Technology-enhanced Auditing in Voluntary Sustainability Standards: The Impact of COVID-19

Abstract

The ongoing COVID-19 pandemic has had a significant impact on the certification and auditing services of Voluntary Sustainability Standards (VSS). The traditional approach to auditing—on-site visits—has been significantly curtailed, and it is unclear when, and under what conditions, it might resume in full. The purpose of this paper is to study the initial responses to COVID-19 of leading VSS—a group of 21 standards that are members of ISEAL, a global membership organization for VSS. This is a qualitative study, and data are collected from publicly-available sources (i.e., official announcements, policy amendments, derogations) in order to inductively analyze how individual VSS have adjusted their certification services in response to travel bans and lockdowns. The emphasis of the analysis was understanding the role of technologies in the VSS responses to the COVID-19 crisis. The findings demonstrate significant uptake of remote auditing and information and communications technology (ICT), even though that uptake is constrained by limiting conditions and it is not currently expected by VSS to extend beyond the crisis. Lessons learned from the crisis are discussed, and the potential for remote auditing during this period to encourage the adoption of more advanced technologies (such as artificial intelligence and satellite monitoring) in certification services is explored. A set of research questions to guide future work grounded in the analysis is also provided.

Sustainable Technologies for the Transition of Auditing towards a Circular Economy

“…The central importance of discourse is constructing social life [40]. This is in line with Castka et al [19], who investigated a qualitative study, and data were collected from publicly available sources in order to inductively analyze how individual VSS have adjusted their certification services in response to travel bans and lockdowns.…”

“…In particular, in this period of COVID-19 pandemic, coincidentally Information and Communication Technologies (ICT) have been implemented to support businesses, with this coincidentally serving as a means to usher in circular economy. The demand for communication software such as Microsoft Teams and Zoom has been unprecedented, as hundreds of millions of people have abruptly been required to work remotely from home [19].…”

“…There are lots of potential usage of ICT in the audit that sustains CE. Castka et al [19], discussing remote auditing observed: Teleconferencing using video and/or audio; Sharing of data; Assessment of documents through remote sharing; Teleconferencing or other means; Video and/or audio streaming from remote locations; Records of video and/or audio stills and/or screenshots.…”

“…In situations when internet connection does not allow for a stable interaction between the auditor and auditee generally, documentary transfers are recommended to enhance evidence gathering processes. Generally, we recognize the possibility of both on-and off-line ICT options [19].…”

Exploring the Smart Future of Participation

“…The COVID-19 pandemic has occasioned a sudden and drastic shift to digital technology-mediated, pervasive, applications across broad swaths of society, including education, business, health care and government with effects that are anticipated to extend beyond the immediate health crisis (Bevins, et al, 2020;Blackburn, et al, 2020, Dimson, et al, 2020, Howard & Borenstein, 2020Torous, et al, 2020). Researchers anticipate that COVID-19 will accelerate the adoption of new technologies and operational practices (Castka, et al, 2020). Technologies such as the Internet of Things (IoT), big data analytics, artificial intelligence (AI), and a variety of tools for overcoming social isolation and enhancing digital lives, such as virtual reality, holograms and streaming video have been given a large boost by the pandemic (Mazzoleni, et al, 2020;Ting, et al, 2020).…”