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Assessing the institutionalization of private sustainability governance in a changing coffee sector

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  • Janina Grabs

Abstract

The potential of transnational private governance initiatives to constitute effective alternatives to state‐led regulation of global value chains rests on their ability to scale up and become institutionalized in a given sector. This study examines whether such institutionalization has occurred in the coffee sector, the commodity with the most widespread adoption of certified products and over 30 years’ experience of private governance, and tests hypotheses on facilitating and inhibiting conditions. It finds that while norm generation around responsible supply chain management and the organizational institutionalization of standard‐setting bodies is well advanced, the practice of internalizing social and environmental externalities through the routinized production and purchase of higher priced certified goods continues to be questioned by industry actors. Indeed, conditions that favored normative and organizational institutionalization, such as high levels of industry concentration, product differentiation, and deliberative interaction, are shown to represent barriers to the practice‐oriented institutionalization of market‐driven regulatory governance.

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  • Janina Grabs, 2020. "Assessing the institutionalization of private sustainability governance in a changing coffee sector," Regulation & Governance, John Wiley & Sons, vol. 14(2), pages 362-387, April.
    • Handle: RePEc:wly:reggov:v:14:y:2020:i:2:p:362-387
    DOI: 10.1111/rego.12212
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    2. Nadine Arnold, 2022. "Accountability in transnational governance: The partial organization of voluntary sustainability standards in long‐term account‐giving," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 375-391, April.
    3. Oberlack, Christoph & Blare, Trent & Zambrino, Luca & Bruelisauer, Samuel & Solar, Jimena & Villar, Gesabel & Thomas, Evert & Ramírez, Marleni, 2023. "With and beyond sustainability certification: Exploring inclusive business and solidarity economy strategies in Peru and Switzerland," World Development, Elsevier, vol. 165(C).
    4. Hidalgo, Francisco & Quiñones-Ruiz, Xiomara F. & Birkenberg, Athena & Daum, Thomas & Bosch, Christine & Hirsch, Patrick & Birner, Regina, 2023. "Digitalization, sustainability, and coffee. Opportunities and challenges for agricultural development," Agricultural Systems, Elsevier, vol. 208(C).

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