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Towards a Sustainable Coffee Market: Paradoxes Faced by a Multinational Company

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  • Ans Kolk

Abstract

This paper examines the case of sustainable coffee as faced by Sara Lee's International Coffee and Tea Division (SL), asking which strategic direction the company should take considering its regulatory, competitive, and societal contexts. More than a decade after sustainable coffee became a strategic issue for SL, emerging public purchasing guidelines seem to exclude the ‘mainstream‐market’ policy of the company and instead favour the Fairtrade standard that embodies a niche approach. The case presents the strategic, organisational, and marketing dimensions, in their international supply‐chain and industry dynamics. It raises the question what it means for a large, mainstream, multinational company to move to sustainability when the issues at hand are very complex, when consumer awareness is limited, and when the market for sustainable coffee is not yet mature. Several strategic options are presented, each with their pros and cons, as input for further discussion and research on the paradoxes related to sustainability and international business. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Ans Kolk, 2012. "Towards a Sustainable Coffee Market: Paradoxes Faced by a Multinational Company," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(2), pages 79-89, March.
    • Handle: RePEc:wly:corsem:v:19:y:2012:i:2:p:79-89
    DOI: 10.1002/csr.289
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    References listed on IDEAS

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    1. Kolk, Ans, 2005. "Corporate Social Responsibility in the Coffee Sector:: The Dynamics of MNC Responses and Code Development," European Management Journal, Elsevier, vol. 23(2), pages 228-236, April.
    2. Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
    3. Ponte, Stefano, 2002. "The 'Latte Revolution'? Regulation, Markets and Consumption in the Global Coffee Chain," World Development, Elsevier, vol. 30(7), pages 1099-1122, July.
    4. Giovannucci, Daniele & Byers, Alice & Liu, Pascal, 2008. "Adding Value: Certified Coffee Trade in North America," MPRA Paper 17174, University Library of Munich, Germany.
    5. Kolk, Ans & Van Tulder, Rob, 2004. "Ethics in international business: multinational approaches to child labor," Journal of World Business, Elsevier, vol. 39(1), pages 49-60, February.
    6. Muradian, Roldan & Pelupessy, Wim, 2005. "Governing the coffee chain: The role of voluntary regulatory Systems," World Development, Elsevier, vol. 33(12), pages 2029-2044, December.
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    Cited by:

    1. Sharma, Varun & Vijayaraghavan, T.A.S. & Raghu Ram, Tata L., 2023. "Resolving operational paradox of sustainable supply chain: A decision framework approach," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    2. Zhang, Jiayuan & Yalcin, Mehmet G. & Hales, Douglas N., 2021. "Elements of paradoxes in supply chain management literature: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 232(C).
    3. Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.

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