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Sustainability Standards: Interactions Between Private Actors, Civil Society, and Governments
Abstract
New partnerships between governments, private companies, and nongovernmental organizations (NGOs) are reshaping global environmental governance. In particular, there has been a rise of voluntary sustainability standards in an attempt to manage social and environmental impacts of global supply chains. We analyze the large spectrum of interactions between private, public, and civil society actors around voluntary sustainability standards, primarily for tropical agriculture and forestry. This review uncovers a policy ecosystem dominated by a proliferation of standards that complement, substitute, or compete against each other, with coordination mechanisms beginning to arise. Contrary to widely held views, interactions between governments, NGOs, and private companies surrounding the adoption of sustainable practices are not generally antagonistic, and public and private environmental governance regimes rarely operate independently. The influence of these interactions on the effectiveness of sustainability standards needs more attention. Better understanding how private regulations interact with the policy ecosystem will help design more effective interventions.
... Most VSS relevant for tropical cash crops, such as Fairtrade, Rainforest Alliance, or Organic, were initially developed with a specific goal in mind focusing, for example, on environmental or social aspects only. In recent decades, VSS have been further developed and have gradually converged in their objectives to encompass comprehensive sustainability goals in multiple dimensions (Lambin and Thorlakson 2018;Meemken et al. 2021). Traldi (2021) provides an overview of 13 major international agricultural VSS, including, for example, Fairtrade, Organic, and Rainforest Alliance, and their key characteristics, principles, and criteria covering environmental, social, and economic dimensions. ...
... In recent years, most VSS have been further developed to encompass a broad range of interventions addressing multiple sustainability dimensions (Lambin and Thorlakson 2018). Against this backdrop, they have been proposed as a promising tool to support the achievement of the SDGs. ...
The global agri‐food system faces major challenges in meeting the growing demand for food in an equitable way while mitigating environmental impacts such as deforestation, soil degradation, and climate change. Over the past few decades, voluntary sustainability standards (VSS) have proliferated as a potential instrument to promote more sustainable global value chains and sourcing practices. Although the body of impact evaluations on VSS has grown, most studies focus on single outcome dimensions, leaving interactions between dimensions underexplored. In this study, we use a conceptual framework to assess the relationships between VSS interventions and key sustainable food system outcomes across multiple dimensions. Our study focuses on economic prosperity, healthy ecosystems, gender equality, and food security, with a particular emphasis on identifying potential trade‐offs and synergies between these dimensions. To illustrate the interactions identified in our framework, we present empirical data from three case studies in Ghana, Rwanda, and Peru. Our findings underscore the importance of balancing trade‐offs and fostering synergies to advance sustainability across multiple dimensions. This study contributes to ongoing discussions on the effectiveness of VSS in promoting sustainability by highlighting their potential impacts, as well as the trade‐offs that must be managed, to achieve more sustainable food systems.
... The latter is, however, often discovered by private firms and NGOs, though the government plays an important role, especially in the energy sector (Norberg-Bohm, 2000). These indirect regulatory instruments, forged by governments, companies, and NGOs, are reorganizing global environmental governance, especially in tropical agriculture and forestry (Lambin & Thorlakson, 2018). It is essential to understand that these private governance mechanisms have a complex relationship with public policy, where they often can work in parallel to or in support of state-based governance, instead of which can be viewed as being in direct conflict, as assumed by some scholars (Falkner, 2003). ...
... It is essential to understand that these private governance mechanisms have a complex relationship with public policy, where they often can work in parallel to or in support of state-based governance, instead of which can be viewed as being in direct conflict, as assumed by some scholars (Falkner, 2003). Knowledge of these interactions is critical to developing intervention strategies and capturing the shifts in the global politics of the environment (Lambin & Thorlakson, 2018;Falkner, 2003). ...
Smog is a severe environmental and public health problem in major cities in Pakistan, particularly Lahore and Faisalabad. This review looks into the structure and content of smog policies and frameworks on climate resilience, drawing out the enhanced and the insignificant. Sources of significant smog are industrial emissions, traffic problems, and crop burning, all heightened by climate change. However, programs like the Pakistan Clean Air Program have been launched to control these emissions, yet they still need the enforcement mechanism and public awareness. Finally, regarding future work, the review advises that increased integration across disciplines, mainly through collaboration with international organizations such as the World Economic Forum, could enhance policy coordination. They get specific by stating that public engagement and community involvement are crucial, calling for better organizational practices. Recommendations for policy improvement include practical actions against smog and improving Pakistan's protection against climate change.
... Indirectly, governments are key actors in creating an enabling environment in which VSS can be adopted and operated effectively. They do this by establishing political and legal frameworks and other institutions favouring regulatory compliance, and through private sector development that facilitates VSS adoption -for example, through financial and technical support, clear land property rights or infrastructure development Lambin & Thorlakson, 2018;Loconto & Dankers, 2014;von Essen & Lambin, 2021). Directly, governments influence the adoption of VSS through their public policies (Gulbrandsen, 2014), public procurement and development cooperation policies including South-South and triangular cooperation projects (Pérez-Pineda, 2023). ...
... From that perspective, VSS can continue to play an important role in making trade more sustainable and contributing to achieving the SDGs (Schleifer et al., 2022). They often play the role of catalysts by accelerating the adoption of credible sustainability policies by public and private actors (Kosolapova et al., 2023;Lambin & Thorlakson, 2018). Strengthening their potential in terms of impact, as well as offering support for their adoption, are important prioritiesespecially in a context in which VSS are integrated in public policies (Schiller et al., 2021). ...
Voluntary Sustainability Standards (VSS) are transnational governance instruments that can be leveraged to pursue sustainable development in global value chains. They have proliferated since the 1990s in terms of their number and the share of global production they govern. This paper shares some key insights arising from the considerable body of literature that has analysed the role of these instruments for sustainable production and trade. First, it introduces VSS, traces the evolution of their adoption and takes stock of the research on their sustainability impacts. Next, some major developments in the VSS realm are discussed, related to public policy and the emergence of national sustainability standards. The paper then zooms in on the challenges and limitations of VSS in transforming value chains towards sustainability, focusing on the shortcomings related to inclusiveness and the problems arising from their proliferation. The paper concludes by distilling recommendations on overcoming these challenges, especially in light of recent policy developments, and outlines what different stakeholders can do to make VSS more effective and inclusive instruments for sustainable value chains.
... Sustainability standards serve as a structured framework that defines corporate responsibilities across key ESG dimensions, such as human rights protections, labor conditions, and environmental impact mitigation (United Nations Forum on Sustainability Standards, 2013). While corporate reporting on these standards was once a voluntary initiative spearheaded by non-governmental organizations (NGO) and multistakeholder initiatives (Lambin & Thorlakson, 2018), recent years have seen a decisive shift with governments and regulatory bodies stepping in to institutionalize them through mandatory disclosure requirements. For example, in 2024, the United States Securities and Exchange Commission (SEC) adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings (Securities & Exchange Commission, 2024) 1 . ...
... State-led aquaculture governance has focused on the mitigation of disease, allocation of production sites, trade protection and some aspect of water quality, rather than wider food system level issues related to environment, equity and human nutrition [10]. The lack of attention to these wider sustainability issues has led, like in many other food and fibre sectors [see 11], to the emergence of private forms of aquaculture governance led by non-state actors who formulate principles, norms and rules enabling actors "to solve societal problems and to create societal opportunities" [12, p. 17]. These private governance arrangements include a range of industry-and civil society-led voluntary agreements, certification standards -such as the Aquaculture Stewardship Council (ASC), the Global Seafood Alliance's Best Aquaculture Practices (BAP), GlobalGAP and ratings such as Monterey Bay Aquarium's Seafood Watch [13][14][15]. ...
The Aquaculture Governance Indicators (AGI) are an integrated social scientific framework for assessing governance performance for steering aquaculture sectors towards sustainability around the world. The AGI assess four governance dimensions against three governance principles. The four governance dimensions – legislation, voluntary codes and standards, collaborative arrangements and governance capabilities - allow for a systematic mapping of the governance landscape. The governance principles – legitimacy, effectuation, and coordination – focus on the organisation of roles and responsibilities, the implementation and effectiveness of enforcement, monitoring and learning, and the alignment of activities. This paper demonstrates the explorative and explanatory power of the AGI framework using the case of disease management in the salmon industries of Norway, Chile, and Canada. Our findings show that the governance of disease risk in these salmon industries is strongly supported by state legislation, yet remains limited in steering towards alternative solutions for avoiding or mitigating the effects of disease – and other persistent environmental challenges. We conclude that the AGI provides a valuable framework for self- or guided reflection and deliberation amongst decision-makers and stakeholders in aquaculture sectors around the world. Further development of the AGI framework will focus on a global set of country assessments, comparative analysis between production regions, comparison with other aquaculture indicator frameworks and the AGI’s potential for assessing the governance performance of food systems more broadly.
... However, it is noted that CSLs, as voluntary initiatives, differ from mandatory legal regulations (Tröster and Hiete, 2018). The interaction between nongovernmental organizations, private certifiers and government agencies has positioned voluntary standards as catalysts in the implementation of sustainable policies (Lambin and Thorlakson, 2018). ...
... In this system, there is an opportunity for public or private institutions or market entities to formulate, provide oversight, and facilitate adherence to regulations aimed at sustainable use and conservation outcomes (Platteau, 1994). Private or public standard and certification bodies, retail chains, or brokers, are typical entities (Lambin & Thorlakson, 2018) that may be mandated to secure compliance with international and national sustainability standards and regulations across the value chain in the WM fully integrated value chain systems. ...
Abstract
With the advent of artisanal small-scale mining (ASM) in areas around Filabusi,
land use and land cover (LULC) has been changing in the past decades,
affecting ecosystem-service-producing biodiversity. ASM has changed riverine
ecosystem dynamics in the region, impacting biodiversity and ecosystem
services, according to this study, which uses satellite imagery to compare
changes between 1992 and 2022 to investigate the effects of ASM on land use
and land cover changes in Filabusi, Zimbabwe, over 30 years. To effectively
examine the observed LULC changes, it was critical to refer to the period when
such ASM was non-existent in the area. This allowed the research to quantify
the observed effects with decisive findings on the observed impact ASM has
had on environmental changes and ecosystems around Filabusi. The paper
compared LULC changes between 1992 and 2022 using satellite imagery to
unravel the impact of ASM on local riverine ecosystem dynamics in areas
around Epoch Mine, Filabusi, over –30 years using multi-temporal satellites. It
quantified the extent of land cover changes over 30 years through the analysis
of Landsat 5 and Landsat 9 Operational Land Imager (OLI) imagery to confirm
local communities’ ecosystem degradation concerns after artisanal mining took
root using satellite imagery and Google Earth Engine remote-sensing analysis to
detect and analyse LULC changes among ASM communities. Using remote
sensing data to track LULC changes, the paper compares the LULC map from
1992 to 2022 in Filabusi, focusing on areas around the Insiza and Umzingwane
Rivers. Results show minimal mining operations in the 1990s but increased
ASM activities and related water features in the 20-23% land cover as ASM
activities became widespread. The study concludes that ASM has affected local
biodiversity marked by detrimental environmental changes on surface and water
cover and the general landscape aesthetics. Since remote sensing technologies
offer important insights into changes in land cover and their effects on local
ecosystem goods and services through mining metals and mineral pollution, this
study suggests using them more often for ongoing environmental monitoring
and management.
Keywords: Artisanal mining, Land use-land cover, Environmental change, Sustainable
ecosystem and livelihoods, Mineral pollution.
... Forest-focused Supply Chain Policies (FSPs) are voluntary environmental governance tools adopted within company or country supply chains aimed at combating deforestation, restoring forests and improving farmers' livelihoods (Brandi 2017;Garrett et al. 2021;Lambin and Thorlakson 2018). FSPs have emerged as key tools alongside existing territorial interventions (e.g., Protected Areas) in addressing deforestation and promoting sustainable agricultural practices across commodity sectors including palm oil, cattle, soy, coffee and cocoa (Bager and Lambin 2022;Garrett et al. 2019;). ...
Tropical forests play a crucial role in achieving the sustainable development goals by contributing to climate stability, conserving biodiversity and sustaining livelihoods. However, forests are disappearing due to agricultural expansion. In West Africa, cocoa production is a major driver of deforestation. This study examines the design and implementation of forest‐focused supply chain policies (FSPs) in cocoa supply chains in Côte d'Ivoire and Ghana, the world's two leading cocoa producers. FSPs are voluntary policies of companies to combat deforestation, restore forests, and improve farmers' livelihoods. Drawing on 91 stakeholder interviews, we developed a conceptual framework to examine FSPs' theory of change, implementation and potential effectiveness and equity. Our findings reveal shortcomings in FSPs' design and implementation. FSPs are mostly narrowly focused on preventing illegal deforestation and only target farmers in companies' ‘direct’ supply chains, neglecting important landscape‐scale approaches and processes. Companies also fail to include smallholder farmers sufficiently in policy design and implementation. Lastly, FSPs prioritise productivity enhancement but overlook the importance of addressing farmers' social norms and values. We provide recommendations on how to address the shortcomings to achieve sustainable cocoa production.
... NGOs provide small-and medium-sized agricultural enterprises with access to professional knowledge and skilled personnel, such as quality researchers [29]. Additionally, NGOs offer market trend data, consumer preference insights, and share best practices, such as successful quality management systems, innovative production methods, and effective quality control measures, which help them adjust their market strategies, enhance competitiveness, and adopt advanced practices that improve their quality of production [30,31]. Furthermore, NGOs actively participate in developing agricultural product quality standards through expert commi ees and industry forums [32]. ...
To address the pressing challenges of quality and sustainability in agricultural product supply chains, this paper proposes a multi-stakeholder collaborative governance framework. Adopting the perspective of collaborative governance and sustainability, the paper develops an evolutionary game model of the Chinese agricultural product supply chain. This model involves four key stakeholders: agricultural enterprises, the government, NGOs, and consumers. It integrates sustainability principles to ensure that the decisions of each stakeholder contribute to the quality and safety of agricultural products while also promoting long-term environmental and social well-being. The simulation results demonstrate the critical importance of multi-stakeholder collaboration in strengthening governance and promoting sustainability. Based on these findings, the government is advised to implement technology-driven oversight mechanisms, such as AI-based inspections and blockchain traceability. Additionally, a tiered penalty system should be established, escalating penalties for repeat offenders. Regulatory cost-sharing mechanisms can also help ensure continuous enforcement without imposing excessive financial burdens on any single party. NGOs play a vital role in exposing corporate violations and can be more effective through targeted financial support and crowdsourced monitoring platforms. Consumers, as active participants in governance, should be incentivized with reward-based reporting systems and verified compliance feedback, which influence enterprise reputation. Public–private sustainability partnerships and real-time transparency platforms can further facilitate active participation from all stakeholders. By implementing these measures, the regulatory framework can evolve from traditional enforcement to a dynamic, data-driven governance model, fostering long-term sustainability and risk reduction in agricultural production.
... As concerns over climate change, biodiversity loss, labor exploitation, and social inequalities mount, stakeholders from governments and international organizations to civil society, consumers, and investors are pressing for more transparency and accountability in international trade. 151 A key driver of this shift is the recognition that trade is not neutral as it can amplify unsustainable resource use and social injustices if not properly governed. 152 On the contrary, trade also holds transformative potential. ...
This article explores the evolving role of international liberalism in shaping the global economic system and addresses the challenges of adapting its principles to contemporary realities. While institutions such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) have fostered trade liberalization and economic growth, globalization's side effects-rising inequalities, environmental degradation, and financial instability-have prompted calls for a revised framework. The article advocates for a more inclusive and sustainable model of global economic governance, integrating social justice, environmental sustainability, and adaptive decision-making. The analysis is divided into four sections. Section I examines the future role of international liberalism's values in addressing global economic challenges. Section II evaluates how factors such as technological innovation, climate change, and geopolitical shifts necessitate restructuring globalization for equitable outcomes. Section III investigates the shift in International Economic Law from rigid rules to flexible tools and informal governance instruments, questioning their effectiveness. Finally, Section IV highlights the potential of refined sustainability metrics to trace environmental and social impacts of traded goods, enabling multilateral trade governance to align with sustainability goals. The article concludes that, while metrics and governance reforms cannot address systemic issues alone, they are essential steps toward a global economic system that balances growth with sustainability and equity.
... Government support can play a crucial role in encouraging the adoption of sustainable practices. (5) Collaboration and Partnerships: Foster collaboration between researchers, farmers, government agencies, NGOs, and private sector entities to exchange knowledge, resources, and expertise (Lambin and Thorlakson 2018). Partnerships can help in scaling up successful sustainable agriculture initiatives. ...
... While these regulations are necessary for ethical and sustainable business practices, they can increase the administrative burden and slow down decision-making processes. Organizations must strike a delicate balance between meeting regulatory requirements and maintaining operational efficiency (Lambin & Thorlakson, 2018). ...
Procurement plays a pivotal role in driving organizational efficiency and contributing to economic growth. This paper examines the theoretical underpinnings of procurement strategies, highlighting key differences between public and private sector approaches. It identifies prevalent challenges that hinder procurement optimization, including inefficiencies, corruption, and regulatory constraints. Proposed frameworks focus on principles such as transparency, sustainability, and adaptability while emphasizing the transformative role of technology, data analytics, and market intelligence. The study underscores the importance of public-private partnerships (PPPs) in fostering innovation and collaboration. Practical recommendations are provided to guide organizations in implementing robust procurement strategies tailored to their unique needs, ensuring long-term value and resilience in dynamic market environments.
... Fairtrade, for example, emphasized social aspects such as labour rights and fair prices (Fairtrade, 2023b), while the Rainforest Alliance concentrated on environmental conservation and forest protection (Rainforest Alliance, 2023c). Over time and in alignment with global sustainability objectives, these standards have evolved to address a broader spectrum of sustainability challenges, and their goals have converged (Lambin and Thorlakson, 2018;Meemken et al., 2021). Now the sustainability standards present in Ghana all claim to improve productivity and profits by promoting GAP and offering price premiums as well as taking environmental considerations into account to protect biodiversity 2 (Cocoa Life, 2023b;Fairtrade, 2023a;Lindt and Sprüngli Farming Program, 2023; Rainforest Alliance, 2023a). ...
Voluntary sustainability standards offer potential for sustainable development by improving the livelihoods of smallholder farmers while conserving biodiversity. However, their overall implications remain poorly understood , as studies have mostly focused on assessing their effects on single sustainability dimensions. Here, we use an interdisciplinary approach to understand the simultaneous effects of sustainability standards (e.g. Fairtrade, Rainforest Alliance, Cocoa Life) on socioeconomic and ecological outcomes in Ghana's cocoa sector. Our study is based on a rich dataset comprising household data from 814 smallholder cocoa-producing households from five major cocoa regions and ecological data from 119 cocoa plots. Results from the endogenous switching regression approach suggest that sustainability standards have positive effects on socioeconomic outcomes such as cocoa yield, net cocoa income and returns to land. However, using generalized linear mixed effects models, we do not find any significant associations with ecological outcomes related to vegetation structure and animal diversity. Our results indicate that sustainability standards in Ghana's cocoa sector lead to socioeconomic benefits but not to ecological benefits for the plot environment. Nevertheless, yield increases do not come at the expense of biodiversity. We conclude that sustainability standards have the potential to improve socioeconomic outcomes, without significantly creating trade-offs with ecological outcomes.
... NGOs often have deep local knowledge and access to vulnerable populations, while governments can provide resources, regulatory support, and policy alignment. For example, in disaster response scenarios, governments can leverage NGO networks to deploy AI tools to map affected areas, optimize resource distribution, and ensure timely relief efforts (Lambin & Thorlakson, 2018). ...
This paper explores the transformative role of artificial intelligence (AI) in optimizing projects to accelerate progress toward Sustainable Development Goals (SDGs). It presents a strategic framework for integrating AI into project design, monitoring, and implementation, emphasizing its potential to enhance efficiency, scalability, and impact across diverse sectors. The discussion highlights key AI technologies, such as machine learning and predictive analytics, and their alignment with specific SDGs, including clean energy, sustainable cities, and climate action. Addressing challenges such as ethical considerations, data security, and the digital divide, the paper underscores the importance of policy support, cross-sector collaboration, and grassroots engagement. Finally, actionable recommendations are proposed to enable stakeholders to adopt and scale AI-driven optimization responsibly. By leveraging AI strategically, stakeholders can foster innovation and inclusivity, accelerating sustainable development outcomes globally.
... 16 Effective sustainability standards will be key to operationalize discerning demand, but ineffective voluntary standards can dilute market signals and undermine sustainability efforts. Reasons for ineffectiveness are many, 72 and we highlight two that apply to the nickel context. First, trust in standards can be undermined if not all relevant stakeholders participate. ...
... Sustainability is increasingly becoming a strategic imperative for businesses, civil society, and the public sector (Lambin & Thorlakson, 2018). In a world facing environmental challenges such as climate change, resource depletion, and biodiversity loss, the need for sustainable practices has never been more pressing. ...
During the 1950s, Sumitro Djojohadikusumo contributed in a significant manner to the construction of the economy of Indonesia, along with other figures, namely Mohammad Hatta, Sjafruddin Prawiranegara, and Djuanda Kartawidjaja. During this period, Sumitro promoted policies to drive industrialization in Indonesia and self-reliance to transform Indonesia from a colonial economy into a developing nation. Soemitro Djojohadikusumo’s economic policies were pivotal in shaping Indonesia’s post-colonial economy; focusing on production and industrial sovereignty, he emphasized reducing dependency on imports by fostering domestic industries, especially strategic sectors like heavy industry and natural resource processing, which he saw as crucial to national sovereignty. Soemitro also promoted stimulating economic activities through both public investment and private sector engagement, aiming to diversify the economy and drive sustained growth. Many of the challenges Soemitro addressed, such as infrastructural gaps and weak technological readiness, which remain relevant today. This research analyzes to what extent the economic policy shaped by Sumitro impacts Indonesia’s development. This analysis has significance in understanding Indonesia’s contemporary economic planning and trends, particularly in terms of economic policy shaped by the newly elected President of Indonesia, Prabowo Subianto. Analysis of Sumitro’s policy is conducted through the lenses of the industrial maturity concept, which is relevant to growth theory, resource-based view, and development economics. Indonesia’s pursuit of industrial maturity is crucial for transforming its raw resource-based economy into one that competes globally by adding value to domestic production. The need to revitalize manufacturing and strengthen downstream industries is critical for boosting competitiveness and integrating circular economic principles that emphasize sustainability. Soemitro’s vision of empowering society aligns with modern approaches to creating a more inclusive economy. However, infrastructure bottlenecks, a lagging education system, and regulatory complexities continue to slow the progress. Addressing supply chain challenges through regional industrial clustering and focusing on efficiency will be vital for overcoming these barriers. Further empirical research is needed to explore how infrastructure, education reform, and regulatory simplification can enhance Indonesia’s industrial maturity and sustainable economic development.
... To address this issue, international organizations and industry associations are working to develop harmonized standards and guidelines that can be adopted globally. This harmonization effort aims to streamline the regulatory process and facilitate the widespread deployment of renewable energy technologies (Abbott & Snidal, 2021, Lambin & Thorlakson, 2018. In conclusion, environmental and safety regulations are critical components of the policy and regulatory framework supporting renewable energy microgrids and energy storage systems. ...
The transition towards sustainable energy systems necessitates robust policy and regulatory frameworks to support the deployment of renewable energy microgrids and energy storage systems. This paper provides an overview of the critical components and benefits of these frameworks in facilitating the integration of renewable energy technologies. Renewable energy microgrids, which can operate independently or in conjunction with the main power grid, offer significant advantages in enhancing energy security, resilience, and local energy independence. Energy storage systems, such as high-capacity batteries and pumped hydro storage, are pivotal in addressing the intermittency of renewable energy sources by storing excess energy and releasing it during periods of high demand. The effectiveness of these technologies, however, is heavily influenced by supportive policies and regulatory measures. Key policy mechanisms include financial incentives such as tax credits, grants, and subsidies that reduce the initial capital costs for renewable energy projects. Net metering policies, which allow consumers to sell excess electricity back to the grid, further encourage the adoption of renewable energy systems. Additionally, feed-in tariffs provide long-term contracts for renewable energy producers, ensuring stable revenue streams and promoting investment in microgrid and storage technologies. Regulatory frameworks play a crucial role in standardizing technical requirements, ensuring grid compatibility, and maintaining system reliability. Standards for interconnection and interoperability are essential to facilitate seamless integration of microgrids with existing power infrastructure. Moreover, regulations that mandate utility companies to incorporate a certain percentage of renewable energy in their energy mix drive the demand for renewable microgrids and storage solutions. Several regions have pioneered effective policy and regulatory models that can serve as benchmarks. For instance, the European Union's Clean Energy for All Europeans package provides comprehensive regulations to promote renewable energy and energy storage. Similarly, the United States has implemented various federal and state-level policies that support the deployment of microgrids and energy storage systems. In conclusion, well-designed policy and regulatory frameworks are instrumental in overcoming the barriers to renewable energy microgrids and energy storage adoption. By providing financial incentives, establishing technical standards, and mandating renewable energy integration, these frameworks create a conducive environment for the growth of sustainable energy systems, ultimately contributing to global energy transition goals. Keywords: Policy, Regulatory Framework, Renewable Energy, Microgrids, Energy Storage System.
... The largest components of the certification costs are the audit cost, obtaining legal documents required for certification, and training (Beall, 2012;Wangrakdiskul and Yodpijit, 2015;Hidayat et al., 2016;Hutabarat et al., 2018). Several studies have proposed strategies for reducing audit costs, including developing a platform for multiple certification schemes (Lambin and Thorlakson, 2018). Moreover, obtaining legal documents and managing documents is the second-most costly expense (Hutabarat et al., 2018). ...
Upscaling Voluntary Sustainability Standards (VSS) can generate ecological and social benefits at a scale that is meaningful to address pressing environmental issues such as climate change and biodiversity losses. Lack of resources and risks of implementation gaps may, however, hinder the success of upscaling VSS. This paper aims to fill the gap in the literature regarding options to reduce certification costs to upscale VSS amid the limited financial resources available for certification. The paper presents the result of action research involving 3,507 independent oil palm farmers who are members of six farmer groups in two districts in Central Kalimantan to achieve Roundtable on Sustainable Palm Oil (RSPO) certification. The research found that achieving economies of scale by increasing the total number of certified farmers can reduce the certification costs per farmer. By establishing a district-level entity, the costs related to audits, RSPO membership fees, and the establishment of farmer groups, such as developing standard operating procedures (SOPs), can be lowered. Implementation gaps were not found with the increase of farmers joining the project based on the training frequency and the external audit findings reports on farmers' compliance with RSPO principles and criteria. The findings of this study provide a basis for promoting the upscaling of VSS, including through the RSPO jurisdictional approach.
... Fairtrade, for example, emphasized social aspects such as labour rights and fair prices (Fairtrade, 2023b), while the Rainforest Alliance concentrated on environmental conservation and forest protection (Rainforest Alliance, 2023c). Over time and in alignment with global sustainability objectives, these standards have evolved to address a broader spectrum of sustainability challenges, and their goals have converged (Lambin and Thorlakson, 2018;Meemken et al., 2021). Now the sustainability standards present in Ghana all claim to improve productivity and profits by promoting GAP and offering price premiums as well as taking environmental considerations into account to protect biodiversity 2 (Cocoa Life, 2023b;Fairtrade, 2023a;Lindt and Sprüngli Farming Program, 2023; Rainforest Alliance, 2023a). ...
... These situations present conservation decision-makers with important trade-offs to consider. While policies aimed at sustainability on working lands are generally not antagonistic in nature293 , some conservation-focused activities can negatively impact other conservation outcomes. Two examples of such trade-offs are when increases in soil fertility result in diminished plant diversity 294 and when organic amendments lead to increased soil lead or nitrate and phosphorus runoff 210 . ...
... Our analytical framework draws on previous research from the field of transnational business governance, with a focus on the question of how local and domestic context conditions shape its effectiveness. Based on our screening of this literature, we identify the following three factors as being of particular relevance for analyzing how transnational approaches are 'grounded' in domestic contexts: a) knowledge and transparency, b) domestic policies and c) actor constellations and power (Gardner et al., 2019;Bartley, 2018;Lambin and Thorlakson, 2018). We do not argue that these are the only factors that matter; however, these factors are often highlighted as key in literature on transnational business governance. ...
Interlinked water and climate impacts are increasingly crossing borders via global supply chains. A recent wave of supply chain regulations, based on human rights and environmental due diligence (HREDD), has emerged with the goal of holding companies accountable for adverse impacts throughout their supply chains. We develop an analytical framework to theorize how key factors grounded in domestic contexts shape how companies put HREDD in practice, focusing on water and climate risks. Our framework distinguishes between knowledge and transparency; domestic policies; and actor constellations and power. We apply this framework to study how large agricultural producers in Brazil (mal-)adapt to increasing water scarcity and climate change impacts, contributing to local water conflicts. Subsequently, we analyze how multinational companies have addressed these domestic factors in their HREDD systems. Our study provides a nuanced understanding of current trends and challenges of transnational business governance to effectively target cross-scalar climate and water risks.
... This implies fostering collaboration between state actors and non-state actors to make a significant impact on bridging the ambition gap. Lambin and Thorlakson (2018) has also emphasized that collaboration between governments, NGOs, and private companies in adopting sustainable practices needs more attention. Therefore, one key potential factor which promotes a "successful" initiative, is collaboration at a system level, which could be beneficial not only from a resource perspective, but also to align the core values among actors operating in voluntary initiatives. ...
Recent studies claim that national policies fall short of the ambitious goal to limit global temperature increase to well below 2◦C, preferably 1.5◦C, revealing an ambition gap between current commitments and those needed to reach climate neutrality. To bridge this gap, commitments must increase more than five-fold to achieve the necessary reduction in GHG emissions. Voluntary initiatives (VIs), gaining interest as an approach to support the
Paris Agreement’s ambition, have the potential to bridge the commitment gap and limit the expected temperature increase to 2◦C if all their voluntary commitments to climate neutrality are fulfilled. While decarbonizing the manufacturing sector is crucial for climate targets, no prior study has explored the theoretical potential of industry-related VIs to bridge the gap for industrial decarbonization. This paper addresses this gap by examining
the potential contribution of these VIs, analyzing criteria related to arena and agenda creation, operationalization, and accountability. By applying the transition management framework innovatively, the study investigates eighty-three industry-related VIs led by both state and non-state actors. The research process, involving the development of an analytical framework, VIs selection, data collection and validation, categorization, and analysis, provides insights into how the design affects VIs’ potential for industrial decarbonization. The main findings highlight, firstly, the need for clearly defined and measurable targets, enhanced commitments, and robust accountability mechanisms, especially for non-state actor-led initiatives. Secondly, increased participation from energy-intensive sector companies due to their pivotal role for GHG emission reduction. Lastly, collaboration between state and non-state actors is critical for bridging the decarbonization gap in manufacturing industries. Additionally, the similarity between VIs and voluntary agreement programs (VAPs) is highlighted, with
VAPs been overseen by governmental bodies with administrative authority. Given the urgency of addressing climate change, an unanswered question remains: Will future policies transition away from voluntariness towards more mandatory administrative character?
... There are growing calls for public policy alongside private initiatives to tackle pressing issues (Lambin & Thorlakson 2018), such as the overuse of (highly toxic) synthetic pesticides. This could include incentives for alternative practices through payments for ecosystem services and taxes on highly toxic synthetic pesticides to discourage their use. ...
Sustainable agricultural intensification aims at increasing yields on existing agricultural land without negative environmental impacts. Managing pests and diseases contributes to increasing yields. Without synthetic pesticides, this management is labour intensive. Smallholder farming systems heavily rely on manual and household labour, which will be affected by future demographic changes. Knowledge on how these changes will affect sustainable intensification is limited. Based on a case study of Ugandan cocoa farms, we tested the impact of increased household labour availability on pest and disease management (PDM) practices and pesticide use. We made use of a unique quasi-experimental design, in which household labour increased during the national COVID-19 lockdowns as children did not attend school and family members returned from cities. Our interview data from 2019 to 2021 showed that household labour availability increased on average by 0.8 (±2.5) household members and 16% of labour days per hectare. Using different regression models complemented with qualitative insights, we found that the uptake of alternative PDM practices significantly reduced pesticide quantities and expenditures. The implementation of alternative PDM practices was only weakly influenced by household labour availability and increased with farmer training and trust in alternative practices. These results imply that alternative PDM practices are an important pillar for production with little or without synthetic pesticides and their adoption requires support and incentives, especially on labour or resource-constrained farms.
Supplementary Information
The online version contains supplementary material available at 10.1007/s10113-024-02243-2.
... In the latter case, there are various grey zones that have been the target of criticisms and studies. For instance, NGO partnerships with companies or governments are hailed by some as important for legitimacy, innovation and positive results (Berrone et al. 2017;Lambin and Thorlakson 2018) and by others as greenwashing or ineffective in promoting transformation (Robinson 2012;Ruiz-Blanco et al. 2022). Competitive relationships between transnational and national NGOs can also be challenging (Dinerstein et al. 2007;Rodriguez et al. 2007), as in some cases are the collaborations between academia and NGOs (Scarano and Martinelli 2010;Vohland and Nadim 2015). ...
... Green practices are related to compliance with environmental legislation and regulations promoted by institutions, which affects the improvement of the tourism sector's performance (Vargas et al., 2011). On the other hand, certifications are a form of business authority, through which the organization is recognized for maintaining policies, rules, and standards that provide legitimacy in fulfilling its environmental responsibility (Lambin & Thorlakson, 2018) ...
Given the growing concern about environmental degradation in tourist destinations, hotel companies are implementing new capabilities to counteract the damage caused and improve their sustainable practices. The objective of this research is to analyze the effect of innovation on sustainability practices from an environmental approach, from the perspective of hotel workers in the Riviera Maya, Mexico. The study is based on a quantitative approach of non-experimental, cross-sectional, and explanatory design. The technique used was Partial Least Squares Structural Equation Modeling (PLS-SEM), considering a sample of 386 employees of hotels. The results show that environmental innovation has a significant and positive effect on environmental sustainability. It is concluded that hotels should direct their efforts towards the development and implementation of strategies to improve their capacity for innovation and sustainability in environmental terms.
Keywords:
environmental innovation; environmental sustainability; hotel sector; environmental management; organizational capabilities.
... The lead firms can leverage their position and network to connect different actors and facilitate knowledge exchange, innovation, learning, and collaboration for sustainability (Gereffi & Lee, 2016;Lund-Thomsen & Nadvi, 2010;Ponte et al., 2014;van Zanten & van Tulder, 2018). They can also play a role in shaping the institutional arrangements of global value chains, such as setting and enforcing sustainability standards, codes of conduct, and certification schemes, as well as influencing policies and regulations that affect the environmental and social outcomes of the global supply chains (Bitzer et al., 2008;Bolwig et al., 2010;Lambin & Thorlakson, 2018). When considering sustainability-related interventions as innovations, intermediaries and the intermediation process are known to contribute to the innovation process (Howells, 2006). ...
Transforming global food supply chains for sustainability in a pervasive manner requires leading it for specific contexts. As central intermediaries between producers and consumers possessing both tacit and explicit knowledge of supply–demand and local business cultures, traders are uniquely positioned for ecosystem orchestration (EO). The limited literature on the role of agricultural commodities traders in promoting sustainability and calls for it has motivated this study. To understand the capabilities required for ecosystem orchestrators (EOs), we surveyed the available literature using citation network analysis, revealing knowledge elements within the clusters of leading value and stakeholder orchestration, cultivating dynamic and interorganizational capabilities, interplaying innovation and business ecosystems, and utilizing software ecosystems. These clusters contained interlinked EO functions of offering complementary assets and digital platforms, which we highlighted as actual business practices by certain major agricultural trading firms. We conclude that traders as EOs for sustainability is plausible and provide actionable guidance.
... Without sufficient capacity, governments struggle with enforcement of rules, monitoring compliance and outcomes, and reporting (Blackman et al. 2018). By contrast, a strong civil society, with government, NGO and corporate actors working together, can help compliance and the implementation of environmental policies (Lambin and Thorlakson 2018). ...
Agriculture is a main driver of global decline in wetlands, but in addressing its impact the diversity in agricultural production systems and their catchment interactions must be recognized. In this paper we review the impacts of food production systems on wetlands to seek a better understanding of agriculture-wetland interactions and identify options for increasing sustainability. Eight farming system types were defined based on natural resource use and farming intensity, and their impact on different wetland types assessed through their direct drivers of change. Indirect drivers (such as decision-making in food systems, markets, globalization and governance) were also summarized. Findings show that most inland wetlands are influenced by farming directly, through changes in water and nutrient supply and use of pesticides, or indirectly through catchment water, sediment and nutrient pathways. Coastal wetlands are mostly influenced indirectly. More sustainable food production can be achieved through continued protection of wetlands, improving efficiency in agricultural resource use generally (e.g. through conservation agriculture), but also through more integration within production systems (e.g. through crop-livestock-fish integration) or with wetlands (integrated wetland-agriculture), more support for small-scale producers, and a transformation towards balancing the provisioning, regulating and cultural ecosystem services of wetland agroecosystems within catchments.
... Green practices are related to compliance with environmental legislation and regulations promoted by institutions, which affects the improvement of the tourism sector's performance (Vargas et al., 2011). On the other hand, certifications are a form of business authority, through which the organization is recognized for maintaining policies, rules, and standards that provide legitimacy in fulfilling its environmental responsibility (Lambin & Thorlakson, 2018) ...
Given the growing concern about environmental degradation in tourist destinations, hotel companies are implementing new capabilities to counteract the damage caused and improve their sustainable practices. The objective of this research is to analyze the effect of innovation on sustainability practices from an environmental approach, from the perspective of hotel workers in the Riviera Maya, Mexico. The study is based on a quantitative approach of non-experimental, cross-sectional, and explanatory design. The technique used was Partial Least Squares Structural Equation Modeling (PLS-SEM), considering a sample of 386 employees of hotels. The results show that environmental innovation has a significant and positive effect on environmental sustainability. It is concluded that hotels should direct their efforts towards the development and implementation of strategies to improve their capacity for innovation and sustainability in environmental terms.
Keywords:
environmental innovation; environmental sustainability; hotel sector; environmental management; organizational capabilities.
... The annual report is the main communication medium used by a company's management to disseminate information about financial and other topics to third parties (Gunawan et al., 2009). The annual report is a forum for company management to report how well the company performs in fulfilling the tasks assigned by stakeholders (Lambin & Thorlakson, 2018). Based on this description, the annual report is a source of information that allows parties other than company management to know the company's condition. ...
This study examines the multifaceted approval process in the preparation of Company X's annual and sustainability report, a subsidiary of a State-Owned Enterprise (SOE). The report's crafting involves various stages, from initial data collection fraught with reliability issues to final consensus-driven approval before release. The process is marked by intense scrutiny and a necessity for alignment with the company's strategic vision and the rigorous standards set by its leadership. Despite the application of best practices and lessons from previous research, the team encountered significant challenges, such as data inconsistency, excessive irrelevant information, and a lack of coordination between different reporting segments. These issues necessitated iterative revisions, meticulous translation accuracy, and careful management of stakeholder feedback. The study delineates the complexities of each phase of report preparation, highlighting the critical importance of the approval phase as a crucial gateway that ensures the report's quality, accuracy, and resonance with the company's strategic and brand considerations.
... Second, different certification schemes can cover different sets of criteria with different strengths in verification and auditing, and unintended consequences of 'standards shopping' may occur among suppliers (Schmeichel 2017). Third, past evaluations of the social and environmental impacts of voluntary certification schemes tend to show mixed results which put into question their effectiveness (Fig. 5) (Oya et al. 2018;Meemken et al. 2021) and numerous complexities exist due to a mismatch in the implementation across different sectors and institutional levels (Lambin and Thorlakson 2018;Pacheco et al. 2020;Katic et al. 2023). Fourth, certification systems are often time-consuming and costly to introduce and implement and this can be particularly challenging for smallholder farmers (Dompreh et al. 2021;Watts et al. 2021). ...
Tropical forests are rapidly disappearing due to the expansion of cash crops to meet demands from distant markets. Pressing concerns on deforestation impacts resulting from the global trade of tropical commodities have led some high-income countries' governments to consider diverse regulatory and trade levers to tackle the problem. These include proposals for new supply chain due diligence legislation concerning imports of forest-risk products and the inclusion of environmental measures in trade deals. To contribute to this debate, we conducted a comprehensive analysis of existing data on global trade and consumption patterns of tropical commodities, attribution of commodity production to deforestation, trade agreements, and progress in the implementation of crop sustainability standards. We used global data on key tropical commodities of oil palm, cocoa, and coffee. Our study shows that high-income countries have the highest per capita consumption for the three commodities evaluated and that consumption rates have dramatically increased in the last two decades. We discuss a range of measures that can potentially be required to tackle deforestation in global supply chains, which are currently being considered by policymakers, before discussing the kinds of post-growth, convivial approaches that are often excluded by the framing. Given the inherent expansionary nature of global market dynamics, we show that market-based initiatives are inadequate to tackle continuing deforestation and socio-ecological degradation. More transformative solutions amplify commoning and post-growth approaches are required to lead to some uncoupling of trade and territorialising of economic activity to fit within planetary boundaries and allow for plural values.
Corporate social responsibility (CSR) and sustainability have proliferated the corporate boardroom agenda and companies’ leadership teams are trying to find ways to improve their social and environmental performance and enhance their corporate governance management systems. This paper investigates the main CSR and sustainability-related standards that modern corporations use. To do so, it uses a sample of the 60 companies listed in the ATHEX ESG index. Firstly, a content analysis of those companies’ sustainability reports is conducted. The 60 companies are categorized into sectors according to the Global Industry Classification Standard (GICS). The sustainability standards used by each sector are grouped into four categories, namely environmental, social, governance, and reporting. Furthermore, an attempt is made to establish a link between the standards used and both the sectors they belong to and the material topics of each sector as they emerge from each company’s materiality analysis. Our research shows that our sample companies predominantly utilize reporting standards regardless of their sector. We did not establish a definitive relation between the prioritized material topics and the relative standards employed by the companies. We may have recognized certain pairings such as environmental material topics with relative environmental management systems, but not in a rigid manner or across all material topic categories.
Context
Agriculture is a main driver of decline in wetlands, but in addressing its impact the diversity in agricultural systems and their catchment interactions must be recognised.
Aims
In this paper, we review the impacts of food production systems on wetlands to seek a better understanding of agriculture–wetland interactions and identify options for increasing sustainability.
Methods
Eight farming-system types were defined on the basis of natural resource use and farming intensity, and their impact on different wetland types was assessed through their direct drivers of change. Indirect drivers (such as decision-making in food systems, markets and governance) were also summarised.
Key results
Findings showed that most inland wetlands are influenced by farming directly, through changes in water and nutrient supply and use of pesticides, or indirectly through catchment water, sediment and nutrient pathways. Coastal wetlands are mostly influenced indirectly.
Conclusions
More sustainable food production can be achieved through continued protection of wetlands, improving efficiency in agricultural resource use generally, but also through more integration within production systems (e.g. crop–livestock–fish integration) or with wetlands (integrated wetland–agriculture).
Implications
More support for small-scale producers will be needed to ensure a transformation towards balancing the provisioning, regulating and cultural ecosystem services of wetland agroecosystems within catchments.
Governance is one of the core concepts underlying sustainable supply chain (SC). Although governance practices are widely acknowledged and implemented, literature discussing those practices is not as thoroughly organized. The purpose of this paper is therefore to investigate the forms, dynamics, and development of sustainable supply chain governance (SSCG). We reviewed a total of 126 articles in operations and SC management peer‐reviewed journals spanning 15 years of recent research. Our literature analysis unveils several key themes concerning the popularity of contractual and relational governance, the role of SC lead firms, the network perspective, and the dynamics of governance mechanisms. At a higher conceptual level, we conclude that there exists a mutually dependent relationship between SSCG and SC complexity. The study summarizes and conceptualizes the recent scholarly conversations about SSCG and offers an agenda for further research.
It is theorized that corporate social responsibility contributes to sustainable development to the extent that it favors social inclusion, reduces environmental impact, and reinforces governance while at the same time strengthening the economic viability of the company; however, not all corporate social responsibility practices are equal or contribute in the same way to sustainable development. This is because many of these, on the one hand, do not reduce the impacts of the operation of companies. On the other hand, they do not directly assume the associated costs, which is why this article aims to characterize the practice of corporate responsibility in Colombia in terms of its contribution to sustainable development, identifying whether the company itself assumes CSR practices. To achieve this objective, data from 7,233 Colombian companies are examined, performing a two-stage cluster analysis (hierarchical and K-means), resulting in an empirical model of characterization of modalities of social responsibility versus CSR cost externalization, where diverse behaviors were found, which were grouped into five profiles—externalizers, conservatives, politically correct, undecided and pioneers—that account for the different perspectives with which Colombian companies approach their corporate responsibility and their contribution to sustainable development.
This chapter begins by defining sustainable finance and tracing its historical development. It identifies key stakeholders in the sustainability landscape and discusses their roles and motivations. The chapter then explores how various entities such as corporations, governments, NGOs, financial institutions, and consumers contribute to and influence sustainability efforts. It also delves into the broader concept of sustainability, which encompasses economic, environmental, and social integration. The chapter highlights the essential role of environmental, social, and governance (ESG) criteria in guiding the financial sector toward a sustainable future, emphasizing both the ethical imperatives and the strategic financial benefits of ESG integration. The chapter also examines the role of digital measurement, reporting and verification (MRV), and how technological advancements are transforming the financial services landscape, offering new opportunities for sustainable growth and alignment with global carbon reduction targets. It concludes with significant developments within major Climate Tech and Ag Tech companies that are innovating green transition.
This study reviews existing research on governments' role in sustainable development. The study conducts a literature analysis on sustainable development, beginning with general themes and progressing to a detailed review of governments' role in fostering sustainability. Finally, the paper evaluates government challenges and suggests solutions to achieve sustainable goals. The study explores the relationship between sustainability and sustainable development. This study identifies governments as the primary actors responsible for promoting a sustainable society. Governments encounter significant hurdles in achieving this goal. Coordination among stakeholders is a major problem in implementing SDGs. The obstacles are environmental, social, economic, and institutional in character. Governments have a crucial role in coordinating and motivating other stakeholders to promote a sustainable society. Despite academic interest in sustainability and development, research on governments' role and obstacles in achieving the SDGs remains minimal. This article presents an outline of governments' involvement in sustainable development and identifies barriers to achieving sustainable goals. Finally, ideas for future research areas are provided.
This review evaluates the effectiveness of public-private partnerships (PPPs) in advancing sustainable building projects in developing countries. It highlights key areas such as resource mobilization, expertise utilization, innovation, risk-sharing, and community impact. Findings show that PPPs attract private investment, complement public funds, and drive large-scale sustainable construction. They enhance technical expertise, foster knowledge transfer, and encourage the adoption of advanced technologies. Risk-sharing mechanisms reduce financial burdens, attracting more investors. Additionally, PPPs improve social outcomes, including job creation and community resilience. The review emphasises the need for supportive policies, capacity-building programs, and monitoring systems to strengthen PPPs in sustainable development. Further research should focus on comparative models and long-term impacts.
The European Union regulation on deforestation-free products (EUDR) represents a policy innovation with important implications for the governance of global commodity chains. We discuss the risks and limitations of this policy derived from an ex-ante assessment of the robustness of its theory of change. For doing so, we use insights from the literature on zero-deforestation commitments and other private standards in value chains and from trade and deforestation patterns in three relevant producer countries (Brazil, Colombia and Indonesia). Despite the potentially positive symbolic effect in mobilizing a global agenda for combating deforestation, the EUDR faces several drawbacks and risks associated with three of its constitutive features: To be demand-oriented, having the value chain as the unit of intervention and holding a high degree of unilateralism. We conclude that to be effective in curbing tropical deforestation, the Regulation must be complemented with international cooperation aiming to strengthen national policies with a territorial approach, as well as social movements addressing the underlying causes of forest loss and human rights violations in the territories where it takes place.
The diversity of sustainable certifications raises questions about the credibility, intentions, and impacts of Voluntary Sustainability Standards (VSS) on Global Value Chains (GVC). Few studies show the impacts of VSS on different sustainable dimensions in sectors such as the non-timber forest product (NTFP) sector. This paper aims to investigate in the value chain of the most important NTFP in the Amazon, açaí, whether VSS contributes to sustainable outcomes in the Governance, Environmental, Economic, and Social dimensions. Using case studies in enterprises of the açaí chain and the use of tools and indicators was possible to generate information that is currently scarce for NTFPs in the Amazon from the VSS perspective. The results show that there is a great distance that the weakest links of the GVC (Micro, Small, and Medium Enterprises – MSMEs) must walk to adopt VSS and be inserted into the global market. The requirements are based on bureaucratic management activities, which are extraordinarily complex and involve many issues and indicators. The VSS lacks supplements that evaluate and validate the results reported by the companies as sustainable. Finally, the VSS is still far from ensuring an inclusive and fully sustainable chain by itself.
Corporate Social Responsibility (CSR) innovation policy has become a pivotal feature of modern industry, integrating social, environmental, and economic responsibilities into corporate strategies. This paper explores multifaceted role of CSR innovation in enhancing company reputation, driving sustainable development, fostering innovation, ensuring compliance, and improving risk management. Additionally, it highlights how CSR practices attract and retain talent, deliver economic benefits, and strengthen stakeholder relations. By setting industry standards and encouraging collaboration, CSR policies not only benefit individual companies but also contribute to broader societal and environmental goals. Through case studies of companies like Unilever, Tesla, and Patagonia, this paper demonstrates the tangible impacts of CSR innovation on industry performance and sustainability. Overall, CSR innovation policy is essential for achieving long-term profitability, competitive advantage, and ethical stewardship in the corporate world.
In recent decades, development policy research has increasingly turned to the field of dissemination and implementation (D&I) science for improving policy adoption and sustainability toward health and gender equity. The Johnson Sirleaf administration prioritized reforming national rape laws and launching the Sexual and Gender-Based Violence Referral Pathway to mitigate institutionalized sexual gender-based violence targeting vulnerable girls. Applying a D&I framework, this study explores key D&I issues hindering effective utilization of the Pathway to prevent and respond to female statutory rape. We present the findings from a 2018 mixed-method field study. A total of 35.1 percent of young women experienced unreported early sexual activity legally categorized as statutory rape. Most perpetrators held positions of trust, including 38 percent working in school environments. Additionally, a qualitative analysis of data from a literature synthesis and key informant interviews explores in depth the reasons behind identified D&I issues. Findings indicate that the top-down intervention was hurried in initial phases of exploration and adoption, leading to cracks in later implementation and sustainability. There was insufficient demand among county and community stakeholders to utilize the system. Additionally, governmental capacity was constrained, including dependency on external resourcing, overburdened public services, poor policy dissemination at decentralized levels, low investigation and prosecution rates, and distrust in the value and effectiveness of the formal legal process. This analysis highlights the need for global developmental policy efforts to better explore mechanisms to authentically incorporate bottom-up feedback from street-level bureaucrats and community stakeholders.
This chapter examines the main actors engaged in sustainability policy and diplomacy: multilaterals, governments, companies, academia, civil society, and individual consumers. First, it discusses how development policies and environmental policies converge to give rise to sustainability policies, which are mainly fostered by global agreements consolidated in the Rio Conventions. After a brief historical overview of the process leading to the conventions, the chapter examines how sustainability is dealt with as a diplomatic object and how multilateral agreements percolate to and interact with national and local decision-making. It then examines each of the actors individually and some of the interactions among them. Scientific panels are approached as boundary objects that provoke a dialogue between science and society but still have many practical limitations. More bottom-up approaches, related to social movements and individual behaviour, are also addressed as key voices in the sustainability policy and diplomacy.
This chapter explores the emerging issues in the agriculture supply chain. The chapters also aims to address the following objectives: (1) to examine sustainable agriculture practices that can reduce the environmental footprint, (2) to examine the environmental, logistical, and market-related challenges faced by agricultural supply chains, (3) to determine the role of digitalization and data analytics, including IoT applications and precision agriculture, and blockchain technology within agriculture supply chains, (4) to explore the future trends and opportunities in agriculture supply chain. The chapter employed a critical review of academic journals and other articles, with content analysis as the analytical approach. This chapter serves as a comprehensive resource for stakeholders, facilitating informed decision-making and promoting sustainability and resilience.
This article aims to communicate sustainability dimensions and attributes for poultry production throughout a supply chain by developing a Nature Farming (NF) system standard. Poultry production is relevant for food security and job creation, an important economic activity and a significant export item in Brazil. The NF poultry production system was implemented in the 90s as a pioneering initiative, opening space for differentiated products. However, certification of NF poultry products has yet to be established and implemented to reach consumers. The NF products are identified as organic on labels, which does not distinguish the method’s sustainability, and communication of specificities needs to be more efficient. We studied the process of establishing a private food standard with a sustainable approach, considering perceptions of the supply chain’s agents. The method was a case study of a poultry company that applies NF system. The qualitative research involved interviews with 27 company managers, 23 poultry producers, seven farm assistance technicians, 11 auditors, and 12 commercial managers. The results showed innovation by introducing a Nature Farming poultry standard comprising product attributes and sustainability criteria in the dimensions: environmental, economic, and social
in conjunction with two significant dimensions, which are ethical and health. Our findings indicated that Nature Farming is a specific style of agriculture that is diverse from other currents of alternative agriculture. We proposed expressions and claims about the system’s quality attributes, aiming at the clarity of communication with consumers. We concluded that the developed standard might be the basis for certification of products. This work contributes to improving food supply chain management with differentiated and sustainable processes.
This paper investigates how external debts influence sustainable development in emerging economies and low‐income countries from 101 countries from 2016 to 2020. External debt significantly aids countries in achieving their sustainable development goals but affects individual goal differently. While external debts promote well‐being, education quality, gender equality, employment, economic growth, and institutional strength, they negatively affect the sustainability of cities, communities, and ecosystems. Long‐term external and public debts make a significant contribution to promoting sustainable development, but excessive external borrowing could hamper sustainable development progress.
Global supply chains play a critical role in many of the most pressing environmental stresses and social struggles identified by the United Nations' Sustainable Development Goals (SDGs). Responding to calls from the global community, companies are adopting a variety of voluntary practices to improve the environmental and/or social management of their suppliers' activities. We develop a global survey of 449 publicly listed companies in the food, textile, and wood-products sectors with annual reports in English to provide insight into how the private sector contributes to advancing the SDGs via such sustainable-sourcing practices. We find that while 52% of companies use at least one sustainable-sourcing practice, these practices are limited in scope; 71% relates to only one or a few input materials and 60.5% apply to only first-tier suppliers. We also find that sustainable-sourcing practices typically address a small subset of the sustainability challenges laid out by the SDGs, primarily focusing on labor rights and compliance with national laws. Consistent with existing hypotheses, companies that face consumer and civil society pressure are associated with a significantly higher probability of adopting sustainable-sourcing practices. Our findings highlight the opportunities and limitations of corporate sustainable-sourcing practices in addressing the myriad sustainability challenges facing our world today.
A major reduction in global deforestation is needed to mitigate climate change and biodiversity loss. Recent private sector commitments aim to eliminate deforestation from a company’s operations or supply chain, but they fall short on several fronts. Company pledges vary in the degree to which they include time-bound interventions with clear definitions and criteria to achieve verifiable outcomes. Zero-deforestation policies by companies may be insufficient to achieve broader impact on their own due to leakage, lack of transparency and traceability, selective adoption and smallholder marginalization. Public–private policy mixes are needed to increase the effectiveness of supply-chain initiatives that aim to reduce deforestation. We review current supply-chain initiatives, their effectiveness, and the challenges they face, and go on to identify knowledge gaps for complementary public–private policies.
Private governance programs are now an important source of regulation in global value chains – particularly in context of North–South trade. But can these programs play a similar role in the value chains feeding into fast-growing emerging markets like China and India? Most scholars doing research on the topic draw a pessimistic picture. They argue that the scope conditions for private sustainability governance are not yet present in these markets. Our analysis of the Roundtable on Sustainable Palm Oil – a leading non-state certification program – in China and India partially confirms this view. At the same time, however, we find that emerging markets are not a unified category. We observe that sustainable palm oil is beginning to gain momentum in China, whereas uptake in India remains much weaker. We trace this back to a number of key market conditions, which we show are more favorable in China. In addition, our analysis highlights the role of the Chinese state in creating awareness of and shaping firms’ interests in sustainable palm oil.
Four trends would seem to be empowering environmentalists who target corporations with global brands: the increasing reach of social media, growing numbers of campaigns, the corporate turn toward ''sustainability'' to create brand value and manage supply chains, and the spread of eco-consumerism. Campaigns since 2007 to demand that brands stop buying palm oil linked to tropical deforestation confirm the rising influence over corporate policies and market demand. Many activists are portraying the outcomes as ''victories'' toward saving rainforests. Yet, three factors are limiting the value for improving on-the-ground management: industry influence over, and governance limits of, palm oil certification; ongoing sales of uncertified palm oil as demand shifts to nonbrand buyers; and illegalities and weak regulatory enforcement in producer countries, notably Indonesia and Malaysia. Theoretically, this analysis demonstrates the importance, when evaluating activist campaigns, of distinguishing between the influence on corporate policies and markets and the effectiveness for environmental outcomes.
Policy instruments targeting environmental, social, and economic sustainability cover both local and global geographies and stem from both the public and private sectors. These policy instruments do not work in silos but interact throughout the regulatory process. In this paper we discuss interactions between public regulations and private certification that affect how forests are managed in three tropical countries: Indonesia, Cameroon, and Peru. We show how the governance regime in each of the countries has evolved in response to environmental and social issues. We focus on the Forest Stewardship Council’s forest stewardship certification as it is the main global certification scheme in the tropical region and look at its role in attaining sustainability in timber production.
Case study results from Indonesia, Cameroon, and Peru indicate that certification influences all stages of the policy process: agenda setting and negotiation; implementation, and monitoring and enforcement. Results also suggest that certification introduces positive changes in management practices and improves social and environmental performance. However, its influence in attaining broader-scale sustainability is limited by a low level of uptake, notably in tropical countries where the costs of getting certified and maintaining certification are high and the certification criteria are rather complex, as well as by some of its inherent characteristics, as it can only solve problems at the forest management unit level.EDITED BY Meine van Noordwijk
The PLOS ONE Collection “Measuring forest conservation effectiveness” brings together a series of studies that evaluate the effectiveness of tropical forest conservation policies and programs with the goal of measuring conservation success and associated co-benefits. This overview piece describes the geographic and methodological scope of these studies, as well as the policy instruments covered in the Collection as of June 2016. Focusing on forest cover change, we systematically compare the conservation effects estimated by the studies and discuss them in the light of previous findings in the literature. Nine studies estimated that annual conservation impacts on forest cover were below one percent, with two exceptions in Mexico and Indonesia. Differences in effect sizes are not only driven by the choice of conservation measures. One key lesson from the studies is the need to move beyond the current scientific focus of estimating average effects of undifferentiated conservation programs. The specific elements of the program design and the implementation context are equally important factors for understanding the effectiveness of conservation programs. Particularly critical will be a better understanding of the causal mechanisms through which conservation programs have impacts. To achieve this understanding we need advances in both theory and methods.
Voluntary sustainability standards have increased in uptake over the last decade, here we explore their potential contribution to biodiversity conservation and other aspects of agricultural sustainability. We reviewed the content of twelve major crop standards and quantified their global coverage. All standards included some provisions for the protection of biodiversity, but we only identified two with criteria that prohibited all deforestation. We found records of certified cropland in 133 countries, and estimated that certified crop area increased by 11% (range 8.8% -13.5%) per year from 2000 to 2012, but still only covered 1.1% (range 1.0%-1.2%) of global cropland. The crops with the highest levels of certification were heavily-traded commodities: coffee, cocoa, tea and palm oil each had 10% or more of their total global production area certified. Coverage was lower for other crops, including the world's most important staple foods (maize, rice, wheat). Sustainability standards have considerable potential to contribute to conservation, but there is an ongoing need for better evaluation of how effectively they are implemented. We present examples of ways in which governments, companies, financial institutions and civil society can work together to scale up and target certification to places where it can have the greatest positive impact. This article is protected by copyright. All rights reserved
Significance
A growing global demand for agricultural products such as soybeans and beef is causing agriculture to expand into forest ecosystems. Many countries are tightening environmental regulations as a response. Because agricultural companies can move, there is a risk that stringent land-use regulations might just displace land conversion geographically. A better understanding of how these regulations affect companies’ movements is therefore crucial for designing effective conservation policies. Here we analyze the determinants of siting choices by agricultural companies. We find that companies that tend to clear more forest prefer areas with lower deforestation restrictions, and that all companies prefer areas with low enforcement. However, these effects are less important than the availability of forestland or the proximity to current investments.
This study tests the hypothesis that lean manufacturing improves the social performance of manufacturers in emerging markets. We analyze an intervention by Nike, Inc., to promote the adoption of lean manufacturing in its apparel supply chain across 11 developing countries. Using difference-in-differences estimates from a panel of more than 300 factories, we find that lean adoption was associated with a 15 percentage point reduction in noncompliance with labor standards that primarily reflect factory wage and work hour practices. However, we find a null effect on factory health and safety standards. This pattern is consistent with a causal mechanism that links lean to improved social performance through changes in labor relations, rather than improved management systems. These findings offer evidence that capability-building interventions may reduce social harm in global supply chains.
Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2015.2369 .
This paper was accepted by Bruno Cassiman, business strategy.
We live in an era in which the demand for governance arising from human–environment interactions or, more broadly, the quest for sustainable development is growing, while confidence in the capacity of government – the conventional mechanism for handling such matters – to address problems of governance is waning. What are the sources of this paradox? What can we do to address the rising demand for governance under these circumstances? How can we expand our repertoire of mechanisms for supplying governance to avoid the onset of crises attributable to this governance deficit? These are the questions that have motivated this inquiry into the rising demand for governance and the relative merits of alternative ways to address this social challenge, with particular reference to the pursuit of sustainable development. Our examination of this problem has yielded two broad conclusions. There is, to begin with, a critical difference between governance and government, an insight that has stimulated a lively interest in arrangements that can be characterized as governance without government (Rosenau and Czempiel 1992). In addition, there is no need to put all our eggs in one basket when it comes to meeting the demand for governance for sustainable development. Hybrid systems in which several forms of governance operate simultaneously, and even with an element of coordination, are not only possible – they are also increasingly common in the realm of sustainable development. The paradox of rising demand and waning confidence It is not hard to identify factors that have given rise to a growing demand for governance to address problems of sustainable development.
Significance
Global trade in commodities has become an important driver of environmental degradation. In response, there has been a proliferation of nonstate, market-driven governance seeking to reduce environmental degradation through interventions in the supply chain. We provide some of the first quasiexperimental evidence to show that private, market-driven policies can slow deforestation. We compare the impacts of two certification schemes and a deforestation moratorium in Chile using a factorial quasiexperimental design. Our results indicate that governance regimes with greater collaboration between environmental and industry stakeholders achieved better environmental outcomes. In contrast to many public conservation policies, we find that private governance systems can effectively target high-deforestation properties.
A large number of governance interventions are being developed in order to reduce deforestation and enhance the sustainability of commodity supply chains across the tropics. The extent to which individual agricultural commodity supply chain interventions can achieve scale, and environmental or social objectives, depends in part on the ways in which those interventions interact with other interventions. We use a case- study of the new Sustainable Agriculture Network (SAN) cattle certification program in Brazil to explore the different ways in which governance interventions interact. We examine the broad landscape of policies and programs that affect sustainability in the cattle supply chain in Brazil, and assess whether such interventions support or constrain the scaling up of the SAN cattle program. We conducted semi-structured interviews with key stakeholders from government, private sector, and civil society organizations. We found that multiple interventions are acting in a complementary manner to enhance sustainability and therefore enable the scaling up of the SAN program, by aiding compliance with environmental laws, adoption of good production practices, and improved monitoring. At the same time, limited development, implementation, and complementarity of some interventions could be antagonistic to the S N program’s expansion because they maintain a context in which many actors operate far below the sustainability criteria required by the program. Our holistic approach enables us to identify specific gaps in the complex landscape of governance interventions in Brazil. Greater strategic complementarity and coordination between interventions may catalyze a more coherent and effective pathway to reduced deforestation and enhanced sustainability. © Helena Nery Alves-Pinto, Peter Newton and Luis Fernando Guedes Pinto.
Production of commercial agricultural commodities for domestic and foreign markets is increasingly driving land clearing in tropical regions, creating links and feedback effects between geographically separated consumption and production locations. Such teleconnections are commonly studied through calculating consumption footprints and quantifying environmental impacts embodied in trade flows, e.g., virtual water and land, biomass, or greenhouse gas emissions. The extent to which land-use change (LUC) and associated carbon emissions are embodied in the production and export of agricultural commodities has been less studied. Here we quantify tropical deforestation area and carbon emissions from LUC induced by the production and the export of four commodities (beef, soybeans, palm oil, and wood products) in seven countries with high deforestation rates (Argentina, Bolivia, Brazil, Paraguay, Indonesia, Malaysia, and Papua New Guinea). We show that in the period 2000-2011, the production of the four analyzed commodities in our seven case countries was responsible for 40% of total tropical deforestation and resulting carbon losses. Over a third of these impacts was embodied in exports in 2011, up from a fifth in 2000. This trend highlights the growing influence of global markets in deforestation dynamics. Main flows of embodied LUC are Latin American beef and soybean exports to markets in Europe, China, the former Soviet bloc, the Middle East and Northern Africa, whereas embodied emission flows are dominated by Southeast Asian exports of palm oil and wood products to consumers in China, India and the rest of Asia, as well as to the European Union. Our findings illustrate the growing role that global consumers play in tropical LUC trajectories and highlight the need for demand-side policies covering whole supply chains. We also discuss the limitations of such demand-side measures and call for a combination of supply- and demand-side policies to effectively limit tropical deforestation, along with research into the interactions of different types of policy interventions.
This article critically investigates the growing power and effectiveness of the ‘ethical’ compliance audit regime. Over the last decade, audits have evolved from a tool for companies to track internal organisational performance into a transnational governing mechanism to measure and strengthen corporate accountability globally and shape corporate responsibility norms. Drawing on original interviews, we assess the effectiveness of supply chain benchmarks and audits in promoting environmental and social improvements in global retail supply chains. Two principal arguments emerge from our analysis. First, that audits can be best understood as a productive form of power, which codifies and legitimates retail corporations’ poor social and environmental records, and shapes state approaches to supply chain governance. Second, that growing public and government trust in audit metrics ends up concealing real problems in global supply chains. Retailers are, in fact, auditing only small portions of supply chains, omitting the portions of supply chains where labour and environmental abuse are most likely to take place. Furthermore, the audit regime tends to address labour and environmental issues very unevenly, since ‘people’ are more difficult to classify and verify through numbers than capital and product quality.
The pattern of sustainable standard diffusion has received much attention from social science researchers. We contribute to existing literature with a case study on the Rainforest Alliance (RA) initiative in the Ivorian cocoa sector. We scrutinise the RA standard, by drawing on seminal contributions on the pervasive effects of information asymmetry in markets (Akerlof, 1970) and on the inherent uncertainty of credence properties (Darby and Karni, 1973). We examine the uncertainty surrounding standard compliance, in particular, the capacity to enforce the standard. We argue that the translation of principles into auditable technical specifications is very rough. Furthermore, our empirical results from producer surveys show that criteria addressing the productivity issue receive more attention than environmental issues. In a context where chocolate companies are extremely interested in ensuring sustainable supplies, we argue that certification, proclaimed to be 'in the name of sustainability', is mainly perceived as a productivity-enhancing tool.
To analyse corporate social responsibility (CSR) as a business tool and as a way to promote food security in the global South, this article draws on 65 interviews with supply chain personnel and a 2013 survey of 250 smallholder farmers in Nicaragua. Contrary to private governance literature, Walmart’s efforts to control supply chains in Nicaragua are not advancing rural sustainability; feelings of mistrust and unfairness persist among farmers, and many are returning to local markets to regain independence. This analysis extends our understanding of why CSR is failing to help agrarian societies and confirms CSR as principally a business strategy.
We assess the literature on public and private quality standards and their impact in food markets, international trade, and global supply chains. We focus on their effects on welfare, trade, industrial organization, and labor markets and with special attention to the North-South context. We also attempt to better characterize when these measures constitute protectionism, a complicated task. We look at studies investigating public and private standards and across various quantitative approaches and countries. These standards have complex effects. The evidence is mixed regarding standards as catalyst for or as impediment against trade and development, reflecting the complexity of these effects and their specificity to industries and countries. The analysis of standard-like nontariff measures and their impacts does not lead to sweeping prescriptions for policy reforms. We identify more modest prescriptions and make some recommendations for fruitful research directions.
In order to address challenges resulting from interactions between transnational
private sustainability standard organizations, initiatives emerge that meta-govern these
standards. Contrary to prevailing understandings in public policy literature, such metagovernance
initiatives are mostly run by nongovernmental rather than governmental actors.
While literature presents the sustainability standards field as predominantly governed by
one meta-governor, ISEAL, it is hardly recognized that, alongside ISEAL, rival metagovernance
initiatives are proliferating. These initiatives occur in similar sectors and issue
fields, use quite similar modes of meta-governance and interact with each other. This paper
explains the multiple emergence of meta-governance in the governance of sustainability
standards in agriculture. It shows how meta-governance efforts are developed by political
coalitions of nongovernmental actors with divergent views on and priorities in making
production more sustainable. It therefore reveals the mechanism through which metagovernance
of coordination problems among cross-border self-organizing governance
arrangements may end up reproducing these coordination problems, rather than addressing
them.
Motivated by recent increases in water pollution in major US agricultural watersheds and by the shortcomings of government programs to control non-point source pollution, this paper examines the prospects for using product certification (ecolabeling) and business-to-business supply chain standards for environmental protection in commodity crop production. We introduce the sources of demand for certification and supply chain standards and the political and economic context in which they have expanded since the 1990s. We explore how various agrifood certification and supply chain standards have been used to achieve changes in production methods and/or in product attributes to meet social goals, and we discuss the prospects for applying these models to commodity crops. We conclude that the nature of corn and soybean production, distribution, and consumption - with numerous sales outlets and invisible consumption as part of processed foods and other products - makes certification schemes to limit agricultural pollution unrealistic and supply chain standards extremely challenging.
This paper analyses policies of 22 European Union member governments, designed to encourage corporate social responsibility (CSR) between 2000 and 2011. It categorises these policies by their regulatory strength and identifies the range of issues to which CSR policies are directed.
The paper argues that Northern European, Scandinavian and UK governments are reconstructing their respective institutional structures to embed CSR concerns more explicitly therein. It concludes that these government CSR initiatives are converging, particularly around their increased regulatory
strength and the broadening of their issue application. Policies in Mediterranean and the former communist countries do not reflect increasing institutionalisation.
The emergence of private authority has become increasingly a feature of the post-Cold War world. In The Emergence of Private Authority in Global Governance, leading scholars explore the sources, practices and implications of this erosion of the power of the state. They analyse and compare actors as diverse as financial institutions, multinational corporations, religious terrorists and organised criminals, and assess the potential for reversal of the situation. The themes of the book relate directly to debates concerning globalization and the role of international law, and will be of interest to scholars and students of international relations, politics, sociology and law.
Recent decades have witnessed the rise of social and environmental certification programs that are intended to promote responsible business practices. Consumers now encounter organic or fairtrade labels on a variety of products, implying such desirable benefits as improved environmental conditions or more equitable market transactions. But what do we know about the origins and development of the organizations behind these labels? This book examines forest, coffee, and fishery certification programs to reveal how the early decisions of programs on governance and standards affect the path along which individual programs evolve and the variety and number of programs across sectors.
Food retailers and manufacturers are increasingly committing to address agricultural sustainability issues in their supply chains. In place of using established eco-certifications, many companies define their own supply chain sustainability standards. Scholars remain divided on whether we should expect such company-led programs to affect change. We use a major food retailer as a critical case to evaluate the effectiveness of a company-led supply chain standard in improving environmental farm management practices. We find that the company-led standard increases the adoption of most environmental best management practices among the company's fruit, vegetable and flower growers in South Africa. This result is robust across two identification strategies: a panel analysis of over 950 farm audits and a cross-sectional matching analysis using original survey data. In-depth interviews suggest that the program's unique focus on capacity building through audit visits by highly trained staff, coupled with a close business relationship between the retailer and their growers help to explain the increased effectiveness of the program as compared to other private environmental standards. Contrary to the argument that company-led initiatives are mere window dressing, this study provides a critical example of the positive role private governance mechanisms can play in improving environmental farm management practices globally.
The French Law on Duty of Care: A Historic Step Towards Making Globalization Work for All - Volume 2 Issue 2 - Sandra COSSART, Jérôme CHAPLIER, Tiphaine BEAU DE LOMENIE
While liquid biofuels play a prominent role in sustainable energy goals, the relationship between their ability to advance sustainability agendas and their governance has been poorly addressed. The recognition of a number of private sector initiated certification schemes as mechanisms to verify compliance with the requirements of the EU-Renewable Energy Directive has provided a strong stimulus for biofuels certification. The question asked in this article is: "To what extent does the application of these standards effectively contribute to the sustainable production of bioenergy?" The question is answered on the basis of a conceptual framework and literature review. Three elements of the effectiveness of market-based certification standards are reviewed: the substantive scope of emergent standards, the effectiveness of implementation, and levels and trends in market conversion. The proliferation of certificates for low quality standards, deficiencies in the certification process and low market conversion suggest that certification is an inadequate substitute for public regulation. For certification to hold any meaningful potential to strengthen sustainability governance in the biofuel sector, it must be embedded within a public governance system committed to redressing these deficiencies and structuring accountability not just towards global environmental values, but to local people and place.
Our research examines the benefits and drawbacks for cooperatives who participate in voluntary coffee certifications. We interviewed administrators at twenty Costa Rican coffee cooperatives about management practices related to voluntary certification. Voluntary certifications are popular among coffee cooperatives. Access to certified markets is facilitated by state support of the cooperative sector, regulation of the coffee sector and well-enforced environmental and social laws. However, there are no significant or consistent financial incentives for farmers to pursue certification. Multiple certifications may lower auditing and implementation costs, but cooperatives rarely receive the full premium for multiply-certified coffee. Low market demand for certified coffee, weak price incentives and high auditing and management costs encourage cooperatives to certify only a portion of their members. This strategy rewards compliant farmers rather than inducing widespread change to farming practices among the entire membership. Though financial incentives are weak, certifications offer non-financial benefits to both farmers and cooperatives, including better management and more resilient cooperatives.
In this paper we investigate whether coffee farms that have been granted in-house socio-environmental certification from a global buyer, display better social and environmental conduct compared to non-certified farms. We perform an econometric analysis using data from an original cross-country survey covering 575 farms in various regions of Brazil, Colombia, Costa Rica, Guatemala, and Mexico. We find that farms that have been granted in-house certification demonstrate better environmental but not better social conduct than non-certified farms. We find also that the positive relationship between in-house certification and environmental conduct is stronger if the farm sells to a cooperative, and if it is located in an institutionally weak country. Finally, we find that the institutional strength of the farm's home country has a positive influence on its social conduct. We discuss how our analysis contributes to the literature on the social and environmental impacts of certifications, and to scholarship in global value chains’ social and environmental upgrading.
•Certified and conventional products are not traditional substitute goods.•Green public procurement stimulates certification globally, but not in each region.•Public procurement of the cheaper unsustainable product does not maximise welfare.•Increasing the price premium for certified wood creates a trade barrier.•The high costs of forest certification exclude vulnerable producers.
What determines the uptake of private sustainability regulation in developing countries? Existing studies point to the local context as the key explanatory factor. In particular, they identify local program characteristics, industry structures, and the regulatory environment as variables influencing program uptake at the point of production. However, examining two very similar certification programs in Brazil's soy and sugarcane industries, this article finds that local conditions fail to account for the observed patterns. A “local explanation” would have predicted similar levels of industry uptake in the two sectors. Conversely, it is found that Brazil's soy producers first backed but then opposed private sustainability regulation, whereas in the sugarcane sector the dynamic was exactly the opposite. Through an in-depth analysis and cross-case comparison this article reveals how changing transnational conditions were decisive in shaping these outcomes. Specifically, shifting end markets exposed the two sectors to different economic and regulatory pressures.
Private investments to address environmental issues are perceived as a powerful engine of sustainability. For the agri-food sector, multiple instruments have been developed to green supply chains. Yet little is known about the underlying process and conditions under which green sourcing concerns lead to the adoption of specific sustainability instruments among agri-food companies. This study: i) offers a synthesis of the most commonly used instruments agri-food companies adopt to promote sustainability in their supply chains; ii) proposes an analytical framework to elucidate how those decisions are made, based on the competitive environment in which firms operate—with respect to location of their raw materials, technologies available to their suppliers, leverage over upstream suppliers, and end-markets’ characteristics; and iii) presents seven case-studies illustrating the decision-making process leading to the adoption of a specific instrument by a particular company. Companies that do not have sustainable technologies available to improve their environmental practices but operate in highly sensitive places are better off taking their operation somewhere else. But companies with available cleaner technologies, effective law enforcement and control over the supply chains, as well as a brand to protect, can capitalize on their environmental efforts by introducing strict standards, such as third-party certifications. Enforcement of social and environmental regulations at countries of origin is a key factor that deters companies form adopting very strict standards, even if they have a brand value to enhance. The multiplication of private labels and initiatives are, in most cases, not driven by a desire to disorient the consumer, but rather by a careful consideration of the complex conditions under which agri-food supply chains operate. With minor adaptations, the framework could be applied to other economic sectors that have environmental impacts, from mining and energy-generating industries, to apparel, and electronics.
Sustainability standards for tropical agriculture promise better trade and fairer labour conditions for smallholders. Recent research on labour suggests that, besides such standards, configurations of buyer–supplier relationships crucially shape economic and labour conditions. However, a static configurational approach overlooks the role of supplier and labour agency over time. Using a matched case comparison of two certified rural enterprises in Ecuador, this article shows that suppliers can leverage standards to create value from vertical relationships with buyers. However, standards do not, by themselves, directly contribute to better conditions. They do so indirectly only if suppliers manage to become competitive in an elite market, augmenting rather than dampening unequal trade conditions. This study contributes to recent theory seeking to explain uneven labour outcomes with sustainability standards in global production networks.
The governance of labour in global production networks (GPNs) has become a critical area of concern amongst academics and policymakers alike. To date, GPN research has focused on the role of private company codes and multi-stakeholder ethical initiatives primarily driven by lead-firms. Other GPN studies highlight the critical role of civil society organisations (CSOs) in challenging lead-firm purchasing practices and shaping regulatory outcomes at local production sites. However, GPN research has not sufficiently incorporated the role of nation states in regulating work through legislative frameworks and enforcement regimes, often referred to in the literature as ‘state’ or ‘public’ governance. This is despite a ‘regulatory renaissance’ taking place across certain developing countries, seeking to strengthen their national regulatory labour institutions (Piore and Schrank, 2008:1).
The GPN framework provides an analytical lens through which to conceptualise cross-cutting strands of trans-scalar governance regimes, involving complex networks of state, private and civil society actors operating at multiple scales. Notions of territorial and societal embeddedness are used to elucidate how global ethical standards derived from particular country contexts become enmeshed in national regulatory frameworks and local societal relations, shaping governance outcomes for precarious workers incorporated into GPNs. The paper draws attention to the ‘trans-scalar embeddedness’ of labour governance regimes which interact across geographical scales and, in the case of South African fruit, reflect a ‘trans-scalar governance deficit’ for precarious workers. It is argued that the influence of national regulatory regimes should be more fully incorporated into analytical frameworks for understanding governance outcomes in GPNs.
In many settings firms rely on nongovernmental organizations (NGOs) to certify prosocial attributes embodied in their products. We provide a model of competition between NGOs in the provision of labeling services. Competition between a fixed number of NGOs features a “race to the top” in labeling standards, but entry of NGOs offering new labels pushes standards down. In a wide range of settings NGO entry and competition results in too many labels being adopted, with each label being too stringent. Compared to a setting in which firms can credibly communicate the social attributes of their products, labels demand greater prosocial behavior than is desired by firms, although with proliferation of the number of labels this discrepancy disappears. In contrast to existing models, firms may engage in excessive corporate social responsibility when they rely on an NGO as a certifying intermediary.
This paper was accepted by Bruno Cassiman, business strategy.
Eco-labeling (or environmental certification) is often promoted as a regulatory instrument capable of incentivizing sustainable resource use, even in the absence of stringent government environmental regulations. Despite slow uptake in developing countries and high producer costs, a growing body of case study evidence suggests that producers benefit in varied ways from certification. A qualitative meta-synthesis approach is applied to this body of evidence in order to assess the type and extent of producer benefits reported in case studies of Forest Stewardship Council (FSC) and Marine Stewardship Council (MSC) certification, in developing countries. While benefits from price premiums and market access appear to be limited, less tangible benefits were more common, including learning, governance, community empowerment, and reputational benefits. These benefits may justify the cost of certification.
The promotion of intensive farming through organic and fair trade certification appears contradictory to the increasing significance of non-farm income sources in rural Asia as well as in many other parts of the rural South. By observing a sugarcane producer co-operative comprising land reform beneficiaries in the Philippines, this paper explores the reality of livelihood diversification as practised by member households of the certified co-operative, focusing on the compatibility of certification-supported farming with diversified activities. In this case, diversification at the household level progressed both away from farming and into farming. Behind the long-term use of agricultural certification, there are compelling reasons for continuing both certification-supported farming and diversified activities, and for employing mechanisms that further the compatibility at all phases between the former and the latter, and maximising income-generating opportunities. The operation of communal land with agricultural certification may be an effective form of assistance to land reform beneficiaries who share a strong desire to be landowners.
This article discusses a new development in the relationships between private sustainability standards and governments, one in which Southern governments reclaim the authority from mainly Northern-based businesses and nongovernmental organizations. It examines how the Indonesian government, a forerunner in this field, responds to the private certification of palm oil. The results of this in-depth study are compared with similar trends in the coffee and cocoa sectors in Indonesia. The article observes that a change takes place from a nonresponsive stance, a modest involvement in terms of sustaining the implementation of private certifications, to an active development of alternative public national standards and certifications. The article defines some factors that facilitate the development of Southern public standards as an addition or alternative to private regulations and reviews the implications for the future of private standards and certification.
The rise of transnational nonstate certification programs has contributed to complex accountability relations surrounding efforts to hold companies accountable for their environmental and social impacts. Using the analytical lenses of internal and external accountability, we examine the Marine Stewardship Council (MSC)—a fisheries certification program—to assess how its decisions about goals, engagement of stakeholders, and accountability mechanisms have affected the controversies facing the program and how it has sought to address them. We reveal a misalignment between environmental groups and the MSC. Both seek to advance sustainable fisheries, and the market campaigns of environmental groups have supported certification. However, the MSC has provided these groups limited influence over its governance; it has responded to external demands for accountability by focusing on internal accountability, and reforming its assessment and objection procedures. Environmental groups have responded by working to decouple their campaigns from supporting the MSC. Tracing the consequences of this misalignment therefore highlights the need to assess rival processes such as market and information campaigns to understand attempts to hold nonstate certification programs to account.
In recent years, Northern supermarket chains have internationalized rapidly and Southern supermarket chains have expanded their footprint in emerging markets. As they have done so, questions have arisen about the impact of such supermarkets and the extent of consumer demand for social standards (labour standards and fair trade). While standards have been more (or less) codified in their Northern counterparts over recent decades, it remains an empirical question whether – and if so how – they will take hold in the rapidly expanding markets of the global South. The paper analyses the extent to which social standards are applied by Northern lead firms as well as regional supermarkets operating in the global South. It questions the view that Southern consumers and civil society actors are uninterested in social standards and suggests a more differentiated and complex process driving their selective application in the global South. Value chain concepts of governance help analyse how lead firms are shifting from regimes of control and coordination towards practices of normalization and convergence. We draw on the notion of multi-polar governance to explore emerging pressures for social standards extended to Southern consumer markets and differential channels for convergence emerging across the global North and South. Three case studies highlight diverse channels of convergence on social standards: (i) led by transnational retailers, (ii) led by standards initiatives and (iii) linking private with public governance. These illustrate that socially responsible consumption is only one element in more complex multi-polar governance processes that reveal trends towards both divergence and convergence in the drivers of social standards within emerging economies.
Voluntary environmental initiatives (VEIs) by firms are increasingly being relied upon to address major environmental problems such as climate change, toxic release reduction, waste reduction, and forest management, as well as to improve compliance with existing environmental regulations in the USA. These mechanisms for encouraging private governance have emerged as the capacity of governments to establish mandatory regulations to provide environmental protection has become increasingly constrained (Young, Chapter 1, this volume). We refer to VEIs as including voluntary programs established by regulatory agencies, codes of conduct designed by trade associations and third parties, standards for certification of environmental management systems set by the International Standards Organization (ISO), as well as self-regulation by firms who set internal standards, goals, and policies for environmental performance improvements. These VEIs aim to encourage firms to voluntarily reduce pollution, increase energy efficiency, adopt environmental management practices, and make other efforts to improve their environmental performance beyond the requirements established by existing regulations. More than 150 such initiatives have been sponsored by government, industry, and independent third parties in the last two decades (Carmin, Darnall, and Mil-Homens 2003). Voluntary programs established by the US Environmental Protection Agency (US EPA) alone have increased from twenty-eight in 1996 to fifty-four in 1999 and to eighty-seven in 2005 (US EPA 2005). From the point of view of government agencies, environmental self-governance is more appealing than enacting mandatory regulations, because it reduces the administrative burden on regulatory agencies and avoids the delays inherent in enacting legislation, while encouraging a collaborative relationship between firms and regulators.
Are emerging markets undermining private environmental governance? In the past, most trade in agricultural commodities occurred between developed and developing countries, but in recent years the volume of South-South trade has increased significantly. The booming demand from emerging markets for food, feed, and fiber is now a key driver behind agricultural expansion, causing large-scale deforestation and biodiversity loss in the tropics. By examining the case of palm oil, this article argues that existing private governance institutions are not well equipped to deal with this crisis. They continue to operate on the basis of a North-South trade model, trying to leverage the market power of big-brand companies to achieve their sustainability goals. However, the effectiveness of this mechanism is increasingly undermined by the rise of South-South trade and the different structure and institutional context of emerging market value chains.
This book examines anti-corporate activism in the United States, including analysis of anti-corporate challenges associated with social movements as diverse as the Civil Rights Movement and the Dolphin-Safe Tuna Movement. Using a unique dataset of protest events in the United States, the book shows that anti-corporate activism is primarily about corporate policies, products, and negligence. Although activists have always been distrustful of corporations and sought to change them, until the 1970s and 1980s, this was primarily accomplished via seeking government regulation of corporations or via organized labor. Sarah A. Soule traces the shift brought about by deregulation and the decline in organized labor, which prompted activists to target corporations directly, often in combination with targeting the state. Using the literatures on contentious and private politics, which are both essential for understanding anti-corporate activism, the book provides a nuanced understanding of the changing focal points of activism directed at corporations.
This book examines and evaluates various private initiatives to enforce fair labor standards within global supply chains. Using unique data (internal audit reports, and access to more than 120 supply chain factories and 700 interviews in 14 countries) from several major global brands, including NIKE, HP, and the International Labor Organization's Factory Improvement Programme in Vietnam, this book examines both the promise and the limitations of different approaches to actually improve working conditions, wages, and working hours for the millions of workers employed in today's global supply chains. Through a careful, empirically grounded analysis of these programs, this book illustrates the mix of private and public regulation needed to address these complex issues in a global economy.
Research over the past decade has made considerable progress toward achieving a holistic understanding of the myriad actors, interests, and relationships shaping labor rights in global supply chains, but numerous obstacles remain to building a more cumulative research program. In this essay we outline two major challenges and several fruitful directions forward. First, we review the different outcomes of interest in research on labor rights and highlight several tensions that lead to difficulty comparing findings across studies, inappropriate data choices, and unexamined causal assumptions. Second, we highlight a failure to adequately integrate the findings of research in two different subliteratures, one focusing on the incentives of states and firms to adopt reforms, and a second focusing on the implementation of those reforms with monitoring and enforcement mechanisms. We conclude by highlighting the important questions raised by a clearer integration of these two literatures and identifying several recent studies that begin to answer them.
Farm certification is rapidly becoming a sine qua non for access to specialty coffee markets. At the centre of these changes are smallholder coffee producers, responsible for 80% of global coffee production. Although rural households are known to depend on more than agricultural production alone, the literature on specialty coffee and certification has rather narrowly focused on coffee income and production. In this study, broader impacts are explicitly taken into account. Household income was decomposed into categories corresponding to specific income-generating activities and coffee income was broken down into price, yield and area effects. Results show that coffee certification encourages farmers to specialise in coffee production, increasing coffee income but not total household income, at least not in the short run. The time and effort required to attain the higher coffee income offered by certified production means farmers have to give up other activities. This substitution effect cancels out the income effect, such that there is no increase in total household income. The lack of an effect on total household income suggests the return to the additional labour effort required for certified coffee production is not higher than in other activities, questioning the benefits of certification for small-scale producers.
Transnational private governance organizations (TPGOs) set standards for various sustainability issues and industries. TPGOs individually address only facets of larger problems such as land conversion, and competition among TPGOs also affects TPGO governance, meaning coordination across their activities can be required. Studies argue that ties between TPGOs and other organizations facilitate information sharing, coordination, and socialization. A systematic analysis of the structure of such ties however is lacking. This study analyzes inter-organizational communities of TPGOs focused on agriculture, based on the professional ties of staff and governors. Our analysis casts doubt on the existence of a coherent professional community of agriculture TPGOs: very few professional communities involve multiple TPGOs. While TPGOs with a similar product focus may link to similar organizations, there are few direct and indirect ties among TPGOs. Researchers should therefore be cautious to assume that a TPGO policy community crossing organizational and policy divides currently exists.
This paper addresses two research questions: (1) Does collaborative environmental governance improve environmental outcomes? and (2) How do publicly supported collaborative groups with different levels of responsibility, formalization, and representativeness compare in this regard? Using a representative watershed quality data series, the EPA's National Rivers and Streams Assessment and Wadeable Streams Assessment, in conjunction with a watershed management regime database coded for this analysis, I test the relationship between collaborative governance and watershed quality for 357 watersheds. Since these are observational data, a multilevel propensity score matching method is used to control for selection bias. Using an augmented inverse propensity weighted estimator, I estimate the average treatment effect on the treated for six different water quality and habitat condition metrics. Collaborative watershed groups are found to improve water chemistry and in-stream habitat conditions. I then use hierarchical linear regression modeling to examine how group responsibilities, membership diversity, and formalization affect the predicted impact of a collaborative group. Groups that engage in management activities (in comparison to coordination or planning) are found to achieve greater environmental gains. Limited differentiation is found with regards to the presence of a group coordinator, increased goal specificity, or greater stakeholder diversity.
In the agri-food sector, global partnerships between lead firms and international NGOs design standards that aim to enhance environmental sustainability and to some extent realise social justice. However, the effectiveness of such standards is limited when their content and governance provokes resistance in production regions upstream in the chain. This paper addresses the question whether and how multi-stakeholder partnering makes internationally constructed standards fit local institutions, i.e. norms, rules and practices in producers' regions. The case studies make use of ‘global value chain’ and ‘global production network’ approaches to analyse two examples of global–local interactions: Utz Certified rooibos tea in South Africa and Aquaculture Stewardship Council certified shrimp in Indonesia. The analysis demonstrates that producer regions are not always merely standard-takers. Co-creation in standard-setting and certification may occur when the chain's commercial exploitation of natural resources threatens sourcing in the long term, when local partnerships experienced in environmental protection of the resource become involved in the implementation, and when global and local partnerships interact not only via hierarchically organised value chains, but also via a newly emerging public space.