Voluntary Sustainability Standards and Value Chain Governance

This research paper examines how voluntary sustainability standards (VSS) influence the distribution of decision-making power within global value chains for coffee, forestry, and fisheries. Using a participatory governance framework, the authors analyze six major standards organizations to determine if these initiatives empower marginalized producers or reinforce existing power asymmetries.

• Voluntary sustainability standards redistribute power in global value chains by establishing new rules for participation, which can either empower producers through direct governance roles or reinforce their marginalization.
• Representation of producers and developing country interests is most effective in standards organizations that formally institutionalize specific positions for these stakeholders on their boards.
• While board elections are often fair and competitive, there is a lack of transparency regarding the formal proceedings of meetings and the resolution of objections, which hinders stakeholder accountability.
• The 'judicial' function of standards governance is underdeveloped; while certification is generally independent, the resolution of disputes and objections to standard-setting often involves the same executive or legislative bodies that created the rules.
• Financial barriers and informal obstacles, such as language requirements (e.g., English fluency for the FLO Standards Committee), can restrict the active participation of marginalized producers despite formal representation.
• Decentralized models of standards ownership, particularly in forestry (FSC and PEFC), empower local stakeholders but risk excluding regions that lack the institutional capacity to develop their own national standards.
• Many sustainability standards organizations rely heavily on external donations for financial survival, which may create risks for their long-term sustainability and accountability.
• There is an inherent trade-off between participatory governance and operational efficiency; for example, consensus-based decision-making (used by FSC and SAN) is more inclusive but slower than majoritarian systems.

APA

Sexsmith, K., & Potts, J. (2009). Voluntary Sustainability Standards and Value Chain Governance. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/voluntary_sustainability_standards_gov.pdf

Chicago

Sexsmith, Kathleen, and Jason Potts. Voluntary Sustainability Standards and Value Chain Governance. International Institute for Sustainable Development, 2009. https://www.iisd.org/system/files/publications/voluntary_sustainability_standards_gov.pdf.

Wikipedia

{{cite report |last1=Sexsmith |first1=Kathleen |last2=Potts |first2=Jason |title=Voluntary Sustainability Standards and Value Chain Governance |publisher=International Institute for Sustainable Development |date=July 2009 |url=https://www.iisd.org/system/files/publications/voluntary_sustainability_standards_gov.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sexsmith2009voluntary, author = {Sexsmith, Kathleen and Potts, Jason}, title = {{Voluntary Sustainability Standards and Value Chain Governance}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = jul, url = {https://www.iisd.org/system/files/publications/voluntary_sustainability_standards_gov.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }