Office for Environmental Programs - Theses

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Start date: 2019 × End date: 2019 × Type: Masters Coursework thesis × Author: Crossley, Brett J. ×

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    Causal drivers of firm participation in private regulatory programs: A case study of the Australian Coffee Market
    Crossley, Brett J. ( 2019)
    Australia is a leader in the global coffee world due to its dedication to high quality coffee and strong café culture. This market has become increasingly competitive as cafes and coffee roasteries have saturated urban environments across the nation. There are currently 200 Australian firms in the coffee industry participating in global supply chain certifications such as Fairtrade, Rainforest Alliance, UTZ and ‘the Pledge,’ yet to date few independent studies have investigated the market dynamics influencing firm decisions to participate in these voluntary programs. Private regulatory programs rely on firms to make voluntary commitments to comply with the protocols and standards set out in the scheme. However, much of the academic literature provides limited insight into the motivations and drivers for firms to voluntarily comply with private regulatory programs. In response to this gap, this thesis examines a case study of the Australian Coffee Market where a number of privately governed certifications and standards are operating and competing to regulate Australian firms. On this basis, the thesis attempts to provide credible grounds to model the types of motivations to participate and identify causal drivers to inform future investigations that seek to explain firm decisions to participate in private regulation. This thesis finds evidence that firms are motivated by a number of drivers that are contextually dependent. Firms respond that respond to ethical, norm following drivers are evidence of social constructivist theories, whilst firms driven to pursue self-interest maximisation are evidence of rational business strategies. The size of the firm is an interaction variable that enables large firms to pursue their core business values, whilst impeding the ability of small and medium sized firm from pursuing their core business values.