Racial Equity in Supply Chains

The Drawdown Georgia Business Compact, an initiative of the Ray C. Anderson Center for Sustainable Business, hosted a discussion, “Racial Equity in Supply Chains,” part of the Climate Leadership Webinar Series.   

Racial equity can take many forms – even when in supply chains – and all of us have a role in making sure the inclusive work happens in the communities where we live and work. That was the sentiment shared by participants in a webinar sponsored by the Drawdown Georgia Business Compact, an initiative of the Ray C. Anderson Center for Sustainable Business.   

The Compact leverages the collective impact of the Georgia business community to achieve net zero carbon emissions in the state through a just, prosperous, and sustainable transition. Michael Oxman, managing director and professor of the practice, moderated the conversation, which featured Tiffany D. Johnson, Ph.D., associate professor of organizational behavior, and Phyllis Johnson, co-founder and president, BD Imports, which imports coffee from Latin America and Africa.   

Phyllis Johnson is also founder and board chair of the Coffee Coalition for Racial Equity, which infuses equity into the coffee industry by advising coffee producers on producing, shipping, and selling their products through the coffee trade. Much of Phyllis Johnson’s work has been in Latin America and Africa. The webinar builds on Tiffany Johnson’s research on racial equity in the coffee industry.  

Coffee grows in 80+ countries. In a long and varied supply chain, coffee producers often sell to intermediaries and exporters, who sell to importers, roasters, retailers and finally, to consumers. Coffee can even be traded some 6-12 times before it leaves its originating country.  

A long supply chain and lack of price transparency are factors that can minimize coffee farmers’ revenues while those further down the supply chain benefit from the significant margins that are passed along from seller to buyer.   

Risks of Not Enough Equity  

Like many other industries, the coffee industry still suffers from a historical background of slavery and inequities.  “We need more voices at the table,” said Phyllis Johnson. “When there isn’t a lot of racial diversity, it limits the conversation. It’s up to all of us to look inside to see what we can do to change the industry.”  

Brazil has many Black farmers, many of whom have only small coffee-growing plots and a lack of generational wealth that other farmers have been able to build up over time or through inheritance. Exacerbating the situation are climate changes that impact crop yields. When this occurs, growers have to raise prices to break even, while larger farmers may be more price resilient and therefore able to withstand yield changes or to shift to more expensive growing practices to keep yields high. To Phyllis Johnson, this was a call to action to look deeper than what is in the cup to provide resources to help producers manage the business impacts of climate change.  

She creates programs that address some of these historical disadvantages and help level the playing field. When asked how she became interested in the topic of equity, she says it started with a simple question: “Where are the Black Brazilian coffee farmers?”  

Tiffany Johnson’s interest in the topic has a similar origin. “I’ve been drinking coffee since I was a little girl,” she said. “I remember watching my mother and grandmother drink coffee, and I even worked as a barista. My experience fueled my curiosity into how the product gets here.”  

This natural curiosity about everyday things is what Tiffany Johnson hopes will inspire her students so they can continue to be the problem solvers who help make the coffee supply chain – as well as the organizations they work, volunteer, and learn in -- more inclusive.    

Phyllis Johnson has seen a fundamental shift in interest in the supply chain in recent years, given consumer curiosity about where and how the products we consume are produced. “This generation demands exposure and transparency when it comes to knowledge of the coffee supply chain,” she added. “Consumers are willing to pay for equitably, sustainably produced coffee. In fact, they’re demanding it because they want to be a part of a better world.”  

How to Keep Up the Momentum  

Tiffany Johnson believes we need more change agents. Creating equity in the industry’s supply chain is a complex issue that requires a “step, test, recalibrate, step” process since there is no one-size-fits-all solution.  

When it comes to any complex problem, such as racial equity or climate change, we all have a responsibility to do what we can to solve environmental challenges. Phyllis Johnson cited a fable from Wangari Maathai where a hummingbird brings drops of water to a massive garden to sustain it while the other animals watch and wonder how the bird’s small effort could have a lasting impact over time. “If you think about it, every complex change starts with a small act, and many small acts [together] can create systemic change,” she said.  

Being a catalyst for change is why the Center exists, according to Michael Oxman. “Many of the concepts we discussed could apply to any industry, and it’s a reminder that all of us can do something to ensure everyone has the tools they need to run a successful, sustainable business,” said Michael. “And that’s what the Center is all about.”  

Written by Delitha Morrow Coles