1. Introduction
This chapter introduces the background of environmental issues and business model with focus on sustainability. Further, a problem discussion addressing Swedish farmers as well as dairy industry in global context. Purpose and research question are explained after the problem discussion.
1.1 Background
In the Sustainable Development Agenda, UN has established 17 goals to nurture sustainability which will be adopting by all countries over the next fifteen years. According to UN, climate change is already impacting people and environment (Union Nations 2016). However, Gleditsch (2012) concluded, “Climate change is the world’s first truly global man-made environmental problem and a firm warning that human activities can influence our physical environment on a global scale” (p. 7). With that said, it suggests …show more content…
Arla Foods was established in Sweden in 1915 and was named Lantmännens Mjölkförsäljningsförening (commonly called Mjölkcentralen = The Central Dairy) (Arla nd). It was established by 1500 farmers in Stockholm. In 1975, Mjölkcentralen changed name to Arla. During its years, Arla has merged numbers of dairies in Sweden; in 2000, they stepped outside Sweden and merged a Danish dairy company MD Foods. At this time, Arla changed name Arla Foods (however, in this thesis, the term Arla will be used for Arla Foods). Since then, Arla grew internationally by merging other dairy companies (Arla nd). Arla’s organization legal form is still cooperative which means that the farmers own Arla. For this thesis, Arla is interesting because they are the sole former Swedish dairy company who went international. Also, because the farmers own Arla, it is interesting to see from a cooperative perspective what sustainability aspects are significant for their business model (e.g. ensuring their farmers are paid enough through social responsibility) and how the cooperative is
This chapter introduces the background of environmental issues and business model with focus on sustainability. Further, a problem discussion addressing Swedish farmers as well as dairy industry in global context. Purpose and research question are explained after the problem discussion.
1.1 Background
In the Sustainable Development Agenda, UN has established 17 goals to nurture sustainability which will be adopting by all countries over the next fifteen years. According to UN, climate change is already impacting people and environment (Union Nations 2016). However, Gleditsch (2012) concluded, “Climate change is the world’s first truly global man-made environmental problem and a firm warning that human activities can influence our physical environment on a global scale” (p. 7). With that said, it suggests …show more content…
Arla Foods was established in Sweden in 1915 and was named Lantmännens Mjölkförsäljningsförening (commonly called Mjölkcentralen = The Central Dairy) (Arla nd). It was established by 1500 farmers in Stockholm. In 1975, Mjölkcentralen changed name to Arla. During its years, Arla has merged numbers of dairies in Sweden; in 2000, they stepped outside Sweden and merged a Danish dairy company MD Foods. At this time, Arla changed name Arla Foods (however, in this thesis, the term Arla will be used for Arla Foods). Since then, Arla grew internationally by merging other dairy companies (Arla nd). Arla’s organization legal form is still cooperative which means that the farmers own Arla. For this thesis, Arla is interesting because they are the sole former Swedish dairy company who went international. Also, because the farmers own Arla, it is interesting to see from a cooperative perspective what sustainability aspects are significant for their business model (e.g. ensuring their farmers are paid enough through social responsibility) and how the cooperative is