Drivers for sustainability B2B private standards : the case of the roundtable on responsible soy standard

Abstract: Sustainability Business-to-Business Private Standards have, in general, received many critiques. However, since they were born around 20 years ago, their popularity and application continue growing. Many are the companies that require its suppliers to comply with a particular scheme, despite any negative judgements and the doubts about its effectiveness. One example is the case of the RoundTable on Responsible Soy (RTRS) standard for demanded by the Swedish Lantmännen cooperative to its suppliers. Despite the extended list of critiques towards this scheme, the Lantmännen group’s objective is that all the consumed soy, which they import solely from Brazil, posses the RTRS certificate at the end of the current year 2015. The aim of this study is to identify the drivers that make a company applying one of these standards. For reaching this aim, a qualitative case study is carried. The objective is to identify the reasons why Lantmännen requires such a standard to suppliers. Taking Stakeholder theory as point of department, a conceptual framework with potential internal and external drivers is created. The main source of information is telephone interviews with a member of the Sustainable Development department in Lantmännen. In addition, analysis of official documents, news and reports is conducted. The main findings are that Lantmännen’s main driver for RTRS standard acquisition is not sustainability awareness and that many others drivers, both internal and external, are actually influencing the decision. These drivers are: board of directors’ personal norms, reputational risk management, maintenance of market share, NGO pressure through engagement, preemption of regulation and reduction in tort liability.