Confidentiality in Cocoa Supply Chain Traceability: A Case Study

Abstract

Traceability is a central topic in the cocoa industry nowadays, especially because of discrepancies in social and environmental sustainability. Information sharing is crucial for effective traceability, and therefore confidentiality could impose challenges for communication of information which may be tied to aspects of traceability. This thesis identifies how confidentiality influences traceability, what effects limiting traceability may have, and how those limitations could be overcome. By researching companies in a cocoa supply chain from the perspective of processors, producers, and retailers, an approach considering one step up and one step down in the supply chain was adopted. This provides a holistic view, expanding on the insight of one company towards viewpoints across the supply chain, with the purpose of identifying how confidentiality may hinder or enable traceability in a cocoa supply chain. Existing literature was incorporated into the research by narrowing down from sustainable supply chain management. By aligning supply chain management practices with the triple bottom line, advancement toward social sustain-ability was considered. Traceability issues related to social and environmental aspects are highlighted in cocoa supply chains. This leads to confidentiality hindering traceability of such areas, including how supply chain relationships impact sharing of information. This especially in terms of dynamics of sharing of information contra companies’ competitive advantage. A critical realistic paradigm sets the stage for the research philosophy in a qualitative case. Furthermore, an instrumental case study was carried out at the focal firm, a cocoa producer, and their suppliers and customers, underlining the focus on gaining insight on the phenomenon of confidentiality’s effect on traceability. Using qualitative content analysis, the thesis sought to understand perceptions and underlying meanings in concepts, words, and sentences used in relation to each other. Semi-structured interviews were conducted with nine interviewees in particular positions deemed relevant to the instrumental case study. They were sampled through non-purposive convenience sampling, based on their specific position and career in the sector and their knowledge from obtaining this occupation which other people would not possess. Transcriptions of the semi-structured interviews were coded, serving as data for the content analysis. Three rounds of coding revealed patterns in the complex relationship between confidentiality and traceability. The findings highlight that confidentiality, particularly relating to preservation of commercial interests, poses barriers towards information sharing in cocoa supply chains. Areas such as supplier details, prices, recipes, volumes and production technology are highlighted as confidential in the sector. Furthermore, in aspects such as the large amount of supply chain actors, geographical distance, and lack of common systems for data handling, the complexity within a versatile cocoa sector is complexified. The thesis highlights that information not being communicated effectively could be due to other reasons than just confidentiality. Lack of alignment of goals and definitions, both internally and in the sector, could lead to confusion about what is needed and why it is needed. A better-safe-than-sorry mentality was demonstrated in the findings, implying that information is only shared if it is sure and there is a balanced reward against the risk of sharing information. This was especially due to the accountability of stating anything which is not certain. Therefore, the need-to-know information must be clear for information to be disclosed. The research identifies several strategies to overcome barriers of information sharing and confidentiality. These include clear guidelines and alignment throughout the sector on what is needed. Additionally, utilizing common systems working across the borders of companies to share information similarly is pointed out as a facilitator for effective in-formation sharing and increased traceability. With this, limitations on who can access the data are crucial. Partnerships are seen as beneficial for sharing information, fostering trust as a key aspect. Implementation of contracts and non-disclosure agreements provide security. Coopetitive relationships are highlighted as an area where it is crucial to have this type of security in place. Regulatory requirements were found to be particularly effective, as removing the choice of compliance ensures that companies must reveal the same information. A delicate balance between protection of sensitive information contributing to competitive advantage and sharing of information promoting traceability was pointed out. This thesis contributes towards existing literature, underscoring the importance of traceability in the versatile cocoa supply chain. While confidentiality remains essential to protect commercial interests, the research finds significant potential for improvement of information-sharing and increased traceability, thus achieving an optimal balance between confidentiality and traceability which can lead to more efficient, transparent, and sustainable cocoa supply chain. Future research avenues which could expand on findings in this thesis include exploring a broader range of supply chain actors, such as farmers and consumers, or comparing how confidentiality hinders or enables traceability across similar industries.