Global decisions versus local realities: Sustainability standards, priorities and upgrading dynamics in agricultural global production networks

Judith E Krauss,Aarti Krishnan

doi:10.1111/glob.12325

Judith E Krauss, Aarti Krishnan

Open Access

https://doi.org/10.1111/glob.12325

Copy DOI

Abstract

AbstractVoluntary sustainability standards (VSSs) in global production networks (GPNs) have grown significantly in prominence. Existing research largely assumed that VSSs create linear upgrading outcomes for all GPN actors and has studied VSSs from the point of adoption in the GPNs, rather than a broader range of stages in their lifecycle. To address these limitations, and building on literature around power and agency in GPNs, we develop the constellation of priorities (CoP) model to unpack the diverse and often diverging boardroom (Northern lead firm) and local (Southern supplier) priorities involved in such standards. Through in‐depth fieldwork on horticulture in Kenya and cocoa in Nicaragua across the VSS lifecycle, we find significant divergences in priorities between farmer groups in both countries and lead firms in the UK and Germany. We demonstrate analytically and empirically that diverging priorities coupled with power asymmetries produced contestations, leading to simultaneous economic and environmental downgrading, and social upgrading.

Highlights

Voluntary sustainability standards (VSSs) have proliferated in agricultural global production networks (GPNs) and global value chains (GVCs), yet considerable debate continues over their impact (Anderson et al, 2014; Bolwig et al, 2010)
Gereffi et al (2001) distinguish between four key types of standards, which involve very different stakeholders, processes and requirements: first-party certification idesigned by the private sector itself, second-party standards devised by industry associations, third-party standards shaped and audited by independent civil-society organisations (CSOs), and fourth-party from governmental or multilateral institutions
In order to comprehend holistically the different priorities that motivate different actors, we developed a heuristic constellation of priorities (CoP) model

Summary

INTRODUCTION

Voluntary sustainability standards (VSSs) have proliferated in agricultural global production networks (GPNs) and global value chains (GVCs), yet considerable debate continues over their impact (Anderson et al, 2014; Bolwig et al, 2010). In agricultural production networks including cocoa and horticulture, standards driven by CSOs are most common, though they differ considerably in terms of what groups and actors are involved in each standard and how. Even within this more narrow set of standards, different stakeholders along the value chain have very different priorities on what standards are to produce in terms of understandings of sustainability and upgrading opportunities. Our interview data and findings, though somewhat dated, remain pertinent, as we have continued to study both sectors While both cases are different, they share enough similarities in terms of exemplifying CSO-driven VSSs in agricultural production networks to merit this two-pronged investigation. The following section delves into the case studies, illustrating that diverging priorities amid power asymmetries entailed non-linear upgrading and downgrading outcomes in social, economic and environmental terms

SUSTAINABILITY STANDARDS’ LIFECYCLE IN GPNs

CoP AND UPGRADING DYNAMICS

CoP AND UPGRADING

Findings

DISCUSSION AND CONCLUSION