This paper investigates the difficulties of creating economic, social, and environmental values when operating as a hybrid venture. Drawing on hybrid organizing and sustainable business model research, it explores the implications of alternative forms of business model experimented with by farmer owned, fairtrade social enterprise Cafédirect. Responding to changes and challenges in the market and societal environment, Cafédirect has tried multiple business model innovations to deliver on all three forms of value capture, with differing levels of success. This longitudinal case (...) study, therefore, provides a contribution to our understanding of how business models enact hybrid mission, providing a platform for triple-bottom-line value capture. In doing so, we are able to expand on the normative understandings of integrating hybrid objectives, and the complications of multiple types of value capture. (shrink)

Data from a longitudinal study into the key management success factors in the fair trade industry provide insights into the essential nature of inter-organizational alliances and networks in creating the profitable and growing fair trade market in the UK. Drawing on three case studies and extensive industry interviews, we provide an interpretive perspective on the organizational relationships and business networks and the way in which these have engendered success for UK fair trade companies. Three types of benefit are derived from (...) the networks: competitive developments through virtual integration in which the organizations remain flexible and small while projecting size to the market; intellectual developments through the sharing of intellectual capital with a diverse network of organizations in many fields; and ideological developments through an ideological network of like-minded individuals by which the companies can prevent the co-opting of the original purpose of fair trade. However, relative success at leveraging these benefits is influenced by three managerial factors: partner choice, partner use and partner management. (shrink)

Employee buy-in is a key factor in ensuring small- and medium-size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi-structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but tradeoff within (...) these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

This article explores the extent to which consumers consider ethics in luxury goods consumption. In particular, it explores whether there is a significant difference between consumers’ propensity to consider ethics in luxury versus commodity purchase and whether consumers are ready to purchase ethical-luxury. Prior research in ethical consumption focuses on low value, commoditized product categories such as food, cosmetics and high street apparel. It is debatable if consumers follow similar ethical consumption patterns in luxury purchases. Findings indicate that consumers’ propensity (...) to consider ethics is significantly lower in luxury purchases when compared to commoditized purchases and explores some of the potential reasons for this reduced propensity to identify or act upon ethical issues in luxury consumption. (shrink)

This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson''s proposal for a more contextualist understanding (...) rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make. (shrink)

Employee buy‐in is a key factor in ensuring small‐ and medium‐size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi‐structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but tradeoff within (...) these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

This is a case study investigating the growth of fair trade pioneer, Cafédirect. We explore the growth of the company and develop strategic insights on how Cafédirect has attained its prominent position in the UK mainstream coffee industry based on its ethical positioning. We explore the marketing, networks and communications channels of the brand which have led to rapid growth from niche player to a mainstream brand. However, the company is experiencing a slow down in its meteoric rise and we (...) question whether it is possible for the company to regain its former momentum with its current marketing strategy. (shrink)

Fair Trade companies have pulled off an astonishing tour de force. Despite their relatively small size and lack of resources, they have managed to achieve considerable commercial success and, in so doing, have put the fair trade issue firmly onto industry agendas. We analyse the critical role played by social capital in this success and demonstrate the importance of values as an exploitable competitive asset. Our research raises some uncomfortable questions about whether fair trade has 'sold out' to the mainstream (...) and whether these companies have any independent future or whether their ultimate success lies in the impact they have had on day-to-day trading behaviour. (shrink)

Scholars agree that the environmental and societal impacts of consumption require greater attention, and need examining in more diverse market contexts. This editorial essay focuses on the nascent area of ethical/sustainable luxury, and critically considers how the scope of ethical/sustainable consumption can be broadened in the luxury sector. We address the compatibility of ethicality/sustainability and luxury by examining a range of opportunities and inherent tensions in relation to improving the ethical/sustainable consumption practices within the luxury sector. We also introduce several (...) original articles published as part of this Thematic Symposium, whose arguments underscore both the merits, and flaws, of ethical/sustainable luxury. On the basis of this and prior research, we present a balanced perspective by identifying various factors that facilitate or inhibit the acceptance and furtherance of ethicality/sustainability within sector. Thus, this essay serves as a springboard for further research and development in ethical/sustainable luxury whilst simultaneously highlighting the importance of the topic in general. (shrink)