The Challenge of Implementing Voluntary Sustainability Standards: A Dynamic Framework on the Tension between Adherence and Adaptation

Abstract

Voluntary sustainability standards (VSS) aim to encourage ethical behaviors of organizations, yet studies show that many VSS adopters do not live up to these promises. Existing literature typically attributes the reason for this ineffectiveness to either policy–practice decoupling, owing to a lack of adhering to VSS requirements, or means–ends decoupling, owing to a lack of adapting to the local context. However, little is known about how the contradictory needs of adherence and adaptation evolve throughout VSS implementation. Building on the knowledge transfer literature, we develop a dynamic conceptual framework that distinguishes two phases of VSS implementation. Specifically, we theorize how tensions emerge in the transition between phases since the first phase primarily calls for adherence, whereas the second calls for adaptation. Applying this framework, we develop propositions to illustrate how these tensions relate to different VSS characteristics: stringency, enforcement, and scope. The article concludes with implications and future research directions for VSS scholarship.

Sustainability leadership: An integrative review and conceptual synthesis

“…Second, our analysis revealed that sustainability leadership continually faces diverse paradoxical tensions while addressing divergent yet interrelated sustainability concerns. Thus, to effectively deal with such paradoxical tensions, sustainability leadership needs to deal with such tensions and exhibit ambidextrous behavior to balance competing yet coexisting demands by accepting and embracing tensions rather than rejecting them (Hahn et al, 2018; Nava & Tampe, 2022; Schad et al, 2016; Van Neerijnen et al, 2021).…”

“…These principles comprise ethics, governance, transparency, business relationships, financial returns, community development, the value of products and services, employment practices, and protection of the environment (Epstein, 2008). However, these principles could potentially cause tensions that sustainability leadership must address by accepting and embracing mechanisms and creating a subtle balance between these conflicting yet coexisting principles (Hahn et al, 2018;Nava & Tampe, 2022). Additionally, sustainability leadership is also responsible for promoting an ethical climate in organizations and maintaining transparency and accountability to stakeholders through sustainability reporting and seeking inclusion in the "best of class" sustainability indexes such as Dow Jones Sustainability Index (DJSI) (Robinson et al, 2011).…”

“…Sustainability standards are considered as voluntary governance tools for stimulating desirable ethical and responsible corporate behaviors to address competing sustainability concerns (Christensen et al, 2017; Haack & Rasche, 2021; Nava & Tampe, 2022). Further, sustainability standards provide a guiding framework for planning and implementation of sustainable business strategy and contribute to consistency, comparability, and transparency in communicating sustainability to corporate stakeholders (Epstein, 2008).…”

“…These principles comprise ethics, governance, transparency, business relationships, financial returns, community development, the value of products and services, employment practices, and protection of the environment (Epstein, 2008). However, these principles could potentially cause tensions that sustainability leadership must address by accepting and embracing mechanisms and creating a subtle balance between these conflicting yet coexisting principles (Hahn et al, 2018; Nava & Tampe, 2022).…”