The Dynamics of Legitimacy in Multi-stakeholder Initiatives: Insights from the RSPO case

Abstract

Multi-stakeholder Initiatives (MSIs) fill an important role in governing Corporate Social responsibility (CSR) issues but need to be legitimate if they are to be effective in influencing business practices. To address this relevant issue Mena and Palazzo (Bus Ethics Quarterly, 22(3): 527-56, (2012)) conceptualized MSI legitimacy identifying its dimensions (input and output), related criteria and how these can be operationalized. Based on an in-depth study of the Roundtable on Sustainable Palm Oil (RSPO) this research provides a refinement to Mena and Palazzo’s (2012) framework. We propose two new criteria of MSI legitimacy; participation and adoption. We also refine two existing criteria by identifying that transparency consists of inward and outward transparency and that for efficacy, ideological and practical objectives are necessary. Moreover the paper adds a dynamic dimension to the framework, illustrating interdependences between and across input and output legitimacy criteria. Results highlight that to maintain legitimacy, MSIs should set both practical and ideological objectives, manage inward and outward communication and ensure both member participation in decision-making and substantial adoption of standards and rules. We also highlight the interdependencies between legitimacy criteria noting that a weakness in one criterion is likely to impact other facets of MSI legitimacy.