Can Ecolabels Influence Firms’ Sustainability Strategy and Stakeholder Behavior?

Nicole Darnall · Juan Alberto Aragón Correa

26 citations0/0 files storedOrganization & Environment

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Environmental Sustainability in Business Corporate Social Responsibility Reporting Sustainable Supply Chain Management

Abstract

Ecolabels are policies and programs that are designed to signal information to stakeholders about a product’s attributes and reduce stakeholder uncertainty about the validity of green product claims. However, for ecolabels to be successful at addressing information asymmetries external stakeholders must perceive them as being credible. We assess the prospects of different sorts of ecolabels to influence firms’ sustainability strategies and stakeholder behavior based on the credibility of their institutional construction. We then describe important areas for future ecolabel research, and analyze connections between these future research areas and the articles that form this issue. Finally, we emphasizethe importance of collaborative stakeholder initiatives in advancing sustainability strategy and how accurate information is vital to the success of these initiatives.

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References

2010Strategic management a stakeholder approach 1996Production, Information Costs and Economic Organization 2002Legitimacy and the Privatization of Environmental Governance: How Non–State Market–Driven (NSMD) Governance Systems Gain Rule–Making Authority 2014Applying Stakeholder Theory in Sustainability Management 2013Does Environmental Management Improve Financial Performance? A Meta-Analytical Review 2005Green Clubs and Voluntary Governance: ISO 14001 and Firms' Regulatory Compliance 2010Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry 2009The Food Industry and Self-Regulation: Standards to Promote Success and to Avoid Public Health Failures

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2022A framework for understanding sustainable public purchasing 2015Extending the Boundaries: An Assessment of the Integration of Extended Producer Responsibility Within Corporate Social Responsibility

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