Barriers and Benefits Arising from the Adoption of Sustainable Certification for Smallholder Oil Palm Producers in Malaysia: A Systematic Review of Literature

Aziz, Nurul Fathiah; Chamhuri, Norshamliza; Batt, Peter

doi:10.3390/su131810009

Cited by 13 publications

(10 citation statements)

References 19 publications

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“…Moreover, the finding can reduce shareholders' uncertainty regarding the palm oil sector's future sustainability practices. Due to their significance in the agricultural industry, palm oil plantation companies face labor shortage issues, while contributing significantly to Malaysia's GDP [40,78,79]. Therefore, our research findings can provide valuable information to policymakers and the government, such as the ministry of primary industries, in both developed and developing countries to predict the future of employees' well-being in Malaysia.…”

Section: Discussionmentioning

confidence: 88%

Social and Environmental Sustainability, Workers’ Well-Being, and Affective Organizational Commitment in Palm Oil Industries

et al. 2023

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This paper examines the relationship between social and environmental sustainability and workers’ well-being as well as the mediation role of affective organizational commitment for those relationships through social exchange and stakeholder theories. A questionnaire was used to collect data from 112 workers employed in palm oil plantations in Malaysia. Structural equation modeling was then applied to examine the hypotheses. Findings show that social and environmental sustainability positively relates to workers’ well-being. We also found that affective commitment positively mediates social and environmental sustainability relationships with workers’ well-being. Our research findings have practical implications for various stakeholders, such as investors, policymakers, and managers in the palm oil industry. Our results highlight the importance of addressing the well-being of workers and the sustainability factors in palm oil plantations. This study suggests a widened perspective on sustainability factors and well-being which allows professionals to evaluate and enhance sustainability across their operations in a more comprehensive manner.

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Section: Discussionmentioning

confidence: 88%

Social and Environmental Sustainability, Workers’ Well-Being, and Affective Organizational Commitment in Palm Oil Industries

et al. 2023

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“…Indeed, sustainability certification could be very costly for independent smallholders due to various factors such as land size, farmers' skills and capital resources. MSPO According to Aziz et al (2021), certification costs for each smallholder is approximately USD9,630. However, auditing fee and preparatory costs for MSPO can be claimed by independent smallholders.Thus, government incentives are critical and significant to ensuring the acquisition of MSPO certificates by independent smallholders (Ni et al, 2016).…”

Section: Discussionmentioning

confidence: 99%

Independent Smallholders' Perceptions towards MSPO Certification in Sabah, Malaysia

Abdullah¹,

Shahimi²,

Arifin³

2022

jtfm

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In a wake of concern towards sustainable palm oil products, the Malaysian government had continuously formulated various guidelines for palm oil industries in fulfilling the international sustainability requirement. In 2013, Malaysia has launched Malaysian sustainable palm oil (MSPO), which eventually become mandatory requirement in January 2020, including the independent smallholders. However, the numbers of independent smallholders that acquired MSPO was relatively low, stood at 30.66%. Therefore, this study aims to analyse the perceptions of independent smallholders towards MSPO in Malaysia. A structured questionnaire was used for data collection instrument that been distributed among 350 independent smallholders, with a response rate of 74.5%. Results from descriptive analysis showed that independent smallholders have a good perception towards MSPO certification. Furthermore, multiple regression analysis revealed that all three factors were significant to influence the perceptions, where the risk perception became the most important contributor. This study enhances the awareness of sustainability practices among independent smallholders and contributes to the implementation of MSPO certification. Since risk perception has emerged as the primary contributor, regulators or governing bodies must seriously consider risk mitigation concerning independent smallholders about risk exposure such as continuous monitoring to comply environment impact assessment requirement, improve the availability and accessibility of information and aggressive awareness campaign on MSPO.

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“…According to Aziz et al (2021), the Malaysia Sustainable Palm Oil Scheme was officially launched in January 2015 by the Minister of Plantation Industries and Commodities (MPIC). MPOCC was given the responsibility of drafting and evaluating certification standards and scheme documents in January 2016.…”

Section: History and Key Milestone Of Malaysia Sustainable Palm Oil (...mentioning

confidence: 99%

The deployment of the Malaysian sustainable palm oil standard in the agriculture sector

Hamid,

Arzaman,

Razali

et al. 2024

Multidiscip. Sci. J.

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Malaysia's oil palm business is critical to the country's agricultural growth through its contributions to the country's Gross Domestic Product (GDP), foreign exchange, and employment. Oil palm is in high demand because it produces a high yield at a low cost of production. The Malaysian government declared that the Malaysian Sustainable Palm Oil Certification (MSPO) will be necessary by the end of 2020, as a result of greater awareness of environmental and sustainable issues. The objective of this study was to investigate how to deploy MSPO standards in the agriculture sector and to point out the benefit of applying MSPO standards in the agriculture sector. The case study approach and interviews were conducted based on the MSPO Certification, Oil Palm Management Certification and Supply Chain Certification. The findings demonstrated that with the guideline from the standards help to guide the farmers and the small holders to manage the waste, managing fertilizer packaging containers and poison container properly. The MSPO standards bring improvement towards the sale of palm oil and help reduce the problem regarding palm oil. MSPO certification are not only designed to address social and environmental issues but is also designed to demonstrate positive impacts as a result of implementation of better agricultural practices aimed at enhancing efficiency, farm management, improved social development and climate change adaptation.

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Barriers and Benefits Arising from the Adoption of Sustainable Certification for Smallholder Oil Palm Producers in Malaysia: A Systematic Review of Literature

Cited by 13 publications

References 19 publications

Social and Environmental Sustainability, Workers’ Well-Being, and Affective Organizational Commitment in Palm Oil Industries

Social and Environmental Sustainability, Workers’ Well-Being, and Affective Organizational Commitment in Palm Oil Industries

Independent Smallholders' Perceptions towards MSPO Certification in Sabah, Malaysia

The deployment of the Malaysian sustainable palm oil standard in the agriculture sector

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