The Rise of Buyer-Driven Sustainability Governance: Emerging Trends in the Global Coffee Sector
43 Pages Posted: 9 Aug 2017
Date Written: August 8, 2017
The coffee industry connects millions of smallholder farmers with global markets and has historically been a frontrunner in sustainability efforts. Yet, the governance of this value chain and its sustainability depends on the distribution of power between market actors. This paper applies a Global Value Chain approach (Gereffi, 1999) to characterize the current distribution of power and opportunities in the coffee sector, and examines how this characterization has influenced the sector’s non-state market-driven (NSMD) sustainability governance structure (Bernstein and Cashore, 2007). The study finds that in a strongly buyer-driven chain, the reinterpretation of sustainability as supply chain management has led to the emergence of more company-owned standards and direct-impact projects as alternatives to third-party certification schemes, as well as their coordination in pre-competitive sectoral platforms. The simultaneous rise of producing-country definitions of sustainability points to a continued fragmentation of sustainability governance and a loss of authority of traditional NSMD channels.
Keywords: Sustainability governance, non-state market-driven governance, Global Value Chain, coffee, Corporate Social Responsibility, sustainability
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