Nineteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

In recent times, labeling - not least within the food industry - has become a popular means for companies to communicate about sustainability efforts to their various stakeholders whether customers, investors, employees, partners, or the society. We address the following research questions: How do companies aim to engage stakeholders through sustainability labels within the food industry? What are the costs and benefits of various sustainability label choices in selected segments of the food industry? In our research, we undertake a literature review on stakeholder theory and sustainability labeling. Further on, we conduct a qualitative multi-case study based on online secondary data collection on regional and global sustainability labels within the food industry, e.g. seafood labels. We offer within-case and cross-case analyses. Our research shows that food labels can take the form of governmental required labels, self-declarations, non-governmental endorsements, and third-party certificates. Each form comes with its own costs and benefits, and our research implies that any company should make informed and conscious strategic decisions on whether, which and how many sustainability labels to pursue. Our research implies that the cost side of third-party certificates is worth further research and discussions. Pursuing multiple third-party certificates may not bring more stakeholder benefits, however it may lead to significant extra monetary and non-monetary costs for the company at hand. We welcome practitioners and researchers for further dialogue.