In many ways water is of vital importance for humanity. But 1.1 billion people in developing countries today have inadequate access to water. While competition for water increases worldwide, agriculture – the major user of water – is challenged to manage water in a more efficient and environmentally sustainable way.
Meanwhile, the governance of the global agri-food system is undergoing significant changes, thus altering business relationships. These altered business relationships raise questions about the impact of food business on water resources. The central research question of this paper, applied to developing countries, is: Does food business satisfy the interests of Environmental Special-Interest Groups and farmers in efficient and environmentally sustainable agricultural water management, as well as the interests in the related arrangements of relationships?
Drawing on stakeholder theory, the relationships between food business, environmental stakeholders, farmers, and water resources are explored. By transferring the key principles of value creation, dialog, and continuous improvement on food business, critical factors were identified. Value creation, inclusiveness, and accountability are crucial features of relationships with environmental stakeholders, while value creation, fairness, support and compliance are crucial features of relationships with farmers. Two case studies, focusing on Nestlé and GlobalGAP, were undertaken. The study concludes that food business increasingly acknowledges the vital importance of addressing water management in agriculture. The case studies provided a few promising approaches to satisfy the interests of environmental stakeholders and farmers.
Further research must be conducted, in order to assess the particular implications for smallholders. In addition, more transparency is generally needed, to make the effective impact of food business on water resources in global agriculture measurable.
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Keywords: Water resources, irrigation, food industry, food trade, csr, corporate social responsibility, business ethics, green business, stakeholder dialogue, supply chain, procurement, stakeholder management / Schlagworte: Bewässerung, Nachhaltigkeit, Unternehmensethik, Wirtschaftsethik, Ethik, Verantwortung, Stakeholderansatz, Stakeholderdialog, Anspruchsgruppen, Lebensmittelindustrie, Nahrungsmittelindustrie, Lebensmitteleinzelhandel, Lebensmittelhandel, Handel, Konsumgüter, Supermarkt, Lieferkette, Beschaffung.
Table of Contents
1 Introduction
2 Linking Water, Farmers, and Context
2.1 A Precious Resource
2.2 Rising Competition for Water
2.3 Meeting the Challenges
3 The Framework: Stakeholder Theory
3.1 Changes in the Business Environment
3.2 Stakeholder Theory and Relationships
4 Linking Food Business, Environmental Stakeholders, and Farmers
4.1 Changes in the Agri-Food Chain
4.2 Linking Food Business and Environmental Stakeholders
4.3 Linking Food Business and Farmers
5 Case Study: GlobalGAP
5.1 Background and Significance
5.2 Impact on Water Management
5.3 Relationships with Environmental Stakeholders
5.4 Relationships with Farmers
6 Case Study: Nestlé
6.1 Background and Significance
6.2 Impact on Water Management
6.3 Relationships with Environmental Stakeholders
6.4 Relationships with Farmers
6.5 Collaborating in Initiatives
7 Conclusions
8 Abstract
Research Objective and Core Topics
This thesis examines how food businesses manage their relationships with environmental stakeholders and farmers to address global water scarcity challenges. It aims to determine if current corporate engagement strategies facilitate efficient and sustainable agricultural water management, particularly in developing countries.
- Impact of global water scarcity on agricultural production and business.
- Application of stakeholder theory in the context of global agri-food supply chains.
- Analysis of corporate governance through case studies of GlobalGAP and Nestlé.
- The critical role of Environmental Special-Interest Groups (ESIGs) in shaping business practices.
- Identification of critical success factors for sustainable water management and supply chain relations.
Excerpt from the Book
2.1 A Precious Resource
In order to understand the significance of water for today's world, this chapter will conduct a brief review of water's many values, its availability and the devastating effects of water scarcity.
Water's multiple values. The challenges related to water management can only be understood within the context of the multiple values attached to water in today's world. — "By means of water we give life to everything," the Koran says. This simple teaching captures a deeper wisdom. People need water as surely as they need oxygen; without it life could not exist. But water gives life in a far broader sense as well. People need clean water to maintain their health and dignity. Water also sustains ecological systems and is an input into the production systems that maintain livelihoods. Beyond the vital necessity, access to clean water is among the most powerful drivers for human development. It extends opportunity and helps establish a virtuous cycle of improving health and rising wealth.
Summary of Main Chapters
1 Introduction: Provides the background on global water scarcity and defines the central research question regarding the role of food business in water management.
2 Linking Water, Farmers, and Context: Explores the multifaceted value of water and the intensifying competitive pressures on water resources within agricultural production.
3 The Framework: Stakeholder Theory: Introduces stakeholder theory as a primary analytical framework to understand modern corporate relationships and business dynamics.
4 Linking Food Business, Environmental Stakeholders, and Farmers: Analyzes the structural changes in the agri-food chain and identifies critical success factors for managing relationships with stakeholders.
5 Case Study: GlobalGAP: Evaluates the GlobalGAP certification scheme's impact on agricultural water management and its stakeholder engagement practices.
6 Case Study: Nestlé: Investigates the practices of the world’s largest food company regarding water management, reporting, and collaboration with farmers and ESIGs.
7 Conclusions: Synthesizes the findings from the case studies to answer the central research question regarding corporate influence on sustainable water use.
8 Abstract: Summarizes the key insights and the necessity for further research into the impact of food business on water resources.
Keywords
Food Business, Water Scarcity, Stakeholder Theory, GlobalGAP, Nestlé, Agri-Food Chain, Environmental Stakeholders, Farmers, Water Management, Sustainable Agriculture, Corporate Social Responsibility, Supply Chain, Accountability, Value Creation, Irrigation.
Frequently Asked Questions
What is the primary focus of this research?
The research explores the intersection of food business activities, global water scarcity, and the management of relationships with key stakeholders like farmers and environmental groups.
Which theoretical framework is employed?
The work utilizes stakeholder theory, specifically the stakeholder approach, to examine how firms manage complex relationships in a changing global business environment.
What is the central research question?
The main question is whether food businesses effectively satisfy the interests of Environmental Special-Interest Groups and farmers to promote efficient and environmentally sustainable water management in developing countries.
Which methodology is used to conduct this study?
The study uses a qualitative research approach based on a comprehensive literature review and two detailed case studies of the GlobalGAP certification scheme and the company Nestlé.
What does the main body of the paper cover?
It covers the macro-trends in the agri-food sector, the application of stakeholder theory, and detailed empirical analyses of how GlobalGAP and Nestlé interact with environmental stakeholders and farmers.
What are the characterizing keywords of this work?
Key terms include water management, stakeholder inclusivity, agri-food chains, sustainability, and corporate accountability.
How does GlobalGAP address the water challenge?
GlobalGAP acts as a private sector standard that incorporates specific compliance criteria for irrigation and water protection, which producers must meet to be certified.
What was found regarding Nestlé's role?
The study suggests that while Nestlé makes water a priority in its internal reporting and supports farmers, there remains a need for greater transparency to make the real-world impact on agricultural water usage measurable.
- Quote paper
- Florian Harkort (Author), 2008, Food Business and the Global Water Challenge, Munich, GRIN Verlag, https://www.grin.com/document/137229
