Abstract

Sustainability marketing trends have typically been led by smaller, more mission-driven firms, but are increasingly attracting larger, more profit-driven firms. Studying the strategies of firms that are moving away from these two poles (i.e., mission-driven but larger firms, and profit-driven firms that are more committed to sustainability) may help us to better understand the potential to resolve tensions between firm size and sustainability goals. We used this approach to analyze a case study of the U.S. fair trade coffee industry, employing the methods of data visualization and media content analysis. We identified three firms that account for the highest proportion of U.S. fair trade coffee purchases (Equal Exchange, Green Mountain Coffee Roasters and Starbucks) and analyzed their strategies, including reactions to recent changes in U.S. fair trade standards. We found an inverse relationship between firm size and demonstrated commitment to sustainability ideals, and the two larger firms were much less likely to acknowledge conflicts between size and sustainability in their public discourse. We conclude that similar efforts to increase sustainability marketing for other products and services should be more skeptical of approaches that rely on primarily on the participation of large, profit-driven firms.

Highlights

  • Addressing sustainability goals has proven to be a successful marketing strategy for firms, both to gain market share and to increase profitability [1]

  • We explore these issues through a case study of firms in the U.S fair trade coffee market using methods of data visualization and content analysis of media coverage

  • Green Mountain Coffee Roasters, in contrast, has steadily increased its volume of Fair trade purchases, as seen in Figure 4b, in the last two years the percentage of fair trade purchases has declined as its total coffee purchases grew dramatically

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Summary

Introduction

Addressing sustainability goals has proven to be a successful marketing strategy for firms, both to gain market share and to increase profitability [1]. The wide success of third-party certified ecolabels, such as fair trade and organic, as well as first party sustainability claims, has encouraged more firms, and an increasing number of industries, to develop such efforts [2,3]. These trends have typically been initiated by what Hockerts and Wüstenhagen term ―emerging Davids,‖ or smaller, mission-driven firms, but are increasingly attracting ―greening Goliaths,‖ or larger, more profit-driven firms [4]. Studying the strategies of these businesses can provide a better understanding of the tensions between firm size and sustainability goals, as well as inform efforts to (a) increase the sustainability commitments of large firms, and to (b) assist small firms to scale up while maintaining high commitments to sustainability [4]

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