Impacts of Business Strategies on Coffee Production and the Environment

Abstract

This study analyzes the impacts of business strategies on coffee production and the environment. Company A is used as an example to analyze the impacts of corporate activities and environmental initiatives on the decision-making processes of farmers and their coffee production. Farmer loan support, a proxy of environmental engagement strategy of company A, is found to induce the production of shade-grown Arabica coffee rather than sun-grown Robusta coffee. It has been found that integrating environmental sustainability into the business strategy is a win-win business model that benefits both the corporation and the environment. The result indicates that a sustainable business model could help to reduce deforestation, CO 2 emissions, and climate change impacts.