Skip to main content
SpringerLink
Log in

The Contribution of Environmental and Social Standards Towards Ensuring Legitimacy in Supply Chain Governance

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Increasingly, companies implement social and environmental standards as instruments towards corporate social responsibility (CSR) in supply chains. This is based on the assumption that such standards increase legitimacy among stakeholders. Yet, a wide variety of standards with different requirement levels exist and companies might tend to introduce the ones with low exigencies, using them as a legitimacy front. This strategy jeopardizes the reputation of social and environmental standards among stakeholders and their long-term trust in these instruments of CSR, meaning that all expenses for their implementation are of no avail for the companies. Therefore, this paper highlights which criteria are important for the selection, implementation and improvement in order to achieve a company's aim, but also to strengthen the legitimacy of social and environmental standards. This research is based on conceptual thought and some existing empirical research, comparing four different social and environmental standards, revealing weaknesses and strengths. It exposes the basic conditions for the success of such standards among stakeholders and identifies the need for more empirical data.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Albuquerque, P., Bronnenberg, B.J., & Corbett, C.J. (2007). A Spatiotemporal Analysis of the Global Diffusion of ISO9000 and ISO14000 Certification. Management Science, 53(3), 451–468. doi:10.1287/mnsc.1060.0633.

    Article  Google Scholar 

  • Amba-Rao, S.·C. (1993). Multinational Corporate Social Responsibility, Ethics, Interactions and Third World Governments: An Agenda for 1990s. Journal of Business Ethics, 12(7), 553–572. doi:10.1007/BF00872380.

    Article  Google Scholar 

  • Argenti, P.A. (2004). Collaborating with Activists: How Starbucks Works with NGOs. California Management Review, 47(1), 91–116.

    Google Scholar 

  • Auld, G., & Bull, G.Q. (2003). The Institutional Design of Forest Certification Standards Initiatives and Its Influence on the Role of Science: the Case of Forest Genetic Resources. Journal of Environmental Management, 69(1), 47–62. doi:10.1016/S0301-4797(03)00118-X.

    Article  Google Scholar 

  • Balza, M. and D. Radojicic: 2004, Corporate Social Responsibility and Nongovernmental Organizations (Linköping University, Department of Management and Economics), http://www.ep.liu.se/abstract.xsql?dbid=2277. Accessed 7 Aug 2008

  • Barrientos, S. 2002, ‹Mapping Codes through the Value Chain – from Researcher to Detective’. In: Jenkins, R., Pearson, R. and Seyfang, G. (eds). Corporate Responsibility and Labour Rights: Codes of Conduct in the Global Economy. Earthscan: London. pp. 61–76.

    Google Scholar 

  • Becchetti, L., & Huybrechts, B. (2008). The Dynamics of Fair Trade as a Mixed-from Market. Journal of Business Ethics, 81(4), 733–750. doi:10.1007/s10551-007-9544-8.

    Article  Google Scholar 

  • Berkhout, F., Hertin, J., Wagner, M., & Tyteca, D. (2008). Are EMS Environmentally Effective? The Link between Environmental Management Systems and Environmental Performance in European Companies. Journal of Environmental Planning and Management, 51(2), 259–283. doi:10.1080/09640560701865040.

    Article  Google Scholar 

  • Beschorner, T., & Müller, M. (2007). Social Standards: Toward an Active Ethical Involvement of Business in Developing Countries. Journal of Business Ethics, 73(1), 11–20. doi:10.1007/s10551-006-9193-3.

    Article  Google Scholar 

  • Bouwen, P.: 2003, The Democratic Legitimacy of Business Interest Representation in the European Union: Normative Implications of the Logic of Access, Preprints of the Max Planck Institute for Research on Collective Goods, Bonn, http://www.coll.mpg.de/pdf_dat/2003_8online.pdf. Accessed 26 July 2007

  • Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. doi:10.1016/0007-6813(91)90005-G.

    Article  Google Scholar 

  • Carroll, A.B., & Buchholtz, A. K. (2000). Business and Society – Ethics and Stakeholder Management. South-Western: Cincinnati Ohio.

    Google Scholar 

  • Carter, C.R. (2004). Purchasing and social responsibility: a replication and extension. The Journal of Supply Chain Management, 40(4), 4–16. doi:10.1111/j.1745-493X.2004.tb00175.x.

    Article  Google Scholar 

  • Castelo Branco, M. and Lima, Rodrigues, L. (2006). Corporate Social Responsibility and Resource-Based Perspectives. Journal of Business Ethics, 69(2), 111–132. doi:10.1007/s10551-006-9071-z.

    Article  Google Scholar 

  • Cetindamar, D., & Husoy, K. (2007). Corporate Social Responsibility Practices and Environmentally Responsible Behavior: The Case of the United Nations Global Compact. Journal of Business Ethics, 76(2), 163–176. doi:10.1007/s10551-006-9265-4.

    Article  Google Scholar 

  • Commission of the EC: 2001, European Framework Requirement of the Social Responsibility of Companies (KOM, Brussels).

  • Corbett, C.J. (2006). Global Diffusion of ISO 9000 Certification through Supply Chains. Manufacturing & Service Operations Management, 8(4), 330–350. doi:10.1287/msom.1060.0120.

    Article  Google Scholar 

  • Corbett, C.J., & Kirsch, D.A. (2001). International Diffusion of ISO 14000 Certification. Production and Operations Management, 10(3), 327–342.

    Article  Google Scholar 

  • Dahlsrud, A. (2008). How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions. Corporate Social Responsibility & Environmental Management, 15(1), 1–13. doi:10.1002/csr.132.

    Article  Google Scholar 

  • DeSimone, L.D., & Popoff, F (1997) Eco-Efficiency: The Business Link to Sustainable Development. The MIT Press, Cambridge.

    Google Scholar 

  • Dingwerth, K.: 2005, The Democratic Legitimacy of Transnational Rule-Making – Normative Theory and Empirical Practice (University of Berlin).

  • EA: 1998, Guidelines for the Accreditation of Certification Bodies for Environmental Management Systems (EA-7-04) (TGA, Darmstadt), http://www.tga-gmbh.de/share/files/EA-7-04.pdf. Accessed 26 July 2007

  • Everett, J.S., Neu, D., & Martinez, D. (2008). Multi-Stakeholder Labour Monitoring Organizations: Egoists, Instrumentalists, or Moralists? Journal of Business Ethics, 81(1), 117–142. doi:10.1007/s10551-007-9484-3.

    Article  Google Scholar 

  • Fitch, H.G. (1976). Achieving Corporate Social Responsibility. Academy of Management Review, 1(1), 38–46. doi:10.2307/257357.

    Article  Google Scholar 

  • FSC: 2009, FSC International (Bonn), http://www.fsc.org/en/. Accessed 09 January 2009

  • Garriga, E., & Melé, D. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1–2), 51–71. doi:10.1023/B:BUSI.0000039399.90587.34.

    Article  Google Scholar 

  • Green, K., Morten, B., & New, S. (1998). Green Purchasing and Supply Policies: Do They Improve Companies` Environmental Performance? Supply Chain Management: An International Journal, 3(2), 89–95. doi:10.1108/13598549810215405.

    Article  Google Scholar 

  • Handfield, R. B. and Nichols, E.L.: 1999, Introduction to Supply Chain Management, (Prentice Hall, New-Jersey).

    Google Scholar 

  • Henry, S. 1983, Private Justice: towards Integrated Theorising in the Sociology of Law, (Routledge Kegan & Paul, Boston).

    Google Scholar 

  • Hervani, A.A., Helms, M.M., & Sarkis, J. (2005). ‹Performance measurement for green supply chain management’, Benchmarking. International Journal, 12(4), 330–353.

    Article  Google Scholar 

  • Jenkins, R., Pearson, R., & Seyfang, G. 2002, Corporate Responsibility and Labour Rights – Codes of Conduct in the Global Economy. Earthscan, London.

    Google Scholar 

  • Joyner, B.E., & Payne, D. (2002). Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility. Journal of Business Ethics, 41(4), 297–311. doi:10.1023/A:1021237420663.

    Article  Google Scholar 

  • Köhl, M., Traub, B., & Päivinen, R. (2000). Harmonisation and Standardisation in Multi-National Environmental Statistics – Mission Impossible? Environmental Monitoring and Assessment, 63(2), 361–380. doi:10.1023/A:1006257630216.

    Article  Google Scholar 

  • Köpke, R., & Röhr, W. 2003, Codes of Conduct: Verhaltensnormen für Unternehmen und ihre überwachung (Codes of conduct: Behavioral Standards for Companies and Their Control). PapyRossa, Cologne.

    Google Scholar 

  • Konzelmann, S. and F. Wilkinson: 2004, Corporate Governance, Stake-Holding and the Effective Management of Human Resources. Conference Contribution, Inaugural Conference of the Welsh Institute for Competitive Advantage, WICA, Corporate Social Responsibility: Thought and Practice, 23–24th September 2004.

  • Koplin, J., Seuring, S., & Mesterharm, M. (2007). Incorporating Sustainability into Supply Policies and Supply Processes in the Automotive Industry – The Case of Volkswagen. Journal of Cleaner Production, 15(11), 1053–1062. doi:10.1016/j.jclepro.2006.05.024.

    Article  Google Scholar 

  • Lawrence, A.T. 2002, ‹The Drivers of Stakeholder Engagement. Reflections on the Case of Royal Dutch/Shell’, in Andriof, J., Waddock, S., Husted, B. and Sutherland Rahman, S. (Eds.), Unfolding Stakeholder Thinking, (Greenleaf Publishing, Sheffield), pp. 185–199.

    Google Scholar 

  • Leipziger, D. (2003). The Corporate Responsibility Code Book. Greenleaf Publishing, Sheffield.

    Google Scholar 

  • L`Etang, J.: 1994, ‹Public Relations and Corporate Social Responsibility: Some Issues Arising’. Journal of Business Ethics, 13(2), 111–123.

    Article  Google Scholar 

  • Lim, S.-J., & Phillips, J. (2008). Embedding CSR Values: The Global Footwear Industry`s Evolving Governance Structure. Journal of Business Ethics, 81(1), 143–156. doi:10.1007/s10551-007-9485-2.

    Article  Google Scholar 

  • López, M.V., Garcia, A., & Rodriguez, L. (2007). Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75(3), 285–300. doi:10.1007/s10551-006-9253-8.

    Article  Google Scholar 

  • Maloni, M.J., & Brown, M.E. (2006). Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry. Journal of Business Ethics, 68(1), 35–52. doi:10.1007/s10551-006-9038-0.

    Article  Google Scholar 

  • Manrodt, K·B., & Vitasek, K. (2004). Global Process Standardization: A Case Study. Journal of Business Logistics, 25(1), 1–23.

    Google Scholar 

  • McIntosh, M., Leipziger, D., & McAntosh, M. 1998 Corporate Citizenship: Successful Strategies of Responsible Companies. Financial Times Prentice Hall, London.

    Google Scholar 

  • McIntosh, M., Thomas, R., Leipziger, D., & Coleman, G. (2003). International Standards for Corporate Responsibility. Ethical Corporation Magazine, 13, 22–29.

    Google Scholar 

  • Meidinger, E. E., C. Elliott and G. Oesten: 2003, ‹The Fundamentals of Forest Certification’, in E. Meidinger, C. Elliott and G. Oesten (eds.), Social and Political Dimensions of Forest Certification (Kessel, Germany), pp. 3–25.

  • Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N·W., Smith, C.D., & Zacharia, Z. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22(2), 1–26.

    Google Scholar 

  • Mitchell, R.K., Agle, B.R., & Wood, D.J. (1997). Towards a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Academy of Management Review, 22(4), 853–886. doi:10.2307/259247.

    Article  Google Scholar 

  • New, S. (1997). ‹The Scope of Supply Chain Management Research’, Supply Chain Management –. International Journal (Toronto Ont), 2(1), 15–22.

    Article  Google Scholar 

  • Orlitzky, M. (2001). Does Firm Size Confound the Relationship Between Corporate Social Performance and Firm Financial Performance? Journal of Business Ethics, 33(2), 167–181. doi:10.1023/A:1017516826427.

    Article  Google Scholar 

  • Orlitzky, M., Schmidt, F.L., & Rynes, S.L. (2003). Corporate Social and Financial Performance: A Meta-Analysis. Organization Studies, 24(3), 403–441. doi:10.1177/0170840603024003910.

    Article  Google Scholar 

  • O’Rourke, D. 2000, Monitoring the Monitors: A Critique of PricewaterhouseCoopers Labor Monitoring, (MIT, Boston).

    Google Scholar 

  • Pattberg, P. (2005). What Role for Private Rule-Making in Global Environmental Governance? Analysing the Forest Stewardship Council (FSC). International Environmental Agreements, 5(2), 175–189. doi:10.1007/s10784-005-0951-y.

    Article  Google Scholar 

  • Pattberg, P. (2006). The Influence of Global Business Regulation: Beyond Good Corporate Conduct. Business and Society Review, 111(3), 241–268. doi:10.1111/j.1467-8594.2006.00271.x.

    Article  Google Scholar 

  • Phillips, R. (2003). Stakeholder Legitimacy. Business Ethics Quarterly, 13(1), 25–41.

    Google Scholar 

  • Poksinska, B., Dahlgaard, J.J., & Eklund, J.A.E. (2003). Implementing ISO 14000 in Sweden: Motives, Benefits and Comparisons with ISO 9000. International Journal of Quality & Reliability Management, 20(5), 585–606. doi:10.1108/02656710310476543.

    Article  Google Scholar 

  • Power, M. (1996). Making Things Auditable. Accounting Organizations and Society 21(23), 289–315. doi:10.1016/0361-3682(95)00004-6.

    Article  Google Scholar 

  • Power, M. 1997, The Audit Society: Rituals of Verification, (Oxford University Press, New York).

    Google Scholar 

  • Preston, L.E., & O`Bannon, D.P. (1997). The Corporate Social-Financial Performance Relationship: A Typology and Analysis. Business & Society, 36(4), 419–429. doi:10.1177/000765039703600406.

    Article  Google Scholar 

  • Quazi, A.M., & O`Brien, D. (2000). An Empirical Test of a Cross-National Model of Corporate Social Responsibility. Journal of Business Ethics, 25(1), 33–51. doi:10.1023/A:1006305111122.

    Article  Google Scholar 

  • Reynolds, M.A., & Yuthas, K. (2008). Moral Discourse and Corporate Social Responsibility Reporting. Journal of Business Ethics, 78(1–2), 47–64. doi:10.1007/s10551-006-9316-x.

    Article  Google Scholar 

  • Roberts, S. (2003). Supply Chain Specific? Understanding the Patchy Success of Ethical Sourcing Initiatives. Journal of Business Ethics, 44(2–3), 159–170. doi:10.1023/A:1023395631811.

    Article  Google Scholar 

  • Rohitratana, K. (2002). SA 8000 – A Tool to Improve Quality of Life. Managerial Auditing Journal, 17(1/2), 60–64. doi:10.1108/02686900210412252.

    Article  Google Scholar 

  • Scharpf, F. W.: 1996, Economic Integration, Democracy and the Welfare State. MPIfG Working Paper 96/2, (Cologne), http://www.mpifg.de/pu/workpap/wp96-2/wp96-2.html. Accessed 26 July 2007

  • Servais, J. M.: 2005, ‹International Labour Standard and Corporate Social Responsibility’, in R. Blanpain (ed.), Confronting Globalization (Aspen Publishers, USA) pp. 21–35.

  • Seuring, S., Koplin, J., Behrens, T., & Schneidewind, U. (2003). Sustainability Assessment in the German Detergent Industry: From Stakeholder Involvement to Sustainability Indicators. Sustainable Development, 11(4), 119–212. doi:10.1002/sd.216.

    Article  Google Scholar 

  • Seuring, S., & Müller, M. (2008). From a Literature Review to a Conceptual Framework for Sustainable Supply Chain Management. Journal of Cleaner Production, 16(15), 1699–1710. doi:10.1016/j.jclepro.2008.04.020.

    Article  Google Scholar 

  • Simpson, D.F., & Power, D.J. (2005). ‹Use the Supply Relationship to Develop Lean and Green Suppliers’, Supply Chain Management – International Journal (Toronto Ont), 10(1), 60–68.

    Article  Google Scholar 

  • Simunic, D. (1984). Auditing, consulting, and auditor independence. Journal of Accounting Research, 22, 679–702. doi:10.2307/2490671.

    Article  Google Scholar 

  • Smith, N·C. (2003). Corporate Social Responsibility: Whether or How? California Management Review, 45(4), 52–76.

    Google Scholar 

  • Sohn, H·F. (1982). Prevailing Rationales in the Corporate Social Responsibility Debate. Journal of Business Ethics, 1(2), 139–144. doi:10.1007/BF00412085.

    Article  Google Scholar 

  • Sullivan, R. (2005). Code Integration: Alignment or Conflict? Journal of Business Ethics, 59(1–2), 9–25. doi:10.1007/s10551-005-3401-4.

    Article  Google Scholar 

  • Taylor, P.L. (2004). In the Market But Not of It: Fair Trade Coffee and Forest Stewardship Council Certification as Market-Based Social Change. World Development, 33(1), 129–147. doi:10.1016/j.worlddev.2004.07.007.

    Article  Google Scholar 

  • Terlack, A., & King, A.A. (2006). The Effect of Certification with the ISO 9000 Quality Management Standard: A Signaling Approach. Journal of Economic Behavior & Organization, 60(4), 579–602. doi:10.1016/j.jebo.2004.09.012.

    Article  Google Scholar 

  • Walgenbach, P. (2001). The Production of Distrust by Means of Producing Trust. Organization Studies, 22, 693–714. doi:10.1177/0170840601224006.

    Article  Google Scholar 

  • Wick, I.: 2005, Worker’s tool or PR ploy – A Guide to Codes of International Labour Practice, Friedrich-Ebert-Stiftung and SÜDWIND, Siegburg, http://www.suedwind-institut.de/downloads/workers-tool-2005.pdf. Accessed 26 July 2007

  • Winstanley, D., Clark, J., & Leeson, H. (2002). ‹Approaches to Child Labour in the Supply Chain’, Business Ethics. European Review (Chichester England), 11(3), 210–223.

    Google Scholar 

  • WWF: 2002, WWF, the global conservation organization, Frankfurt (http://www.panda.org/, 26.07.2007).

  • Yu, X. (2008). Impacts of Corporate Code of Conduct on Labor Standards: A Case Study of Reebok`s Athletic Footwear Supplier Factory in China. Journal of Business Ethics, 81(3), 513–529. doi:10.1007/s10551-007-9521-2.

    Article  Google Scholar 

  • Zadek, S.: 1998, Making Value Count: Contemporary Experience in Social and Ethical Accounting, Auditing and Reporting. Research Report 57, Association of Chartered and Certified Accountants, Institute of Social and Ethics Account Ability, London

Download references

Author information

Authors and Affiliations

  1. University of Ulm, Ulm, Germany

    Martin Mueller

  2. Carl von Ossietzky University of Oldenburg, Oldenburg, Germany

    Virginia Gomes dos Santos

  3. University of Kassel, Kassel, Germany

    Stefan Seuring

Authors
  1. Martin Mueller
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Virginia Gomes dos Santos
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Stefan Seuring
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Martin Mueller.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Mueller, M., dos Santos, V.G. & Seuring, S. The Contribution of Environmental and Social Standards Towards Ensuring Legitimacy in Supply Chain Governance. J Bus Ethics 89, 509–523 (2009). https://doi.org/10.1007/s10551-008-0013-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-0013-9

Keywords

Search

Navigation