Epsilon Archive for Student Projects

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.