The Challenges of Palm Oil Sustainable Consumption and Production in China: An Institutional Theory Perspective

Abstract

The emerging economies are the centrepieces in the sustainable consumption and production of palm oil (SCP). With the collaborative efforts of the European Union and some non-governmental organisations, producers are kept in the spotlight, and scrutiny has begun to sweep down the supply chain. Palm oil environmental liabilities are extended to the consuming countries and criticism of emerging economies is evident in the context of weak institutions and inadequate attention from interest groups. China, one of the major consumers of palm oil, encompasses almost every potential environmental performance issue at the end of the palm oil supply chain. Sherri Torjman’s six-step approach has been used to parse the constraints and contributions of institutional coercive, mimetic and normative drivers to the three goals of the economic, social and environmental performance of palm oil SCP. This paper investigates the relevant institutions in China and compares in detail the content of SCP-related elements in these institutions through desktop research. An institutional theoretical perspective is provided to take a more comprehensive look at the SCP challenges facing the palm oil supply chain in China whereby this paper aims to shed light on the linkages between the challenges and institutional drivers.