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Ethical Supply Chain

In: Business and Management

Submitted By wli123
Words 313
Pages 2
Ethical Supply Chains
1. Is it important for coffee marketers such as Starbucks, Kraft, and Nestle to create “ethical supply chains” Why?
In today’s global marketplace it is imperative for organizations to transform their brands and create an ethical supply chain. No longer do “old style” metrics depict the actual value of 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 if every person in the world were concerned with responsible sourcing...

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