Toward SuSTainabiliTy: The roleS and limiTaTionS of ... - Resolve

Chapter 1: Setting the Context 12with the standard. The decision about whetherthe standard should set performance requirementsor outline management practices is themost obvious example of two different structures,but structural decisions can also be madeabout scoring mechanisms, critical criteria, andpass/fail levels. Options range from managementsystem standards to threshold standardsand from continuous improvement models to“traffic light” systems. A threshold standard, forexample, requires the certified entity to meet allof the critical or mandatory criteria as well as aset percentage of the other criteria. The MSC hassuch a standard; it requires a threshold score of80 out of 100 for each of its three principles. TheCommon Code for the Coffee Community (4C)scheme has a traffic light system in which “red”criteria must be met and an average “yellow”must be achieved overall. FLO has a continuousimprovement model in which producer groupsmust meet entry requirements at the outset andthen additional criteria over time.Assuring ComplianceOnce a standard has been defined and is beingapplied by participating enterprises, the marketusually requires some form of assurance that theenterprise is actually meeting the requirementsin the standard. For systems with market-facinglabels, assurance also serves to support consumerconfidence in the legitimacy of the label.This assurance often takes the form of a qualifiedauditor visiting the enterprise and assessing theircompliance with the standard by looking at boththe practices and documentation of the enterprise.The audit can range from a simple checklistapproach to a more in-depth assessment thatincludes interviews with management, workers,and local community members.The assurance process can take a number offorms, including verification, certification, andaccreditation, each with varying levels of independenceand rigor. Verification is the act of assessingcompliance with a standard and is usually carriedout by assessors or auditors. Certification is whena formal decision on compliance is made basedon the results of an auditor’s report. Accreditationis then another layer of assurance consisting of anassessment of the competence of the certificationbody to determine compliance with the standard.No matter the form used, there is a typologyof assurance models ranging from less to moreformal and from less to more independent, asfollows:▪ First-party assessment—a self-assessment▪ Second-party assessment—an assessmentby an interested party (e.g., a producer group,trade association, or buyer)▪ Third-party assessment—an independentanalysis conducted by a party not related tothe entity being assessedThese models can also be combined, to thebenefit of both accessibility and rigor. Group certificationmodels, for example, which are prevalentin agriculture, combine a second-party internalaudit and a peer-review process among anorganized group of producers with a third-partyindependent assessment of the group’s managementsystem. This approach enables small-scaleproducers to enter into certification through aproducer group, thus sharing the costs of externalverification. Standards systems are now looking atinnovative ways to combine self-assessment withsecond- and third-party audits to streamline thecertification process.The systems addressed in depth in this reporttypically use third-party assessments, though theyhave the capability to integrate this with groupcertification models for small and medium-sizedenterprises.Auditor CompetenceThe role of auditors or assessors in a standardssystem is critical (Courville, 2004; Morimoto,Ash, & Hope, 2005; Power, 2003). These arethe individuals responsible for assessing compliancewith the standard and, as such, need tobe competent at their jobs. Auditor competencederives from a combination of skills, knowledge,and personal attributes. Standards systems takedifferent approaches to auditor oversight, includingthe training and professional development ofToward Sustainability: The Roles and Limitations of Certification