Social Responsibility in Coffee Industry and High Street Retailing.

In case of the international supply chain, a major problem emerges from the difference in religion. Another persistent problem is the infringement of intellectual property rights, especially when production is shifted from one location to another. It is often a matter of debate between the companies and middlemen regarding their fair share in the value creation process. Adhering to corporate social responsibilities poses to be a challenge in both these sectors and therein lay the main ethical problems (Schlegelmilch and Öberseder, 2007).

Even so, in the coffee manufacturing industry, problems pertaining to agriculture and distribution of end products are considered to be the main issues of supply chain management. whereas, in high-end retailing, the problems are mainly related to labor injustice and lack of adequate facilities. In comparison, ethical problems in coffee industry are lower in number since only the agricultural and distribution aspects are labor intensive. The more labor-intensive an industry is, the more are the issues relating to ethics, which is the case of retailing. However, most of these issues can be dealt with if interests of each group are well-managed. Case study and research play a significant role in this regard (Barrientos, 2012).

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The needs of interest groups and the way to deliver the same must be carefully thought upon and executed. Interest groups here refer to different parties involved in the business such as suppliers, logistics providers, and consumers. Consumers are often not satisfied with the increased use of biotechnology in coffee production, whereby fertilizers and high growth organic supplements are used to improve production. Studies reveal that they pose threats to the health. Under such a scenario, it is justified for consumers to be agitated. Therefore, it becomes a matter of consideration for producers to reduce the usage of chemicals in production as much as possible. Many companies have also chosen the path of outsourcing their production work to more than one nation. This lowers the labor pressure as well as generates employment opportunities in other nations. For instance, if companies decide to outsource garment production to not only Bangladesh but also to countries like Thailand and Hong Kong, it will reduce the high work pressure in Bangladesh (Isen, 2012).

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