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

Chapter 2: Actors – NGOs and Civil Society 24requirements were met (Highleyman, Amos, &Cauley, 2004). In another example, a challengeto the MSC’s certification of South Georgiantoothfish by the National Environmental Trust(NET), along with Greenpeace, the Sierra Club,and other organizations, was upheld (Highleymanet al., 2004) based on its potential to confuseconsumers. NET was conducting a campaign topersuade consumers to “take a pass on Chileansea bass” (the name under which toothfish wasmarketed). Despite the evidence that the smallSouth Georgian fishery was well managed, mostof the global catch of toothfish remained unsustainableand illegal.Engaging Consumers andStrengthening ConsumerInfluenceCivil society organizations serve to represent andgive voice to consumers as citizens, stakeholders,and owners of public goods and resources; toeducate and mobilize consumers to build demandfor certified products (or not—see Box 2.1); andto exert indirect influence over companies’ decisionsto use certification.Consumers who buy environmentally friendly orsocially responsible products presumably expecteither private benefits from the products (forexample, health benefits from organic or naturalfoods and products) or an altruistic “warm glow”associated with contributing to public well-being(Andreoni, 1990). They may place a high value onthe marginal improvements in social problemsmade through their own actions. As noted in theBusiness section of this chapter, many consumersindicate a preference for natural and sustainableproducts and rely on a broad range of civil societyorganizations, including those engaged instandards and certification, to ensure that thesepreferences are met.However, consumers can also express theirpreferences through collective action, not onlyin the public sector (e.g., through demands forlegislation and regulation) but also in the market,shaping both demand and supply through tactics(aimed at a company or its brands) such asshaming and blaming, mobilizing “good cop/bad cop” pressures, and campaigning to enlistfellow consumers in punishing bad performersand patronizing good ones. Civil society organizationsare often at the forefront of these campaigns(Lyon, 2010).When Greenpeace in 1994 campaigned againstShell Oil’s plans for disposal of the Brent Spar oilstorage platform, it initiated a boycott in Germanythat reduced Shell’s sales of gasoline by 20 to30 percent (Diermeier, 1996). Not all boycottsare that successful, but the threat of a boycottis a very powerful tool in the hands of NGOsseeking to influence corporate behavior. Indeed,Conroy (2007a) argues that the use of certificationsystems typically begins with a campaign byan NGO against a particular corporate behavior,often backed by a boycott threat. After a companyaccedes to the NGO’s demands, a certificationsystem is created to facilitate monitoring andcompliance with the company’s commitment.NGOs have also learned that they can raiseconcerns about a company’s brand image evenwithout a specific boycott threat—especially companieslike Coca-Cola and Nike, for whom brandimage is a large portion of overall shareholdervalue. As discussed in the Business section,companies will often respond quickly and evenproactively to protect the reputations of theirbrands in the marketplace.The exact processes through which NGO communicationsaffect brand image remain poorlyunderstood, but it appears such communicationscan help to drive individual consumer purchasedecisions, collective action by citizens and consumers,changes in investment practices byinstitutional investors, and/or increased politicalpressure from elected officials. 11Soon after the MSC was formed, a new NGOcalled SeaWeb began using strategic communicationsand social marketing to raise the profile ofocean conservation issues. It conducted marketresearch to determine what messages resonatedand began educating consumers about the11 See Lyon and Shimshack (forthcoming) for an attempt toidentify the channels through which Newsweek’s GreenCompany Ratings affected shareholder value.Toward Sustainability: The Roles and Limitations of Certification