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1 – 10 of over 1000The purpose of this paper is to examine the macro-, meso- and micro-level approaches to building sustainability in Ghana's timber, cocoa and goldmining industries s Ghana works to…
Abstract
Purpose
The purpose of this paper is to examine the macro-, meso- and micro-level approaches to building sustainability in Ghana's timber, cocoa and goldmining industries s Ghana works to align sustainability efforts with the sustainable development goals proposed by the United Nations.
Design/methodology/approach
Using qualitative content analysis, a synthesis of contemporary literature on Ghana's timber, cocoa and gold mining industries was conducted to provide a descriptive evaluation of sustainability efforts in those industries.
Findings
At the macro-level, Ghana continues to invest in infrastructure, privatize industries and develop an urban development agenda to encourage foreign direct investment (FDI); improved forest management and green building policies and reduction of galamsey are also implemented. At the meso-level, the timber industry encourages land reclamation and green building technologies; the cocoa industry works to replenish lost trees, develop supply-chain partnerships, and encourage certifications; the goldmining industry works to regulate informal mining and reduce galamsey and the use of toxins in exploration. At the micro-level, alignment has developed between the micro- and meso-levels in the timber and cocoa industries, whereas micro-level players in the timber industry are less successful, given its large, unregulated informal sector.
Originality/value
Existing literature is missing discussion on the alignment of macro-, meso- and micro-level approaches to sustainability in Ghana's timber, cocoa and gold mining industries with attention to the United Nations' Sustainable Development Goals as the premise for the work.
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Dominic Hess, Roger Moser and Gopalakrishnan Narayanamurthy
The purpose of this paper is to identify and understand the obstacles and drivers of financial investors while deciding upon investment opportunities in emerging markets.
Abstract
Purpose
The purpose of this paper is to identify and understand the obstacles and drivers of financial investors while deciding upon investment opportunities in emerging markets.
Design/methodology/approach
Relevant factors for financial investors in emerging markets were identified through a literature review and a series of expert interviews. Identified factors were broadly grouped into three categories, namely, microeconomic aspects, macroeconomic aspects, and aspects of the functionality of the local banking system. Finally, an expert panel (Delphi) technique is used to validate the findings in cocoa industry in Ivory Coast.
Findings
A decision-making framework that enables the evaluation of the attractiveness of an industry in emerging market from a financial investor perspective is developed and its application is demonstrated on the cocoa industry in Ivory Coast. Probability and consensus of the projections for the individual decision elements are tabulated along with the insights into both encouraging and discouraging aspects.
Research limitations/implications
Current study is a timely contribution to the call for papers in the research literature to develop frameworks that are contextualized in emerging markets. Similar to any other qualitative study, this study lacks the generalizability of results. But, the framework developed can act as a starting point toward the generalizability of the findings in future.
Practical implications
Decision elements identified in this study can act as a checklist for financial investors and top management to choose the elements that are relevant to the investment problem being dealt by them. Also, the study can act as a handy demonstration to practitioners for applying the framework using expert panel.
Social implications
A major challenge of the investment environment in emerging market is the non-availability of quality information on the potential investment opportunities. In this study, the authors suggest a framework to overcome this information asymmetry challenge and expect it to promote financial investments in emerging economies which in turn will improve the quality of life of people in these economies.
Originality/value
First study to present an approach to help financial investors to conduct profound evaluation and gain more in-depth insights into the future investment opportunity attractiveness of a particular industry in an emerging market.
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Flávio P. Martins, André C.S. Batalhão, Minna Ahokas, Lara Bartocci Liboni Amui and Luciana O. Cezarino
This paper aims to assess how cocoa supply chain companies disclose sustainable development goals (SDGs) information in their sustainability reports. This assessment highlights…
Abstract
Purpose
This paper aims to assess how cocoa supply chain companies disclose sustainable development goals (SDGs) information in their sustainability reports. This assessment highlights strategic aspects of sustainable supply chain management and reveals leveraging sustainability points in the cocoa industry.
Design/methodology/approach
The two-step qualitative approach relies on text-mining company reports and subsequent content analysis that identifies the topics disclosed and relates them to SDG targets.
Findings
This study distinguishes 18 SDG targets connected to cocoa traders and 30 SDG targets to chocolate manufacturers. The following topics represent the main nexuses of connections: decent labour promotion and gender equity (social), empowering local communities and supply chain monitoring (economic) and agroforestry and climate action (environmental).
Practical implications
By highlighting the interconnections between the SDGs targeted by companies in the cocoa supply chain, this paper sheds light on the strategic SDGs for this industry and their relationships, which can help to improve sustainability disclosure and transparency. One interesting input for companies is the improvement of climate crisis prevention, focusing on non-renewable sources minimisation, carbon footprint and clear indicators of ecologic materiality.
Social implications
This study contributes to policymakers to enhance governance and accountability of global supply chains that are submitted to different regulation regimes.
Originality/value
To the best of the authors’ knowledge, no previous study has framed the cocoa industry from a broader SDG perspective. The interconnections identified reveal the key goals of the cocoa supply chain and point to strategic sustainability choices for companies in an important global industry.
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Nazir Muhammad Abdullahi, Qiangqiang Zhang, Saleh Shahriar, Sokvibol Kea and Xuexi Huo
This paper aims to derive the time-varying relative export competitiveness (REC) of the Nigerian cocoa sector against Nigeria’s share of world agricultural exports (REC_WA) and…
Abstract
Purpose
This paper aims to derive the time-varying relative export competitiveness (REC) of the Nigerian cocoa sector against Nigeria’s share of world agricultural exports (REC_WA) and world merchandise exports (REC_WM) from 1995 to 2018. By concentrating on different factors such as demand and supply capacity, price factors and exchange rate, the authors examine the determinants of REC.
Design/methodology/approach
The authors calculated three different REC indexes. The authors also developed the relative symmetric export competitiveness index for comparative advantage calculation and avoiding the possible bias. The determinants of REC for Nigerian cocoa were captured using the short-run regression (SRR) model.
Findings
The study showed that Nigeria’s cocoa exports are still competitive despite experiencing some declining stages. Based on the SRR model, higher per capita income had a positive effect on the REC, while higher domestic prices significantly reduced the REC of cocoa. Further, the African Growth Opportunity Act agreement adversely affected the REC of cocoa.
Originality/value
This study provides a foundation for future research and enhances the literature on agricultural trade. This research makes a few contributions both from a scientific and a policy perspective. First, it is the first study on the REC analysis for the Nigerian cocoa industry. Second, a wide range of comparisons of REC among the world’s largest cocoa exporters was provided following implications of the various economic policies and local policy strategies. Third, the latest 24-year data sets were covered.
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Shwetha Kumari and Jitesh Nair
After completion of the case study, the students will be able to understand the challenges faced by cocoa farmers in developing countries and their impact on the cocoa value…
Abstract
Learning outcomes
After completion of the case study, the students will be able to understand the challenges faced by cocoa farmers in developing countries and their impact on the cocoa value chain, describe the need for a business to create a business model that offers social impact in small developing economies, explore innovative business models, such as vertical integration, for addressing transparency and fair compensation issues in agricultural supply chains, analyze the role that start-ups can play in disrupting the commodities supply chain and building a national competitive advantage and examine how a values-driven business can gain the trust of stakeholders and create a profitable ecosystem.
Case overview/synopsis
This case study describes the innovative business model of Inaru Corporation, a pioneering venture founded by two sisters, Janett Liriano and Erika, aimed at revolutionizing the cocoa industry in the Dominican Republic. This case study outlines the challenges faced by cocoa farmers in the country, including low productivity, exploitation by middlemen and lack of value addition. Inaru’s innovative business model aimed to disrupt the traditional supply chains by prioritizing fair compensation for farmers, investing in sustainable practices and vertically integrating cocoa production from farming to manufacturing. Through direct relationships with producers, profit-sharing agreements, and a commitment to ethical business practices, Inaru sought to empower cocoa farmers and cultivate a more equitable and sustainable cocoa industry. Inaru was a model for ethical and caring business practices where it shared the profits with its farmers. By operating a profit-sharing model and sharing its fortune with other women, Inaru was helping create gender equity in the cocoa sector. Inaru planned to scale its business model to other cocoa-producing countries and even transfer its business model strategy to other commodities beginning with the coffee segment in Dominican Republic. By exploring Inaru’s case study, students gain a deep understanding of how businesses can drive positive change, create value for stakeholders and contribute to sustainable development goals.
Complexity academic level
This case was written for use in teaching graduate and postgraduate management courses in entrepreneurship and economics, politics and business environment.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 3: Entrepreneurship.
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Diederik de Boer, Gigi Limpens, Amzul Rifin and Nunung Kusnadi
The inclusiveness of smallholder cocoa farmers in the international cocoa value chain is addressed in the context of institutional voids through linkages with different business…
Abstract
Purpose
The inclusiveness of smallholder cocoa farmers in the international cocoa value chain is addressed in the context of institutional voids through linkages with different business models in the region of Bali, West-Sumatra and West-Sulawesi. Being the third highest producer of cocoa, local farmers have a high dependency on cocoa cultivation; however, they lack policies that foster and reward sustainable high-quality cocoa according to international standards. The paper aims to discuss these issues.
Design/methodology/approach
An explanatory multiple-case study design assessed the relevance of partnerships in contributing to sustainable local development and inclusiveness for smallholder farmers. The selected business models, business supported, NGO supported and government supported, are evaluated through improved access to finance, training, technology, subsidized inputs and markets.
Findings
The paper found that a linkage with a business-supported model, here BT COCOA, achieves the best results in terms of improved yields, quality and farmer’s welfare, indicating improved inclusiveness via successful process upgrading. Yet, future cooperation between stakeholders should improve on access to information and finance.
Research limitations/implications
The research is a relative research, comparing three models of inclusiveness within one sector (cocoa) in predefined regions of Indonesia. Future research should test the proposed propositions in other agricultural sectors.
Practical implications
The paper showcases the effect of support model affiliation for smallholder farmer inclusiveness and the circumvention of institutional voids. It selects the business model as best suitable to achieve smallholder inclusiveness, as well a need to prioritize institutional voids.
Originality/value
The research is assessing three models addressing inclusiveness applying value chain assessment tools to measure inclusiveness.
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Change in the economic status of a low-income country is accompanied by an expected increase in investment and economic activities along with land degradation and biodiversity…
Abstract
Purpose
Change in the economic status of a low-income country is accompanied by an expected increase in investment and economic activities along with land degradation and biodiversity loss. This study aims to explore Ghana's transition from a low-income to a lower-middle income economy, and the impact of the accompanying rise in extractive activities on the upstream cocoa supply chain (CSC) and its supporting ecosystem.
Design/methodology/approach
The author conducted interviews and made critical observations on Ghana's upstream CSC. Grounded theory (GT) and system dynamics (SD) methodologies were employed to extract and analyze themes from the data gathered. Causal loop diagrams were derived from the analyzed data to provide insight into the possible long-term structural behavior of the upstream CSC due to the change in Ghana's economic status.
Findings
The findings suggest that continuous increase in land capture by open-cast mining and logging concessionaires, poor environmental law enforcement and farmer discontentment could cause a decline in cocoa production and biodiversity.
Originality/value
This research could stimulate the identification of a most effective alternative policy (such as agroecological farming) to improve the living standards of upstream CSC partners and reduce biodiversity loss. The models herein could serve as a learning/demonstration tool for researchers, academia and policymakers when brainstorming students, or during stakeholder (community/society) engagement/consultation sessions, to discuss policy decisions and their consequences. The model approach could also be helpful when designing strategic land-use policies. This could improve understanding of the complex interdependent relationships and the consequences of land degradation, loss of biodiversity and rural livelihood from a system thinking perspective.
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Stefan Gold, Alexander Trautrims and Zoe Trodd
This paper aims to draw attention to the challenges modern slavery poses to supply chain management. Although many international supply chains are (most often unknowingly…
Abstract
Purpose
This paper aims to draw attention to the challenges modern slavery poses to supply chain management. Although many international supply chains are (most often unknowingly) connected to slave labour activities, supply chain managers and researchers have so far neglected the issue. This will most likely change as soon as civil society lobbying and new legislation impose increasing litigation and reputational risks on companies operating international supply chains.
Design/methodology/approach
The paper provides a definition of slavery; explores potentials for knowledge exchange with other disciplines; discusses management tools for detecting slavery, as well as suitable company responses after its detection; and outlines avenues for future research.
Findings
Due to a lack of effective indicators, new tools and indicator systems need to be developed that consider the specific social, cultural and geographical context of supply regions. After detection of slavery, multi-stakeholder partnerships, community-centred approaches and supplier development appear to be effective responses.
Research limitations/implications
New theory development in supply chain management (SCM) is urgently needed to facilitate the understanding, avoidance and elimination of slavery in supply chains. As a starting point for future research, the challenges of slavery to SCM are conceptualised, focussing on capabilities and specific institutional context.
Practical implications
The paper provides a starting point for the development of practices and tools for identifying and removing slave labour from supply chains.
Originality/value
Although representing a substantial threat to current supply chain models, slavery has so far not been addressed in SCM research.
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Pedro Lafargue, Michael Rogerson, Glenn C. Parry and Joel Allainguillaume
This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from…
Abstract
Purpose
This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from retail product back to farm.
Design/methodology/approach
This research uses qualitative data collection, including fieldwork at cocoa farms and chocolate manufacturers in Ecuador and the Netherlands and semi-structured interviews with industry professionals to identify challenges and create a supply chain map from cocoa plant to retailer, validated by area experts. A library of biomarkers is created using DNA collected from fieldwork and the International Cocoa Quarantine Centre, holders of cocoa varieties from known locations around the world. Matching sample biomarkers with those in the library enables identification of origins of cocoa used in a product, even when it comes from multiple different sources and has been processed.
Findings
Supply chain mapping and interviews identify areas of the cocoa supply chain that lack the visibility required for management to guarantee sustainability and quality. A decoupling point, where smaller farms/traders’ goods are combined to create larger economic units, obscures product origins and limits visibility. These factors underpin a potential boundary condition to institutional theory in the industry’s fatalism to environmental and human abuses in the face of rising institutional pressures. Biomarkers reliably identify product origin, including specific farms and (fermentation) processing locations, providing visibility and facilitating control and trust when purchasing cocoa.
Research limitations/implications
The biomarker “meta-barcoding” of cocoa beans used in chocolate manufacturing accurately identifies the farm, production facility or cooperative, where a cocoa product came from. A controlled data set of biomarkers of registered locations is required for audit to link chocolate products to origin.
Practical implications
Where biomarkers can be produced from organic products, they offer a method for closing visibility gaps, enabling responsible sourcing. Labels (QR codes, barcodes, etc.) can be swapped and products tampered with, but biological markers reduce reliance on physical tags, diminishing the potential for fraud. Biomarkers identify product composition, pinpointing specific farm(s) of origin for cocoa in chocolate, allowing targeted audits of suppliers and identifying if cocoa of unknown origin is present. Labour and environmental abuses exist in many supply chains and enabling upstream visibility may help firms address these challenges.
Social implications
By describing a method for firms in cocoa supply chains to scientifically track their cocoa back to the farm level, the research shows that organizations can conduct social audits for child labour and environmental abuses at specific farms proven to be in their supply chains. This provides a method for delivering supply chain visibility (SCV) for firms serious about tackling such problems.
Originality/value
This paper provides one of the very first examples of biomarkers for agricultural SCV. An in-depth study of stakeholders from the cocoa and chocolate industry elucidates problematic areas in cocoa supply chains. Biomarkers provide a unique biological product identifier. Biomarkers can support efforts to address environmental and social sustainability issues such as child labour, modern slavery and deforestation by providing visibility into previously hidden areas of the supply chain.
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Niklas Kreander and Ken McPhail
The purpose of this paper is to explore how the Norwegian Government incorporated its responsibility for human rights into the investment practices of its Global Pension Fund and…
Abstract
Purpose
The purpose of this paper is to explore how the Norwegian Government incorporated its responsibility for human rights into the investment practices of its Global Pension Fund and how human rights issues were negotiated when exclusion was considered.
Design/methodology/approach
Drawing on a series of interviews the authors analyse the way in which responsibility for human rights has been translated into the practices of the Norwegian Government Pension Fund Global.
Findings
The paper documents how a large investment fund used several mechanisms to address human rights risks. The authors demonstrate that different logics among actors sometimes impeded addressing human rights issues. The findings demonstrate that sovereign wealth funds (SWF) can be held accountable for human rights.
Research limitations/implications
The paper illustrates the difficulty of co-operation between actors with different logics. This can result in institutional conflict, but also in positive outcomes for human rights.
Practical implications
Attempts to introduce human rights into state investments may result in increased institutional complexity. The findings indicate that state investors can address human rights issues, but that the ability to do so is diminished where divestment creates political tension.
Social implications
Large investors can influence companies on specific human rights issues.
Originality/value
This is one of the first empirical investigations of the human rights practices of a SWF. The authors contribute to the literatures on accounting and human rights, SWF and institutional theory.
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