Third-party Certification Research Articles

We Don’t Want to Be Officially Certified! Reasons and Implications of the Participatory Guarantee Systems

Official organic regulation in Europe is based on the third-party certification system to guarantee organic products. Many critics and dissatisfactions have motivated the emergence of other guarantee systems, based on an intense implication of producers and, in some cases, consumers and other local actors, involved in localised agri-food systems. They are called Participatory Guarantee Systems (PGS), and are not recognised as valid guarantee systems by the official organic regulation. In the present paper, we analyse the main differences between the PGS and the third party certification system, deepening on their differentiated social and political implications. We conclude that the procedures behind PGS generate numerous positive impacts in the territories related to local producers (and consumers) empowerment and localised agri-food systems drive, while their implications make them not considered as a substitute to third party certification system, unless certain conditions of social consolidated groups and agroecological and food sovereignty perspective of food system take place.

A decade analysis of residential LEED buildings market share in the United States: Trends for transitioning sustainable societies

Third-party verification and certification processes for low energy built environments have played a critical role in influencing transitioning sustainable societies to reduce their emissions footprint in both residential and commercial buildings. One prominent example is the Leadership in Energy and Environmental Design (LEED) certification program, which was conceived by the United States Green Building Council (USGBC). Its residential platform, LEED for Homes, started as a pilot in 2004 and was fully implemented in 2008. This paper attempts to answer the question: what are the characteristics of growing sustainable LEED residential societies in the United States? The paper examines residential LEED market adoption trends in the United States by analyzing a decade-worth of data from 2005 to 2014 (71,438 certified units). The study implemented data visualization techniques and statistical analyses to explore predictors of residential LEED community adoption trends. The findings suggest that market share of LEED licensed residences in a state and the number of policies and incentives in that state are generally related. Overall market share for LEED Residential had a smaller effect (β = −0.03 with outliers, 0.11 without outliers) than for LEED for Homes overall (β = 0.06 with outliers, 0.12 without outliers). A significant positive relationship between LEED residential market share and number of LEED AP per capita was also found. The strongest relationship in this subset of variables was with LEED for Homes single-family homes, where one standard deviation increase in LEED AP per capita in year t was associated with a 0.15 standard deviation increase in market share in year t + 1. LEED Residential market share was not generally related to educational attainment, median household income, or political orientation (democrat vs. republican). The investigation proposes further research, specifically as related to local practice support as mechanisms of growing the transition to low-carbon societies.

An empirical investigation of swift trust in humanitarian logistics operations

PurposeTrust is essential for any team working together. In humanitarian logistics operations, relief organizations often have to work collaboratively in hastily formed networks. Trust in such a context, termed as “swift trust” in the literature, is an important but less explored topic. The purpose of this paper is to empirically explore the antecedents of swift trust as well as its impact on the coordination among the humanitarian workers.Design/methodology/approachThe authors choose the humanitarian workers in Southeast Asia as the research sample. An exploratory survey study is conducted in three Southeast Asian countries, namely, Singapore, Indonesia, and the Philippines, with 89 usable responses.FindingsThe empirical results have shown support for most hypotheses. Third-party certification, competency, similarity in procedure standards and organizational values, can all generate swift trust. Moreover, swift trust can lead to greater openness in information sharing for coordination, though not to active assistance. Both coordination activities would lead to greater coordination effectiveness.Research limitations/implicationsFuture studies could examine the four antecedent conditions for swift trust with better proxies. The connection between swift trust and coordination effectiveness can be explored in depth.Practical implicationsNGOs and governments could use these means effectively to build swift trust among the humanitarian players. For example, organizing field-oriented training activities would be beneficial for humanitarian workers in both network building and enhancing personal competency.Originality/valueThe findings point to the importance of swift trust in humanitarian operations and identify several means to enhance this trust. It has filled a research gap on the empirical investigation of the antecedents and impact of swift trust on inter-organizational coordination in humanitarian logistics operations.

Do responsibly managed logging concessions adequately protect jaguars and other large and medium-sized mammals? Two case studies from Guatemala and Peru

Large areas of tropical forest have been designated for timber production but logging practices vary widely. Reduced-impact logging is considered best practice and third-party certification aims to ensure that strict standards are met. This includes minimizing the number of roads constructed, avoiding sensitive areas and strictly regulating hunting. Large scale camera trap grids were utilized in Guatemala and Peru to evaluate the impact of reduced-impact logging in certified concessions upon the large and medium-sized mammal fauna with special emphasis on jaguars (Panthera onca). Spatial capture-recapture models showed that jaguar density in Peru (4.54 ± 0.83 ind. 100 km−2) was significantly higher than in Guatemala (1.52 ± 0.34 ind. 100 km−2) but in both regions, densities were comparable to protected areas. Camera traps detected 22 species of large and medium sized mammals in Guatemala and 27 in Peru and a multi-species occupancy model revealed that logging had no negative impact on any of the species studied and actually had an initial positive impact on several herbivore species. We found no avoidance of logging roads; in fact, many species, especially carnivores, frequently used logging roads as movement corridors. Our results indicate that well-managed logging concessions can maintain important populations of large and medium-sized mammals including large herbivores and large carnivores as long as hunting is controlled and timber volumes extracted are low. Responsible forest management would therefore be an ideal activity in the buffer zones and multiple use zones of protected areas creating much less impact and conflict than alternatives such as agriculture or cattle ranching while still providing economic opportunities. Logging concessions can also play an important role in maintaining landscape connectivity between protected areas.

Challenges and Opportunities for the Sustainability Transition in Global Trade (Introduction)

In this special issue, we explore the challenges and opportunities arising with respect to normative goals of shifting production and international trade in agriculture towards greater sustainability. Private voluntary sustainability standards have experienced substantial growth in various global markets, reaching 40% of global coffee production, 25% of cocoa, and 15% of palm oil1. Given the rapid expansion of private standards, whether third-party certifications, corporate codes of conduct (Vermeulen 2010), or ‘newer’ regulatory approaches such as multi-stakeholder initiatives, public-private partnerships, and efforts to develop new sustainable business models, it is important to consider what such approaches offer. All of these approaches are seeking to contribute, at differing levels of ambition, towards a sustainability transition.

Third-Party Evaluation and Certification for Biometrics under the Common Criteria

Third-Party Evaluation and Certification for Biometrics under the Common Criteria

Transnational Private Authority in the Sphere of Education

It seems that an ever-shorter temporal rhythm is gaining ground with the end of the "short twentieth century," challenging the modern temporal horizon. The emerging economy relies on a continuous stream of scientific and technical knowledge closely related to information technology and networks. The increasing compression of both time and space has major consequences for the governance of the economy and the setting of authoritative standards in this sphere. This paper explores the consequences for education and training and its governance, where continuing education has become crucial. It studies the setting of authoritative standards in the field of information and communication technology (ICT) training, which has become vital for the knowledge-based economy. I will show how the standardization of these trainings by way of third-party certifiers establishes a mode of private coordination between companies, sectors, and across national borders. A closer examination of competing claims to authority in this field provides interesting insights into the enabling conditions of this mode of coordination and also brings a geopolitical dimension to the fore.

Participatory Guarantee Systems (PGS) in Mexico: a theoretic ideal or everyday practice?

Third-party certification (TPC), the most common organic certification system, has faced growing criticism in recent years. This has led to the development of alternative certification systems, most of which can be classed as Participatory Guarantee Systems (PGS). PGS have been promoted as a more suitable, cheaper and less bureaucratic alternative to TPC for local markets and are associated with additional benefits such as empowering smallholder farmers, facilitating farmer-to-farmer learning and enhancing food security and sovereignty. PGS have spread rapidly in the past few years, but studies suggest that they are facing numerous challenges that, if not addressed, may jeopardise these benefits. Using the example of three Mexican PGS initiatives, this paper explores the main challenges faced by PGS, specifically those predominantly found in producer-run PGS initiatives. Based on producer and consumer surveys, semi-structured and informal interviews, and participant and non-participant observation, the key challenges that emerged were continuous implementation of the certification process, time constraints, personal conflicts and conflict avoidance. The paper further argues that the requirements for PGS recognition under the Mexican Law for Organic Products may also threaten the continued existence of PGS and suggests that mechanisms for managing conflicts, incentivising PGS participation and mitigating opportunity costs are key if PGS are to continue to develop.

Dynamic Relational Contracts for Quality Enforcement in Supply Chains

We model the interaction of a single buyer with a single supplier within a market in a developing country with homogeneous local suppliers and homogeneous buyers from developed nations. The buyer sources a product from a supplier and then inspects and sells it on the market, subject to quality standards such as regulations about chemical content. Suppliers decide how much effort to exert to ensure compliance with quality standards. Buyers are assumed to comply with con-tracts because they are based in countries with strong legal systems. We assume that legal enforcement of the supplier’s contractual obligations is not possible. We model the interaction be-tween buyer and supplier as a repeated game in which the partnership can be terminated by the buyer if the supplier refuses to pay penalties for quality violations. After termination, the buyer and supplier each search for a new business partner. We model the interaction between buyer and supplier using relational contacts in which penalties for quality failures are set so that the supplier voluntarily pays them. We show that optimal relational contracts have dynamic form in this set-ting because the value of the outside option available to the parties, if the relationship is terminated, is determined by the contract terms. We characterize the properties of the optimal dynamic equilibria and analyze the use of third-party quality certifications within this framework.

Research on the Brand Recognition of Industrial Products Based on the Roles in Purchasing Center

The article is based on the analysis of purchasing decision-making members in the purchasing center. It summarizes and analyzes the factors that affect the three levels of purchasing decision according to the different positions of members and the differences among different purchasing stages. The roles of the purchasing center are divided into management, expert layer and information layer. A sample survey was conducted on the purchasing staffs of the shipbuilding industry in the industrial sector or persons with the purchasing experience. The structural equation model was used to analyze and verify the data of the survey. The results show that: the persons who are in different roles have different concepts of brand recognition. Managers are more concerned about the factors in enterprise-level; the experts mainly care about the quality and price of products and third-party certification; information collectors need to be considered all the factors.

Soft and Hard Information and Signal Extraction in Securities Crowdfunding

We examine the impact of information flows on financing and the relative roles of hard information, soft information, and certification of issuer quality by third parties, using novel evidence from the US securities-based crowdfunding market. While hard information about the issuer’s financial condition and experience has only marginal relevance for offering outcomes, third-party certification of issuer quality as well as soft information about the issuer proxied by social media following plays a significant role in crowdfunding offerings. The relative roles of hard information and certification are greatest in offerings of more information-sensitive securities and when investors are less likely to derive nonpecuniary returns from participating in an offering. Further, there is evidence of partial substitution between different signals of issuer quality. Both third-party certification and issuer social media following are positively related to the valuation obtained by the issuer. Issuers tailor deal features, specifically, the choice of funding target flexibility and offering duration, to the level of information asymmetry about issuer quality. Finally, there is some evidence of geographic matching, with issuer characteristics and local availability of platforms affecting distance between issuers and platforms.

Molecular docking study of the binding interaction between Cc-Lec and coagulation factors IXa and Xa: Elucidation of anti-coagulant mechanism

This study analyses the impact of initial return, post-issue liquidity, and third-party certification on downside risk of initial public offerings (IPOs). Downside risk, measured by value-at-risk (VaR) and conditional value-at-risk (CVaR), draws upon Extreme Value Theory (EVT) and the Peak over Threshold (POT) approach. Initial return and downside risk exhibit a positive association which is consistent with a market-overreaction explanation but contradicts the validity of signalling models in which underpricing acts as a costly and difficult to imitate signal of firm quality. Post-issue liquidity, measured by seven distinct definitions to capture different aspects of liquidity, also has a positive association with downside risk. In contrast, third-party certification, measured by the reputation and size of underwriter syndicate and venture capital-backed IPOs do not persistently explain the variation in downside risk. Quantile regression analysis constitutes more rigour in the testing and offers new insights into the sensitivity among variables and their covariates at different quantiles of downside risk. While initial return affects downside risk evenly across the entire distribution, quantile covariates for liquidity measures are statistically significant and generally outside the confidence interval of least squares regression coefficients. Sensitivity of liquidity measures is greater towards the upper end of the downside risk distribution.

Participatory Guarantee Systems: Alternative Ways of Defining, Measuring, and Assessing ‘Sustainability’

AbstractOver the past 20 years, standards and certification have become the leading governance mechanism for determining what sustainability entails, how to measure it, and how to assess it. This system of sustainability standards has generally relied upon the third‐party certification (TPC) model to ensure that producers are complying with standards. Over the past ten to fifteen years, critiques of this model have emerged in both practitioner and academic circles that question the appropriateness of this model based on the type of knowledge that is privileged, the marginalisation of some actors, and the allocation of accountability to individual rather than collective actors. We draw upon case studies from Japan and Chile to examine the ways that participatory guarantee systems (PGS) institute practices for defining, measuring, and assessing sustainability that empower local actors – both producers and consumers. Our cases illustrate that expert and lay knowledges are both relevant and often have different strengths. We argue that PGS offer an alternative approach to sustainability governance, one that may be more democratic and hence, produce forms of sustainability that incorporate the lived experiences of people around the world.

Effect of Consumer Awareness on Corporate Social Responsibility under Asymmetric Information

This paper studies the interaction between a firm and consumers under the consideration of corporate social responsibility. The firm can be either socially responsible or socially irresponsible; however, the consumers cannot observe the firm’s exact type, which is private information. The firm can try to signal its type through pricing and other information sharing mechanisms (e.g., issue sustainability reports and obtain third-party certifications). We find that due to the existence of asymmetric information, increasing consumer awareness of corporate social responsibility does not necessarily help promote responsible corporate behaviors. Specifically, when a larger fraction of consumers become socially concerned or when the consumers have stronger willingness to reward (punish) the responsible (irresponsible) firm, the responsible firm could be worse off whereas the irresponsible firm could be better off. This is because the seemingly attractive trend in consumer behavior will affect the responsible firm’s signaling cost as well as its equilibrium strategy (separating vs. pooling). In addition, we find that improving the signaling accuracy will always benefit the responsible firm but may or may not hurt the irresponsible firm. Our results suggest that addressing the information asymmetry issue is the key in promoting corporate social responsibility. In particular, concerned parties should first exert efforts to create transparency in firms’ sustainability practices before making investments to educate consumers and influence their purchasing behaviors.

Theranos Experience Exposes Weaknesses in FDA Regulatory Discretion.

Theranos Experience Exposes Weaknesses in FDA Regulatory Discretion.

A Change Management Model for the Adoption of Chain of Custody Certification in the British Columbia Value-added Wood Products Sector

ABSTRACTWith sustainability being a major driver in the global competitiveness of businesses, organizations have adopted third-party certification as a strategic tool to facilitate integration between their businesses and environmental strategies. One such initiative is chain of custody (CoC) certification, which allows tracking of finished products back to the sources of the raw materials. Despite a large body of research on CoC adoption, so far no efforts have been made to view this process from the point of view of organizational change management. An online survey of the value-added wood products sector in British Columbia (BC), Canada was conducted to determine the composition of the sector and adoption level of CoC certification. Change management constructs were measured using the ADKAR (Awareness, Desire, Knowledge, Ability and Reinforcement) framework and taking CoC certification as an example. The results indicated that the BC value-added wood products sector mostly comprises small- and medium-sized enterprises largely based in the urban areas of BC. The sector was found to have limited support for CoC certification. Key barriers in adopting CoC certification include a lack of resources and a lack of certified raw materials. Actions to facilitate a change process in the BC value-added sector are proposed.

Mapping certified forests for sustainable management - A global tool for information improvement through participatory and collaborative mapping

There are currently no spatially explicit, openly accessible data available on forest certification below national level, so understanding the drivers of certification in the past, examining the scope for further certification and using this information for development of future sustainable forest management strategies is challenging. Hence, this paper presents a methodology for the development of a global map of certified forest areas at 1km resolution in order to satisfy this information need. Validation of the map with certified areas in Russia showed reasonable results, but the lack of openly accessible data requires broadening the strategy for improving the global certification map in the future. Thus, the second aim of the paper is to present an online tool for visualization and interactive improvement of the global forest certification product through collaborative mapping, aiming at a range of stakeholders including third-party certifiers, green NGOs, forestry organizations, decision-makers, scientists and local experts. Such an approach can help to make more accurate information on forest certification available, promote the sharing of data and encourage more transparent and sustainable forest management, i.e. both producers and users can benefit from this online tool.

Organic Food Certification in South Africa: A Private Sector Mechanism in Need of State Regulation?

Organic production targets the development of a sustainable cultivation system and a variety of high-quality products with emphasis on environmental protection, biodiversity and high standards of animal protection. In South Africa, the organic sector pioneered private practices and systems in small informal groups to guide the public and private sectors on environmental and sustainability issues. A private certification system for organic products is applicable in the country consisting of network certification and third-party certification in collaboration with foreign and locally-based certification organisations. Local producers also use self-declaratory vendor claims associated with organic labels. A State auditor mechanism is nonetheless applicable with respect to the use of the term “free range” on labels for meat products. South African National Standards (SANS 1369) on Organic Agricultural Production and Processing (OAPP) have been drafted by the South African Bureau of Standards (SABS) but the final version has not yet been made public. There is presently no specific legislation on organic products in the country but draft regulations (under the Agricultural Product Standards Act) on the control and sale of organic products which have not yet been promulgated. With mainly a private organic food certification system, to what extent do South African organic food products respect rules of organic production? This paper looks into the organic food regulation in South Africa and examines how far this private sector mechanism for organic food certification is in need of State regulation.
 

Effects of third-party certification on patrons’ service quality evaluation in the luxury-restaurant industry

PurposeThe purpose of this paper is to incorporate third-party certification to test a theoretical model that demonstrates the effects of third-party certification on perceived food quality, perceived service quality, and trust and the effects of these factors on word of mouth (WOM) intentions in the context of luxury restaurants. It also investigates the moderating roles of attention to social comparison information (ATSCI) and the education level.Design/methodology/approachAn online survey sent to customers who are patronizing luxury restaurants in the US 317 empirical data analysis was conducted using structural equation modeling.FindingsThird-party certification facilitated patrons’ positive evaluation of food and service quality. In addition, this positive evaluation fostered trust in the restaurant. Finally, ATSCI and the education level had significant moderating effects on the relationship between third-party certification and patrons’ trust in the restaurant.Originality/valueThis study proposes risk-reducing effect of third-party certification on the luxury-restaurant business. Third-party certification is employed as a mechanism for communicating restaurant quality in food and service to patrons. Both stakeholders and patrons in the restaurant industry can obtain benefits from the third-party certification because it minimizes uncertainties and information asymmetries in luxury restaurants’ quality and service, and thus generating likelihood of WOM intentions.

Private governance of global value chains from within: lessons from and for transnational law

ABSTRACTGlobal value chain (GVC) capitalism has taken a peculiar social form and produces conflicts which are in the blind spot of political institutions as well as classical legal doctrine. This paper addresses the lack of legal concepts reflecting the systemic nature of GVCs as a key challenge for their regulation. Innovative governance alternatives originate bottom-up in civil society, rather than through legislation. In particular, third-party certification may be an instrument that matches GVCs as regulatory subjects and embodies a tailored concept of responsibility. While the current proliferation of such schemes and their diverging degree of rigidity has raised concerns, certification represents an indispensable building-block of transnational regulation. Transnational law must carefully trace the regulatory logic and flank the emergence of such social institutions reflexively. Only then can the scholarly endeavour of ‘transnational law’ rise to the challenge of projecting and rearranging guarantees of political autonomy beyond the state.