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CBS International Business School, in collaboration with the European Environmental Bureau, the Wellbeing Economy Alliance, and the World Fair Trade Organization, has developed the concept of "Ethical World Trade & Economy for the Common Good" to promote a fairer and more sustainable global trade framework. At the heart of this proposal is the integration of social and ecological standards into trade regulations. The concept combines climate protection, human rights, and local economic empowerment, aiming to inspire policymakers, businesses, and the next generation to work towards a fair and sustainable global economy.
In light of global challenges such as the climate crisis, increasing social inequality, wars, and the erosion of democracy, a radical shift in the international trade order seems indispensable. That is why an interdisciplinary team of academics and practitioners has developed an innovative foundation for reorienting international trade through the working paper "Ethical World Trade & Economy for the Common Good." The aim is to foster a paradigm shift that moves beyond mere free trade, focusing instead on social justice, ecological sustainability, and international cooperation. This groundbreaking concept was presented this week by Prof. Dr Brigitta Herrmann (CBS), Christian Felber (Economy for the Common Good), and Jürgen Knirsch (expert in global trade) at the campus of CBS International Business School in Cologne.
Why Free Trade Has Reached Its Limits
The researchers criticise the World Trade Organisation (WTO) for treating trade and investment as ends in themselves while neglecting social and environmental aspects. The proposed concept calls for a clear alignment of trade practices with global goals such as climate protection, human rights, and fair distribution.
Trade as a Tool for the Common Good
The main research question is: How can global trade be made fairer and more sustainable? The goal is to align trade relationships strictly with social and ecological principles, thereby creating a global economy oriented towards the common good. The new approach is not only directed at policymakers but also at businesses and students. It provides businesses with guidance on how to make their business models more sustainable and offers students opportunities to engage deeply with the challenges of a forward-looking global economy.
The researchers propose integrating the global trade order into the UN system to better align trade rules with universal values such as sustainability and human rights. This alignment should be made measurable and verifiable through a system of incentives and sanctions.
A Perspective for a Fairer Global Economy
The vision centres on creating a "United Nations Ethical Trade Zone" (UNETZ), supported by an ethical tariff system. This system would re-ward countries adhering to international agreements on human rights, climate protection, and labour standards, while penalising violations. At the same time, national sovereignty would be preserved by allowing weaker countries flexible market strategies. Another focus is on promoting local and resilient economic cycles to ensure sustainable value creation and crisis resilience.
The researchers emphasised that the concept of "Ethical World Trade & Economy for the Common Good" offers the EU an opportunity to strengthen its core values – such as human rights, environmental protection, and cultural diversity – not just within Europe but on a global scale. For instance, such a system could increase export tariffs on unsustainable products while providing incentives for low-emission technologies.
Synergies with Existing Strategies
By embedding a rules-based, ethical trade order within the UN system, the goals of existing EU strategies, such as the Green Deal and the 2030 Agenda, could be effectively supported. Simultaneously, the approach creates synergies with international agreements, including the Paris Climate Agreement and the conventions of the International Labour Organisation (ILO), positioning the EU as a pioneer for a sustainable and fair global economy.
The full working paper is available for download on the CBS website. The research findings were also presented on 21 November at an event hosted by the European Environmental Bureau in Brussels.
https://www.cbs.de/en/about-us/research/publications/cbs-working-papers-white-pa...
Presentation of the Working Paper: Prof. Dr. Brigitta Herrmann, Christian Felber
Eric Greven
CBS International Business School
Criteria of this press release:
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Economics / business administration, Environment / ecology
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Research results, Transfer of Science or Research
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Presentation of the Working Paper: Prof. Dr. Brigitta Herrmann, Christian Felber
Eric Greven
CBS International Business School
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