Behind the Cup of Coffee: Understanding Socially Responsible Procurement Practices in the Coffee Supply Chains

Kirjoittaja Faiz Sugihartanto palkittiin huhtikuussa 2025 LOGYn kannusteapurahalla Hankenilla tekemästään väitöskirjatyöstä. Hänen väitöskirjansa nimi on “Enhancing Socially Responsible Procurement (SRP) in Coffee Supply Chains: A Finnish Business Perspective”.

Coffee supply chains are inherently complex, marked by fragmented production systems and persistent social risks such as unfair wages, unsafe working conditions, and inequitable power dynamics. Notably, the majority of coffee consumed in Finland is sourced from developing countries, where social sustainability challenges are most acute. As a nation that consumes more coffee per capita than almost any other country, Finland has a unique relationship with this commodity.

However, behind every cup lies a global supply chain riddled with social risks – unfair wages, unsafe working conditions, and power imbalances that disproportionately affect farmers in developing countries. As Finnish companies and policymakers strive to align with the EU Corporate Sustainability Due Diligence Directive (CSDDD) and ethical consumer expectations, Socially Responsible Procurement (SRP) is emerging as a transformative framework. This research leverages Finland’s social and economic connection to coffee to explore how SRP can enhance sustainable supply chain practices while addressing risks in sourcing regions, particularly developing countries.

Socially Responsible Procurement (SRP) has emerged as a critical framework for aligning corporate practices with ethical, social, and regulatory imperatives. SRP emphasizes transparency, fair labor practices, and accountability across supply chains, ensuring procurement decisions advance human rights, equity, and sustainability. This research positions SRP as a cornerstone for addressing systemic social challenges in global supply chains, with a specific focus on coffee – a commodity deeply intertwined with Finland’s consumption patterns and corporate responsibility commitments.

My doctoral research focuses on Socially Responsible Procurement (SRP) in coffee supply chains. It investigates drivers and barriers of SRP practices and formulates strategies for their implementation. The study employs a mixed-methods approach to answer critical questions. The following paragraph describes the essay plans of this dissertation.

First, a systematic literature review was conducted to identify current SRP practices. This phase, already completed and submitted to the journal for review, analyzed over 150 articles and generated a theoretical framework. The framework will be validated through empirical data collected in subsequent phases.

The second phase involves interviews with over 30 stakeholders in Indonesian coffee supply chains, including procurement managers, NGOs, policymakers, coffee cooperatives, government representatives, and farmers. These interviews aim to identify key drivers and barriers of SRP adoption. Surveys using multi-criteria decision-making (MCDM) tools will then rank the most influential factors.

The third phase will employ multiple case studies of Indonesian coffee supply chains – a major sourcing region – will identify actionable strategies, such as fostering long-term supplier partnerships and shared value initiatives. By examining both Finnish actors and upstream producers in developing countries, the research ensures a holistic understanding of SRP implementation.

Overall, my research seeks to contribute to the ongoing discussion on social sustainability practices of supply chains, which primarily focuses on the procurement process. Finland’s journey toward socially responsible coffee procurement offers valuable insights for logistics and supply chain professionals worldwide. Piloting SRP practices in high-impact sourcing categories allows organizations to test and refine strategies. A holistic approach ensures social risks are addressed alongside environmental ones, avoiding fragmented solutions. Collaboration with peers, NGOs, and policymakers can amplify impact and scale solutions. As the CSDDD reshapes corporate accountability, SRP is no longer optional – it is the future of procurement. For Finnish companies, this represents an opportunity to strengthen supply chains, enhance brand loyalty, and cement their role as sustainability leaders.

Mushonnifun Faiz Sugihartanto
Doctoral Researcher, Hanken School of Economics
Assistant Professor, Institut Teknologi Sepuluh Nopember, Indonesia