...What is fair trade? Fair trade is described as an alternate approach to conventional trade and is built on a partnership between consumers and producers. When farmers conduct their business under Fairtrade terms, it provides them with better deals and better terms of trade. Such scenarios give them a chance to better their lives and plan for their future. Fair trade also gives consumers the power to diminish poverty in their everyday shopping (Marshall & MacDonald, 2013). How fair trade benefits consumers? When people become mindful of the tremendous challenges that people endure around the world, they become dazed with what to do. Philosophers say that it is not bad to be upset, but rather getting inspired is better. Change can be done however only when people take action. Consumers of Fair Trade benefit from being able to purchase quality products for daily use. They can also buy gift purchases, having the knowledge that others have not been exploited in the production process. People have to shop for their daily needs, and Fair Trade allows them to buy this thing with a clear conscience knowing that others are benefitting from these purchases (Slack, 2009). Fair Trade means that a customer’s spending, as well as giving, results into a powerful tool for good. The choices of available products for consumption and daily living, as well as for the occasional gift giving events, are increasing all the time. By purchasing Fair Trade products, consumers send primary signals...
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...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...
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...developed as an important area or function of business since World War II. It has gone through several phases of development in achieving its present status. It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007) Logistics can be divided into two parts: domestic logistics and international logistics. Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors : 1) Logistic costs is International Business is much more higher than the domestic business 2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics 3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d) Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001) There are some roles of global logistics: • Globalization helped in doing business beyond the national boundaries. • Internet...
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...WWW.OASISUSA.ORG. 2 September 2010 1:;E> H? HGM>GML Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Areas for Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Desired Outcomes for a Fair Hershey’s . . . . . . . . . . . . . . . . . . . . . 7 Problems at the Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Lack of Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Lack of Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Commitment to Ethical Cocoa Sourcing . . . . . . . . . . . . . . . . . . . 15 Certification Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Other Corporate Social Responsibility Initiatives . . . . . . . . . . . . . . . 18 Job Losses and Worker Rights Abuses in the US . . . . . . . . . . . . . . . . 21 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Desired Outcomes for a Fair Hershey’s . . . . . . . . . . . . . . . . . . . . 24 Appendices A. Breaking the (Supply) Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 B. Harkin Engel Protocol Timeline . . . . . . . . . . . . . . . . . . . . . . . . 27 C. Overview of Cocoa Production Certification Initiatives . . . . . 29 D. Commitment to Ethical Sourcing . . . . . . . . . . . . . . . ...
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...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...
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...CREATING SHARED VALUE IN THE SUPPLY CHAIN-‐ THE NESTLE COCOA PLAN SUBMITTED BY: KUSHAL RAMESH (001753444) SUPPLY CHAIN MANAGEMENT 6210 CREATING SHARED VALUE IN THE SUPPLY CHAIN-‐ THE NESTLE COCOA PLAN INTRODUCTION Nestle was founded in 1866 by Henri Nestle. It has its headquarters in Vevey, Switzerland. Nestle is today the world’s leading nutrition, health and wellness company. Nestle employs 339000 people worldwide and has 442 factories in 86 countries. Nestle’s products include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Creating Shared Value: Nestle aims to create value for society and shareholders in the areas where the company can have the biggest impact-‐ nutrition, water and rural development. These are core to its ...
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...9.1 Increased responsibility 8 9.2 Daily implementation challenges 8 10 Recommendations 9 11 Conclusion 10 12 Appendix one: The Body Shop 12 13 Appendix two: New Look 14 14 Appendix three: Carroll’s Pyramid 17 15 Appendix four: Schwartz and Caroll Venn diagram 18 16 Appendix five: Ethical Trading Initiative 20 17 Bibliography 21-24 1. Introduction This report identifies the key challenges faced by organisations with a global supply chain in implementing Corporate Social Responsibility (CSR) policies. The Body Shop (appendix 1) and New Look (appendix 2) are UK based companies, with a global trading presence and both depend on a global supply chain for the purchase of their products. In 2013 both companies remain committed to CSR and ethical trading. These companies have been chosen to demonstrate the differences between implementing CSR at start-up stage, and the challenges faced when introducing CSR, specifically within the supply-chain, to an established business. 2. Defining Corporate Social Responsibility (CSR) CSR is a well-debated topic amongst businesses, governments, non-government organisations (NGOs) and academics; and...
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...inferior. We can’t eat eggs, or drink milk...When the children get ill we don’t have the money to take them to the doctor… One always lives with uncertainty, always in debt; it's always borrow here, borrow there; we live dependent on credit... Of course, there is no peace living with such uncertainty. You don't know whether to take out a loan or not because you could lose the money you've invested.’ Vitelio Menza, small coffee producer in Colombia1 Providing livelihoods to farmers in developing countries is a crucial challenge for reducing world poverty. When fairly priced, export crops, such as coffee or cocoa, can help millions of farmers and their families to lift themselves out of poverty. In the case of coffee, 70% of the world’s supply is provided by smallholders cultivating less than 10 hectares in 80 countries in Africa, Asia and Latin America. However, the extreme volatility and longterm decline in coffee prices on international markets endangers the...
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...Case 3-2 Case8-2 Marketing An Industrial Product In Latin America Case 14-2 – Marketing an Industrial Product in Latin America 1) The Sales Manager, in this case, had already predetermined the outcome of his stay and the time frame this would occur in without taking the country and its cultural norms into the equation. Cultural norms ‘are sometimes referred to as the way things are done around here’ (Human Resource Institute, 2006) and despite getting a way to conduct himself as well as guidance to follow the lead of the commercial attaché, the sales manager, was more concerned about the sale than about the relationship he needed to forge with the purchasing manager. The Purchasing Manager, used to being heavily involved in the daily process of meeting suppliers and sales people, seems the person who would take them through the process of discovering if they were purely there for a quick sale, or if there were looking at forging a relationship with him and his company. Understanding the irritability factor from his secretary of the sales manager when at his office, sensing his uneasiness at understanding the time constraints on the purchasing manager with the myriad of calls and details he had to go through during the meeting would have already set him off to stereotype the sales manager to being very ‘American’ wanting things his way and not interested in the cultural significance the purchasing manager himself brought to the table with his books on poetry....
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...was successful but eventually was sold to a Poole local who then took the formulas and namesake. Being near to a farmers market, Constantine began to develop products for a shop in Poole, they were made upstairs and sold downstairs. On a trip to England, Canadians Mark and Karen Wolverton came across the fragrant, colorful shop that is LUSH and immediately knew they wanted to bring it to North America. In 1996 the first international LUSH was opened in Vancouver, with a cosmetic kitchen (factory) nearby. In 2003 the first American store opened in San Francisco. We now have over 210 shops in North America, all supplied by the two cosmetic kitchens in Canada. 650 stores and many factories later in over 40 countries. II. Operations and Supply Chain Strategies Business elements that define a business include structural and infrastructural elements. Structural elements being defined as tangible resources, businesses, equipment and information technology just to name a few. Infrastructural elements are intangible resources such as people, policies and organizational structure. These elements are crucial to ensure a business will run properly, the elements must also work together. Strategy is necessary to assure that their decisions and elements are...
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...support of fair trade organisations operating in developing countries to sustain individuals and communities Utting (2009) reports that the value is appropriated throughout the product chain to the end user benefiting business and society. The capital gains to human (individuals), social (communities and end users), physical (infrastructure, land and homes) and financial capital are analysed throughout the article to reveal the benefits of fair trade operation. The human capital benefits are better management efficiency, job creation and better skills developed. This creates knowledge for individuals in the supplier industry in developing countries. The fair trade industry provides the social capital with knowledge to better the communities in developing countries by providing knowledge to the community in how to invest and cope in poor economic times. Furthermore benefits are also made evident from this in consumer countries by the stimulation of economic profit and job creation. The physical capital of fair trade organisations highlights the advantage of providing tools for infrastructure development and improvement to land and homes of suppliers. To improve the social conditions in supplier countries access to loans through fair trade organisations and funds for the community is available. In addition, skills on how to diversify business for suppliers are demonstrated, improving societies conditions and business profits. The positive financial effects of fair trade are discussed...
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...challenges of business sustainability, debating how best to address these risky issues while also embracing their opportunities for competitive advantage. This Teaching Module uses the context of the fashion industry to discuss topics that are shaping the future of all industries. These topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business models and management techniques for the future. Given its enormous reach and connection to important business topics ranging from climate change to social networking, the fashion industry’s practices provide broadly-relevant lessons for future business leaders in all fields as they focus on ways to minimize negative impacts and maximize positive...
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...views on global supply chain management and how you plan to be a part of the field. In today’s global economy companies can no longer compete if they don’t establish collaborative relationships that expand beyond their own organization. In my opinion, Global Supply Chain Management has become increasingly important as companies look for growth opportunities in other countries as a way of increasing their global presence. It is my understanding that in order for countries to do global trade, they need to have attractive fiscal and monetary policy in order to attract foreign direct investment. Most developing countries have recovered from the economic crisis and are growing at the fastest pace they can sustain without increasing inflation. Foreign governments have a big responsibility if they want to create business opportunities for multinational companies. It is their duty to give a lot of thought to how they would respond to global tightening. That’s why I think that by improving the long-term trade outlook and coming up with acceptable reform agendas can certainly go a long way when the emerging economies are trying to boost investor and market confidence. Companies such as Boeing, Pepsi, and Oracle are a few companies who are utilizing a vertical integration approach when trying to manage materials, manufacturing, and distribution. One way to view this opinion is whenever a company deals with a supplier that helps provide the next phase of the supply chain, both benefit from...
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...Introduction Having attended the Veteran Affairs Acquisition Academy as an intern to become a contract officer for the government, I was immediately intrigued at the way business was being conducted without fair and open competition. As we begin to break down the analysis of Case 1, supply management with be the focal point of discussion. Supply Chain As we take a look at where each company falls in the supply chain we can ascertain that GARD is the customer and DEP the supplier. The following diagram will attempt to break it down further: As we look at the stages in this supply chain, we can see that procurement is the most important. However, in this case the procurement team had it very easy, as Tom Lippet from DEP established a relationship with Mike O’Leary from GARD. In any other business setting, the procurement team is the most important. They are the ones that write the bids proposals for a company. Without them, there would be no work. DEP is highly dependent on its suppliers of raw materials. I find it interesting that they would go with the lowest bidder for their raw materials. If they want to ensure timely delivery, a trade-off analysis of what is important to them for the upcoming year to keep their current contract with GARD. In this supply chain I would put the marketing sales, human resources, and warehouse departments as not have much impact on the deliverance of the product. However, Tom did mention that the products are stored in a warehouse...
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...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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