Can Ecolabels Influence Firms' Sustainability Strategy and Stakeholder Behavior?. (December 2014)

• Record Type: Journal Article
• Authors: Darnall, Nicole; Aragón-Correa, J. Alberto
• Is Part Of: Organization & environment. Volume 27:Number 4(2014:Oct.)
• Page Start: 319
• Page End: 327
• Publication Date: 2014-12
• Subjects: ecolabels -- stakeholders -- environmental information -- certification -- collaboration -- editorial; Associations, institutions, etc -- Environmental aspects -- Periodicals; Business enterprises -- Environmental aspects -- Periodicals; Environmental management -- Periodicals; Environmental responsibility -- Periodicals; Sustainability -- Periodicals; 658.408305
• DOI: 10.1177/1086026614562963
• Languages: English
• ISSNs: 1086-0266

Abstract

Ecolabels are policies and programs that are designed to signal information to stakeholders about a product's attributes and reduce stakeholder uncertainty about the validity of green product claims. However, for ecolabels to be successful at addressing information asymmetries external stakeholders must perceive them as being credible. We assess the prospects of different sorts of ecolabels to influence firms' sustainability strategies and stakeholder behavior based on the credibility of their institutional construction. We then describe important areas for future ecolabel research, and analyze connections between these future research areas and the articles that form this issue. Finally, we emphasizethe importance of collaborative stakeholder initiatives in advancing sustainability strategy and how accurate information is vital to the success of these initiatives.