Sustainable sourcing & relationship governance - Company presentation: Greening Goliaths and emerging Davids; towards “the new normal” – The case of Moyee coffee

7 important questions on Sustainable sourcing & relationship governance - Company presentation: Greening Goliaths and emerging Davids; towards “the new normal” – The case of Moyee coffee

Describe the fairchain principle of Moyee Coffee.

The three cornerstones of the Fairchain Foundation are:
1.Trade over aid;
2.Creating shared value;
3.Compete on Quality, not poverty.

Changing the supply chain sounds simple. Why is it difficult for Big Coffee?

- Shareholders are not very intrinsic motivated
- Companies have long term agreements with their suppliers (connections between companies) which have invested a lot in assets, people, knowledge, etc. You need partners on which you can rely (not stealing, quality, not loosing stocks). You invested in your relationships.
- Ecological efficiency (espresso): reduce footprint etc.
VS Ecological sufficiency (Moyee coffee)

Why is Ecoplaza not selling Moyee Coffee at this moment?

There’s no logo/ certificate on the coffee of “this is organic coffee”, so Ecoplaza is not selling it. For farmers it is expensive because of auditing, implementing and periodically maintaining organic label. You need also a lot of time to work according the standards of the label.
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What's the difference between incremental and disruptive innovation?

Incremental innovation: following the path we already started on

VS

disruptive innovation: If you would ask your customer for a disruptive innovation, they won’t come up with it. (radical change/ transformation)

Both Greening Goliaths and Emerging Davids can play a role in contributing towards sustainable development but they do so in different ways. What's needed for future success?

- Starting point: incremental solutions will not be enough to maintain critical levels of natural and social capital. Sustainable Entrepreneurship has a role to play.
- There is a need for transformational change --> More eco- effectiveness needed: produce in having economic benefits in a transformed system. Doing more good with your business (Davids can be found in this area)
- Innovation is crucial! Innovations can be disruptive or incremental.

Give the characteristics of Greening Goliaths

- Incumbents may be slow to react but are often able to catch up quickly once they have decided to follow.
- They may then benefit from being able to charge premium prices, following the price level established by the start- up.
- They can launch Venture Capital funds to monitor innovating Davids (e.g. Philips, Sabic, Unilever)
- They may be able to influence the setting (or reduction) of environmental standards in their favour (e.g. car industry lobby)
- They may try to keep standards fixed rather than encourage continuous improvement

Hockerts & Wustenhagen sketch a path towards the sustainability transformation of industries. What did they discuss?

- In the ideal situation the values associated with economic, social and environmental priorities will be balanced.
- Society will expect business is conducted in a sustainable way.
- At the moment it is hard to see which companies are really sustainable and which are not.
--> Some B corps (part of certification program to show how they score on social, environmental and capital): Dopper, Mud Jeans, Ben & Jerry’s, Patagonia.

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