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Functions of voluntary sustainability standards in the global value chains

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Category: Economy and management

Last Updated on 23 June 2016

Published on 23 June 2016

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Authors:

D.Palekhov, Cand. Sci. (Law), PhD, Brandenburg University of Technology (BTU) CottbusSenftenberg, Germany, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

B.Hansmann, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Eschborn, Germany, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Aim. The aim of the presented research is to define the key functions of voluntary sustainability standards for strengthening the sustainability aspect in global value and supply chains. To achieve this aim the following objectives were formulated: 1) to analyse the current trends and developments in the global value chains; 2) to determine the nature of international sustainability standards and procedures for their realisation; 3) to identify the main fields of application of voluntary sustainability standards that are particularly important for countries with economies in transition.

Methodology. The main findings and conclusions in this article were elaborated based on the analysis of scientific papers and analytical reports dealing with the problem of strengthening sustainability in the global value and supply chains, as well as on the influence of the globalisation processes on structure of business activities in various countries. Furthermore, the authors made references to the previous results of their own research on voluntary sustainability standards as a management tool.

Findings. The study revealed that implementation of voluntary sustainability standards allows a consistent introduction of uniform types of priorities and responsibility along the whole value chain of a product. Four areas of application of voluntary sustainability standards were emphasised, which are particularly important for countries with economies in transition: 1) strengthening of responsibility along the entire value and supply chains; 2) formation of a basis for the improved management and extended dialog with the most promising partners in domestic and external markets; 3) re-orientation towards innovations and a search for the own part in division of labour; 4) restructuring of internal development policy.

Analysis of formal objectives and attributes of voluntary sustainability standards allowed to determine their following functions: regulation, sustainability management, risk management and communication. Several regulatory procedures enable these functions: conformity assessment, eco-labelling, traceability systems and capacity building services.

Originality. Authors suggested several key areas for utilising voluntary sustainability standards as a management tool in countries with transitional economies.

Practical value. Realisation of the suggested recommendations will promote the extended use of sustainability standards for achieving sustainable production and supply chains.

References / Список літератури

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2. Palekhov, D. and Schmidt, M., 2014. Voluntary Environmental Certification in Ukraine: Experience and Issues. In: C. Schmitz-Hoffmann, ed. 2014. Voluntary Standard Systems: A Contribution to Sustainable Development. Natural Resource Management in Transition. Volume 1. Berlin Heidelberg: Springer. pp. 261‒274.

3. Palekhova, L. and Pivnyak, G., 2014. Exploring Market Strategies based on Voluntary Environmental Certification in a Post-Soviet Transition Economy. In: C. Schmitz-Hoffmann, ed. 2014. Voluntary Standard Systems: A Contribution to Sustainable Development. Natural Resource Management in Transition. Volume 1. Berlin Heidelberg: Springer. pp. 165‒175.

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