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Chris Morrison and two partners introduced the first Fairtrade bananas in New Zealand in a bid to improve the social and environmental impacts of banana consumption. The trio…
Abstract
Synopsis
Chris Morrison and two partners introduced the first Fairtrade bananas in New Zealand in a bid to improve the social and environmental impacts of banana consumption. The trio started All Good Bananas in 2010. Using social media as a key marketing tool, the startup had grown to take a 5 percent market share in a fiercely competitive industry dominated by big players. In 2012, the entrepreneurs needed to decide the best way to increase sales of ethically sourced products under the All Good brand. Should they expand their share of the banana market or diversify into drinks?
Research methodology
The case is primarily based on tape-recorded interviews by the authors with the founding entrepreneur and three employees of All Good from May to July 2012 and an analysis of the company’s website and social media activities. Other publicly available information sources were drawn upon, and a discussion held with a New Zealand national grocery chain CEO.
Relevant courses and levels
This case has been written for use in classes in undergraduate and graduate level entrepreneurship, strategic management and sustainability. The case can be used to illustrate how very small resource-constrained startups can compete in an industry dominated by large multinational corporations, and how Fairtrade might provide a worthy differentiation focus. It is open to a consideration of judo economics. While several of the questions ask students to consider the New Zealand context in which this case is set, knowledge of New Zealand and the various industries beyond what is offered in the case is not necessary.
Theoretical bases
At a broad level the case illustrates how a small, resource-constrained startup can compete against much, much larger players through a niche Fairtrade product focus and the use of alternative marketing strategies such as guerrilla marketing and social media. In relation to the competitive dynamics within an industry, this case can be used to illustrate the concept of judo economics (also referred to as judo strategy). Both the utility and potential limits of judo economics can be demonstrated through the case by considering current activities and potential future dynamics.
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Bob Doherty and Benjamin Huybrechts
This paper seeks to pinpoint the role played by social enterprises in the growth and mainstreaming of fair trade.
Abstract
Purpose
This paper seeks to pinpoint the role played by social enterprises in the growth and mainstreaming of fair trade.
Design/methodology/approach
The review encompasses seminal papers on the growth and mainstreaming of fair trade.
Findings
A crucial role is played by social enterprises in establishing fair trade in the mainstream. However this mainstreaming is contested and is argued by some to also lead to potential mission drift.
Research limitations/implications
This review primarily investigates the Northern aspects of fair trade, in particular the role of social enterprise in the market growth of fair trade and its mainstreaming. However more research is required to unpack the producer perspectives of mainstreaming fair trade.
Practical implications
The article investigates one of the pioneering fields of social enterprise to see what lessons can be drawn for other social enterprise sectors that have mainstream ambitions.
Originality/value
This contribution provides a novel review to demonstrate the role played by social enterprise in the growth of fair trade. It argues that the dual mission of fair trade is out of balance and is in danger of becoming reduced to a certification scheme based on minimum compliance. However a rebalancing of social and commercial objectives and acknowledging the innovative approach of fair trade social enterprises would strengthen this pioneering social movement.
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Anthony Samuel, Ken Peattie and Bob Doherty
This paper aims to further the authors’ understanding of brand communities, and their role in brand co-creation, through empirical and theoretical contributions derived from…
Abstract
Purpose
This paper aims to further the authors’ understanding of brand communities, and their role in brand co-creation, through empirical and theoretical contributions derived from researching the marketing dynamics operating within a successful but atypical form of brand community, Fairtrade Towns (FTT).
Design/methodology/approach
The paper reflects a pragmatic application of Grounded Theory, which captured qualitative data from key “insiders”, with a particular emphasis on FTT steering group members and their role as “prosumers”. Data were gathered via ethnographic involvement within one town and semi-structured interviews with participants in others.
Findings
FTTs, as brand communities, demonstrate elements of co-creation that go beyond the dominant theories and models within the marketing literature. They operate in, and relate to, real places rather than the online environments that dominate the literature on this subject. Unusually, the interactions between brand marketers and consumers are not the primary source of co-creation in FTTs. Instead, factors usually identified as merely secondary providers of additional brand knowledge become key initiators and sources of co-creation and active “citizen marketer” engagement.
Originality/value
This study demonstrates how brand co-creation can operate in physical geographical communities in ways that are formal without being managed by conventional brand managers. It conceptualises FTTs as a nested and “glocalised” brand and demonstrates how steering group members facilitate the process of co-creation as prosumers. It empirically demonstrates how FTTs have evolved to become unusually complex brand communities in terms of the variety of stakeholders and the multiplicity of brands involved, and the governance of the localised brand co-creation process.
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Yevhen Kononets and Horst Treiblmaier
The purpose of the paper is to critically evaluate the applicability of bio certification in farmers' activity to reduce unfair trading practices in the food supply chain. The…
Abstract
Purpose
The purpose of the paper is to critically evaluate the applicability of bio certification in farmers' activity to reduce unfair trading practices in the food supply chain. The secondary purposes are describing the economic reasons of using bio certification and perspectives of using web trading platforms among food producers.
Design/methodology/approach
Data collection included face-to-face interviews with 15 Austrian and German farmers who operate on bio food markets as well as a quantitative survey regarding their assessment of unfair trading practices. This study presents both quantitative and qualitative analyses.
Findings
Bio certification is more likely unable to eliminate or mitigate unfair trading practices in the food supply chain, however bio certification is able to increase efficiency of farmers together with other web tools.
Originality/value
The study is the first to empirically investigate the applicability of bio certifications, its advantages and impact on unfair trading practices in the food supply chain. It focuses on small and medium-sized food producers and farmers. The research also reveals the perspectives of using web trading platforms in farming activity.
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Claire Moxham and Katri Kauppi
This paper aims to use organisational theories to frame research questions examining how to embed social sustainability in supply chain management (SCM) by focusing on fair trade…
Abstract
Purpose
This paper aims to use organisational theories to frame research questions examining how to embed social sustainability in supply chain management (SCM) by focusing on fair trade.
Design/methodology/approach
Drawing on previous organisational theory review papers in SCM, institutional theory and the extended resource-based view have been used as theoretical lenses to develop research questions for further studies.
Findings
The authors developed seven research questions that enable and encourage the further examination of the factors impacting fair trade supply chains, as well as identify approaches to improve social sustainability in SCM practice.
Social implications
As the aim of fair trade is to rebalance inequities inherent in North–South trading relationships, further work in this area has the potential for positive economic, environmental and social impact.
Originality/value
The paper discusses two key themes: whether fair trade is changing SCM practices, and whether fair trade is a source of competitive advantage in supply chains. Using established theory to develop research questions encourages further examination of this important topic.
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This paper examines the role of government procurement as a social policy mechanism within a multilateral open trading system. Government regulations globally are being…
Abstract
Purpose
This paper examines the role of government procurement as a social policy mechanism within a multilateral open trading system. Government regulations globally are being transformed to foster more responsible business conduct in multinational enterprises (MNEs). Yet, concern that sustainability may present a discriminatory barrier to trade has stalled the progress of sustainable public procurement (SPP) at the international level, raising questions regarding the role and scope of the World Trade Organisation’s (WTO) Government Procurement Agreement (GPA) to align taxpayer-funded contracts with the United Nations (UN) Sustainable Development Goals.
Design/methodology/approach
With a focus on social sustainability, this paper reviews the grey and academic literature to assess the changing landscape of public procurement policy and supply chain legislation in high-income countries.
Findings
Frontrunner nations are adopting a mandatory approach to sustainable public procurement and due diligence legislation is elevating supply chain risk from reputational damage to legal liability. While technological innovation and the clean, green production of manufactured goods dominates the sustainable public procurement literature, the social aspects of sustainability poverty, inequality and human rights remain underrepresented.
Research limitations/implications
The scope of this paper is limited to the examination of government procurement covered by the WTO-GPA (2012). Smaller value contracts, under the WTO-GPA thresholds and the category of defence are beyond the scope of the paper.
Social implications
The paper focusses on the underserved topic of social sustainability in business-to-government (B2G) – business to government – supply chains arguing that for responsible business conduct to become a competitive advantage, it must be more meaningfully rewarded on the demand-side of all taxpayer-funded contracts in organisation for economic co-operation and development countries. The paper introduces the idea of priceless procurement as a mechanism to build system capacity in the evaluation of non-financial sustainability objectives.
Originality/value
To build the capacity to stimulate competition based on social and environmental policy objectives, the paper introduces the concept of priceless procurement in B2G contracts.
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Andrew C. Wicks and Jenny Mead
Is “Fair Trade” really fair? This case examines the concept, history, and logistics of the Fair Trade movement, specifically for coffee. Fair Trade began as an attempt to ensure…
Abstract
Is “Fair Trade” really fair? This case examines the concept, history, and logistics of the Fair Trade movement, specifically for coffee. Fair Trade began as an attempt to ensure farmers received fair compensation for their crops and credit when needed. Fair Trade also provided opportunities to help coffee growers learn best practices and sustainable farming methods (minimal damage to the environment, for example). But Fair Trade had its critics, who claimed that ultimately the farmers did not benefit and that retailers charged more for Fair Trade products and pocketed the difference. This case examines these issues through the eyes of one coffee-drinker who has specifically chosen her caffeine venue because of the Fair Trade designation.
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Norma Schönherr, Heike Vogel-Pöschl, Florian Findler and André Martinuzzi
While corporate social responsibility (CSR) standards are amongst the most widely adopted instruments for supporting firms in becoming more accountable, firms who adopt them…
Abstract
Purpose
While corporate social responsibility (CSR) standards are amongst the most widely adopted instruments for supporting firms in becoming more accountable, firms who adopt them frequently fail to comply. In this context, the purpose of this study is to explore to what extent CSR standards are designed for accountability. In the analysis, this paper investigates design characteristics related to accountability across different standard types, namely, principle-based, reporting, certification and process standards.
Design/methodology/approach
This study reviews the design characteristics of 50 CSR standards in a systematic and comparative fashion. This paper combines qualitative deductive coding with exploratory quantitative analyses methods to elucidate structural variance and patterns of accountability-related design characteristics across the sample.
Findings
This study finds that the prevalence of design characteristics aimed at fostering accountability varies significantly between different types of standards. This paper identifies three factors related to the specific purpose of any given standard that explain this structural variation in design characteristics, namely, implementability, comparability and measurability.
Practical implications
Non-compliance limits the effectiveness and legitimacy of CSR standards. The systematic exploration of patterns and structural variation in design characteristics that promote accountability may provide valuable clues for the design of more effective CSR standards in the future.
Social implications
Better understanding the role of design characteristics of CSR standards is critical to ensure they contribute to greater corporate accountability.
Originality/value
This study strives to expand the current understanding of the design characteristics of CSR standards beyond individual cases through a systematic exploration of accountability-related design characteristics across a larger sample.
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