{"id":23551,"date":"2017-11-15T14:55:36","date_gmt":"2017-11-15T19:55:36","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/a-hot-serving-of-empty-promises-dunkin-brands-the-enduring-foam-cups-and-sustainable-coffee\/"},"modified":"2017-11-15T14:55:36","modified_gmt":"2017-11-15T19:55:36","slug":"a-hot-serving-of-empty-promises-dunkin-brands-the-enduring-foam-cups-and-sustainable-coffee","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-hot-serving-of-empty-promises-dunkin-brands-the-enduring-foam-cups-and-sustainable-coffee\/","title":{"rendered":"A Hot Serving of Empty Promises? Dunkin\u2019 Brands, the Enduring Foam Cups, and Sustainable Coffee"},"content":{"rendered":"

In 2010, Dunkin\u2019 Brands declared the environmental impact of its polystyrene foam cups its number one sustainability priority.[1]<\/a>\u00a0 Yet years later, Dunkin\u2019 remains unprepared to transition to a more sustainable alternative.\u00a0 A petition on Change.org, started by fourth and fifth grade students from Massachusetts, called for Dunkin\u2019 to end its use of foam cups by Earth Day, 2015.\u00a0 This petition garnered over 300,000 supporters, demonstrating the popular will and imperative for action on replacing the cups and on wider sustainability measures to address climate change across Dunkin\u2019s supply chain.[2]<\/a><\/p>\n

Dunkin\u2019 Brands, the parent company of Dunkin\u2019 Donuts and Baskin Robbins, serves as a franchisor of quick service restaurants specializing in coffee, bakery, and ice cream products.[3]<\/a>\u00a0 The organization continues to grow rapidly and added 723 new restaurants globally in 2016; total points of distribution now exceed 20,000.[4]<\/a>\u00a0 Sales of coffee products account for approximately 63% of Dunkin\u2019 revenue and the company relies on sourcing 100% Arabica coffee to meet its customer demand.[5]<\/a>\u00a0 In addition to public pressure to enact sustainability measures in its supply chain, like substituting the foam cup, Dunkin\u2019 must also respond to the deleterious effects of climate change on global coffee production.\u00a0 Climate variability will not affect all Arabica coffee growing regions equally, although overall coffee production is expected to be negatively impacted and could result in supply instability and rising costs.[6]<\/a><\/p>\n

 <\/p>\n

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Dunkin\u2019s short and medium-term efforts to address climate change in its supply chain can generally be delineated into four categories: sustainable packaging, responsible sourcing, infrastructure, and replacing the foam cups.<\/p>\n

In packaging, Dunkin\u2019 issued its \u201cSustainable Pulp and Paper Policy\u201d in 2016, which sets the goal of increasing from 60% to 80% packaging sourced from Sustainable Forestry Initiative sources by 2018.[7]<\/a>\u00a0 Additionally, Dunkin\u2019 partners with the Rainforest Alliance to help address climate sustainable sourcing of coffee.\u00a0 Dunkin\u2019 granted over $310 thousand to Rainforest Alliance in recent years, supporting efforts to certify coffee farms on sustainable production and responding to climate change.[8]<\/a>\u00a0 Dunkin\u2019 recently expanded this cooperation, committing to using 100% Rainforest Alliance CertifiedTM <\/sup>expresso beans in all its products by the end of 2018.[9]<\/a>\u00a0 Dunkin also plans to take steps to address deforestation that may contribute to climate change from its sourcing.\u00a0 Growth in the demand for palm oil has led to extensive deforestation of tropical forests to clear land for its cultivation.[10]<\/a>\u00a0 Despite beinga limited user of palm oil, Dunkin\u2019 committed to sourcing all palm oil in accordance with Roundtable on Sustainable Palm Oil (RSPO) criteria.\u00a0 For infrastructure, Dunkin\u2019 committed in 2016 to significantly reduce energy and fuel usage in its corporate facilities and fleet by 2025.\u00a0 Specifically, the company is targeting a reduction of 30% energy used per square foot in facilities and a 9% increase in fuel efficiency in its corporate fleet respectively. [11]<\/a><\/p>\n

Despite these initiatives, the enduring foam cup causes Dunkin\u2019s commitment to addressing the environmental implications of its supply chain to appear empty.\u00a0 Without change, Dunkin\u2019 will continue to contribute to the 25 billion foam cups discarded by Americans, causing environmental and climate harm.[12]<\/a>\u00a0 Dunkin\u2019 claims that no viable alternative to the foam cup currently exists that can meet the functional and cost requirements of its franchisees; nevertheless, Dunkin\u2019 stakeholders, including corporate management and franchisees, should consider accepting an available higher cost alternative, while educating consumers on the sustainability benefits to the supply chain.<\/p>\n

Furthermore, Dunkin\u2019 could learn from its competitor, Starbucks, and focus on educating its consumers on the negative impacts of climate change on coffee farmers and production.\u00a0 On National Coffee Day 2017, Starbucks undertook a massive effort to reconfigure its stores to present information on menus about the climate challenges faced by farmers in its supply chain, and how it was helping to address them.[13]<\/a>\u00a0 Dunkin\u2019 should also follow Starbucks and commit to the Sustainable Coffee Challenge, a coalition of over 60 partners, including coffee producers, retailers, industry organizations, and non-governmental organizations, working together to make coffee the first truly sustainable agricultural product.[14]<\/a>\u00a0 Finally, Dunkin\u2019 could restructure future franchisee agreements to allow greater corporate influence over sustainability in the supply chain.\u00a0 Dunkin\u2019 cites its inability to prescribe supply chain, energy and water use, and waste-management and recycling rules to its franchisees as a significant limitation to its influence over the enterprise.[15]<\/a>\u00a0 Facing the systemic threats posed to brand reputation and the supply chain\u2019s ability to reliably source coffee in the future due to climate change, Dunkin\u2019 will need this additional flexibility to adapt policies over time to address changing circumstances.<\/p>\n

\"\"<\/p>\n

Within this context, should Dunkin\u2019s franchise ownership structure excuse the organization from being a leader in sustainability and climate change initiatives?\u00a0 Moreover, should consumers accept potentially more costly products from Dunkin\u2019 to support corporate goals to address climate change in its supply chain?<\/p>\n

(Word Count: 787)<\/p>\n

[1]<\/a> 2010 Corporate Social Responsibility Report, Dunkin\u2019 Brands. http:\/\/dunkinbrands.iprsoftware.com\/internal_redirect\/cms.ipressroom.com.s3.amazonaws.com\/226\/files\/201411\/CSR_Annual_Report_2010.pdf<\/a>, accessed November 2017.<\/p>\n

[2]<\/a> \u201cDunkin\u2019 Donuts: Stop Using Styrofoam Cups.\u201d Change.org<\/em>, https:\/\/www.change.org\/p\/dunkin-donuts-stop-using-styrofoam-cups-15<\/a>, accessed November 2017.<\/p>\n

[3]<\/a> Dunkin\u2019 Brands. \u201cAbout Us.\u201d http:\/\/www.dunkinbrands.com\/about<\/a>,\u00a0 accessed November 2017.<\/p>\n

[4]<\/a> 2015-2016 Corporate Social Responsibility Report, Dunkin\u2019 Brands. http:\/\/www.dunkinbrands.com\/internal_redirect\/cms.ipressroom.com.s3.amazonaws.com\/226\/files\/20177\/2016%20CSR%20Report.pdf<\/a>, accessed November 2017.<\/p>\n

[5]<\/a> Rodrick, Stephen. \u201cAverage Joe.\u201d New York Magazine (NYMag.com), <\/em>http:\/\/nymag.com\/nymetro\/news\/bizfinance\/biz\/features\/15139\/<\/a>,\u00a0 accessed November 2017.<\/p>\n

[6]<\/a> Ovalle-Rivera O, L\u00e4derach P, Bunn C, Obersteiner M, and Schroth G. \u201cProjected Shifts in\u00a0Coffea arabica<\/em>\u00a0Suitability among Major Global Producing Regions Due to Climate Change.\u201d PLoS One<\/em> (Published April 2015),\u00a0 http:\/\/journals.plos.org\/plosone\/article?id=10.1371\/journal.pone.0124155<\/a>, accessed November 2017.<\/p>\n

[7]<\/a>2015-2016 Corporate Social Responsibility Report, Dunkin\u2019 Brands. http:\/\/www.dunkinbrands.com\/internal_redirect\/cms.ipressroom.com.s3.amazonaws.com\/226\/files\/20177\/2016%20CSR%20Report.pdf<\/a>, accessed November 2017.<\/p>\n

[8]<\/a> Dunkin\u2019 Donuts. \u201cSustainability at Dunkin\u2019 Donuts, Sustainability Fact Sheet May \u201917.\u201d https:\/\/news.dunkindonuts.com\/internal_redirect\/cms.ipressroom.com.s3.amazonaws.com\/285\/files\/20174\/Sustainability%20Fact%20Sheet%20May%20%2717.pdf<\/a>, accessed November 2017.<\/p>\n

[9]<\/a> Dunkin\u2019 Brands.\u00a0 \u201cOur Planet.\u201d http:\/\/www.dunkinbrands.com\/responsibility\/our-planet<\/a>, accessed November 2017.<\/p>\n

[10]<\/a> May Tobin, Calen and Goodman, Lael. \u201cDonuts, Deodorant, Deforestation.\u201d Union of Concerned Scientists,<\/em> (Published March 2014), pages 4-5. http:\/\/www.ucsusa.org\/sites\/default\/files\/legacy\/assets\/documents\/global_warming\/deforestation-free-palm-oil-scorecard.pdf<\/a>, accessed November 2017.<\/p>\n

[11]<\/a> Dunkin\u2019 Brands. \u201cOur Planet.\u201d http:\/\/www.dunkinbrands.com\/responsibility\/our-planet<\/a>, accessed November 2017.<\/p>\n

[12]<\/a> McNall, Scott G. Rapid Climate Change: Causes, Consequences, and Solutions<\/em>, (New York and London 2011, Routledge, Taylor & Francis Group), page 66.\u00a0 https:\/\/books.google.com\/books?id=LL7C6fmNZgsC&pg=PA66&lpg=PA66&dq=do+styrofoam+cups+contribute+to+climate+change&source=bl&ots=RN_pYxgw37&sig=mtAwM_Zw2KNQrH3iIryKJqTvfN0&hl=en&sa=X&ved=0ahUKEwjOrLyH2brXAhXM3YMKHVn3DXA4ChDoAQhaMAk#v=onepage&q=do%20styrofoam%20cups%20contribute%20to%20climate%20change&f=false<\/a>, accessed November 2017.<\/p>\n

[13]<\/a> Bach, Natasha. \u201cStarbucks is Doing Something Different for National Coffee Day.\u201d Fortune<\/em>, September 29, 2017.\u00a0 http:\/\/fortune.com\/2017\/09\/29\/starbucks-national-coffee-day\/<\/a>, accessed November 2017.<\/p>\n

[14]<\/a> Starbucks.\u00a0 \u201cEthical Sourcing: Coffee.\u201d https:\/\/www.starbucks.com\/responsibility\/sourcing\/coffee<\/a>, accessed November 2017.<\/p>\n

[15]<\/a>2015-2016 Corporate Social Responsibility Report, Dunkin\u2019 Brands. http:\/\/www.dunkinbrands.com\/internal_redirect\/cms.ipressroom.com.s3.amazonaws.com\/226\/files\/20177\/2016%20CSR%20Report.pdf<\/a>, accessed November 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"

Dunkin\u2019 Brands had made many commitments to address the impacts of climate change in its supply chain. Is this hot air in an empty cup, or a real push for sustainable coffee?<\/p>\n","protected":false},"author":9621,"featured_media":23552,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,614,3668,3669,3222,612],"class_list":["post-23551","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-coffee","category-dunkin-brands","category-foam-cups","category-global-supply-chain","category-starbucks","hck-taxonomy-organization-dunkin-brands","hck-taxonomy-industry-food-and-beverage","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nA Hot Serving of Empty Promises? 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