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University of Vaasa - Vaasan yliopisto

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The Main Factors Affecting The Growth Of The Organic<br />

Cotton Industry<br />

155<br />

There are many factors that affect the growth <strong>of</strong> the organic cotton industry. These<br />

include, inter alia, consumer demand for organic products, a recognition by firms <strong>of</strong><br />

the benefits in terms <strong>of</strong> sales and pr<strong>of</strong>its from the increasing consumer awareness <strong>of</strong><br />

organic methods, and the institutionalisation and regulation <strong>of</strong> the industry with its<br />

attendant reputational benefits. Some <strong>of</strong> these appear to be stimulating the growth <strong>of</strong><br />

the industry and some appear to be working against it.<br />

Factors Stimulating The Growth Of The Organic Cotton<br />

Industry<br />

There are a number <strong>of</strong> factors that influence the growth <strong>of</strong> an industry and which<br />

affect the values calculated as part <strong>of</strong> a value chain analysis. Over time and through<br />

the increasing awareness <strong>of</strong> the industry and its products, learning and efficiency<br />

effects, the result <strong>of</strong> economies <strong>of</strong> scale, are likely to increase unit pr<strong>of</strong>itability. Of<br />

these growth factors the various media have played probably the most important role<br />

in raising ethical expectations <strong>of</strong> business and in achieving the public visibility <strong>of</strong><br />

corporate social responsibility (CSR) issues (Haberberg, Rieple, Gander, Martin-

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