Page 15 - Social Enterprise A New Business Paradigm for Thailand

with increasing attention given to carbon credit reporting, human rights practices, and
corporate reputation building.

In terms of how companies support social enterprises using their CSR or ESG budgets, three
distinct models have emerged:

• Collaboration: Companies form partnerships with social enterprises, such as providing
space in shopping centers to host programs for the elderly.
• Commissioning: Social enterprises are contracted to provide services or goods not related
to the company’s core business, such as producing staff uniforms or catering for corporate
events.

• Co-creation: Private companies help incubate or co-develop social enterprises, for example,
Banpu Public Company Limited’s collaboration with ChangeFusion to nurture impact-driven
ventures.

14. Coffee sector social enterprises create impact but struggle to gain market traction
This study also explored the role of social enterprises across the coffee industry’s value chain
and found that coffee presents a compelling opportunity for social entrepreneurship. One of
the key motivations is forest conservation, coffee can be grown in agroforestry systems that

coexist with forest ecosystems. In addition, coffee farming serves as a viable means to generate
income and employment for ethnic communities living in highland areas. Notable examples
include MiVana Company and Akha Ama Coffee Company Limited, both of which are engaged
in creating livelihoods for indigenous groups.

Social enterprises in the coffee sector also help create opportunities for vulnerable groups,
such as the hearing impaired and elderly. Coffee shops have therefore become a preferred
channel for corporate CSR initiatives, for instance, within the PTT Group. Moreover, cafés can
serve as inclusive community spaces, such as the model seen in Café Can Do. However, in

Thailand’s highly competitive specialty coffee market, social enterprises must compete on the
basis of product quality, location, and the ability to communicate social value effectively to
consumers. The latter remains underutilized with many socially driven coffee brands still do
not fully convey the value they create to customers.

An analysis of value distribution at the end of the coffee supply chain, particularly for freshly
brewed cups, shows that the cost of roasted coffee beans per cup is approximately 7.50–9.00
baht. Of that, only about 3.75–4.50 baht (roughly 50% of the coffee cost) reaches the farmer.
Based on this analysis, and supported by case studies from Nan Province, it becomes clear that
the profitability of coffee shops hinges primarily on pricing decisions, decisions that must take

into account both variable and fixed operating costs, the latter often involving varying levels of
investment to achieve the desired ambience. However, value captured by other parts of the
chain, including farmers, depends primarily on their production costs and general market

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