Planetgard: Reputational Risks & Environmental Impacts of Coffee Farming - Essay Sample

Introduction

The argument that reputational risk associated with the environmental impact should have been identified and managed before Planet gard created its online petition

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The reputational risks within the underlying environmental impacts accrued from coffee farming should have been solved before Planetgard emphasized on the application for Jorge's Law. The online petition that was created by Planetgard would restrict the operations of SD by incorporating more processes in the production process. Planetgard refers to the environmental lobbying group that is advocating for Jorge's Law (CGMA Strategic Case Study Examination Pre-seen material, 2020). The law is applied by the manufacturers who are promoted by Jorge Negrato. Besides, the online petition has raised multiple concerns about the impending over-exploitation of the farmers who may eventually spend much time on the farms for low pay. It is because SD would reduce the return to cater to the recycling processes which are upheld by Jorge's Law. Consequently, there would a case of fluctuations in the coffee market that would thin the returns for the farmers. Some of the families of the farmers may fail to avail of the essential support to the family, which will eventually lead to negligence of responsibilities. Enacting Jorge's Law would trigger the falling of coffee prices, which will, in turn, make the farmers sell their coffee plantation for little or no profit.

Similarly, the online petition has facilitated the inception of multiple initiatives that primarily address the sustainability issues like the organic coffee plantations. The reputational risk associated with the condition required prior management. It applies pest-resistant shrubs along with various strategies to mitigate the direct usage of chemicals (CGMA Strategic Case Study Examination Pre-seen material, 2020). Also, the risk should have been identified and managed to limit "fair trade" that has significantly reduced the level of hard work among the farmers. It is because the farmers are guaranteed support for basic needs. Generally, identifying the eventual impact of Planetgard complicated the ways of making espresso at home. Besides, the complicated systems that were applied in the coffee-making process would not be the case.

The strategy that S/D (Shineppod) should follow to minimize the impact of the legislation that would make them responsible for recycling the waste

The legislation aims at making the manufacturers avail of recycling services if they do not provide standard techniques of the process. Thus, the impacts may have indirect adverse effects on the farmers, which means that SD should devise a strategy that would mitigate its impacts. One strategy is that S/D should offer pieces of advice while investing in facilities that support the plantation activities by improving the resulting quality of the farm produce. The strategy would enable the beans extracts from coffee red berries to present more preferable flavors than those from other brands like the slightly green berries. This will, in turn, increase the overall output, which may, in turn, trigger S/D to incorporate recycling services without necessarily transferring the charges to the farmers indirectly.

Besides, S/D should encourage plantations to apply the "wet" process to harvest the beans from the berries to avoid losing better quality seeds to the bottom of the tanks within the manufacturing chamber. The strategy will avail avenues that can be used in availing recycling services. The strategy will also sort berries to be manufactured by type depending on different stages of manufacturing. It will ensure S/D produces high-quality products and also receive high-quality beans, which will, in turn, avail the recycling expenses hence minimizing the impact of the legislation upheld by Jorge's Law.

Reference

CGMA Strategic Case Study Examination Pre-seen material (2020, February)