Sustainability Standards and Sustainable Development – Synergies and Trade‐Offs of Transnational Governance

Abstract

This article investigates potential trade-offs between the socioeconomic and environmental dimensions of development within the context of transnational business governance and sustainability standards, exemplified by smallholder certification in the palm oil sector as a means to improve both sustainability and the inclusion of small farmers in global value chains. This article finds that there are important trade-offs between environmental sustainability and inclusive development. First, there is a worry that the diffusion of standards that aim at enhancing environmental sustainability may undermine the socioeconomic situation of smallholders by excluding them from global value chains and from international markets that demand certified commodities. Second, while smallholder certification can generate socioeconomic benefits for farmers included in certification schemes, these potential benefits may have contradictory and undesired implications for environmental sustainability. The article analyses these trade-offs and discusses implications with a view to fostering the synergies between economic, environmental and social sustainability.

Evaluation of sustainable supply chain management performance: Indicators

“…The sustainable supply chain manages material resources, flow of information, and capital flows, as well as coordinated efforts by supply chain companies (Seuring & Müller, 2008), and meanwhile achieves goals from all three dimensions of sustainable development (economic, environmental, and social) (Halisçelik & Soytas, 2019). Development paths must be modified to make them more environmentally sustainable and socially more inclusive (Brandi, 2017). Regarding the progress and complexity of issues related to social and environmental sustainability, managers often have problems with this (Welford & Frost, 2006).…”

On yield gaps and better management practices in Indonesian smallholder oil palm plantations

“…Traceability can be another important tool for enforcing regulations, with the Palm Oil Innovation Group (POIG) demanding full traceability, down to field level, for all its members (POIG, 2016) to guarantee deforestation-free palm oil. Clearly, any practice that is enforced needs to be enabled and supported, otherwise regulations may easily lead to the exclusion of smallholders from the supply chain (Brandi, 2017).…”

Supply chain strategy decisions for sustainable development using an integrated multi‐criteria decision‐making approach

“…Wichaisri and Sopadang () have analyzed the trends and future directions in sustainable development through a review of the literature. The business community has to exercise caution with a high sense of responsibility by promoting novel sustainability strategies to drive towards sustainable development, which has been underlined again by the 2030 Agenda for Sustainable Development (Brandi, ). A framework for sustainability strategy decisions in the manufacturing area has been proposed by Ocampo and Clark ().…”