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

Chapter2Why and How Actors Engagein Standards and CertificationIt is sometimes assumed that standards and certification systems are increasinglypopular largely because companies have discovered that certified goods can commanda price premium in the marketplace. However, consumers’ willingness to pay pricepremiums is in fact only one reason among many why businesses might choose toengage in certification—and it may be a weak or even nonexistent factor in some cases.As noted in Appendix E for instance, only about 10percent of fish certified by the Marine StewardshipCouncil are labeled as such—which means thatconsumers often do not know that they are buyingcertified fish, and thus that some factor other thanconsumer willingness to pay must be driving businesses’participation in that certification system.During the Assessment process, SteeringCommittee members explored the drivers thatmotivate certain types of organizations to engagein standards and certification systems—specifically,drivers for large brands and retailers, aswell as for civil society (nongovernmental organizations(NGOs) and foundations, primarily),and governments. 1 Committee members alsodiscussed the diverse roles these actors may playin such systems. Exploring the roles and driversof these types of actors was useful in helping togain a better understanding of the impacts thatstandards and certification systems have had andcould have in the future, and in setting the stagefor the development of recommendations.In this chapter, the first section discusses theroles and motivations of nonprofit organizationsthat have advocated for and been involved instandards and certification systems, as well asthe private foundations that have funded suchsystems. The second section focuses on key waysin which governments have played an importantrole in certification. And the third section looks atthe roles and drivers for large brands and retailersto engage in certification systems—i.e., thosecompanies that are using standards and certificationsystems as a way to promote environmentallyand socially responsible behaviors within theirsupply chains.In identifying drivers in this chapter, the SteeringCommittee does not mean to imply a direct causalconnection between a driver and the resultingbehavior of firms and other stakeholders. Theliterature supporting the Committee’s conclusionsmostly describes historical associations,correlations, and anecdotal cases.1 Several important types of actors were not addressed inany detail, due primarily to the need to have a manageablescope for the Assessment. Those not analyzed in depthinclude small producers, indigenous groups, traders, ratingsagencies, and national organizations for standardization,among others.Toward Sustainability: The Roles and Limitations of Certification 18