IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v26y2018i4p422-434.html
   My bibliography  Save this article

Improving Sustainable Development within Indonesian Palm Oil: The Importance of the Reward System

Author

Listed:
  • Yohanes B. Kadarusman
  • Astrid G. Herabadi

Abstract

Nowadays, standards play a central role in the governance of international business relations; palm oil is no exception. The focal issue of palm oil is sustainable processes of production and sourcing, thus multi‐stakeholder initiatives such as the Roundtable on Sustainable Palm Oil (RSPO) set out the sustainability principles and standards, and manage the certification system (CSPO). Empirical evidence based on in‐depth interview with various stakeholders in the Indonesian palm oil industry indicates that the development of the RSPO sustainability standards is perceived to be in favor of a particular interest group due to the asymmetrical power and unbalanced control structure of the stakeholders. Thus the powerful stakeholders are able to exercise imperative power over other stakeholders, to the extent that it actually contradicts the others’ interests. This paper puts forward the notion that a more equitable governance system should be developed through the introduction of the reward system on the CSPO transaction. The reward system can demonstrate the original motivation of the RSPO toward consensus among all stakeholders to equally contribute in the implementation of sustainability Principles and Criteria (P&C) and standards. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Yohanes B. Kadarusman & Astrid G. Herabadi, 2018. "Improving Sustainable Development within Indonesian Palm Oil: The Importance of the Reward System," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(4), pages 422-434, July.
    • Handle: RePEc:wly:sustdv:v:26:y:2018:i:4:p:422-434
    DOI: 10.1002/sd.1715
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.1715
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.1715?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chebbi, Hela & Yahiaoui, Dorra & Sellami, Mohamed & Papasolomou, Ioanna & Melanthiou, Yioula, 2020. "Focusing on internal stakeholders to enable the implementation of organizational change towards corporate entrepreneurship: A case study from France," Journal of Business Research, Elsevier, vol. 119(C), pages 209-217.
    2. Eusebius Pantja Pramudya & Lukas Rumboko Wibowo & Fitri Nurfatriani & Iman Kasiman Nawireja & Dewi Ratna Kurniasari & Sakti Hutabarat & Yohanes Berenika Kadarusman & Ananda Oemi Iswardhani & Rukaiyah , 2022. "Incentives for Palm Oil Smallholders in Mandatory Certification in Indonesia," Land, MDPI, vol. 11(4), pages 1-28, April.
    3. Norhana Abdul Majid & Zaimah Ramli & Sarmila Md Sum & Abd Hair Awang, 2021. "Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review," Sustainability, MDPI, vol. 13(6), pages 1-10, March.
    4. Resosudarmo, Ida Aju Pradnja & Tacconi, Luca & Waluyo, Efendi Agus, 2023. "Enforcement and compliance with the no-burning policy on villagers in Indonesia," Forest Policy and Economics, Elsevier, vol. 151(C).
    5. Michelle Ann Miller & Prayoto Tonoto & David Taylor, 2022. "Sustainable development of carbon sinks? Lessons from three types of peatland partnerships in Indonesia," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 241-255, February.
    6. Águeda Gil-López & Unai Arzubiaga & Elena San Román & Alfredo Massis, 2022. "The Visible Hand of corporate entrepreneurship in state-owned enterprises: a longitudinal study of the Spanish National Postal Operator," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1033-1071, September.
    7. Fitri Nurfatriani & Ramawati & Galih Kartika Sari & Wiko Saputra & Heru Komarudin, 2022. "Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme," Land, MDPI, vol. 11(9), pages 1-24, September.
    8. Ahmed Zainul Abideen & Veera Pandiyan Kaliani Sundram & Shahryar Sorooshian, 2023. "Scope for Sustainable Development of Small Holder Farmers in the Palm Oil Supply Chain—A Systematic Literature Review and Thematic Scientific Mapping," Logistics, MDPI, vol. 7(1), pages 1-24, January.
    9. Wilman, Elizabeth A., 2019. "Market Redirection Leakage in the Palm Oil Market," Ecological Economics, Elsevier, vol. 159(C), pages 226-234.
    10. Yeong Sheng Tey & Mark Brindal, 2021. "Sustainability stewardship: Does roundtable on sustainable palm oil certification create shareholder value?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 786-795, March.
    11. Jing Bian & Hong Ren & Ping Liu & Yu Zhang, 2018. "Sustainable Urbanization Performance Evaluation Based on “Origin” and “Modernization” Perspectives: A Case Study of Chongqing, China," IJERPH, MDPI, vol. 15(8), pages 1-17, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:26:y:2018:i:4:p:422-434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.