Abstract

Aim: There is an existing gap in the literature that addresses the importance of risk management as a tool for sustainability in the winemaker’s activities and operations. The purpose of this article is to propose a risk management framework for the South African wine industry that can be used as a tool for sustainability.Setting: The study comprised 10 participants at five wine-producing estates located in the five different wine-growing areas within the Stellenbosch region.Method: The study is exploratory in nature, adopting a case study approach. Interviews with wine producers in the Stellenbosch region of the Western Cape province of South Africa were conducted in order to identify the various risks they face.Result: A thematic analysis was used to analyse the data. The four steps of risk management were used as a reference point and to underpin the proposed risk management framework. The study was done using the Supply Chain Operations Reference model, which is divided into six process categories, namely plan, source, make, deliver, return and enable.Conclusion: The article makes a twofold contribution. Firstly, wine producers might use the proposed framework to identify and mitigate their risks and thus as a tool for sustainability. Secondly, the proposed framework is expected to contribute to the existing body of knowledge on risk management and sustainability.

Highlights

  • Sustainability can be defined as the survival of a business, requiring the successful integration of economic, social and environmental aspects

  • The purpose of this article is to present a risk management framework that may be used as a tool for sustainability for the South African wine industry

  • The purpose of this article is to present a risk management framework that may be used as a tool for sustainability for South African wine producers

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Summary

Introduction

Sustainability can be defined as the survival of a business, requiring the successful integration of economic, social and environmental aspects. Sustainability is likely to be achieved by a business that manages and integrates economic principles (maximising welfare and improving efficiency), and social (equity principles) and environmental strategies (conservation of resources) (Arnold 2017; Rauter, Perl-Vorbach & Baumgartner 2017; Schaltegger, Lüdeke-Freund & Hansen 2012). Many businesses, including the wine industry, face significant challenges in tackling global warming, protecting ecological support structures, conserving energy and resources, and sustaining functioning societies (Arnold 2018; Santini, Cavicchi & Casini 2013). South African wine producers are mindful of conservation – around 45 000 ha of land is owned by grape farmers who are World Wide Fund for Nature Conservation Champions, and 22 000 ha of this is held as part of the Cape Floral Kingdom (WOSA 2021a)

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