Assessing the Sustainability of Food Retail Business: The Case of Konsum Värmland, Sweden
Affiliation(s)
Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden..
Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden..
ABSTRACT
It is public concern that the impacts of food retail business activities need to be recognized and addressed properly. The main objective of this study was to assess the sustainable business management of a cooperative food retail business in Sweden, known as Konsum Värmland (KV). The necessary data and information on history and status of KV, and its practical activities concerning the implementation of sustainable development principles as well as the motivation and challenges encountered during the implementation were gathered via reviewing different documents, research papers and press releases; interviewing decision makers and other personnel in KV and other researchers who have investigated KV. The implementation of sustainability initiatives was analyzed in depth mainly based on triple bottom line sustainability theory. The findings indicate that KV has incorporated the sustainability issues into its mission and values. It practically has been implementing sustainability programs in environmental, social and economic dimensions. It provides environmentally friendly and quality food products using its main brands names for local products. The major drives for KV to implement sustainability initiatives are leadership and employees’ commitment, organizational core values, and members’ and consumers’ awareness. On the other hand, the major challenges to such sustainability initiatives are high price of greener products, high logistics cost and emission due to long winter time, the seasonality of local product, and high cost of large scale investment.
It is public concern that the impacts of food retail business activities need to be recognized and addressed properly. The main objective of this study was to assess the sustainable business management of a cooperative food retail business in Sweden, known as Konsum Värmland (KV). The necessary data and information on history and status of KV, and its practical activities concerning the implementation of sustainable development principles as well as the motivation and challenges encountered during the implementation were gathered via reviewing different documents, research papers and press releases; interviewing decision makers and other personnel in KV and other researchers who have investigated KV. The implementation of sustainability initiatives was analyzed in depth mainly based on triple bottom line sustainability theory. The findings indicate that KV has incorporated the sustainability issues into its mission and values. It practically has been implementing sustainability programs in environmental, social and economic dimensions. It provides environmentally friendly and quality food products using its main brands names for local products. The major drives for KV to implement sustainability initiatives are leadership and employees’ commitment, organizational core values, and members’ and consumers’ awareness. On the other hand, the major challenges to such sustainability initiatives are high price of greener products, high logistics cost and emission due to long winter time, the seasonality of local product, and high cost of large scale investment.
Cite this paper
A. Bekele, T. Bosona, I. Nordmark, G. Gebresenbet and D. Ljungberg, "Assessing the Sustainability of Food Retail Business: The Case of Konsum Värmland, Sweden," Journal of Service Science and Management, Vol. 5 No. 4, 2012, pp. 373-385. doi: 10.4236/jssm.2012.54044.
A. Bekele, T. Bosona, I. Nordmark, G. Gebresenbet and D. Ljungberg, "Assessing the Sustainability of Food Retail Business: The Case of Konsum Värmland, Sweden," Journal of Service Science and Management, Vol. 5 No. 4, 2012, pp. 373-385. doi: 10.4236/jssm.2012.54044.
References
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[1] FAO, “Sustainability Assessment of Food and Agriculture Systems: Guidelines,” Natural Resources Management and Environment Department, FAO, 2012. http://www.fao.org/fileadmin/user_upload/suistainability/ SAFA/SAFA_ Guidelines_draft_Jan_2012.pdf [2] World Commission on Environment and Development, “Our Common Future,” Oxford University Press, New York, 1987. [3] A. Azapagic and S. Perdan, “Indicators of Sustainable Development for Industry: A General Framework,” Institution of Chemical Engineers, Manchester, 2000, pp. 243261. [4] M. Wilson, “Corporate Sustainability: What Is It and Where Does It Come from?” Ivey Business Journal Online. March/April Edition, 2003, pp. 1-5. http://wwwold.iveybusinessjournal.com/view_article.asp?intArticle_ID=405 [5] P. Dewhurst, “Product Design for Manufacture: Design for Disassembly,” Industrial Engineering, 1993. http://www.accessmylibrary.com/article-1G1-14437417/product-design-manufacture-design.html [6] P. Shrivastava, “Creating Sustainable Corporations,” Business Strategy and the Environment, Vol. 4, No. 3, 1995, pp. 154-165. doi:10.1002/bse.3280040307 [7] CIAA, “Managing Environmental Sustainability in the European Food & Drink Industries,” The Confederation of the Food & Drink Industries of the EU, 2008. http://www.fooddrinkeurope.eu/uploads/publications_documents/brochure_CIAA_envi2008.pdf [8] C. P. Timmer, “Do Supermarkets Change the Food Policy Agenda?” World Development, Vol. 37, No. 11, 2009, pp. 1812-1819. doi:10.1016/j.worlddev.2008.08.022 [9] P. McGoldrick, “Retail Marketing,” McGraw-Hill, Berkshire, 2002. [10] J. Gustavsson, C. Ceberberg, R. Van Otterdijk and A. Meybeck, “Global Food Losses and Food Waste: Extent, Causes and Prevention,” Study Report, FAO, Rome, 2011. [11] F. Szekely and M. Knirsch, “Responsible and Leadership and Corporate Social Responsibility: Metrics for Sustainable Performance,” European Management Journal, Vol. 23, No. 6, 2005, pp. 628-647 [12] L. Maxey, “Can We Sustain Sustainable Agriculture? Learning from Small-Scale Producer-Suppliers in Canada and the UK,” The Geographical Journal, Vol. 172, No. 3, 2006, pp. 230-244. doi:10.1111/j.1475-4959.2006.00211.x [13] J. Elkington, “Cannibals with Forks, the Triple Bottom Line of the 21st Century Business,” Capstone Publishing Ltd., Oxford, 1999. [14] W. Norman and C. MacDonald, “Getting to the Bottom of ‘Triple Bottom Line’,” Business Ethics Quarterly, Vol. 14, No. 2, 2004, pp. 243-262. [15] C. Hart, “Doing a Literature Review: Releasing the Social Science Research Imagination,” Sage, London, 1998. [16] M. A. Berry and D. A. Rondinelli, “Proactive Corporate Environmental Management: A New Industrial Revolution,” The Academy of Management Executives (19932005), Vol. 12, No. 2, 1998, pp. 38-50. [17] G. H. Weaver, “Strategic Environmental Management: Using TQEM and ISO 14000 for Competitive Advantage,” Wiley, New York, 1996. [18] T. W. Zosel, “Pollution Prevention in the Chemical Industry. IN D.S. Opportunities for Innovation, Pollution Prevention,” Department of Commerce, National Institute of Standards and Technology, Washington DC, 1994. [19] B. R. Allenby and D. J. Richards, “The Greening of Industrial Ecosystems,” National Academy of Engineering, Washington DC, 1994. [20] E. Kirschner, “Full Cost Accounting for the Environment,” Chemical Week, Vol. 154, No. 9, 1994, pp. 25-26. [21] A. Carroll, “A Three Dimensional Conceptual Model of Corporate Performance,” Academy of Management Review, Vol. 4, No. 4, 1979, pp. 497-505. [22] H. Bowen, “Social Responsibilities of the Businessman,” Harper, New York, 1953. [23] P. Jones, D. Comfort and D. Hillier, “What’s in Store? Retail Marketing and Corporate Social Responsibility,” Marketing Intelligence and Planning, Vol. 25, No. 1, 2007, pp. 17-30. doi:10.1108/02634500710722371 [24] International Organization for Standardization, “ISO and Social Responsibility,” 2009. http://www.iso.org/obp/ui/#iso:std:iso:26000:ed-1:v1:en [25] M. Friedman, “The Social Responsibility of Business Is to Increase Its Profit,” Times Magazine, 13 September 1970, New York, pp. 32-33 &122-126. [26] K. Davis, “The Case for and against Business Assumption of Social Responsibilities,” Academy of Management Journal, Vol. 16, No. 2, 1973, pp. 312-322. doi:10.2307/255331 [27] Global Reporting Initiative, “Sustainability Reporting Guidelines, G3,” 21 April 2012. http://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-InclTechnicalProtocol.pdf [28] C. Labuschagne, C. B. Alan and R. P. G. Van Erck, “Assessing the Sustainability Performances of Industries,” Journal of Cleaner Production, Vol. 13, No. 4, 2005, pp. 373-385.doi:10.1016/j.jclepro.2003.10.007 [29] N. Nordmark, “The Distribution System of Konsum Värmland: A Preliminary Assessment Document,” Department of Energy and Technology, Uppsala, 2012. [30] KV, “Annual Activity Report of Konsum Värmland,” 2011. http://www.konsumvarmland.se/index.php?option=com_content&task=v iew&id=203&Itemid=171 [31] ICA, “Year-End Report of ICA AB,” Stockholm, 2011. http://www.ica.se/Global/Om%20ICA/Pdf/ICA%20Year-end_report %202011%20120215.pdf [32] KF, “Sustainability Report,” Koperativa Förebundet, Annual Report, 2011. http://www.coop.se/Global/KF/Finansiell%20information/KF_HR11_indexerad.pdf [33] Ahold, “Financial Statements,” Ahold Annual Report, 2011, pp. 69-138. http://2011yearreview .ahold.com/downloads/Ahold-AR-2011-Financials.pdf [34] L. Newman, “The Virtuous Cycle: Incremental Changes and Process-Based Sustainable Development,” Sustainable Development, Vol. 15, No. 4, 2007, pp. 267-274. doi:10.1002/sd.317 [35] J. Pretty, “The Living Land: Agriculture, Food Community Regeneration in Rural Europe,” Earth Scan Publication, London, 1998. [36] J. P. Reganold, R. I. Papendick and J. F. Parr, “Sustainable Agriculture in the USA,” In: P. Conford, A Future for the Land: Organic Practice from a Global Perspective, Green Books Ltd, Bideford, 1992, pp. 91-101. [37] M. Zetterberg, “Can Values Drive Values for Sustainable Business? An Analyzing and Interpreting Case Study of Konsume Värmland Value-Creation,” Master Thesis, Karlstad University, Karlstad, 2007. [38] S. D. Elder, H. Zerriffi and P. L. Billon, “Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers,” World Development, Vol. 40, No. 11, 2012, pp. 2355-2367. doi:10.1016/j.worlddev.2012.06.010 [39] Deloitte, “Feeling the Squeeze Global Powers of Retailing,” 2009. http://public.deloitte.com/media/0460/2009GlobalPowersofRetail_FINAL2.pdf [40] M. Almaani, P. Aylwinblanco, C. Barbato, D. Benavides, M. Burman, P. Cacouris, C. Palacios, J. Sorensen, T. Sorgeloose, C. Vanier and G. Vemali, “Retailers Communication to Promote Sustainable Consumption,” UNEP-HEC School of Management, Paris, 2004.