Child Labour in the Coffee Industry: A Study of Institutions, Perceptions, and Challenges

Abstract

This research centers on child labour as an increasing, yet understudied phenomenon in the coffee industry. More specifically, we investigate how the institutional work of firms in the coffee industry illuminates child labour challenges. Our research takes its ontological stand in critical realism from which we observe underlying mechanisms of child labour and its root causes and apply the theoretical lenses of institutional work and sensemaking to understand the (re-)organisation of norms and practices. We contribute to the academic literature and practice by opening the discussion about child labour in the coffee industry and identifying how firms aim to create mindset shifts regarding child labour within local communities, the industry, and the consumer segment. The most pervasive forms of institutional work are identified within creating and disrupting. However, the institutionalisation of sustainable practices is currently hindered by a chain of challenges. Current pricing systems and systemic structures lead to limited responsibility and hesitant firm strategies to address child labour. This causes a lack of collaboration in the industry and of consumer awareness, hence most firms decide to not address child labour. Even if firms aim to change the institutional setting, their work is challenged by a missing common definition of child labour, poverty and low prices, the need for mindset shifts, and a lack of monitoring and enforcement. To overcome these challenges, we recommend to create Payments for Sustainable Services, private-public partnerships, increasing market demands, and a greater willingness to pay. However, neither of the approaches can individually solve the issue. Only governmental-private partnerships have the means to fill the regulatory vacuum. Governmental support would provide the social license to operate and in-depth knowledge of systemic challenges, while the private sector has the monetary means to provide training and education. Thus, whether child labour initiatives will affect industry practices or remain a best practice activity depends on stakeholder demands, further institutionalisation activities, and the willingness for systemic changes and collaboration.