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This market research paper has been prepared under the supervision of Prof. Dr. Wolfgang Veit of TH Köln and Prof. Dr. Carol Scovotti of University of Wisconsin-Whitewater in the course of the inter-university cross-border collaboration student research project “Export Opportunity Surveys (EOS)”. This study explores organic/fair trade coffee export opportunities to the German and US markets.
This paper gives a practical approach to the area of business ethics, in particular to Corporate Social Responsibility (CSR), via analyzing how the retail chain REWE shows its commitment to its social responsibilities as defined by the four-part model of CSR. As Fairtrade offers one way for fulfilling social responsibilities, in particular the ethical and philanthropic responsibilities of CSR, REWE’s participation in selling Fairtrade products is analyzed. This analysis is conducted by applying the criteria for receiving the Fairtrade Award to REWE which allows drawing conclusions about REWE’s commitment to Fairtrade. Information for this assessment is taken from publicly available sources as well as from personal communication with the Fairtrade organization TransFair. The paper further gives an indication about the match between REWE’s communication – as the selling of Fairtrade products is communicated via REWE’s sustainability program – and REWE’s action concerning social responsibility, expressed by its commitment to Fairtrade. Implementing a sustainability program is one way for companies to exercise CSR and thus the analysis conducted concerning REWE’s commitment to Fairtrade is an attempt to answer the question whether companies’ communication about their CSR efforts matches their actions.
This paper gives an overview of the development of Fair Trade in six European countries: Austria, France, Germany, the Netherlands, Switzerland and the United Kingdom. After the description of the food retail industry and its market structures in these countries, the main European Fair Trade organizations are analyzed regarding their role within the Fair Trade system. The following part deals with the development of Fair Trade sales in general and with respect to the products coffee, tea, bananas, fruit juice and sugar. An overview of the main activities of national Fair Trade organizations, e.g. public relation activities, completes the analysis. This study shows the enormous upswing of Fair Trade during the last decade and the reasons for this development. Nevertheless, it comes to the conclusion that Fair Trade is still far away from being an essential part of the food retail industry in Europe.