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Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities

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Abstract

Contemporary global politics is characterized by an increasing trend toward experimental forms of governance, with an emphasis on private governance. A plurality of private standards, codes of conduct and quality assurance schemes currently developed particularly, though not exclusively, by TNCs replace traditional intergovernmental regimes in addressing profound global environmental and socio-economic challenges ranging from forest deforestation, fisheries depletion, climate change, to labor and human rights concerns. While this trend has produced a heated debate in science and politics, surprisingly little attention has been paid on the effects of private governance on questions of distribution and justice. This is highly problematic. At the beginning of the twenty-first century global inequalities are greater than ever before, while rapid economic, social, political, and environmental changes threaten to further derail sustainable development and humanitarian objectives. If private governance creates or intensifies some of the pressing global inequalities (e.g., food security), and alleviates others (e.g., environmental degradation), from a business ethics perspective, we need to know which aspects need to be strengthened and where appropriate interventions are necessary and desirable. This paper proposes a framework to examine and classify the distributive outcomes of private governance institutions through the lenses of one particular approach to distributive justice, the capability approach. Empirically, it focuses on agrifood one area where the controversy regarding the distributive concerns of private governance are particularly pronounced.

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Notes

  1. These three generic categories may further be distinguished according to other attributes, such as market size for business actors, income, gender, and geographic localities (urban–rural), etc.

  2. In this context, scholars have suggested access to healthcare, skills and education; access to credit; environmental and social protection to be part of the capabilities list (Sandbrook 2005). Still others, have stressed mental well-being; empowerment; political freedom; social relations; community well-being; work conditions; leisure conditions; political security; economic security and environmental conditions (Ranis et al. 2006).

  3. Undernourishment exists when caloric intake is below the minimum dietary energy requirement (MDER).

  4. Note, however, that the multitude of standards and accompanied labels often disorient rather than inform consumers and may become a burden rather than an opportunity for access (Busch 2011 ).

  5. Affluent consumers are defined as either single-person households with an income of at least $75,000, or multiple person households with an income of $100,000 or more. http://www.marketresearch.com/Packaged-Facts-v768/Affluent-Consumers-Economy-Food-Foodservice-2291282/ (16.07.2012).

  6. In China, affluent levels differ and affluent is considered someone with more than $25,000 a year. http://www.masterintelligence.com/upload/176/110/Affluent_Consumers_China-S.pdf (16.07.2012).

  7. http://www.ifad.org/events/agriculture/sessions/3/berdegue.htm (16.07.2012).

  8. http://www.fao.org/docrep/u8480e/U8480E08.htm (16.07.2012).

  9. “No-till” agriculture is a farming method that avoids disturbing the soil through tillage, i.e., digging, stirring, and overturning the soil through mechanical use.

  10. C.A.F.E. (Coffee and Farmer Equity) is a green coffee sourcing guideline developed in collaboration with Scientific Certification Systems (SCS), a third-party evaluation and certification firm) to evaluate, recognize, and reward producers of high-quality sustainably grown coffee. http://www.scscertified.com/retail/rss_starbucks.php (17.07.2012).

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Acknowledgments

The author would like to thank the participants of the international workshop “Governing Sustainable Agriculture through Multistakeholder Initiatives: Participation, Knowledge and Networks in Action,” Montpellier (France), 12–14 December 2012, and two anonymous reviewers for insightful comments and suggestions.

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  1. Department of Environmental Policy Analysis, Institute for Environmental Studies, VU University Amsterdam, De Boelelaan 1087, 1081 HV, Amsterdam, The Netherlands

    Agni Kalfagianni

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Kalfagianni, A. Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities. J Bus Ethics 122, 307–320 (2014). https://doi.org/10.1007/s10551-013-1747-6

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