Corporate Governance

Purpose – This paper sets out to report on a study of the Roundtable on Sustainable Palm Oil (RSPO) as an instance of “partnered governance” oriented to advance sustainable development in a supply chain. After briefly discussing the conceptualization of partnered governance, its social organizational features, and its drivers, the paper aims to outline the history and structure of RSPO and then to assess the effectiveness, efficiency and level of legitimation of this innovative governance structure. The paper points out several of the limitations as well as potentialities of partner governance arrangements such as that of RSPO.

Design/methodology/approach – The paper shows through a focused multi-method case study how the RSPO developed as consumer-oriented businesses partnered with civil society organizations and palm oil producers to address what was seen as a long-term threat to rain forests, on the one hand, and to financial interests, on the other.

Findings – In the case of deforestation caused by oil palm expansion, national government intervention was absent and international regulation could not be mobilized. While the RSPO's system of partnered governance may have many shortcomings, the paper stresses that there are few real alternatives that have been as successful in addressing this type of sustainability issue. A major structural problem with such partnerships for sustainability is that their emergence and development typically depend on powerful players.

Originality/value – The originality/value of the paper lies in its identification of several of the strengths and weaknesses of partnered governance based on a focused case study, and suggests ways in which partnered governance can be developed and optimized in addressing sustainability issues.