

Auditor's Report ... page 8

The Audited Social Accounts:

CategoryA - TX Community(staff and volunteers) . . . . . . . . . . . . . . . .

Category B - Donors

CategoryC-ConsumersofTX Services North

CategoryD-ConsumersofTX Services South

Category E - Charity Commissioners ...

Category F - Suppliers of Equipmentand Services to TX

page9

page 72

page 14

page 16

page 18

page 18

t!";i;,,

:

%

Introduction to Social AccountingRichard Evans, TtaidcraftExchange's Director of Social Accounting explains the methodology we used in producing these

social accounts. Z

The Accounting and Auditing

This follows a sequence like financial accounting:events/transactions - what happened during the accounting period.

recording - accounts and bookkeeping systems, minutes' letters;questionnaires, independent stakeholder surveys.

accounting - organising the records and making sure they arecomplete and accurate.

reporting - in a profit and loss statement andbalance sheet, theac-ounting data is condensed and presented according to rules laid

down in the Accounting Standards. Social accounts use performanceindicators proposed by stakeholders, the company's missionstatements, legal regulations and benchmarks. The social accountingfepoft must covef all areas of performance in a balanced and accurate

summary

auditing - independent review of the accounts which states whether

the report gives "a true and fair view" of the company's socialperformance.

Social accounting and social auditing are often interchangeable.'W'e use social accounting to describe the whole process of recording

social performance measufes, constructing accounts and reports and

auditing. 'We use the term social audit to refer to the independentattestation that the accounts give a true and fair view.

Traidctaft Exchange SocialAccounts

This set of audited social accountsis a report to the stakeholders ofTraidcraft Exchange. Its purpose isto give stakeholders a true and fairview of the organisation's socialand ethical performance.

The structure of the TraidcraftExchange Social AccountsAn innovation in these accountshas been the division ofaccounting material for eachstakeholder category in the rePortinto three separate types.

basic descriptivestatistical and qualitative datadescribing the stakeholder.,category and the organisation.

accountability informationgenerally quantitative datadescribing the extent to which theorganisation has met stakeholders'and society's legitimateexpectations, measured against theorganisation's-objectives, legal andquasi-legal regulations and socialnofms.

stakeholder voicesquotations, results of stakeholderquestionnaires and anallticalcommentary from the consultationpfocess.

Each section has been introducedwith a statement of the scope ofthe accounts and description ofthe consultation process.

The Social Accounting Method

These'iccoilrrai ur. based on the method developedfour years ago by Traidcraft and the New EconomicsFoundation. Social Accounting is a systematic approachfor organisations to account for their social impact andthe extent to which they discharge their publicresponsibilities. It recognises the right of all who have astake or interest in the organisation to informationabout its social impact and ethical performance, and theresponsibility &.-'trc organisation to provide it. Anorganisation u5iirg this social accounting methodologywill:

1. Identifr the social obiectives and the ethical values of theorganisation

2. Defrne the stakeholders - key groups who have an interest in theorganisation and who can influence or be affected by its activities.

3. ,Establish social performance indicators - as well as providing anaccount of its activities the organisation will measure performanceagainst agreed tafgets and established norms. Since the organisatiop is

accountable to its stakeholders, they also define appropriate indicatorsfor measuring performance.

4. Measure performance, keep records and prepare accounts - Internalproduction of accounts is the normal practice. General accountingprinciples apply - relevance, understandability, reliability, completeness,objectMty, timeliness and consistency.

5. Submit the accounts to independent audit - an auditor's report ispublished with the accounts.

6. Report the results - implicit in the definition of social accountability to

; stakeholders is the organisation's commitment to publish its social:'' accounts, regularly, with an independent auditor's report.

7L

The Social Auditor

The first duty of the social auditor is to the stakeholders, just as the duty ofthe financial auditor is to the shareholders. The financial auditor's opinionis expressed formally using standard statements that have specific meaningsset out by the Auditing Practices Board (APB).

At the present time there is no equivalent code of social accounting andauditing practices, but the social auditor should apply general auditing

principles to determine whether the accounts are relevant,understandable, reliable, complete, objective, timely andconsistent.The issue for the auditor is not their judgement about how wellor badly the organisation behaved but about the reliability and"truthfulness" of the account the organisation has given, and itsclaims to have behaved ethically and to be socially responsible.

The Traidcraft Exchange Audit

Traidcraft plc published the first social accounts usingthis methodology in 1993. Since then, Traidcraft plcitsel{ Shared Earth, Body Shop, Allied Dunbar and Ben& Jerry's Homemade Inc have always invited anindependent organisation to audit their accounts. Ineach case the auditor also used an audit advisory groupcomprising people with relevant expertise andexperience in relation to the interests of eachstakeholder group, and business ethics.'We wanted to increase the rigour of the audit anddecided to explore the benefits and the limitations ofapplylng to our social accounts the APB rules forfinancial accounting. Professor Rob Gray, Director ofthe Centre for Social and Environmental AccountingResearch at the University of Dundee has providedexpert advice and monitoring of the process. Hesuggested we invite Traidcraft Exchange's financialauditors to audit the social accounts. They were offered

the possibility of using an auditadvisory group but preferred torestrict the audit proceedures to therules and guidelines prescribed bythe APB.

The Lessons

Social accounts are more difficult to audit than their financial equivalents.Many of the measures and indicators of social performance are qualitativestatements father than quantifiable values.

Social accounting requires the organisation to recognise its duty ofaccountability to all its stakeholders. Different stakeholders may "see" evenrsdifferently, and therefore assign different values to the organisation,sperformance. Financial accountants are generally not required to deal with"pol;wocal" accounts of performance.

Also there can be no social "balance sheet" or "profit statement". Socialresponsibility cannot be summarised with financial measures of cost andbenefit. Neither does social accounting allow poor performance in one areato be offset against good performance in a different area. lt does, however,attempt to measure improvement over time against the organisation,s owntargets, external benchmarks and the expectations of its stakeholders.

W'e believe the social auditor needs both the mechanistic rigour of theprofessional accountant and the social awareness, responsiveness andcreativity of the sociologist. stakeholders want to know more than whetherthe sums have been done correctly. They want to know whether theorganisation's portrayal of its complex social interactions gives a true andfair view of the way it conducts it business. We believe these accountsrepresent an important step towards that goal.

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Traidcraft Excbange Social Accounts1 April 1995 - 31 Marcb 1996

raidcraft Exchange (DQ is a Company Limited by Guarantee (registered in Wales 3031674) with Charitable

Status (registered charity number LO48752) whose Mission is to promote fair trade practice internationally

as defined in its Foundation Principles, Mission Statement and,Goals. These are included on pages 7 of this

report. There are eight non-executive and one executive director who are members of the company. In addition

there are four non-voting directors, including a staff director who is selected by staffballot on a three year rycle.There are seven Foundation Trustees who complete the membership but whd have overriding voting rights. The

seven Foundation Trustees are also the Foundation Trustees of Traidcraft plc and hold the majority vote at the

Annual General Meeting of that organisation.

The Board of Directors and Trustees of Traidcraft Exchange instructed the management to undertake a social

audit for the period April L995 to March 1996, and thereafter on an annual basis, adopting the stakeholder

methodology developed by Traidcraft plc and the New Economics Foundation (NEF). The following document is

the SOCIAL ACCOUNTS independently audited by Chartered Accountants, Rainbow Gillespie, and approved by the

TX Board of Directors on Friday 13th Septembet 1996.

directorsAt the 31st March 1996 t}re directiors were:

Paul Vallely (chair)George HepburnKate PhillipsStuart RaistrickGrahamYoung

lGeneral Director, l)C)

Non-voting members of the Board are:Campbell Grant (Resource Director)Kate Potts (Programme Director)Philip Angier (Managing Directoq Traidcraft plc)Ruth Bowler (Staff Director)

list of stakeboldersStakeholders were identified by a working group of staffwho represented each department within TX, plusdirectors or their representatives. The group met on threeoccasions and also appointed the fi social accountsmanager. TXwill continue work on refining thestakeholder list during the next 12 months. Allstakeholders identified have been included in this year'saccounts.

The individual stakeholders were grouped by definition ofthe type of information each required and theirconnection to TX.

The three levels of information were suggested by Prof R HGray (Director, Centre for Social and EnvironmentalAccounting Research, University of Dundee) as a means tosystematise the social accounting process as a frameworkfor information gathering and as a method of dealing with

Romy TiongcoMargaret MassonMargaret DalyFrank Field MP

the whole organisation when collecting social accounts.Prof Rob Gray and Richard Evans (Director - SocialAccounting, Traidcraft Exchange) acted as advisors to theSocial Accounts Manager, Murdoch Gatward, and to theauditors, Rainbow Gillespie.

The Accounts are organised as follows:

1. Bystakeholdergroup

CategoryA - TX Community (staffand volunteers)Category B - DonorsCategory C - Consumers of TX Services North

(hemisphere)Category D - Consumers of TX Services South

(hemisphere)CategoryE - CharityCommissionersCategory F - Suppliers of Equipment and Services

to TX

2. Under each stakeholder group information is collectedand divided into:

D Basic Descriptive information - about theorganisation

ii) Accountability information - how the organisationaccounts for itself

iii) Voices - views of the organisation from stakeholders

The accounts are measured against the FoundationPrinciples, Objectives and Missions Statement. TX has noenvironmental policy, As an organisation it is workingtowards adopting the Traidcraft plc document andmodifying it to its own needs. It is therefore not possible

to monitor or measure environmental impact at this stagewithin the social accounting process.

tbe foundationrinciples

1. To establish a just trading system which expresses theprinciples of love and justice fundamental to the Christianfaith and having the following characteristics 4amely thatsuch a system will:-

. Be based on service equity and justice drawing itsdrMng force from these values applied in love anddistinctive from a system based on profitmaximisation or personal gain

. Regard the existence of gross rrraterial inequitiesbetween peoples as a condition to be remediedthrough the economic system and not perpetuatedby it

. Detbrmine the propriety or otherwise of allcommercial decisions processes and structures byreference to the ethical and practical framework forlove in action to be found in the life ofJesus Christand seek to announce good news to the pooqp.roclaim release for prisoners, recovery of sight forthe blind and freedom for the broken victims, foodfor the hungry drink for the thirsty, housing for thestranger, clothing for the naked, support for the ill,and visitation for the prisoner

. Not exploit customers by depending on theirgoodwill to excuse poor service or misleading themso that they give support which they would nototherwise have given

2. To establish an inclusive community of purpose andrelationships free of personal or departmental interestacknowledging the Christian precept of love by putting theinterests of others before one's own.

3. To recognise that all people are made in the image ofGod and to seek to enhance the creative liberatingpotential of each individual as well as their community.

4. To promote employment with improved conditionsmeaning employment that meets the majority of thefollowing criteria:-

. Fair wages

. Recognition of each person's worth and of the needfor the job each person does

. A good match between each person's skills andcapabilities and the work that each is to do

. Adequate facilities and equipment to do the job tothe appropriate standard

. Adbquate safety precautions

. Opportunity and encouragement to participate indecisions, to associate in free trade unions whereappropriate, and to share in the responsibilities andbenefits of ownership

. A caring and friendly atmosphere in the place ofemployment

. A pleasant work environment

. Recognition of work load, the flexibility to sharework where necessary and to arrarrge job sharing

Freedom to take advantage of opportunities to usethe skills gained or pay received or saved to go onto training and other employment or self-employmentProgress towards the introduction of appropriatetechnology and equipment to ameliorate workgenerally regarded by all people as tedious orunpleasant

5. Producer groups in developing countries (whoseproducts are to be purchased) must meet the majority ofthe following criteria but need not sadsry€very criterion;encouragement is to be given to a producer group in areasof non-satisfaction

A producer group should:-. Be organised for the benefit of its members. Reflect in its concern for the personal welfare of

individual producers their wages and workingconditions, the criteria set out under paragraph fourof this Schedule and in particular should be payingwages and providing working conditions which areor are above the average in its locality

. Be making products or growing foodstuffs whichare now or potentially viable commercially

. Be paying no more than a reasonable service fee toagents (if any are involved)

o Be open to examination of its aims obiectives andcommercial practices

6. That the Group shall at no time pass inro the hands ofany one interest group or faction other than theFoundation Trustees.

aamtsstonTraidcraft Exchange aims to establish a fair trading systemwhich expresses the principles of love and iusticefundamental to the Christian faith.

,

804,$. To raise awareness of the inequities and bias of the

wodd trading systems and present the means bywhich the UK public can work ro redress theimbalance.

. To enable enterprises in the south to participate inwodd trade in a sustainable way which benefits thelocal communiqr

. To identiff and encourage ethical business practicein the North and South.

. To be an organisation which achieves the Missionnot just by meeting appropriate targets, but byoperating in a way which accords with the MissionStatement.

Auditor's Report to tbeStakeholders of Traidcraft Excbange

We have audited the social accounts on pages 9 to t9 which have been prepared in accordance with the accounting

methodology set out on pages 4 to 6.

Respective responsibilities of directorsand auditors

The company's directors are responsible for thepreparation ofthe social accounts. In preparing thosesocial accounts, the directors will;

. identifr all the company's stakeholder groups.

. adopt appropriate methodology and then apply it ina consistent manne! making judgements andestimates that are prudent and reasonable.

. prepare the social accounts on a going concernbasis unless it is inappropriate to presume that thecompany will continue in business.

. keep proper social accounting records, sufficient tobe able to measure the performance of the companyagainst its Foundation Principles, objectives andMission Statement.

It is our responsibility to form an independent opinion,based on our audit, on those social accounts and to reportour opinion to you.

Basis of opinion

We conducted our audit in accordance with AuditingStandards issued by the Auditing Practices Board and inaccordance with those Auditing Guidelines that weconsider applicable to a Social Audit. Accountingstandards and formats specifically applicable to SocialAccounting and Auditing Standards and Guidelinesspecifically applicable to Social Auditing are currentlyunder development by members of the Institute of Socialand Ethical AccountAbility. An audit includes examination,on a test basis, of evidence relevant to the amounts anddisclosures in the social accounts. It also includes anassessment of the significant estimates and judgements

made by the directors in the preparation of the socialaccounts and of conclusions drawn and representationsmade from external reports, completed questionnairesand stakeholder interviews included in the socialaccounts, and of whether the methodology is appropriateto the company's circumstances, consistently applied andadequately disclosed.

In performing our audit, we considered the processesinvolved in identifuing the stakeholder groups andassessed their completeness.

we planned and performed our audit so as to obtain allthe information and explanations which we considerednecessary in order to provide us with sufficient evidenceto give reasonable assurance that the social accounts arefree from material misstatement. In forming our opinionwe also evaluated the overall adequacy of the presentation

of information in the Social Accounts. However, theevidence available to us was limited; due to the currentlack of prescriptive social accounting standards or formats,we are unable to say whether the information presented iscomplete. However, Professor R H Gray, director of theCentre for Social & Environmental Accounting Research,University of Dundee and Richard Evans, a current andfounder member of the Institute of Social and EthicalAccountAbility,have advised that the formats adopted areacceptable to the Centre and to the Institute, for theproduction of social accounts.

Qualified opinion arising fromlimitations in audit scope

Subject to any additional disclosures found to benecessary on establishment of social accounting standardsand formats, in our opinion the social accounts give a trueand fajr view of the information and evidence collected for

the year ended 3LstMarch 1996.

Rainbow GillespieChartered Accountants13th September 1995

Traidcraft Exchange Social AccountsAudit MethodologyPeriod ending 31,st March !996

The audit of Traidcraft Exchange Social Accounts wascarried out by using existing Auditing Standards developedby the Auditing Practices Board for use primarily forfinancial statements, but in whose developmentconsideration has been given to audit engagements whichinvolve non-financial information. Copies of the "scope

and authority of APB pronouncements" together with allcurrent Auditing Standards can be obtained fromAccountancy Books, PO Box 62O, Central Milton Keynes.

tx communityStakeholder Group

. fistaff

. TXvolunteers

As there were only two volunteers (one of which wasunobtainable) this stakeholder was included as part of the TXstaff for accounting purposes.AII fi staffwere given the opportunity to feed inro rwosessions on issues that would form the basis for a sef ofindicators to be set measuring TX social performance against:

TC foundation principlesTX goals and obiectivesStaffhandbook

The two sessions were held in TX time at the TC premises.The "voices" section was facilitated by two consultants, one ofwhich is a TX non-executive directo! to ensure confidentialit)4Questionnaires were returned directly to the consultants whohave agreed to hold them for audit purposes for at least threeyeafs.The questionnaire was prepared by the consultants inconsultation with TX and its advisers.The questionnaire was sent to all members of staff, and thetwo cuffent volunteers. 85% of questionnaires were returned.The consultants'report is available as part ofthe socialaccounts.

basic descriptiue1. TX employs 27 staff as at 1 April 1996 (I April 1995 - 27) .2. 10 grades, A rising to J (see chart for gender balance)3. Number of staff left during year - 3. Reasons for leaving:

retirement, ill health, end of fixed term contracr.4. Number of new staffemployed during year - 35. Full time staff- 20 (1 April 199j,19)6. Pan time staff- 5 (1 April 1995,6)7. Job share - 2 (1 April 1995,2)8. Salary differential, highest to lowesr - 3:19. Gender balance against grade

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3,0

2.5

2.0

LC

1.0

0,5

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10. Number of years service

2 3 4 5 6 7 8 ' 9 ' ,10' ,11' ,12' ,11

Years Service with Traidcraft

(156 + 27 = 5.78 - average staff service is approximately 6years)

11. Racial/ethnic background - no non-whites or non Europeansemployed

12. Disabiliry - no registered disabled employed

ObservationsThe staff handbook states baseline information for all staff issues,including: maternity leave, paternity leave, disciplinaryprocedure/grievance procedure, holidays, travel, safety policytraining policy, sickness absenteeism, rodundanry poliqlpensions, hours of work, medical cover for staffwho travel.contract of employment

")

Time sheet analysis

IOIAL DAYS AVAII,ABI.I FOR TX WOR( . 5.503.4I

Iotol Proiert Doys .3,992.14 (72.54% oftotol)Iotol Non - Proiect Doys' - 1,511.27 (27.46% of totol) consisting of:

Skk Doys -l l6.9t {2.12% oftorol)Holidoys - 863.80 (15.69% 0f r0f0l)Iroining Doys -99.88 (1.81% ofrorol)()ther -424.56(7.72%oltotsllSroffAs. Work -6.13 {0.12% ofrorol}

* Inactive days are days that are not directly booked against aTX project, ie meetings and administration, it includesholidays, sick and training.Working week (not allowing for flexi days) = 37.25 hours

accountabilityinformation

Salary

."i{{}?, + o #i,tJfJa + .#ffi;*.

Lowest salary paid - 5,8,143 (54.20 per hour). TUC recommendedminimum wage for negotiation is 54.00 per hour.Highest salary paid - 5,22,996Actual differential is 2.75:7The highest salary paid does not reflect the total remunerationpackage. All staff also receive: non-contributory pension scheme;long service bonus (on 1 April that falls after two yearscontinuous service staffbecome entitled to a service award,which begins with an extra 17" of salary and increases by O.5o/"per annum to a maximum of 5% of salary); time of in lieu can bepaid rather than taken as time off in certain circumstances. Theseadditional benefits are not included in the figure shown andhence the actual differential may be higher than 2.75:1.Staff terms and conditions are listed in the liaidcraft StaffHandbookTrade Union membership is optional, although there is no formalunion representation within TX. All negotiation for benefits anddisciplinary procedure is done through the StaffAssociation.StaffAssociation membership is open to all fi staff currentlywith 100% membership.

Overseas TripsNo of tripsGrade of staff travellingAverage number of trips perperson who travelled

_49- F -J

- 3.7

'

Overseas Business DevelopmentSerwice (OBDS) average number oftrips per person who travelled - 1.5.Areas visited: EU, Bangladesh, India, Indonesia, Kenya,Philippines, South Africa, Tanzania

Health and Safety issuesRSI (repetitive strain injury) - 1 person (absent for a total of sixweeks)Preventative measures have subsequently been introduced forstaff continually using keyboards (wrist rests provided). Antiglare screens are also avallable ifrequested.Issues were reported through the TX health and safetyresponsible person.under provision of Traidcraft plc.As far as could be ascertained there were no health and safetyissues which required reporting other than the RSI issuementioned above.No full risk assessment has been undertaken to date - acommitment has been made by the health and safety responsibleperson to do this by April 1997.Health and safety \rDU training undertaken - run by Traidcraft plc13 staffattending.Manual handling training undertaken/offered - run by Tiaidcraftplc 6 staff attending.First Aid, fire prevention, cleaning, lighting, building inspection,health and safety provision are all adequately provided undercontract from Traidcraft plc.No other industrial injuries were recorded during the year.Staff travelling on a regular basis are offered a full medical,including tropical diseases screening, every two years. As stafftravelling had medicals in 1991/95 this option has not been usedin the social accounting period f995/96.

uoices"It is an exciting organisation witb lots of potential, and goodpeople uorking bere.""It is so mucb better tban in outside industry.""MJ/ partner is uery impressed by tbe community of purpose inW compared taitb outside organisations.""Tbe bigest tbing about Traidcraft is hota mucb I baue grotun asa person.... Traidcraft bas belped me make m! lxfe a completeutbole."

VCfSUS

"TX is latently sexist witbout realizing it""Nobody plans abead sufficientlyfor us""Of course tbe company bas to do tbings, but it is tbe lack oftbougbt aboul domestic li"fe tbat islrustrating''"The loos are anaful" "Aprofessionctl, innouatiue orgctnisation letdoutn b1 its premises... oppressiae".

The above is a sample of "voices" heard as part of the TXcommuniry The conclusion of the independent consultant was,whilst there is "room for improvement", "we are sure that wewould be misrepresenting the staff if we gave too negativeimpression. On the contrary there is a high level of commitmentto TX evidenced throughout all grades".From the results ofthe questions asked it can be seen that thereis a high level of commitment to the TX mission statement andChristian principles. This however has to be balanced against ageneral dissatisfaction with training, equipment and office space.There is a high level of scores in the 3 to 4 bracket, indicating nostrong feelings among the majority of sta.ff on TX performanceagainst the foundation principles, although specific issuesreceiving low scores and comment include:

Training"Training is clearly sometbing of a sore point taitb many staff.Nobody strongly agreed tbat tbelt were getting ctdequatetraining eitberfor tbeir job or ouerall career deuelopment."(Consultant comment for tbis stakebolder)

CommunicationPoor communiccttion internally. 'lVorst of all utascommunication between cleDartments. " (Consultant commentfor this stakeholder)

Alienation of Non-ChristiansOn the question of whether Christianity should be central toTX's identity, the overall opinion of staff seemed clear. Amajority (63%) marked 5 or 6 on the questionnate; 77o/omarked I or 2,Ieaving 2O% with middling views.

"As a non-Cbristian tbere are times wben I feel ueryuncomfortable or ctlien uitbin TX... I don't tbink it'sintentional" (Staff comment)

Proposed Staff Perspective IndicatorsFor Final Report

The suggested indicators listed in the next column aretaken from the staffquestionnaire. They have beenselected by us as a selection of proposed indicators toappear in the final report which could be repeated infuture years. It should be emphasised that the consultanr,and not the staff, selected the 15 indicators below; in futureyears it may be more appropriate to the methodology for amechanism to be found for them to do so. (Questions had arange of I to 6: I being low and 6 being high. The number atthe end of each statement below is the average across completedquestionnaires, 3.5 being the median.) In future yea-rs, year onyear comparisons will be made.

1. TX is helping to establish a just trading system which expressesthe principles of love and justice fundamental to the Christianfaith

4,5

8. My work at fi is motivated by the mission and goals of TX4.8

10. I think that the Christian basis of TX should be central toits identity

4.5

17. Given my understanding of the cuffent financial state of TX,I am satisfied with the wage I receive for the work I do

3.7

21. I think my job is highly valued by TX3.6

23. I think TX values me highly as a person and not just someonewho performs a particular job

3'7

24. I feel proucl to be an employee ofTX4.5

31. I think the facilities and equipment prorided in helping me todo my job are adequate

3.0

J2. I rh ink the t ra in ing I have been given to help mc do my lobis adequate

-.

- - -1 2.8

36. I feelthat I am adequately consulted in decisions that affectmy job

g,9

44. I think the communication of information, decisions, ideas,etc is adequate between employers and employees

3.3

5l . I would descr ibe the working environmcnt in f i as pleasant

I J '+

53. I think I have a reasonable workload3.6

s5. I f ind my job stressful

58. I believe that my personal relationships outside of my job

(eg with my spouse/partner, family,.friends) have suffereclbecause of my iob

3'9

i

l1

donorsStakeholder Group

. Traidcraft reps and supporters

. General public

. HM Government - The Overseas DevelopmentAdministration (ODA)

. Trusts

. Christian Aid

. CAFOD

. The European Union (Eu)

. Traidcraft plc

A short questionnaire (11 questions) measuring TXperformance against its goals and objectives was sent to alI29TX trust/donors (Including the 18 donations received in thisperiod), as opposed to individual donors, who TX hadreceived donations from in the last two years. A second shortquestionnaire (10 questions) was included that attempts tomeasure more general performance. A covering letter, brieflyexplaining TX social accounts, was also enclosed.As at L June 1996 10 questionnaires had been returned (35%response rate). Five ofthese questionnaires had both partscompleted and one with the donor perspective paft only, fourfurther responses said that they were unable to complete thequestionnaire (this was for various reasons).During 1994/5 TX carried out some questionnaire researchamongst its supporters. A questionnaire was mailed to 5000people who formed the fi data base

^t that time. A 4\o/o

response rate was achieved and 1,965 questionnairesanalysed by an external consultant. These results have beenused as part of the'fX1995/5 social accounts.The above two sections supplied the "voices" information fortlre 1995/96 social accounts.The TX contacts database holds "basic descriptive"information which is being used as part of TX social accounts.Research report "Charities, Media and Public Opinion" hasbeen used in the "accountability" section, along with otherinformation.

basic descriptiueTX donor base can be split in to three categories:

. Group donors (trusts, charities and companies)

. Individual donors (including Traidcraft reps)

. Overseas Development Administrarion (ODA) and theEuropean Union (EU)

1. Group Donors. Largest donor over the last 3 year period gave a total

of &1O4,75O

' 115 groups/donors were contacted in this frnancialyear. 18 donations received (15.65% success rate)

. TOTALVALUE = 5772.241

2.Individual Donors(public income - 15,O43 contacts on database)

. Over 9985 separate gifts were made during period

. 222 people started newcovenantsL29 people started a new bankers order

. 3428 people gave more than once

. I2I gift aid donations were made

' 5197 people/groups gave to TX during period. Individual giving TOTAL VALUE : 5319,656

: ' . -* t*

3. ODA/EU (statutory tunding). ODA payment for consultancy service provision to partners. ODA in-country costs of 4 fi partners. ODAJoint Funding Scheme funded some Overseas

Development Service core activity over the last 5 years. The EU funded development education work. TOTAIV,\LUE = 5235,871

4. TX Currently Has. 614 active covenants. 236 active bankers orders

5. Background. 7lo/o of individual donors artend church or a place ofworship. 75% of individual donors are female. 38%ofindividual donors are over 55. 227" of individual donors are between 35 and 45. I%" of individual donors are under 25

6. TX income GRAND TOTAL. = 583I,777

The Balance of Income is made up from:Other income = earned incomeOBDS t3t,52gStudy Tours/Alternative HolidaysEducational Materials S43,lOlSocialAccountingConsultanry S18,886General (interest, etc) 510,393

s104,009

accountabilityinformation

1. Fundraising. The last TXAnnual Report stated that any,'direct spending on

fundraising will be expected to generare a fivefold payback,so that when we spend money on fundraising rather thanproject work we are investing it, not frittering it away".

. The main appeal for this year was for InternationalResources, the TX pallner in India, and covered a six monthperiod, it generated a 9.9 fold payback.

. There were 2 appeals made this year

. The second appeal has generated a 4.3 fold return to date(29 May 1996).

. TX policy is to respond with a reply within one week ofreceiving a donation, where possible within 3 days, this is notmonitored.

2. Reporting (Group Donors). TX sends a report to every donor within the finit year of

funding, or as instructed by the donor.. 13 repons were due during the year.. 13 reports were sent during the year, two of these were late.

3. The income was used as follows:

uoicesL. Individual Donors (from M Wilson Associates report)

. 690/" of TX supporters want to support fair trade in additionto buying faidy traded products.

. 53% wanted to help people breakfree ofpoverty

. 35% felt that "as a christian I felt it was my duty to supportthose less fortunate than myself"

. 33% were also motivated to give "because I believe the rolesocially aware business in the third world can play indevelopment".

. 82% of supporters believe fair trade means "Ensuring thirdworld suppliers are paid a decent price for goods/services"

. 68% of supporters think that TX's promotional material is"quite effective"

2. Group Donors (taken from questionnaire results)

Questions had a range of 1 to 6: 1 being low and 6 being high.The number at the end of each statement below is the averageacross completed questionnaires, 3.5 being the median. In futureyear on year comparisons will be made.

Goals and Objectives Questionnaire -Donor Responses1. TX has raised public awareness of fair trade issues

5.O

2. TX has contributed towards an increase in fairly traded products5'2

3. TX has assisted the general public in taking action regarding fairtrade issues in the UK (and developing countries)

4.2

Communications17.9"/.

OBDSCommunicationsFundraislngEthical BusinessAdministrationReserves

l361,730148,799104,140

142,531)o 999

8g1n

t3

7.

TX has enabled businesses in the South to pafticipate in worldtrade.

4,4

TX has enabled businesses to trade in a sustainable way.

4.4

TX method of working in international trade has benefitted thelocal communiry

TX has encouraged ethical business practices in the Nonh (UIQ.tn

TX has encouraged ethical business practice in the South.

4.6

TX has achieved its mission as stated in the mission statement.

fi has operated in a way which accords with the foundationpr inciples.

I tJ.v

fx.fl.Orovid;d us with 1o1Sh

information to_understand howwell ir has perfonned against its obiectives. 13.61

3.6.

9.

10.

2.

3.

Donor Perspective Questionnarre - ResponsesQuestions had a range of 1 to 6: 1 being low and 6 being high.The number at the end of each statement below is the averageacross completed questionnaires, 3.5 being the median.

1. TX has provided reports in a timely manner as required.4.5

7.

Finance provided appears to have been used in an efficient

-^*Finance provided appears to have been used in an effectivemannef.

4,8

,rn ,n.

'-r'"*.",^,il;';;;;;ffi'; "ili.il;: -"' "''

5.O

The TX goals add value to my organisation's oblectives.)l q. l

TX is a pioneering development agenry promoting fair trade.

fi's role in encouraging ethical business practice is'an imponantpart of its mission.1 4.8

fi has enabled businesses in the South to participate in worldtrade in a sustainablc way.

4.4

TX has enabled businesses to trade internationally in a way thatbenefits the local community.

6.

8.

o

10. TX communications work on fair uade has been beneficial inraising public awaren€ss on the issues.

4.7

Only six donors out of the 25 approached completed the twoquestionnaires, which is not a good basis for deep statisticalanalysis. However, four donors returned the blankquestionnaires saying that either the appropriate member of staffwas not available or that they did not have the necessary detailedknowledge of TX to complete them.Scoring on the questionnaires was between one and six (onebeing the lowest) with 3.5 being the median. 93% the responsesoccurred above the median indicating a general agreement withall the statements.of the questionnaire. There was nodisagreement by the group as a whole with the matters raised.In their response to Goals and Objectives they felt strongly thatfi had contributed towards an increase in faidy traded products.The lowest response (score 3.6) on this questionnaire wasconcerned with the methodology of the exercise.On the Donor Perspective questionnaire the responses were allvery positive, the highest scores saying that the finance providedappeared to have been used effrciently and effectively, especiallyin raising awareness of Fair Trade matters and in ethical business.

consumers nortbStakeholder GrouP - consumers of:

. Educational Services ' StudyTours

. Training

. Alternative Holidays ' PMnformation

A considerable amount of information is available within TX,

especially Communications, to form the bases for TX social

accounts for this stakeholder group'

Questionnaires were not used for this years accounts, this has

proven to be a weakness and it is recommended that a

ielephone questionnaire be used for the next round of social

u..orl.tr, in order to obtain a more balanced view of

stakeho.lder understandi ng.

Some information is available from all of the stake holder

groups covering:. alternative holiday and study tour evaluations. EC report

' enquirers report, letters on file. information from Traidcraft plc reps on file

' media mentions. interviews with/notes from Traidcraft plc staff. feedback from schools work, on file

Meetings were held with Traidcraft plc staffwho most

regulady use TX services. Quotes were taken regarding the

,.ii." provision, these are used in the VOICES section of the

u..orrr-rir. Seven Traidcraft plc staff, from various grades and

depatments, were questioned over a two month period'

TXCommunications has shifted its emphasis from development

education to broader popular communications during this

year. The Social Accounts reflect some of that shift in focus'

basic descriPtiue1. Services on offef

Educational Services

' information on fair trade issues

' educationalmaterials

' schools materials for National Curriculum

Training

' Training for ltaidcraft plc staffand reps. TX staff training

Study'lburs and Alternative Holidays

PMnformation. slide/photo library

' work with Traidcraft partner network

' PR for Traidcraft

' media work

Social Accounting Consultancy

2. Edtcational Services' 14 schools supplied with educational materials

' Schools packs sold:

No. of packs sold

. SocialAccounting/Audit

t+

' 118 "Mind Your Own Business" videos sold

' 14 "Mind Your Own Business" videos have

been loaned

' 989 adult enquir ies. J79 chi ldren's enquir ies

TX has a policy to answer all enquiries within five working days'

although this is not monitored for implementation'

' 8500 Growing Hope leaflets mailed with One'Wodd'Week

' 29 national press mentions of Traidcraft. 267 regional press mentions of Traidcraft

' 21 religious press mentions of Traidcraft

' 19 magazine articles of Traidcraft

' 13 radio mentions of Traidcraft

' 3 TV mentions of Traidcraft

' 20 press releases referring to Tfaidcraft

4. Work with Northern Partners

' 23 people went on L study tour, 1 alternative holiday

5. Training. 1 1 events run for Tfaidcraft plc reps (including training)

6. Social Accounting ConsultancY

' 5 Clients(This group was not contacted or reported on in this year's accounts

as it is a new area for TX and workwith all clients is still in pfogfess.

It will feature ^s

p^rt of ttle 1996/97 Social Accounts )

a,ccountabilitjtinformation

(taken from EU Project Evaluation Document)

i. ,tt the end of the three year EU funded project with comms:-

. "over the three years of the project we have reached our

target of 3500 multipliers through the provision of training

malerials and workshops. These multipliers have in turn the

potential to reach or may have already reached over 400'000

end users".

3. PR and Media Mentions of Traidcraft

MagazineArticles

Ha0l0 | v

3o/o l1oNationalPress 8%

13%

ReligiousPress 5%

. an external evaluation of one of the materials(the SKVISpack) indicated that users were moved on in their levels ofawafeness, empathy and motivation, remember the mainmessages several months later and took a range of specificfair trade related actions.

. Primary Materials for adults. Mind Your Own Business video - 700 copies sold or hired. SKVIS case study pack - approx 250 copies sold. Breakoutworkshop - approx 150 copies sold. Harambee workshop - approx 200 copies sold

, . Vlhose Bargain - 100 copies sold

2. Kenya study tour evaluation. from the Kenya study tour 9 people attended, 7 returned a

completed questionnaire with no negative comments.

Kenya Study Totn 1995A questionnaire is sent to all participants of study tours, normallyTraidcraft voluntary representatives, immediately after the tour.This is used to evaluate the experience and aid the planningprocess for future visits. The return rate on the 1995questionnaire was neady 8O%.

The questionnaire covers:. information provided. facilities, especially food and accommodation. visits to producer groups. comments

All responses received were generally positive, aside from arueful comment on sampling goats' tripe! and wanting to seemore of a cross section of Kenya life. The most memorable partsof the tour were involved in meeting Kenyan people, especiallyin their own homes. This was much more important than seeingwildlife and landscape, etc.The information gathered for the 1995 questionnaire hasresulted in arranging to spend more time in meeting Kenyansand making more of the study of tea production for the 1996study tour.Study Tours appeat to produce positive action on the pan ofparticipants. All the members of the 1995 group said that theywould be giving talks as a result of their tour and specialcomments were made on the need to publicise tea production byKenyan cooperatives rather than the multi-national companies.One participant received "an excellent insight into telling theTraidcraft story".For one participant it was her second tour, while another hadlearned about it from a member of the previous tour in 1994.Not evident from the questionnaires is the impact in theproducer groups of visitors on Study Tours. However, commentsare often made by the producers on their pleasure in meeting thepeople who sell their goods. The visitors are made very welcomeand greeted with enormous enthusiasm in appreciation for theirefforts.

Communications Section - EC Report for 1995Significant uses of the schools resource materials have included:

. Economics and Industrial Understanding Conference, Riponactivities from several resources including Marketplace.Contact 60 trainee teachers.

. Birmingham Conference featuring issues of values intechnology - Exhibition and workshop. Activities aroundDezign Inc using MYOB video and supplementaryinformation. Contacr approx 300 Technology tutors andteachers. Following this the Department of Education andEmployment funded the publication of a booklet to allTechnology departments in U/C schools - Dezign IncT-shirts and related activities featured.

. Sundedand University - Multicultural dimensions ineducation. W'orkshops using a variety ef resourcesincluding MYOB video, Bangladesh pack. Contact 60student teachers.

. Embroidery and Texile Tutors Association NationalConference at Bretton Hall. Presentation followed byworkshops usingvarious resources. Contact 200 teachersand tutors

. Religious Education and Environment Programme -Inservice Training at Newcastle. rW'orkshop using variousresources including MYOB, Bangladesh Pack andMarketplace. Contact 20 teachers

. North Eastern Cooperative Society and Christian Aid event.'Workshop on Marketplace. Contact 50 local reachers

. Greenbelt (Arts Festival). Practical workshops based aroundSKVIS batik work. Contact 120 children, adults and youngpeople. Marketplace played by approx 6O children andyoung people.

. Reps conferences andAnnual General Meeting. PlayedMarketplace and discussed its use with children. Contact 50reps

. Local schools - Marketplace, parts ofBangladesh pack andselections from MYOB video. Contacr 190 children

a

UO'CES1. Traidctaft plc Staff comrnents on TX ServiceProvision - see scope of accounts for details

Quotes,{Individual Comments"Fall dotan on up to date releuant images.""Need more uisuals of producers makingproducts.""On tbe ubole tae are bapp)) taith TX seruice prouision toTraidcraft plc.""Personal stories bctue been rea.lly useful and cumentinformation is a big improae/nent.""Study tours sbould be jointly run, not just TX. Tbey sbould baaea sales as uell as an education focus."

Reps department in plc"I tbink it's pretry brilliant at tbe moment.""I am incredibly pleased witb tbe tuay it's uorking."

2. Schools/General public. TX promoted the schools pack inJunior Education,

Primary Geographer and through fi mail out.Comments received re.

Market place game:-"looks excellent, am boping to use ft nert turft7!""good at raising anoareness offood issues""belps cbildren see food does not just arciue on sulterrnarketsbelues""tbe concepts seenx too bardfor young cbildren"

Bangladesh (Geography) Pack-" useful cros s-curricular opportunities, cbild,ren gained byutorking witb tbe pack"

' local paper Qrlewcastle) headed by quote "please belp usremember tbe people of Bangladesb. Help tbeir co-operatiuebusinesses to be successful. Encourage otberpeople to befairutben tbey trade witb tbird u.,orld countries.". Review in the Times Education Supplement 10.11.95".. extremely utell researcbed..positiae standpoint.. dealing indetail taitb buman geograpby in its most liieral sense. Tbepbotograpbs are excellent and anybody wbo bas spent time inBangladesb taould be able to feel tbe beat coming off the page"

Mind Your Own Business:-A pupil commented:'\Ve specially enjoyed tbe uideo. I baue been able to understandtbe utay Trade works. I am really interested in belping tbepeople of tbe Soutb"

consumers/partners south

Stakeholder Group. TX Partners. Marketing intermediaries. Producers

Two questionnaires were sent to eight organisations TX worksclosely with in the South, including the four partners. Sevenwere completed and returned.The questionnaire was designed following a consultationprocess which included meeting with the partners, andproducers, to highlight issues that could be developed intoquestions and indicators on how TX was performing againstits foundation principles and objectives.A report was prepared for the Overseas DevelopmentAdministrationJoint Funding Scheme (ODAJFS) during theyear in which all the OBDS work is covered, this has beenused extensively in the Basic Descriptive and Accountabilitysections of the accounts.The TX partners were established by TX in conjunction withand at the request of local organisations and individuals inthose countr ies.

basic descriptiue1. TX established, in coniunction with local organisations, andcurrently works with four partner organisations in:-

. India: International Recourse (IR)

. Philippines: MASAI

. Tanzania: Amka

. South Africa: Just Exchange ([X)

Funding is available to establish apartner in Kenya, andundertake a feasibility study in Bangladesh for another partner,this year. A new partner is proposed in either Uganda orZimbabwe in the second part of the year.

. TX offers two types ofservice:- Partner Development: Organisational Capaciry

building in the South- Export Marketing Services: Business back up

services to facilitate export/fair trade

2. Each partner is working with:. (IR) 17 businesses/groups. (MASAI) 27 businesses/groups. (Amka) 33 businesses/groups. AX) 24 businesses/groups

3. Other organisations directly assisted by TX:. Indonesia : 1 marketing organisatioi-I

(with 65 secondary groups). Bangladesh: 3 organisations

4. TX made:. 30 contact visits to its partners in. - developing countr ies

5. fi undertook 1 major export marketing training event in theUK for the partners: 10 people attended(evaluation available)

eo. &i.,..'k-.i",

. -

Products/Services provided by TX include thefollowing:

Information/research. Export Market inforrnation service. Market research reports. Commissioned market research. Producing country market information. Supplier evaluation. Social accounting

Training. Mentoring. Workshops - market information

- market awareness- jewellery

- clothing quality control- (foods)

. Training in the use of workshop material

. Commissionedworkshop development

. Business counselling

Marketing. Marketing planning. Product development. Clothing quality control. Export marketing. Pricing. Trade promotion

Organisational Developrnent. Business diagnostic. Structufe and strategy. Personnel management. Business systems

16-

accountabilityinformation

1. Evaluations/appraisals undertaken during the year. Amka: ODA appraisal (external consultant). JFS 371 Project Completion Report (internal). The Philippine Fair Trade Programme (PFTP) Study

(external consultant)

The above reports give a sample of how TX is achieving itsmissioo/objectives and were prepared for stakeholders it isaccountable to.

" Comments from the above reports include:"Amka ca.n clemc,mstrate tb.tt, on a consera,r.tiae estimate,ouer #100,000 of confirmed netu orders, tbe uery greatquantitJt of tbent exports, baue already followed tbeSeptember 1994 Fair Trade h-air. It is also clearly apparenttbat botb export buyers and partner producers trust Amka,

find it efficient and knowledgeable, and mucb appreciatetbe uork it bcts done" (Amka appraisal)

"Tbe releuance of tbe Programme's objectiues, and tbeappropriateness of its target clients and seruices wereaffirmed by tbe respondents. Producers were particularlyappreciatiue ofproducts sucb as storyboards and ideas

files utbicb proaid.e market information ctnd icleas onproduct clesign. Not surprisingQ, introtluction to botbexport and local markets were cited as tbe two mostneeded among PFTP's seruicesfollotued. by training onproduct deuelopment". (The PFTI study)

Other reports and evaluations are available from workundertaken in previous years, but have not been included hereas thev reflect eadier rather than current rvork.

UO'CESResponses taken from two questionnaires the first being againstTX Goals and Objectives, the second regarding TX serviceprovision. Questions had a range of 1 to 6: 1 being low and 6being high. The number at the end of each statement below isthe average across completecl questionnaires, 3.5 being themedian. In future year on year comparisons will be made.

Goals and Obiectives Questionnaire -Consumers Paftners South Responses1. TX has raised pubiic awareness of fair trade issues.

4,5

2. TX has contributed towards an increase in fairly traded products4.8

3. TX has assisted the general public in taking action regarding lairtrade issues in the UK (and developing countries).

3'7

4. 'lX has enabled businesses in the South to pafticipate in worldtrade.

"o5. TX has enabled businesses to trade in a sustainable way.

4.2

6. TX method of working in international trade has benefitted thelocal community.

r 4.3

7. TX has encouraged ethical business practices in the North (UIQ.42

8. TX has en o.,.uged ethical busincss practice in the South.4.2

9. TX has achieved its rnission as stated in the mission statement.4.2

10. TX has operated in a way which accorr ls wi th the foundat ionpr inciples.

5.O

11. TX,has,provided us with enough inf.ormation co understand how

well it has performed against its obiectives.

4,5

TX Service Provision Questionnarre -Consurners,/Partfrefs South Responses1. TX has produced timely information regardin{a its work.

4.9

2. TX inputs have increased the efficienry ofour organisation.5.6

3. TX business services have been provided in a culturally sensitivemznner.

4.9

4. TX assistance has generally resulted in increased exporl orders fotus or ou.r target group.

4.9

5. Thc export orders generated by fi inputs have increasedproduction ofvalue added goods utilising, as fal as possible,locally available materials and techniques.

5.O

6. The TX fair trade focus has been beneficial to the producer-sassisted.

4.6

7 . The number of visits from TX staff has been adequate for achievingour objectives.

4.8

8. The clear clistinction berween the role of TX and Traidclaft plc hasbeen beneficial in our development process.

3.9

9. TX business services have becn export sales lbcused.

4.6

10. The TX Christian motivation has positively effectecl therelationship between our organisations.

4.3

I I . 'D{ rraining inputs havc bcen ef fect ive.4.9

12. TX have provided value for money with its service provision.4.7

13. TX has facilitated partner feedback in setting its objectives and

stfategy4.1

The questionnaires were sent to eight organisations, seven ofwhom returned completed questionnaires (an 87.5% rate ofreturn).One partner organisation returned the Goals and Objectives

Questionnaire with the comment that they "are not in a positionto fairly answer" the questions posed in it.One parlner did not receive copies of the Foundation Principlesor Mission Statement and could therefore not comment onquestions 9 and 10.

High scores indicate that Southern consumers of TX services areall very positive and supportive of TX inputs and serviceprovision. The especially high score for question 2 showing howhighly valued TX inputs are to these organisations. The mostremarkable scores suggest that the efficiency of the work of thepaftner organisations has increased dramatically especiallybecause of the training inputs of TX. There has also been anincrease in the production oflocal value-added goods, ie a realimprovement in local economies, question 5 is therefore a keyinclicator of the effectiveness of TX work.

The lowish score on number 13 may be related to similar scoringon the other questionnaire (Goals and Objectives) on TXprinciples. This may reflect a low achievement by TX, or a lowunderstanding or a lack of interest in this area by partners.The high scores obtained in the Consumers'?artners Southresponses indicates that TX inputs appear to be appreciated bypartners in the South. This was expressed by the followingcomment: "TX nefworking within Southern partners hasimproved services, knowledge and skills".

t . -cnarttyJ1

commtsstonersThe Charity Commissioners have their ownformat of reporting, completed copy for this yearavailable with accounts. They request information asrepresented in their reporting format only.

suppliersStakeholder Group

. Traidcraft plc offrce supplies

. Consultants

. Training advisers

. Business Travel

. Tyneside TEC

. Printers

. Study Tour/Alternative holiday advisers

. Supplier of computer hardware and software

TX uses consultants for a variety of.purposes across alldepartments and sections. A computer print out of invoicespaid was obtained from the accounts department, this gave alist of current consultants employed by TX.Other supplier stakeholders were identified by eachdepartment and added to the group.The questionnaire used with other stakeholder groups tomeasure TX performance against its goals and objectives wasalso used for this category and sent to 36 individuals, or theirorganisations, with an added sheet allowing for additionalcomments. 17 replies were received (47.5"/" return rate),although only 14 questionnaires were returned completed,with three letters explaining that they were unable to filI inthe questionnaire.

basic descriptiueL. TX has used :

. 23 dlfferent individual consultants

. 1 travel agent

. J training organisations

. 1 alternative holiday operator

. TC plc graphics

' 7 suppliers of information/networkers. TC plc for office supplies. 1 computer supplier

2. Consultants. Consultants form an important part of TX work across all

departments. They have been used to provide expertise on:

- fund raising/donor base- TX organisation structure- marketing- evaluation- social audit/accounts- finance- training

design

The possibility of the TX directors and trusteesbeing included in this section was discussed by the

social accounting advisers. Their recommendation wasthat this report is undertaken for the board and tr-ustees andtherefore they should not be included as stakeholders reportingto themselves.

3. Travel agent' . fi has a poliry to use one local travel agent who

provides a rar'ge of services including:- ticket reservations for all types oftranspon- visa processing

- travellers cheque supplyup to date flight information

. A decision was made at executive level in 1991 to support asmall local travel agent rather than shopping around for thecheapest service. Checks are made on a regular bases toensure a good deal is obtained for TX and its partners.

This business openly supports the principles of TX, offers adiscount for invoices paid before the 15th of each month and areBS575O^SO 9002 accredited.

a,ccountabilitjtinformation

1,. Purchasing Policy. TX does not have a formal purchasing policy (although

obtains advice from Traidcraft plc) for equipment orservices. The only limit to spending is determined bybudget. The purchaser of equipment normally obtainsquotations from several organisations prior to a decisionbeing made regarding who to buy from.

2. Coding. All expenditure is coded and booked against a budget

heading.. Prior to consultants being engaged terms of reference are

prepared and agreed by the head ofdepartment and projectteam. Expenditure is matched against forecasted income.

3. Budgets. Budgets afe set against work programmes on an annual

bases with each manager,rbudget holder. Budget headingsare allocated a code which has to be included on theinvoice, and approved, prior to any purchase.

Reports are supplied on a monthly bases to budget holders bythe accounts department, indicating expenditure against budgetfor that period and cumulative.

4. Reports. Consu)nnfi ptoducea report thatseles severd purposes)

including being a record of that particular piece of work.Final payment is normally made on completion of thefepoft.

5. Standard Forms. TX have the following standard forms for expenditure on

suppliers:-

- Petty Cash Voucher (max.525)- Purchase Orders/Credit Card Expenditure

- Cheque Payment Authority Used 386 times- Foreign Payment Authority DraftAransfer Used 22 tines- Purchase Requisition (TC plc)

6. Computer Hardware/SoftwareSeveral companies were used for purchasing computer hardwareand software prior to finding one company that meets all TXrequirements at a reasonable cost.

One company cuffently supplies all TX computer requirements.

7. Office equipment is provided by Traidcraft plc as a better deal

could be obtained by purchasing in bulk rather than separatelyfor TX.

8. TX has a policy to pay all invoices within 30 days or to theindividual requirements of each supplier invoice.

a

UOICCSResponses taken from Goals and Objectives questionnaire.

Questions had a range of 1 to 6: L being low and 6 being high.The number at the end of each statement below is the averageacross completed questionnaires, 3.5 being the median. In futureyear on year comparisons will be made.

Goals and Obiectives Questionnaire -Suppliers Responses1. IX has raised public awareness of fair trade issues.

4.O

2. TX has contributed towards an increase in fairly traded products.4'2

3. TX has assisted the general public in taking action regarding fairtrade issues in the UK (and developing countries).

3.6

4. TX has enabled businesses in the South to participate in worldtrade.

5. TX has enabled businesses to trade in a sustainable way3.7

6. TX method of working in internaiional trade has benefitted thelocal community. . i

7. lX has encouraged ethical trusiness practicea in the Nofth (UIg.3.6

8. TX has encouraged ethical business practice in the South.3,S

9. TX has achieved its mission as stated in the mission statement.

10- TX has eperated in a way which accords with the foundation

b11c+les.4.5

1 1. TX has provided us with enough inforrnation to understand how

well it has performed against its obiectives.3 ' l '

Most responses were averaged as positive (ie above median line)except for number 11. which referred to methodologr of socialaudit rather than performance of TX.

From comments made it appeared that many questions wereeither beyond the direct experience ofthose responding or tootight and should be more open-ended, but all tried to be helpfuland the attitudes of all were positive and encouraging. Theconcept ofsocial accounting was generally approved ofandsupported, but the wording of the precise questions causeddifficulties for the individuals concerned. $7here negativeresponses were given they were usually qualified in thecomments by statements that they were not based on directexperience.

Other comments:1. Praise for professionalism ofTX2. Impressions of TX may be coloured by standards of

merchandise sold by plc.

3. The Mission Statement of strong Christian principles may beturn-off for members of other faiths as well as for non-religious and environmental groups.

4. There is a need to promote TX principles (via educationalpacks and materials) in schools, especially in Scotland.

5. TX impact in the South doubted in one response based partly

on contacts with TX staff and newsletters. (Are we putting outthe wrong signals?)

Comments made by suppliers:

' 'Appreciate oppoftunity to register comments". "Hard to distinguish befiveen impact of fi or raising

awareness among consumers and TC plc. But the "TCzlTX"method is cleady reaching people and finding/making fairtrade converts"

. "From our USA base it is very difficult to judge TXperformance against TX mission, goals and objectives, muchof our response is based on impressions from second-handinformation and hearsay"

. 'As a supplier TX is a very professional group to work for.....clear brie{ good back-up....no problems"

. "I feel I have ticked boxes in a vacuum of no real knowledgeabout TX's work."

. "Our role as a stakeholder is presumably based on TXmembership, which is valuable. How this achieves the goals

of TX I can only guess!"

" ; r - r ; , r ;