...In this e-mail name, address, type of education and contact person should be mentioned as well as an estimation of the number of students using the case. The case can be downloaded for free on www.hbodio.nl Coordination: Daniël van Middelkoop: Martin Oyevaar: d.vanmiddelkoop@aliceo.nl m.oyevaar@aliceo.nl October 2007 www.hbodio.nl/english 3 Contents Introduction ..............................................................................................................5 Background ...............................................................................................................6 1. Corporate Social Responsibility and the coffee sector ......................7 2. 3. 4. 5. 6. 8. Fair Trade...........................................................................................................7 What is Corporate Social Responsibility? .........................................................7 Max Havelaar.......................................................................................................8 What about CSR in the coffee sector? ...............................................................9 The...
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...ASSIGNMENT ON SAINSBURY PLC Background Information Sainsbury is the one of the oldest supermarkets in the United Kingdom. Sainsbury was founded in 1869 by John Sainsbury and his wife, Mary Sainsbury. Today Sainsbury runs 1,200 supermarkets and convenience stores. Its employees are around 161,000 and it is now one of the largest supermarkets in UK. Sainsbury plc. Business consists of supermarkets, convenience stores and Sainsbury banks. In 2010, Sainsbury became the first world’s largest retailer of fair trade products and only food retailer to have won Gold accreditation by the investor in people. Vision: ‘’To be the most trusted retailer where people love to work and shop.’’ Goal/Objectives: ‘’To make all our customers’ lives easier every day by Offering great quality and service at fair prices.’’ Mission: Is to be provider of healthy, safe, fresh, and tasty food at fair price Reference: http://www.j-sainsbury.co.uk/about-us/ Strategic objectives: The Sainsbury strategic objectives are to be the most trusted retailer and to be supermarkets where people will love to work and shop. Sainsbury plans is to focus on five areas that are supported by their strong values, culture and operation excellence. The business strategy and objectives are categorised into five areas of focus as follows: Reference: http://www.j-sainsbury.co.uk/about-us/business-strategy-objectives/ The Sainsbury stakeholders are as follows: Suppliers: These are agents that supply...
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...Introduction P4 In this assignment I will be looking at the ethical concerns facing the communities in which Divine Chocolate operate in. The main ethical concerns for Divine Chocolate would be globalisation, cultural imperialism, ecological issues, fair trade, child labour and exploitation. The main communities in which divine would operate in would be Local which would be the Ghanian communities which would be the people living in Ghana such as families and local businesses, Kuapa Kokoo which would be the farmers who harvest the coco beans and communities around the UK and Germany which again would be people living there and businesses run. Other communities would be regional and national which would be UK and Ghanaian governments. The final community would be international this would look at fair-trade organisations such as (FTO), United nation, European Union and finally pressure groups such as green piece. Ethical Concerns The main ethical concerns which I will be using will be globalisation, cultural imperialism, ecological issues, fair trade, child labour and exploitation. I will give a brief description of each ethical concern first and then cover how they affect different communities in which Divine operates in. Globalisation – This ethical concern allows businesses and people from all over the world to communicate with each other and do business as technology is always developing. It gives businesses the opportunity to sell products and make a profit at the...
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...TO: Prof.XY FROM: XY DATE: March 23, 2014 SUBJECT: SWOT Analysis Business Brief The following assignment requires Custom Coffee & Chocolates Company analyzes of the internal and external environment, identifying its strengths, weakness, opportunities, threats and develop strategies for the matches. Coffee drinking is one of the most world spread and consume habits of all time. Americans consume 400 million cups of coffee per day, equivalent to 146 billion cups of coffee per year, making the United States the leading consumer of coffee in the world. The Huffington Post (February 11, 2011). These consumed routine and behavior led many people to start up their own occupational in the coffee business. One such sample is close friends and ex roommates Bonnie Brewer and Stacy Kim, who decided to open a café which will offer coffee and fine chocolates. Holding a cafeteria is certainly an occupational who offers plenty of possibilities; on the other hand it is a business with an exceptional high competition. Necessary strategies, for successful story In the modern competitive business if you want to be the best you should be the first among all, offering customers something new, something different or you should be competitive by offering low-priced services. Although sounds that simple, those are the basic rules. Logically, you could not become the greatest overnight because it needs many years of time and resources. However, in imperative of more successful business...
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...The Effects of Globalization and the Coffee Industry Assignment #5 ECON 401 December 30, 2014 Globalization has had an effect on many aspects of our lives, socially, economically, politically, and culturally. Since the 1970’s trade barriers have been minimized and the coffee industry has been a high import and export for many countries being the second most traded commodity in the world behind crude oil (Chapman, Hodges, 2011). As the industry evolved and large corporations fed on the increasing demand for coffee, it has become a commodity many countries rely on; 20 million people depend on coffee for their livelihood (AAFC, 2010), whether it be the north American coffee retailor to the small farmer, we can say that globalization has and will continue to affect every aspect of the coffee chain. Supply, Demand & Price It is evident today that people need to have their coffee. In the 1960’s and 70’s half of the worlds coffee came from Columbia and it was about $3.00 per pound (Lewis, 2014). The industry was booming and protected by the Columbia Coffee Federation. This was a regulatory party who acted as a mini union for the coffee farmers who basically had no voice to the state. At this time it was good business to be in agriculture in Columbia. Since then demand has only risen as the large coffee retailors such as Starbucks and Seattle’s best have made coffee drinking a major social pastime. The shifts in the coffee supply and demand are not predicted by...
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...I - Issue and Scope: The primary Corporate Social Responsibility (CSR) issue in the case is whether Nestlé should label its new product ‘Partners’ Blend’ with the Fairtrade brand or continue with its own social responsibility initiatives. United Kingdom (U.K.) is one of Nestles major markets. Therefore, it is imperative for Nestlé to be aware of the social, environmental and financial circumstances surrounding its business. Social: From the social perspective, the main circumstances that concerned Nestlé were local infrastructure, Fairtrade payment and the avoidance of child labor. In connection to that, products marked with Fairtrade label were described as “ethical” and “sustainable” conveying a broad message that farmers of these products have been given fixed price or have met ethical standards. Environmental: From the environmental perspective, there is a growing market trend in the U.K. for environmentally-friendly materials and therefore recycled materials in the packaging would have a big impact in consumers purchase decision. In addition, ecological washing systems have been built by Nestlé initiatives in order to expand water distribution within communities. In 2004, there were 1000 Fairtrade products from 150 companies available in most of the super market stores in different product categories. Finally, improvements in nutrition, environmental standards and agricultural supply chain have been discussed as circumstances. Financial: On the financial...
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...other companies like Sainsbury would get less about £0.75. The products that are available that are Fairtrade are: Chocolate, Fresh Fruits like Bananas, Mangoes and Pineapples, Coffee, Biscuits, Sweets, Alcohol, Honey and Teas. These are just a small amount of goods that are Fairtrade and there are many more. You can get these items at Major Food Stores like Waitrose, Sainsbury’s and Morrison’s. What is Fairtrade ? The benefits for the Farmers and their communities For an item to be deemed Fairtrade it has to meet a number of conditions : Ensure a guaranteed Fairtrade minimum price which is agreed with producers. Enable pre-financing for producers who require it Emphasize the idea of partnership between trade partners. These are the main standards but there are many more. By Harry Slack 9W Case Study of a named farm and farmer What products are available form Fairtrade and were you can get them It provides a living wage, that is a wage high enough to provide the basics in that community. Market price for products is always guaranteed, so in times of poor harvest then the farmer still has a regular income. It ensures that the farmer gets decent working conditions, that children can not be used as child labour so can go to school. Mrs Boonjira Tanruang, 41, has been General Manager of Green Net Cooperative, Thailand since 2000.Green Net exports 800 tonnes of organic Fairtrade certified rice to Europe per...
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...How Fair Trade positively affects: Economy | Environment | Social Equity | It creates jobs that allow workers to gain a living wage, not just subsistence. Less money goes to a middle person; thus workers improve their lives and those of their families. When people earn a living, they enter the ranks of those who are able to contribute to society through payment of taxes. | Organic products protect the natural environment as well as workers. (For example, Fair Trade food products such as coffee, cocoa, and bananas are often organic.) 100 Fair Trade farms rely mainly on biological or organic fertilizers and natural pest control. | When a social premium is paid to communities through Fair Trade, more funds come through the community to meet basic needs including water, sewage treatment, and schools. | Money can stay in the community through purchases of cement floors, stoves, shower, etc. | With organic products and the use of organic fertilizers and natural pest control, people are safer because they are not exposed to toxic pesticides. Simultaneously, the land, water, and air are protected. | Fair Trade recognizes for labor unions, avoidance of child labor, safe and clean working conditions, and fair wages | Fair Trade farmers are able to deal directly with the market buyers and demand a living wage. With portions of their revenue being continually reinvested. | Fair Trade farms plant cocoa or coffee with shade and fruit trees. This promotes biodiversity, encouraging...
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...Ethical behavior and corporate social responsibility can offer significant benefits to a company. Ethical business conduct not only gives the company a great reputation but it also has a positive effect on its bottom line. One of the companies listed on the Ethisphere Institute's list of the World's Most Ethical Companies is Starbucks. Starbucks Corporation has 19,972 stores in 60 countries and is world’s largest coffeehouse chain, and is considered one of the world’s most famous and most liked consumer brands (Mocallejon, 2012). Over the last decade, the company has made the lists of Most Admired Companies in the U.S., 100 Best Companies to Work for, 100 Best Corporate Citizens, World’s 50 Most Innovative Companies, and World’s Most Ethical Companies. According to the company’s executives, their success is mainly attributed to their commitment to social responsibility and ethical conduct. Starbucks believes that striving to do the right thing with regards to their consumers, the environment and their employees is vital to the success of the company, and demonstrates its values in a number of ways (Starbucks, 2013). When it comes to being morally responsible towards consumers, Starbucks is committed to provide wellness to its customers by offering low-calorie quality products that do not contain unhealthy ingredients such as dyes, artificial flavors, and high fructose corn syrup. The company also strives to establish a human connection with consumers by ensuring that its shops...
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...a brand. The world’s consumers have increasingly become aware of the true costs involved in the production and distribution of an item. Currently, there is a dire need to realize the historically ignored social, environmental, and personal impact throughout the supply chain. Ethical supply chain management in the coffee industry has been addressed through the implementation of the Fair Trade program. This program ensures that coffee bean growers in impoverished countries receive a reasonable wage for their harvest (www.globalexchange.org). In the past, market fluctuation, bean surpluses, and currency disparity severely affected growers’ income worldwide. With such an enormous global demand for coffee, it is sound business practice to compensate these workers fairly and encourage sustainable farming practices. This will decrease the environmental damage caused by the production of beans, leading to a more secure crop supply – positively impacting the coffee market at large. 2. A recent study by the UK’s Institute of Grocery Distribution determined that the majority of consumers do not buy fair trade products. The report noted, “self-interest is at the center of food choice for most consumers. Few consumers consider the impact of their purchase decisions on anyone or anything but themselves and their family.” Do you agree with this finding? I completely agree with this finding and feel that for the majority of consumers, it is the proper course of action. It would be grand...
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...THE WILLIAM DAVIDSON INSTITUTE case 1-428-664 February 2008 A Moment of Reflection DO Coffee and Ethiopia Schultz commented: “We’ve learned that perhaps one of the reasons that the NGO (nongovernmental organization) is involved in this is because they’re in a membership drive, and perhaps Starbucks is being used as a foil.” What would this allegation do to Oxfam’s brand? Oxfam’s members were frequently asked to act upon issues of economic injustice. Would Schultz’s comment cause them to doubt Oxfam’s credibility? And what about the Ethiopian coffee campaign? Should they continue pursuing the campaign? The last thing Oxfam wanted to do was get into a spitting match with Starbucks, an organization that had once partnered with Oxfam to raise awareness about coffee issues. It could take years before both sides came to an agreement, and Petchers wondered whether pressing this issue would damage all of Oxfam’s efforts. Petchers knew that people were watching this campaign very closely. The way in which he proceeded would not only affect their efforts to support Ethiopian coffee farmers, but also Oxfam’s campaigns across the world. In 2007, it was estimated that US$9,167,691 worth of unroasted, caffeinated coffee entered the global marketplace.1 This coffee is grown in approximately 53 countries, all located along the equator between the tropic of Cancer and the tropic of Capricorn.2 The three most prominent regions for the exportation of coffee beans are Latin America...
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...What is ethical sourcing? It is a situation where a company deliberately buys raw materials from suppliers who process their products under ethical conditions. By this, I mean employee working conditions, fair trade practices, optimize the use of natural resources What does Starbucks source ethically? Coffee: * Starbucks purchases 86% of their coffee beans from ethically sourced suppliers * Starbucks requires that most supplies comply by the CAFÉ practices. By this I mean Coffee and Farmer equity practices which encompass guidelines covering a broad spectrum of ethical issues like employee working conditions, employee welfare, environmental impact and fair trade practices * Starbucks also ensures that the cocoa suppliers comply to the Cocoa practices program which verifies the supply chain related to cocoa beans to ensure long term supply of ethical tea ingredients Tea * Starbucks is working on CHAI which is community health advancement initiative to improve the conditions of the tea ingredients (tea and spices) manufacturers in Darjeeling and Assam parts of India where tea is grown in large scale Store * Giving customers a “Starbucks experience” is a big part of Starbucks business. * Starbucks ensures that all the store related merchandise, furniture, aprons, etc are sourced under ethical means WIP * Train suppliers to comply by ethical regulations by validating them time to time * Benchmarking ethical practices against peers (coffee companies) ...
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...Mystic Monk Coffee Executive Summary More funds are needed to establish the new Carmelite Order than exist. Thus, a summary of revenue sources, expense statements, and the business model of Mystic Monk Coffee is presented. The coffee industry is also analyzed. Characteristics of Mystic Monk’s Coffee and how that affects its revenue generation is discussed. An analysis on increasing production capacity and subsequently reaping increased revenues is discussed. Finally, recommendations for converging to full production capacity and revving up marketing are given. Problem Statement Father Daniel Mary aimed to establish a new Carmelite Order of the Monks in the Rocky Mountains. The current order includes a ranch home on 42 acres to accommodate 13 monks. The monks are considering Irma Lake Ranch, a 496 acre property with a 17,800 sq ft remodeled residence, caretaker house, guest house, hunting cabin, and dairy and horse barn, for $8.9 million. Considering the scope of the revenue generating business and donations they have received, Father Daniel Mary must determine how to fund the new establishment. While the existing operations generate revenue, the monks must increase product capacity and increase volume to generate more sales of coffee to amass enough funds to purchase Irma Lake Ranch. Summary of Facts Currently, the Carmelite Order has a donation of $250,000 from the community. Local business owners have also started a foundation to amass donations in the monastery’s...
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...britain ’s bruisin g banana wars Why ch threat eap bananas Policy en farmers’ report future s A Fairtrade Foundation Report February 2014 When I sell a box of bananas it’s a product with quality, with incredible taste, so it should be fair that you pay a fair price for it. Horatio Hernandez Coobafrio Co-operative, Magdalena, Colombia January 2014 contents 1 Introduction 4 2 6 Executive Summary Britain’s Bruising Banana Wars 16 16 20 21 4 The banana value chain 4.1 The UK banana market 4.2 The retail price of bananas in Britain 4.3 UK banana imports 2002 – 2013 4.4 Changes in banana supply chain operations 4.5 The impact of supermarket price wars on producers 4.6 Producer prices vs costs of sustainable production 22 22 23 5 The market environment for bananas 5.1 Evolution of the global banana trade 5.2 Consolidation of retailer power and UK price wars 5.3 The impact of competition law on banana prices 38 6 Fairtrade’s alternative approach 6.1 General background to the Fairtrade system 6.2 Fairtrade bananas – scope and scale 6.3 airtrade: the benefits and F constraints for farmers and workers 2 3 About this report 3.1 Fairtrade’s involvement in bananas 3.2 Research objectives and approach 3.3 Methodological note 7 Achieving a sustainable banana industry 7.1 inclusive market An ...
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...and the environment. The government can control the output of products that aren’t the best for us. In other countries such as Europe, the government requires food manufacturers to label genetically modified ingredients (GMO) on the back of any food product that may contain them. With laws that govern the usage of food additives and GMO’s, consumers can then “vote with their dollars”, having a big influence on what type of items will be produced. I think the fair trade philosophy is most ideal in todays world. Educated consumers want to buy products that are manufactured with no cruelty and where equal rights for the people who construct the products, are incorporated in their daily activity. In 2011, Apple was the headline of many news article that spoke about the conditions of the factories where Apple products are produced. Many people were disgusted with the way workers in the Foxconn factories where treated with even reports of people committing suicide because of the brutal work conditions. I think the fair trade philosophy will work great for the global economy because it will create better work environments for manufacturing facilities, causing more consumers to feel guilt free about purchasing products from companies that have...
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