Kopi, Cooperatives, and Compliance: A Case Study of Fair Trade in Aceh, Indonesia

<p>A development initiative at its core, fair trade endeavors to provide better trading conditions for disadvantaged producers in the world market system, such as smallholder coffee farmers, who face a volatile market and prices that have yet to recover from a deep price crisis in the early 2000s. With the onset of labeling and certification, fair trade entered the mainstream by the late 1990s, and has continued to demonstrate strong growth in sales. Moreover, new producer organizations are becoming certified in an expanding number of countries, and fair trade coffee is expanding beyond its traditionally dominant productive center in Latin America. To explore how fair trade is established, and interacts with, new producer contexts, a case study was performed with five fair trade certified coffee cooperatives in Aceh, Indonesia, all of whom have gained certification within the last 10 years, was performed. This thesis sought to understand the particularities behind how fair trade reached Aceh, what factors influenced its implementation, and how coffee producers experience their participation in the fair trade movement. Further, particular attention was paid to the practice and formation of the cooperatives’ structures and policies; fair trade requires that coffee farmers are organized into democratically owned and governed cooperatives, an institution relatively unpracticed in Indonesia.</p>

Kopi, Cooperatives, and Compliance: A Case Study of Fair Trade in Aceh, Indonesia

<p>A development initiative at its core, fair trade endeavors to provide better trading conditions for disadvantaged producers in the world market system, such as smallholder coffee farmers, who face a volatile market and prices that have yet to recover from a deep price crisis in the early 2000s. With the onset of labeling and certification, fair trade entered the mainstream by the late 1990s, and has continued to demonstrate strong growth in sales. Moreover, new producer organizations are becoming certified in an expanding number of countries, and fair trade coffee is expanding beyond its traditionally dominant productive center in Latin America. To explore how fair trade is established, and interacts with, new producer contexts, a case study was performed with five fair trade certified coffee cooperatives in Aceh, Indonesia, all of whom have gained certification within the last 10 years, was performed. This thesis sought to understand the particularities behind how fair trade reached Aceh, what factors influenced its implementation, and how coffee producers experience their participation in the fair trade movement. Further, particular attention was paid to the practice and formation of the cooperatives’ structures and policies; fair trade requires that coffee farmers are organized into democratically owned and governed cooperatives, an institution relatively unpracticed in Indonesia.</p>

Do young consumers care about ethical consumption? Modelling Gen Z's purchase intention towards fair trade coffee

PurposeA global shift in ethical/sustainable purchase drivers highlights Generation Z (persons aged 15–24) as an important market for producers and marketers. Although much research has touched on fair trade consumption, very little has focused on Gen Z's consumption patterns. This study provides insights into and implications of younger consumers' motivations in ethical/sustainable consumption.Design/methodology/approachThis research examines Gen Z's purchase intention towards fair trade coffee with the theory of reasoned action framework. Data were collected with a convenience sample, and analyses were conducted using structural equation modelling.FindingsThe research found a significant influence of knowledge of fair trade towards product interest. Furthermore, general attitudes towards fair trade had a significant influence on product interest, product likeability and convenience. Lastly, product interest and subjective norms significantly influenced Gen Z's purchase intentions towards fair trade coffee.Originality/valueFindings suggest that Gen Z's shift in ethical/sustainable consumption revolves around their subjective norms or peer influence circles and contributes to the notions of self-branding, identify claims and social currency. Younger generations are digital natives, and social media has created a looking glass into their actions. This digital expansion has created more opportunities for individuals to monitor the actions of others and release information in real-time. Therefore, ethical/sustainable consumption by Gen Z can be used as a communication tool among their peers to project personal values and ideological shifts and to influence others close to them.

Consumer Purchase Intentions Regarding Fair-Trade Coffee And The Role Of Virtual Reality: An Exploratory Study

Fair-trade is an alternative approach to trading that has a goal of sustainable development and creating a better opportunity for producers in third world countries. Fair-trade coffee represents the largest category under this umbrella. Globally, Generation Z’s consumption and adoption of ethical/sustainable products creates new challenges and opportunities for producers and marketers. Virtual reality has seen to educate, market, and create value with its media richness, presence, interactive, and immersive qualities. As a result, VR has positioned itself to be a very strong communication tool for social scientists and marketers to add value, communicate effective messages, and impact consumer behaviour. This research examines consumer purchase intentions regarding Fair-trade coffee through the lenses of the Theory of Reasoned Action and the exploratory effect of virtual reality in the context of Generation Z. A first analysis will allow me to outline, present, and test a model regarding Fair-trade coffee consumption in the scope of the Theory of Reasoned Action. Additionally, a second analysis will leverage VR in an exploratory manner to see if this has an effect on the dimensions outlined in the model. The dimensions presented to impact Fair-trade coffee purchase intentions are personal values, knowledge of Fair-trade, general attitudes towards purchasing Fair-trade coffee, and subjective norms. By analyzing data from 314 respondents, this study found that competence, knowledge of Fair-trade, skepticism, and concern are significant predictors of product interest and likeability. Knowledge of Fair-trade and Skepticism are significant predictors of price acceptability. Furthermore, subjective norms are a significant predictor of purchase intentions. Lastly, virtual reality was found to have an inconclusive effect on the dimensions outlined in the conceptual model.

Consumer Purchase Intentions Regarding Fair-Trade Coffee And The Role Of Virtual Reality: An Exploratory Study

Fair-trade is an alternative approach to trading that has a goal of sustainable development and creating a better opportunity for producers in third world countries. Fair-trade coffee represents the largest category under this umbrella. Globally, Generation Z’s consumption and adoption of ethical/sustainable products creates new challenges and opportunities for producers and marketers. Virtual reality has seen to educate, market, and create value with its media richness, presence, interactive, and immersive qualities. As a result, VR has positioned itself to be a very strong communication tool for social scientists and marketers to add value, communicate effective messages, and impact consumer behaviour. This research examines consumer purchase intentions regarding Fair-trade coffee through the lenses of the Theory of Reasoned Action and the exploratory effect of virtual reality in the context of Generation Z. A first analysis will allow me to outline, present, and test a model regarding Fair-trade coffee consumption in the scope of the Theory of Reasoned Action. Additionally, a second analysis will leverage VR in an exploratory manner to see if this has an effect on the dimensions outlined in the model. The dimensions presented to impact Fair-trade coffee purchase intentions are personal values, knowledge of Fair-trade, general attitudes towards purchasing Fair-trade coffee, and subjective norms. By analyzing data from 314 respondents, this study found that competence, knowledge of Fair-trade, skepticism, and concern are significant predictors of product interest and likeability. Knowledge of Fair-trade and Skepticism are significant predictors of price acceptability. Furthermore, subjective norms are a significant predictor of purchase intentions. Lastly, virtual reality was found to have an inconclusive effect on the dimensions outlined in the conceptual model.

Fashioning sustainability: drawing lessons from the fair trade coffee industry

Due to the fashion industry’s global reach, spanning many jurisdictions, regulations are difficult to implement, monitor and enforce. Strict voluntary initiatives that focus on raising consumer awareness, thereby creating greater demand for eco fashion have greater potential to lead to reform within the fashion industry. To do so, voluntary initiatives must include clear labeling of ‘eco’ products and designer input, and include strict guidelines for company and designer standards. Standards must take the entire life cycle of a garment into consideration. Fashion can apply lesson from the fair trade coffee industry by appealing to consumers based on ethics and environmental responsibility through a trusted consumerfacing label. Fair trade was successful, in part, due to their recognizable label. Fair trade type certifications are most often business to consumer facing and provide consumers with the environmental and social information on the benefits of purchasing fair trade. Fair trade certification models have capitalized on large retailer involvement, allowing certifications to become mainstreamed and therefore more accessible for consumers.

Fashioning sustainability: drawing lessons from the fair trade coffee industry

Due to the fashion industry’s global reach, spanning many jurisdictions, regulations are difficult to implement, monitor and enforce. Strict voluntary initiatives that focus on raising consumer awareness, thereby creating greater demand for eco fashion have greater potential to lead to reform within the fashion industry. To do so, voluntary initiatives must include clear labeling of ‘eco’ products and designer input, and include strict guidelines for company and designer standards. Standards must take the entire life cycle of a garment into consideration. Fashion can apply lesson from the fair trade coffee industry by appealing to consumers based on ethics and environmental responsibility through a trusted consumerfacing label. Fair trade was successful, in part, due to their recognizable label. Fair trade type certifications are most often business to consumer facing and provide consumers with the environmental and social information on the benefits of purchasing fair trade. Fair trade certification models have capitalized on large retailer involvement, allowing certifications to become mainstreamed and therefore more accessible for consumers.

Fair trade coffee and inclusive globalization: a metamorphosis of institutional entrepreneurship

Purpose Initiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement within international trade. In the matter of fair trade coffee, this global social movement has transformed the traditional coffee trade structure of inequality and unfairness into a conglomerate of international institutions that embrace equity and inclusivity – a metamorphosis that can be attributed to NGOs’ institutional entrepreneurship. Design/methodology/approach In this exploratory study, the authors examine the fair trade coffee industry and trace the actions of NGOs along with other stakeholders at the organizational field level, in moving toward an inclusive model of globalization. Findings Departing from exploitative globalization, fair trade practices advocate inclusive growth through the promotion and establishment of greater equity for all as well as higher environmental standards in global value chains. Research limitations/implications This study contributes to nascent research on inclusive growth by analyzing how fair trade promotes inclusive growth and trade in GVCs. This study also contributes to research on institutional entrepreneurship by examining two enabling conditions – the shift in institutional logics and the peripheral social position of NGOs – that enabled NGOs to serve as institutional entrepreneurs in the initiation phase of institutional entrepreneurship. Practical implications Policymakers may encourage collaboration between profit organizations and nonprofit organizations to provide entrepreneurial opportunities for trials, errors, and revisions. The evolution of fair trade coffee provides such an example. Social implications The coevolution of NGOs and MNEs has made the globalization of fair trade practices possible. The collaboration between NGOs as institutional entrepreneurs (operating on the community logic) and MNEs as institutional followers (operating on the financial logic) support inclusive globalization and sustain fair trade practices. Originality/value Drawing on the process model of institutional entrepreneurship, the authors seek to understand the role of NGOs as institutional entrepreneurs in the dynamics of initiating, diffusing and sustaining fair trade coffee practices.