The Sustainability Paradox - ESG Pressures and Supply Chain Trade-Offs in the Cosmetic Industry: How do ESG Pressures Create Trade-Offs in Supply Chain Resilience for the Cosmetic Industry. A DermaPharm A/S Case Study
Translated title
The Sustainability Paradox - ESG Pressures and Supply Chain Trade-Offs in the Cosmetic Industry: Hvordan ESG-pres skaber afvejninger i forsyningskædens modstandsdygtighed for kosmetikindustrien. En DermaPharm A/S casestudie
Author
Hansen, Alexander Østergaard
Term
4. Semester
Publication year
2026
Submitted on
2026-05-29
Pages
60
Abstract
This thesis examines how ESG (Environmental, Social, and Governance) pressures create trade-offs in supply chain resilience in the cosmetics industry, using the Danish hybrid CDMO DermaPharm A/S as a case study. A hybrid CDMO is a company that both develops and manufactures products for other brands. The findings are based on qualitative interviews and an abductive approach under critical realism, combining theory and real-world observations. The analysis draws on institutional theory (rules and norms), global value chain analysis (how activities are distributed across countries), stakeholder theory (relationships with customers, suppliers, and regulators), and a resource-based view (internal capabilities). The main trade-offs include: structural compromises stemming from DermaPharm’s intermediary position in a fragmented global value chain; customer-driven ESG pressures amplified by unpredictable and mimetic B2B demand (customers imitate each other); and uncertainty around ESG data because emissions data across the chain are often not verifiable. The study provides new empirical insight into medium-sized hybrid CDMO operators in the cosmetics sector and shows that proactive ESG integration is key under changing regulation, but it does not eliminate all supply chain trade-offs.
Afhandlingen undersøger, hvordan pres fra ESG (miljø, sociale forhold og god selskabsledelse) skaber afvejninger i forsyningskædens robusthed (modstandsdygtighed) i kosmetikbranchen, med den danske hybrid-CDMO DermaPharm A/S som casestudie. En hybrid-CDMO er en virksomhed, der både udvikler og producerer for andre mærker. Resultaterne bygger på kvalitative interviews og en abduktiv tilgang under kritisk realisme, der kombinerer teori og observationer. Analysen anvender institutionel teori (regler og normer), global værdikædeanalyse (hvordan aktiviteter fordeles på tværs af lande), interessentteori (forholdet til kunder, leverandører og myndigheder) og et ressourcebaseret perspektiv (interne kapaciteter). De centrale afvejninger omfatter: strukturelle kompromiser fra DermaPharms mellemliggende position i en fragmenteret global værdikæde; kundedrevne ESG-pres forstærket af uforudsigelig og mimetisk B2B-efterspørgsel (kunder kopierer hinanden); samt usikkerhed om ESG-data, fordi udledningsdata på tværs af kæden ofte ikke kan verificeres. Studiet giver ny empirisk indsigt i mellemstore hybride CDMO-aktører i kosmetiksektoren og viser, at proaktiv integration af ESG er vigtig i tider med skiftende regulering, men ikke fjerner alle afvejninger i forsyningskæden.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
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