Analyzing the sincerity of Corporate Social Responsibility initiatives in the global coffee industry

: Do Starbucks, JDE Peet’s, McCafé and Nespresso (Nestlé) really mean what they say?

Abstract

This thesis was an investigation into the CSR commitments and initiatives of four companies in the global coffee industry, particularly Starbucks, JDE Peet’s, McCafé, and Nespresso, regarding realms of CSR responsibilities, including economic, environmental, stakeholders, ethical, legal, and philanthropic. This thesis explored how CSR was embedded into each company’s business model. Further, this thesis evaluated the authenticity and advocacy of the impact created by each company’s CSR efforts through utilizing various internal, external, and governmental standards and scales in the global coffee industry. It also determined the underlying purposes of CSR in global companies and provided relevant examples from the four coffee companies in question to support these purposes. Through the quantitative study, which targeted end-consumers, this thesis uncovered customer perceptions of CSR and highlighted what customers can do to hold companies accountable. The quantitative research was conducted online through a survey with end-consumers, 93 of the total 148 responses which were usable, to gather perceptions of concern for CSR and sustainability, CSR in global companies, specific CSR issues related to environmental responsibilities, and the extent that customers would hold a company accountable to its CSR commitments through various actions. The quantitative research revealed a significant change in consumer behavior that is crucial for global companies to take note of when developing CSR initiatives. Notably, most survey respondents said they would completely stop purchasing, which would directly affect a company’s sales and profitability. The quantitative survey also revealed an implication for companies regarding pricing for sustainability and CSR initiatives, in which it was revealed that, on average, customers would be willing to spend over $1 USD more for a cup of sustainably sourced coffee; however, that is dependent on the sincerity and credibility of the sustainably sourced coffee commitments and the transparent communication of those efforts to end-consumers. Moreover, this thesis demonstrated the importance of transparent internal and external communication of CSR commitments and initiatives, with emphases on honesty, authenticity, and taking responsibility for the impact generated, both positive and negative. It also revealed that global companies should be specialists and not generalists when it comes to sincere CSR advocacy; therefore, companies should revisit their roots to determine which CSR commitment should be prioritized as most relevant to stakeholders and most manageable for the company to achieve given its expertise and ability to generate a positive impact. Then, companies are recommended to develop realistically achievable CSR initiatives accordingly so they can genuinely reach the CSR commitment and increase the potential impact. Ultimately, it is not enough for global companies to have CSR commitments and initiatives; instead, companies must intertwine credible third-party verification standards into their efforts as a measure of due diligence to confirm the implementation of their CSR efforts, which help to legitimize their communication to stakeholders about the sincerity of the impact created by those CSR efforts.

Date of Award	2024
Original language	English
Supervisor	Harald Josef Hammer (Supervisor)