Sustainability Flashcards
Ponte definitions: Sustainability governance vs sustainability management
Sustainability governance: the cumulative efforts by multiple actors to address challenges
Sustainability management: action taken by lead firms in the GVC to deal with environmental issues
Legitemacy for MSI
- Input legitimacy – stakeholder inclusion representing both business and societal interest
- Process legitimacy – procedures, participation, accountability and transparency
- Output legitimacy – results achieved
Self regulation
Governing sustainability along the supply chain and within the boundary of the firm often leading to an improved financial performance. Distinction between pure (code of conduct), mandated (required by authorities) and hybrid (framework set by public authorities) self-regulation.
Sustainability transformations
Technology-led: New technologies as a solution for environmental issues. Such a transformation requires processes across multiple levels, thus both technological innovation from grassroots taking a bottom up approach and from big corporations
Market-led: incentives through pricing, carbon trading system, commoditization
State-led: important role in backing e.g. renewable energy sector. The power of state is declining due to liberalization and reduction in state capacity. “picking the winners”
Citizen-led: mobilization, network formation and institution building
Political transformation happens at the intersection of the four
Compliance and co-oporation paradigm
Compliance with code of conducts, focused on vertical trade relations
Co-operations is often used for long term trade relationships, moving beyond compliance with code of conduct and instead e.g. investing in capacity development and training
Institutional theory and CSR
Predicts increased homogenization of CSR across borders and standardized CSR practices. Organization seek legitimacy
• Coercive isomorphism: alignment with externally codified rules, norms, and law
• Mimetic isomorphism: alignment with best practices
• Normative isomorphism: alignment with standards set by educational/professional authorities
Coupling/decoupling
Decoupling is defined as a disconnect between legitimacy enhancing and technical efficient structures. Firms behaving both responsible and irresponsible at the same time. Using CSR symbolically rather than sustainable.
Human Rights and CSR (Giuliana)
Working with human rights is a way that could enhance benefits of workers. Enjoyment of human rights with in the cluster vs explicit adaptation of CSR policy
• Low-road cluster: nether adaptation of CSR policies nor respecting human rights
• Window-dressing cluster: adaptation of CSR policies on a symbolic basis in order to gain legitimacy while systematically violating human rights
• Rights-oriented cluster: widespread respect for human right, and firms having a de facto commitment to human right regardless of CSR policy.
Sustainable development goals
Priorities and aspirations for 2030 aiming at eliminating poverty and embark on a sustainable path engaging governmental and business worldwide.
Focuses on interconnected topics such as poverty, health, education, climate change, and environment degradation.
CSR definition
“[CSR is] a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” EU 2001 Green Paper
CSR and development theory
CSR is criticized for for taking a mainstream western approach influenced By:
Dependency: exploitative trade relationships between developed and developing countries
Imperialism: Western enrichment on the expense of developing countries by imposing its will with force
Principle vs certification based MSI
Principle-based MSI: firms sharing the same values and visions, they provide a framework, and drive the disclosure of company performance regarding social and environmental issues
Certification-based MSIs:
(i) setting standards for ecological and social interactions, (ii) auditing compliance with these standards, (iii) attaching labels to products and enterprises that meet the standards, and (iv) creating institutions to perform these functions
MSI and legitimacy requirements (Ponte)
input legitimacy: inclusion, stakeholder representation
process legitimacy: governance procedures, participatory mechanisms, accountability, transparency
output legitimacy: results achieved
Labour agency (Coe and Hess)
The potential of worker actions to actively rework, and in some cases resist, prevailing governance regimes within production networks’
• Resilience (everyday coping strategies)
• Reworking strategies (efforts to improve existing situation)
• Resistance (direct challenges to capitalism)
