Considering Fraud Vulnerability Associated with Cre-dence-Based Products Such as Organic Food

Manning, Louise and Kowalska, Aleksandra (2021) Considering Fraud Vulnerability Associated with Cre-dence-Based Products Such as Organic Food. Foods, 10 (8). p. 1879. ISSN ISSN: 2304-8158

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Organic foods carry a premium price. They are credence-based foods, i.e., it is difficult for consumers to evaluate the premium aspects of organic food under normal use. In global supply chains, organic food is purchased on institutional trust (certification, logos, standards) rather than on relational trust. Relying on institutional trust makes consumers vulnerable to criminals who in-tentionally label conventional product as organic or develop sophisticated organized crime networks to defraud businesses and consumers. The aim of this research is to explore cases of organic fraud that are emergent from academic and gray literature searches to identify ways to strengthen future capabilities to counter illicit activities in a globalized food environment. Each case is considered in terms of perpetrator motivations (differentiated as economic, cultural, and behaviorally orientated drivers), the mode of operation (simple or organized), the guardians involved/absent, and the business and supply chain level vulnerabilities the cases highlight. The study finds that institutional trust is particularly vulnerable to fraud. Supply chain guardians need to recognize this vulnerability and implement effective controls to reduce the likelihood of occurrence. However, in some cases con-sidered in the study, the guardians themselves were complicit in the illicit behavior, further increasing consumer vulnerability. Future research needs to consider how additional controls can be implemented, without increasing supply chain friction that will impact on food trade and supply, that can ensure consumers are purchasing what they believe they are paying for.

Item Type: Article
Keywords: fraud, vulnerability, credence-based, organic, substitution, organized crime group
Divisions: Agriculture, Food and Environment
Depositing User: Professor Louise Manning
Date Deposited: 07 Sep 2021 14:43
Last Modified: 20 Oct 2022 14:51

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