Sustainability initiatives in the food retail sector : factors for success

Abstract

The world's population is expected to reach 9 billion by 2050 and this creates an increased demand for food. Food manufacturers and retailers are scrambling to cater to this growth. However, they are also under constant pressure to manage their business operations more sustainably from external stakeholders such as consumers and governments. Consumers are demanding healthier and more ethically produced food products. Governments are strongly regulating the usage of natural resources such as water and land. These pressures have led many large food manufacturers and retailers to launch sustainability oriented projects and initiatives within their firm. These range from new product development and innovations to reducing environmental footprint of their operations. The outcome of these projects depends on different organizational factors. This thesis explores the question - What are the factors that contribute towards the success and failure of sustainability-oriented innovation and practices in the food manufacturing and retailing sector? What are the reasons for the positive outcome of a certain type of program/initiative? Based on literature review and semi-structured interviews with change agents in these firms, the thesis outlines different factors that could contribute towards a potentially successful sustainability project or initiative. Leadership & corporate vision, organizational complexities and incentive structures are identified as key reasons why these projects may succeed or fail.