The Certification Paradox: Monitoring as a Solution and a Problem

Ingrid Gustafsson and Kristina Tamm Hallström

Chapter Chapter 5 in Trust and Organizations, 2013, pp 91-109 from Palgrave Macmillan

Abstract: Abstract In Egels-Zandén’s chapter we could see how multinational shoe companies work in order to create trust in their brands by using a process logic framework in their Corporate Social Responsibility (CSR) efforts. In other words, the companies and their suppliers undertake a dialogue and negotiate with the actors within civil society as to a reasonable interpretation of the freedom of association. This example indicates that confidence has become all the more important in today’s market exchange. It is no longer sufficient to offer products and services of high quality at a reasonable price but, instead, it has also become important to, as a producer, be transparent and open for dialogue. One must be able to demonstrate that the production process has been conducted in an acceptable manner, in terms of specific values, such as sustainability, the work environment, and human rights. If consumers, civil society actors, and journalists discover that a company has used child labor, harmful chemicals, or has denied its employees acceptable working conditions, there is a high risk that the company will be criticized in the media, which, in turn, can seriously damage its reputation and the possibility of market survival.

Keywords: Corporate Social Responsibility; European Union; Forest Stewardship Council; Civil Society Actor; Certification Market (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36881-2_5

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DOI: 10.1057/9781137368812_5

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