Compare C.A.F.E to an industry-wide code of conduct. Which is better and why?
C.A.F.E. Practices was a set of coffee buying guidelines designed to support coffee buyers and coffee farmers, ensure high quality coffee and promote equitable relationships with farmers, workers, and communities, as well as to protect the environment. That is the reason that Starbucks introduced this program into the industry. Since Starbucks established C.A.F.E. just for Starbucks’ supply chain, it includes strategy and business operation. Starbucks’s business strategy is to provide specialty high quality coffee beans for its customers. With rapid growth of Starbucks in recent years, Starbucks has to face the challenge of a secure supply of high-quality coffee beans, because there is high demand in the market but limited supply. As a result, C.A.F.E. focuses on supply chain, trying to integrate the whole supply chain. Starbucks implements C.A.F.E. Practices through economic incentives and preferential buying status. Therefore, suppliers would like to follow C.A.F.E, even though they have to pay some costs at the early stage to the verifier. Also, C.A.F.E has a set of processes, beginning from prerequisites. Starbucks grade suppliers through a set of environmental and social criteria. In addition, Starbucks develops effective measures to evaluate workers’ health, safety and living conditions. C.A.F.E. is a long-term practice because Starbucks encourages suppliers to make continuous improvement. If suppliers can earn high scores through efforts, Starbucks will offer additional money premium, preferred purchasing priorities and financial loans to suppliers. Starbucks also assigns people to communicate the requirements and practices to farmers and suppliers, and evaluate farmers for their conditions.
Compared with C.A.F.E, EICC is less efficient. The Electronic Industry…