CSR practices in the coffee industry: A preliminary review of Kraft Foods, Nestlé and Starbucks

Abstract

Corporate Social Responsibility (CSR) plays an important role within the coffee industry. Due to conflicts related to farmers´ exploitation, fluctuation of bean prices, growing competition in the coffee sector and the increasing superiority of the northern hemisphere, coffee producers in the developing countries fell into a deep crisis. This initiated non-governmental organizations (NGOs) to put more pressure on corporations to act in a social responsible way and to support the environment and their stakeholders, especially the coffee farmers. The research question of this paper is: What have been the CSR practices of the main actors in the coffee industry until today? The present analysis offers an insight on CSR activities proposed by multinationals operating in various developing countries. This research closely examines the CSR approach of three leading coffee companies: Kraft Foods, Starbucks and Nestlé. The findings will illuminate similarities and differences on corporate strategy level in relation to environment and stakeholders.