Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Examining the Effect of Working and Living Conditions Sustainability Pillar on Certificate Achievement: The Case of Coffee Exporting Sector in Ethiopia


Affiliations
1 College of Business and Economics, Admas University, Addis Ababa, Ethiopia
2 Assistant Professor of Finance, School of Commerce, College of Business and Economics, Addis Ababa University, Addis Ababa, Ethiopia
3 School of Management Studies, Punjabi University, Patiala, Punjab, Ethiopia
     

   Subscribe/Renew Journal


The objective of the study is to investigate the possible barriers to sustainable complying with the control points of working and living conditions under UTZ VSS and its impact on certificate achievement of the coffee exporters in a group of the coffee exporter and commercial farms of coffee exporters in southwestern Ethiopia. The researchers used descriptive statistics and inferential statistics such as measurement and structural models. The result shows that the internal management system, government authority, and certification scheme (CSs) monitoring system negatively affect working and living condition criteria compliances which in return lead to certification delay and extra cost for closing the non-conformities, in general, it affects the certificate Achievement of the coffee exporters, as a result, they can not deliver their product to the global market within the time frame. Internal management systems, government authority and CSs monitoring systems are important determinants and have a positive significant relationship with certificate achievement.

Keywords

UTZ Certification, Working Condition, Living Condition, Noncompliance, Certificate Achievement
Subscription Login to verify subscription
User
Notifications
Font Size


  • Albersmeier, F., Schulze, H., & Spiller, A. (2009). The reliability of third-party certification in the food chain: From checklists to risk-oriented auditing. Food Control, 20(10), 927-935.
  • Al-Sayaad, J., Rabea, A., & Samrah, A. (2006) Statistics for economics and administration studies. Jeddah: Dar Hafez.
  • Bary, J. G., & Neilson, J. (2017). Reviewing the impacts of coffee certification programmes on smallholder livelihoods. International Journal of Biodiversity Science, Ecosystem Services and Management, 13(1), 216-232.
  • Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural Models. Journal of Academy of Marketing, 16(1), 74-94.
  • Bhagwati, J. (1995). Trade liberalisation and “fair trade” demands: Addressing the environmental and labor standards Issues. The World Economy, 18, 745-759.
  • Becker, J. M., Klein, K., & Wetzels, M. (2012). Hierarchical latent variable models in PLS-SEM: Guidelines for using reflective-formative type models. Long Range Planning, 45(5), 359-394.
  • CBI. (2020).What is the demand for coffee in Europe market?/CBI. Retrieved May 10, 2021, from https:// www.cbi.eu Chin, W. W. (2010). How to right up and report PLS Analysis. Hand book of partial list squire: Concept methods and application. New York: Spring.
  • Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates.
  • Cruz, C. P. (2021). How to choose ISO certification body. Retrieved May, 2021, from https://advisera.com Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.).
  • Degaga, L. (2020). Review on coffee production and marketing in Ethiopia. Journal of Marketing and Consumer Research, 67, 7-15.
  • Distelhorst, G., Locke, R. M., Pal, T., & Samel, H. (2015). Production goes global, compliance stays local: Private regulation in the global electronics industry.
  • Regulation & Governance, 9, 224-242. doi:10.1111/ rego.12096 Defries, R. S., Fanzo, J., Mondal, P., Remans, R., & Wood, S. A. (2017). Is voluntary certification of tropical agricultural commodities achieving sustainability goals for small-scale producers? A review of the evidence. Environmental Research Letters, 12(2), 2-11.
  • Elder, S. D., Zerriffi, H., & Le Billon, P. (2013). Is fairtrade certification greening agricultural practices? An analysis of fairtrade environmental standards in Rwanda. Journal of Rural Studies, 32, 264-274.
  • Elliott, K. A., & Freeman, R. B. (2003). Can labor standards improve under globalization? Washington DC: Peterson Institute.
  • Elliott, K. (2018). CGD Policy Paper. Paper 128. Washington, DC: Center for Global Development.
  • Emma, B., James, K., Rhiannon, P., Ellen, M., Lu, C. & Qiao, Y. (2012). Pro-poor certification: Assessing the benefits of sustainability certificate for small scale farmers in Asia. UK: Park Communication.
  • Eka, E., & Caraman, I. (2020). From bean to cup: Building competitive advantage through sustainable standards, a multiple-case study of the Swedish coffee industry (Bachelor’s Degree Thesis 15 HE Credits Subject).
  • Eurofound. (2021). Working condition. Retrieved from www.eurofound.europa.eu
  • Eurofound and International Labour Organization. (2019). Working conditions in a global perspective, Publications Office of the European Union, Luxembourg, and International Labour Organization, Geneva.
  • FAO. (2017). Voluntary sustainability standards for bananas. Retrieved February, 2021, from http://www. fao.org/world-banana-forum/projects/good-practices/ voluntary-sustainability-standards/en/
  • Fairtrade International. (2017). What is fairtrade? Retrieved from www.fairtrade.net
  • GCCE (Gumutindo Coffee Cooperative Enterprises). (2017). Social premium. Retrieved May, 2021, from www.gumutindocoffee.coop
  • Fairtrade Labelling Organization. (2012). Fairtrade and coffee: Commodity briefing. Retrieved March 27, 2021, from https://www.fairtrade.net
  • Fairtrade International Florentine, M., Richter, T., Blockeel, J., & Huber, B. (2019). Group certification. Internal control systems in organic agriculture: Significance, opportunities and challenges.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
  • Grüninger, B., Schiesari, C., Bluhm, E., & Mattos, J. (2015). Effects of UTZ certification according to coffee farmers in Brazil. Retrieved June, 2021, from https://www.utz.org/wp-content/uploads/2015/12
  • Gefen, D., Staub, D. W., & Boudreau, M. C. (2000). Structural equation modeling and regression: Guideline for research practice. Communication of Association for Information System, 4, 2-79.
  • Hair, J. F. J., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, New Jersey: Prentice Hall.
  • Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLSSEM: Indeed a silver bullet. The Journal of Marketing Theory and Practice, 19(2), 139-152.
  • Hair, J. F., Sarstedt, M., & Ringle, M. C. (2016). Partial least squares structural equation modeling. Hand Book of Market Research, 1-140.
  • Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2013). A primer on partial least squares structural equation modelling (PLS-SEM). Los Angeles: Sage Publications.
  • Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20, 195-204.
  • ITC. (2010). Voluntary standards in developing Countries: The potential of voluntary standards and their role in international trade. International Trade Forum.
  • ILO. (2013). Can better working conditions improve the performance of SMEs? Publications of international labour Office. – Geneva: ILO, 2013. Retrieved May, 2021, from https://www.ilo.org. Accessed on May,2021
  • ISCC (International sustainability and carbon certification). (2017). Group certification version3.0. Assessable at https://www.iscc-system.org/wp-content/ upload/2017/02/ISCC-206-group certification.
  • Jena, P. R., Chichaibelu, B. B., Stellmacher, T., & Grote, U. (2012). The impact of coffee certification on smallscale producers’ livelihoods: A case study from the Jimma Zone, Ethiopia. Agricultural Economics, 43, 429-440.
  • Kattel, R. R. (2017). Impacts of group organic certification of coffee on socio-economic and environmental sustainability in Nepal. Journal of Agriculture and Forestry University, 1(2017), 49-60.
  • Komives, K., & Jackson, A. (2014). Introduction to voluntary sustainability standards (pp. 3-19). Retrieved from https://www.researchgate.net Kline, R. B. (2011). Principles and practice of structural equation modeling (3rd ed.). Guilford Press.
  • Koul, R. (2008). Cultural background and students’ perceptions of science class room learning environment and teacher interpersonal behavior in Jammu, India.
  • Kuit, M., & Waarts, Y. (2014). Small-scale farmers, certification schemes and private standards: Costs and benefits of certification and verification systems for small-scale producers in cocoa, coffee, cotton, fruit and vegetable sectors. Wageningen: Technical Centre for Agricultural and Rural Cooperation.
  • Latynskiy, E., & Berger, T. (2016). Assessing the income effects of group certification for smallholder coffee farmers: Agent-based simulation in Uganda. Journal of Agricultural Economics, 68(3), 727-748.
  • Lernoud, J., Potts, J., Sampson, J., Garibay, S., Lynch, M., Voora, V., Willer, H., & Wozniak, J. (2017). The state of sustainable markets - Statistics and emerging trends 2017. Geneva: ITC.
  • Laffont, J. J., & Tirole, J. (1993). A theory of incentives in procurement and regulation. Cambridge: The MIT Press.
  • Coulibaly, A. L., & Liu, P. (2006). Regulation, standards and certification for agricultural exports. Rome: FAO.
  • List-of-UTZ-Certified-Coffee-Producers. (2021). Retrieved from https: //utz.org
  • Luning, P. A., Marcelis, W. J., & Jongen, W. M. F. (2002). Food quality management: A techno-managerial approach. Wageningen.
  • Mark, R. (1996). Research made simple: A handbook for social workers (p. 413). Thousand Oaks, CA: Sage. Hardback, ISBN-0-8039-7426-4, Paperback, ISBN-0-8039-7427-2.
  • Meier, C., Sampson, G., Larrea, C., Schlatter, B., Voora, V., Dang, D., Bermudez, S., Wozniak, J., & Willer, H. (2020). The state of sustainable markets 2020: Statistics and emerging trends. Geneva.: ITC.
  • Minten, B., Tamru, S., Kuma, T., & Nyarko, Y. (2014). Structure and performance of Ethiopia’s coffee export sector. EDRI, IFPRI Working Paper (66).
  • Kondal, A. M. (2018). The determinants of the export competitiveness of the coffee industry in Ethiopia (Degree of masters of art in marketing management department of marketing school of commerce Addis Ababa University).
  • NBE (National Bank of Ethiopia). (2020). Domestic economic analysis and publications directorate. Annual report (2019/20), Addis Ababa, Ethiopia. Retrieved from https://nbebank.com
  • Nunnally, J. C. (1978). Psychometric theory (2nd ed). New York: Mc-Graw-HII.
  • Oya, C., Schaefer, F., Skalidou, D., McCosker, C., & Langer, L. (2017). A systematic review campbell systematic reviews. doi:10.4073/csr.2017.3
  • Osorio, N. (2004, June 13-18). Lessons from the world coffee crisis: A serious problem for sustainable. São Paulo, Brazil Development.
  • Osorio, N. (2002, August 30). The global coffee crisis: A threat to sustainable development. Johannesburg.
  • Pinedo, L. (2020). Wages and working conditions in the coffee sector: The case of Costa Rica, Ethiopia, India, Indonesia and Vietnam. International Labour Organization..
  • Ponte. S. (2004). Standards and sustainability in the coffee sector, a global value chain approach. Retrieved March 27, 2021, from www.san.ag
  • Potts, J., Lynch, M., Wilkings, A., Huppé, G., Cunningham, M., & Voora, V. (2014). The state of sustainability initiatives review 2014: Standards and the green economy. International Institute for Sustainable Development (IISD) and the International Institute for Environment and Development (IIED) 332.
  • Rainforest Alliance. (2019). The rainforest alliance and UTZ to merge, forming new, stronger organization. Retrieved August 27, 2019 from https://www.rainforestalliance.org/articles/rainforest-alliance-utz-merger
  • Rainforest Alliance. (2017). Rainforest alliance certification rule. Retrieved May, 2021, from http:// www.sustentables.org/Documents/DOCS2018/Noma%20RA-2017-In/RA-R-SP-1-V1.2%20Certification%20Rules%2017.pdf
  • Rainforest Alliance. (2020). Coffee certification data report. Retrieved May 14, 2021, from https://www.rainforest-alliance.org/business/resource-item/coffeecertificationdata-report-2020/Rainforest Alliance and UTZ programs
  • Rajpaul, V., Rajpaul, V., McDermott, C., & Pinto, L. (2020). Coffee certification in Brazil: Compliance with social standards and its implications for social equity. Environment, Development and Sustainability, 22, 2015-2044.
  • Regassa, H. (2017). The effect of sustainable coffee CSs on the benefits of coffee certification: the case of certified commercial coffee farms in southwestern Ethiopia. The degree of executive master of business administration (EMBA) (A thesis submitted to the college of business and economics, Addis Ababa University. Addis Ababa).
  • SAN (Sustainable Agriculture Network). (2017). The guide for the 2017 SAN standard for the implementation & evaluation of the criteria requirements. SAN-G-LS01-V1 D.R. Red de Agricultural Sustainable, A.C. Retrieved from www.san.ag
  • Snider, A., Kraus, E., Sibelet, N., Bosselmann, A. S., & Faure, G. (2016). Influence of voluntary coffee certifications on cooperatives’ advisory services and agricultural practices of smallholder farmers in Costa Rica. The Journal of Agricultural Education and Extension, 22(5), 435-453.
  • Stiglitz, J. E., Sen, A., & Fitoussi, J.-P. (2009). Report by the commission on the measurement of economic performance and social progress, web page. Retrieved May 7, 2021, from https://ec.europa.eu/eurostat/documents/118025/118123/Fitoussi+Commission+report
  • Tsehay, B. M. (2019). Effects of coffee certification on the livelihood of small scale households (a case of AletaChuko District, Sidama Zone, Ethiopia). Management department, Hawassa University. IOSR Journal of Business and Management (IOSR-JBM), 21(4), 70-81. Retrieved from www.iosrjournals.org
  • UNFSS. (2018). Voluntary sustainability standards, trade and sustainable development. 3 rd Flagship Report of the United Nations Forum on Sustainability Standards (UNFSS).
  • UNFSS. (2013). Voluntary sustainability standards: Today’s landscape of issues and initiatives to achieve public policy objectives. United Nations Forum on Sustainability Standards.
  • USDA. (2020). Coffee: World markets and trade. Foreign Agricultural Service/USDA 9 December 2020 Global Market Analysis.
  • UTZ (2018, December). Standards & Assurance Department. UTZ Assurance Certification Protocol Version 4.3.
  • UTZ. (2016). What’s in a name? May 8, 2021, from https://utz.org/better-business-hub/marketing-sustainableproducts/utz-whats-in-a-name.uploaded on Feb 18, 2016 and updated on Jun, 2019.
  • UTZ (2015). EN_UTZ_Core-Code-Group_v1.1_2015. Retrieved May 4, 2021, from, https://utz.org
  • UTZ-EU-UT. (2009). UTZ 005 _ICS Guide. Retrieved March, 2021, https://utz.org/?
  • UTZ. (2015). Certification Protocol – UTZ.org. Retrieved June, 2021, from https://www.utz.org/wp-content/uploads/2015/12/EN_UTZ_Certification-Protocol_v4.1_2015.pdf.
  • Vanderhaegena, K., Akoyib, K. T., Dekoninckc, W., Jocquéd, R., Muysa, B., Verbista, B., & Miet, M. (2018). Global Environmental Change, 51, 1-9
  • Voora, V., Bermúdez, S., & Larrea, C. (2019). Global market report: Coffee. Winnipeg, CA: International Institute for Sustainable Development.
  • Wahyudi, A., Wulandari, S., Aunillah, A., & Alouw, C. (2020). Sustainability certification as a pillar to promote Indonesian coffee competitiveness. IOP Conference Series: Earth and Environmental Science, Volume 418, 1st International Conference on Sustainable Plantation (1st ICSP 2019) 20–22 August 2019, IPB International Convention Center, Bogor, Indonesia.
  • Wiersum, K., Gole, T., Gatzweiler, F., Volkmann, J., Bognetteau, E., & Wirti, O. (2012). Certification of wild coffee in Ethiopia: Experiences and challenges. Forests Trees Livelihoods 18, 9-21.
  • Wilson, R. (2019). Taking the surprise out of surprise audits. Retrieved August 29, 2019, from https://www.auditcomply.com/2019/08/29/taking-the-surprise-out-of-surprise-audits
  • Zikmund, W. G. (2003). Business research methods (7th ed.). Thomson/South-Western.

Abstract Views: 264

PDF Views: 0




  • Examining the Effect of Working and Living Conditions Sustainability Pillar on Certificate Achievement: The Case of Coffee Exporting Sector in Ethiopia

Abstract Views: 264  |  PDF Views: 0

Authors

Fethiya Seid Hassen
College of Business and Economics, Admas University, Addis Ababa, Ethiopia
Dakito Alemu Kesto
Assistant Professor of Finance, School of Commerce, College of Business and Economics, Addis Ababa University, Addis Ababa, Ethiopia
Yibeltal Nigussie
School of Management Studies, Punjabi University, Patiala, Punjab, Ethiopia

Abstract


The objective of the study is to investigate the possible barriers to sustainable complying with the control points of working and living conditions under UTZ VSS and its impact on certificate achievement of the coffee exporters in a group of the coffee exporter and commercial farms of coffee exporters in southwestern Ethiopia. The researchers used descriptive statistics and inferential statistics such as measurement and structural models. The result shows that the internal management system, government authority, and certification scheme (CSs) monitoring system negatively affect working and living condition criteria compliances which in return lead to certification delay and extra cost for closing the non-conformities, in general, it affects the certificate Achievement of the coffee exporters, as a result, they can not deliver their product to the global market within the time frame. Internal management systems, government authority and CSs monitoring systems are important determinants and have a positive significant relationship with certificate achievement.

Keywords


UTZ Certification, Working Condition, Living Condition, Noncompliance, Certificate Achievement

References