Stakeholders play an increasingly active role in private governance, including development of standards for measuring sustainability. Building on prior studies focused on standards and stakeholder engagement, we use an innovation management theoretical lens to compare stakeholder engagement and standards developed in two carbon markets: the Climate Action Reserve and the U.N.’s Clean Development Mechanism. We develop and test hypotheses regarding how different processes of stakeholder engagement in standard development affect the number, identity, and age of stakeholders involved, as well as the variation and quality of the resulting standards. In doing so, we contribute to the growing literature on stakeholder engagement in developing sustainability standards.
AfuahA.TucciC. L. (2012). Crowdsourcing as a solution to distant search. Academy of Management Review, 37, 355-375.
2.
Aguilera-CaracuelJ.Aragón-CorreaJ. A.Hurtado-TorresN. E.RugmanA. M. (2012). The effects of institutional distance and headquarters’ financial performance on the generation of environmental standards in multinational companies. Journal of Business Ethics, 105, 461-474.
Aragón-CorreaJ. A.Martín-TapiaI.Hurtado-TorresN. E. (2013). Proactive environmental strategies and employee inclusion: The positive effects of information sharing and promoting collaboration and the influence of uncertainty. Organization & Environment, 26, 139-161. doi:10.1177/1086026613489034
5.
AuldG.GulbrandsenL. H. (2010). Transparency in nonstate certification: Consequences for accountability and legitimacy. Global Environmental Politics, 10, 97-119.
6.
BalzarovaM. A.CastkaP. (2012). Stakeholders’ influence and contribution to social standards development: The case of multiple stakeholder approach to ISO 26000 development. Journal of Business Ethics, 111, 265-279. doi:10.1007/s10551-012-1206-9
7.
Baumann-PaulyD.NolanJ.van HeerdenA.SamwayM. (2017). Industry-specific multi-stakeholder initiatives that govern corporate human rights standards: Legitimacy assessments of the Fair Labor Association and the Global Network Initiative. Journal of Business Ethics, 143, 771�787. doi:10.1007/s10551-016-3076-z
BerkhoutT.RowlandsI. H. (2007). The voluntary adoption of green electricity by Ontario-based companies: The importance of organizational values and organizational context. Organization & Environment, 20, 281-303.
10.
BinghamL. B.NabatchiT.O’LearyR. (2005). The new governance: Practices and processes for stakeholder and citizen participation in the work of government. Public Administration Review, 65, 547-558.
11.
BoiralO.Heras-SaizarbitoriaI. (2015). Managing biodiversity through stakeholder involvement: Why, who, and for what initiatives?Journal of Business Ethics, 140, 1-19.
12.
BoströmM.HallströmK. T. (2010). NGO power in global social and environmental standard-setting. Global Environmental Politics, 10, 36-59.
13.
BotzemS.DobuschL. (2012). Standardization cycles: A process perspective on the formation and diffusion of transnational standards. Organization Studies, 33, 737-762.
14.
BumpusA. G.ManD. M. L. (2009). Accumulation by decarbonization and the governance of carbon offsets. Economic Geography, 84, 127-155.
15.
ChristensenH. S.KarjalainenM.NurminenL. (2015). Does crowdsourcing legislation increase political legitimacy? The case of Avoin Ministeriö in Finland. Policy & Internet, 7, 25-45.
CoglianeseC. (2004). E-rulemaking: Information technology and the regulatory process. Administrative Law Review, 56, 353.
19.
CookJ. J. (2014). Explaining innovation: The Environmental Protection Agency, rule making, and stakeholder engagement. Environmental Practice, 16, 171-181.
20.
CorbettC. J.KirschD. A. (2001). International diffusion of ISO 14000 certification. Production and Operations Management, 10, 327-342.
21.
CrosbyB. C.BrysonJ. M. (2010). Integrative leadership and the creation and maintenance of cross-sector collaborations. Leadership Quarterly, 21, 211-230.
22.
CsaszarF. A. (2012). Organizational structure as a determinant of performance: Evidence from mutual funds. Strategic Management Journal, 33, 611-632.
23.
DawkinsC. E. (2014). The principle of good faith: Toward substantive stakeholder engagement. Journal of Business Ethics, 121, 283-295.
24.
de GraafF. J. (2016). CSR as value attunement within governance processes: Stakeholder dialogue, corporate principles and regulation. Business and Society Review, 121, 365-390.
25.
delaCuesta-GonzalezM.Munoz-TorrezM. J.Fernandez-IzquierdoM. A. (2006). Analysis of social performance in the Spanish financial industry through public data: A proposal. Journal of Business Ethics, 69, 289-304.
26.
de SherbininA.CastroM.GemenneF.CerneaM. M.AdamoS.FearnsideP. M.. . . ShiG. (2011). Preparing for resettlement associated with climate change. Science, 334, 456-457.
27.
DelmasM. A.BurbanoV. C. (2011). The drivers of greenwashing. California Management Review, 54, 64-87. doi:10.1525/cmr.2011.54.1.64
28.
DelmasM. A.MarcusA. A. (2004). Firms’ choice of regulatory instruments to reduce pollution: A transaction cost approach. Business and Politics, 6, 1-20.
29.
DelmasM. A.Montes-SanchoM. J. (2010). Voluntary agreements to improve environmental quality: Symbolic and substantive cooperation. Strategic Management Journal, 31, 575-601.
30.
DelmasM. A.PekovicS. (2013). Environmental standards and labor productivity: Understanding the mechanisms that sustain sustainability. Journal of Organizational Behavior, 34, 230-252.
31.
DolanC. S.OpondoM. (2005). Seeking common ground: Multi-stakeholder processes in Kenya’s cut flower industry. Journal of Corporate Citizenship, 18, 87-98.
32.
DowellG.HartS.YeungB. (2000). Do corporate global environmental standards create or destroy market value?Management Science, 46, 1059-1074.
33.
FenhannJ. (2013). UNEP Risoe CDM/JI Pipeline analysis and database. Retrieved from http://cdmpipeline.org/
34.
ForrerJ.MoK. (2013). From certification to supply chain strategy: An analytical framework for enhancing tropical forest governance. Organization & Environment, 26, 260-280.
35.
FransenL. W.KolkA. (2007). Global rule-setting for business: A critical analysis of multi-stakeholder standards. Organization, 14, 667-684.
36.
FranzoniC.SauermannH. (2014). Crowd science: The organization of scientific research in open collaborative projects. Research Policy, 43(1), 1-20.
37.
FreemanR. E. (2010). Strategic management: A stakeholder approach. Cambridge, England: Cambridge University Press.
38.
FurrerB.HamprechtJ.HoffmannV. H. (2012). Much ado about nothing? How banks respond to climate change. Business & Society, 51, 62-88.
39.
GilbertD. U.RascheA.WaddockS. (2011). Accountability in a global economy: The emergence of international accountability standards. Business Ethics Quarterly, 21(1), 23-44.
40.
GreenwoodM. (2007). Stakeholder engagement: Beyond the myth of corporate responsibility. Journal of Business Ethics, 74, 315-327. doi:10.1007/s10551-007-9509-y
41.
GreinerS.MichaelowaA. (2003). Defining investment additionality for CDM projects—Practical approaches. Energy Policy, 31, 1007-1015.
42.
GrubbM. (2003). The economics of the Kyoto Protocol. World Economics, 4, 143-189.
43.
GrushinaS. V. (2017). Collaboration by design: Stakeholder engagement in GRI sustainability reporting guidelines. Organization & Environment, 30, 366-385. doi:10.1177/1086026616681612
44.
HachezN.WoutersJ. (2011). A glimpse at the democratic legitimacy of private standards: Assessing the public accountability of GlobalG.A.P. Journal of International Economic Law, 14, 677-710. doi:10.1093/jiel/jgr026
45.
HeinzJ. P.LaumannE. O. (1982). Chicago lawyers: The social structure of the bar. New York, NY: Russell Sage Foundation.
46.
HendersonR. M.ClarkK. B. (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35, 9-30.
47.
HertwigR.HerzogS. M. (2009). Fast and frugal heuristics: Tools of social rationality. Social Cognition, 27, 661-698.
48.
HoqueA.ClarkeA.HuangL. (2016). Lack of stakeholder influence on pollution prevention: A developing country perspective. Organization & Environment, 29, 367-385.
49.
HustedB. W. (2003). Governance choices for corporate social responsibility: To contribute, collaborate or internalize?Long Range Planning, 36, 481-498.
50.
JaffeeD. (2010). Fair trade standards, corporate participation, and social movement responses in the United States. Journal of Business Ethics, 92, 267-285.
51.
JeppesenL. B.LakhaniK. R. (2010). Marginality and problem-solving effectiveness in broadcast search. Organization Science, 21, 1016-1033.
52.
KarjalainenK.MoxhamC. (2013). Focus on Fairtrade: Propositions for integrating Fairtrade and supply chain management research. Journal of Business Ethics, 116, 267-282.
53.
KingA. A.LenoxM. J.TerlaakA. (2005). The strategic use of decentralized institutions: Exploring certification with the ISO 14001 management standard. Academy of Management Journal, 48, 1091-1106.
54.
KroegerA.WeberC. (2014). Developing a conceptual framework for comparing social value creation. Academy of Management Review, 39, 513-540.
55.
LovellH. C. (2010). Governing the carbon offset market. Wiley Interdisciplinary Reviews: Climate Change, 1, 353-362. doi:10.1002/wcc.43
56.
MacKenzieD. (2009). Making things the same: Gases, emission rights and the politics of carbon markets. Accounting, Organizations and Society, 34, 440-455.
57.
MajumdarS. K.MarcusA. A. (2001). Rules versus discretion: The productivity consequences of flexible regulation. Academy of Management Journal, 44, 170-179.
58.
ManettiG. (2011). The quality of stakeholder engagement in sustainability reporting: Empirical evidence and critical points. Corporate Social Responsibility and Environmental Management, 18, 110-122.
59.
ManneA. S.RichelsR. G. (2001). An alternative approach to establishing trade-offs among greenhouse gases. Nature, 410, 675-677. doi:10.1038/35070541
60.
MarpetM. I. (1998). An ethical issue in voluntary-consensus-standards development: A decision-science view. Journal of Business Ethics, 17, 1701-1716.
61.
MenaS.WaegerD. (2014). Activism for corporate responsibility: Conceptualizing private regulation opportunity structures. Journal of Management Studies, 51, 1091-1117.
62.
MichaelowaA.JotzoF. (2005). Transaction costs, institutional rigidities and the size of the clean development mechanism. Energy Policy, 33, 511-523.
63.
MillarR.HallK. (2013). Social return on investment (SROI) and performance measurement. Public Management Review, 15, 923-941. doi:10.1080/14719037.2012.698857
64.
MishinaY.BlockE. S.MannorM. J. (2012). The path dependence of organizational reputation: How social judgment influences assessments of capability and character. Strategic Management Journal, 33, 459-477. doi:10.1002/smj.958
O’DwyerB.OwenD. (2007). Seeking stakeholder-centric sustainability assurance: An examination of recent sustainability assurance practice. Journal of Corporate Citizenship, 25, 77-94.
67.
OrlikowskiW. J.ScottS. V. (2013). What happens when evaluation goes online? Exploring apparatuses of valuation in the travel sector. Organization Science, 25, 868-891.
68.
PielkeR. A.Jr.OreskesN. (2005). Consensus about climate change?Science, 308, 952-954.
69.
PonteS. (2014). “Roundtabling” sustainability: Lessons from the biofuel industry. Geoforum, 54, 261-271. doi:10.1016/j.geoforum.2013.07.008
70.
RawhouserH.CummingsM.NewbertS. L. (2017). Social impact measurement: Current approaches and future directions for social entrepreneurship research. Entrepreneurship Theory and Practice. Advance online publication. doi:10.1177/1042258717727718
71.
ReineckeJ.ManningS.Von HagenO. (2012). The emergence of a standards market: Multiplicity of sustainability standards in the global coffee industry. Organization Studies, 33, 791-814.
72.
RepettoR. (2001). The Clean Development Mechanism: Institutional breakthrough or institutional nightmare. Policy Sciences, 34, 303-327.
73.
Rothschild-WhittJ. (1979). The collectivist organization: An alternative to rational-bureaucratic models. American Sociological Review, 44, 509-527. doi:10.2307/2094585
74.
SchepersD. H. (2010). Challenges to legitimacy at the Forest Stewardship Council. Journal of Business Ethics, 92, 279-290.
75.
SchererA. G.PalazzoG. (2011). The new political role of business in a globalized world: A review of a new perspective on CSR and its implications for the firm, governance, and democracy. Journal of Management Studies, 48, 899-931.
76.
SchiermeierQ. (2011). Increased flood risk linked to global warming. Nature News, 470, 316. doi:10.1038/470316a
77.
ScottW. R. (2008). Institutions and organizations: Ideas and interests. Thousand Oaks, CA: Sage.
78.
SenA. (1999). Development as freedom. Oxford, England: Oxford University Press.
79.
SprengelD. C.BuschT. (2011). Stakeholder engagement and environmental strategy: The case of climate change. Business Strategy and the Environment, 20, 351-364.
80.
StechemesserK.GuentherE. (2012). Carbon accounting: A systematic literature review. Journal of Cleaner Production, 36, 17-38.
81.
ThomasC. D.CameronA.GreenR. E.BakkenesM.BeaumontL. J.CollinghamY. C.. . . WilliamsS. E. (2004). Extinction risk from climate change. Nature, 427, 145-148.
82.
TompkinsE.FewR.BrownK. (2008). Scenario-based stakeholder engagement: Incorporating stakeholders preferences into coastal planning for climate change. Journal of Environmental Management, 88, 1580-1592.
83.
TrufferB.MarkardJ.WüstenhagenR. (2001). Eco-labeling of electricity: Strategies and tradeoffs in the definition of environmental standards. Energy Policy, 29, 885-897.
84.
VigneauL.HumphreysM.MoonJ. (2014). How do firms comply with international sustainability standards? Processes and consequences of adopting the Global Reporting Initiative. Journal of Business Ethics, 131, 469-486.
85.
VogelD. (2008). Private global business regulation. Annual Review of Political Science, 11, 261-282.
WeimerD. L. (2006). The puzzle of private rulemaking: Expertise, flexibility, and blame avoidance in U.S. regulation. Public Administration Review, 66, 569-582.
88.
ZaldM. N.McCarthyJ. D. (1990). Social movements in an organizational society: Collected essays. Piscataway, NJ: Transaction.
89.
ZolloM.CennamoC.NeumannK. (2013). Beyond what and why understanding organizational evolution towards sustainable enterprise models. Organization & Environment, 26, 241-259.
90.
ZottC.HuyQ. N. (2007). How entrepreneurs use symbolic management to acquire resources. Administrative Science Quarterly, 52, 70-105.
