Fair Trade Coffee: Ethics, Religion, and Sustainable Production

Topics: Fair trade, Coffee, Marketing Pages: 3 (885 words) Published: March 14, 2012
ANSWER TO QUESTION 1: Is it important for coffee marketers such as Starbucks, Krafts and Nestle to create “ethical supply chains”? Why? Ethical supply chain means that companies undertakes the responsibility of managing and monitoring social/economical and environmental performances and issues in their supply chains especially at the lower end i.e. the primary producers ( coffee farmers). Yes, it is important for coffee marketer to create ethical supply chains. Starbucks, Kraft, Nestle and are amongst the world best coffee brands. Starbucks is yet another popular and well known global brand that has stemmed primarily from the global consumer culture that is characteristic of the twenty-first century. They are the largest coffeehouse company worldwide. Kraft Foods Inc. is the third largest in the world after Nestle. Kraft boasts a wide range of worldwide and regionally marketed brands of coffee, of which the most popular include - Maxwell House, which is its leading coffee brand in the USA. Nestle on the other hand, is most celebrated brand Nescafe is commonly used to refer to any instant coffee through brand generalization. The fact above shows the power and favourable positions of these sorts of firms. It is important that these key players undertake this responsibility, because of the major role they play in the coffee industry they account for what happen to more than half of the commodity share. What and how they do will have a great impact and influence on the production of the commodity. More example we can see where they can relatively chose which suppliers they want to use and their capability to charge the customers with the premium prices. So as a major player in this industry they should use ethical trade practice in managing the social and environmental perspective of their supply chains as well as contribute to benefiting developing countries. In addition, most of the non-western coffee farmers are not as knowledgeable as their western...
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