Can Ecolabels Influence Firms’ Sustainability Strategy and Stakeholder Behavior?

Darnall N & Aragón-Correa JA. 2014. Can ecolabels influence firms’ sustainability strategy and stakeholder behaviors? Organization & Environment 27(4), 319-327. DOI: 10.1177/1086026614562963

9 Pages Posted: 14 Nov 2016

See all articles by Nicole Darnall

Nicole Darnall

School of Sustainability, Arizona State University; Sustainable Purchasing Research Initiative, Arizona State University

J. Alberto Aragon-Correa

University of Surrey - Surrey Business School

Date Written: December 2014

Abstract

Ecolabels are policies and programs that are designed to signal information to stakeholders about a product’s sustainability 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 emphasize the importance of collaborative stakeholder initiatives in advancing sustainability strategy and how accurate information is vital to the success of these initiatives.

Keywords: ecolabels, stakeholders, environmental information, certification, collaboration

JEL Classification: M14, D18, Q56, Q58

Suggested Citation

Darnall, Nicole and Aragon-Correa, J. Alberto, Can Ecolabels Influence Firms’ Sustainability Strategy and Stakeholder Behavior? (December 2014). Darnall N & Aragón-Correa JA. 2014. Can ecolabels influence firms’ sustainability strategy and stakeholder behaviors? Organization & Environment 27(4), 319-327. DOI: 10.1177/1086026614562963, Available at SSRN: https://ssrn.com/abstract=2868198

Nicole Darnall (Contact Author)

School of Sustainability, Arizona State University ( email )

PO Box 875502
Tempe, AZ 85287-5502
United States

HOME PAGE: http://isearch.asu.edu/profile/1811617

Sustainable Purchasing Research Initiative, Arizona State University ( email )

PO Box 875502
Tempe, AZ 85287-5502
United States

HOME PAGE: http://https://sustainability-innovation.asu.edu/spri/

J. Alberto Aragon-Correa

University of Surrey - Surrey Business School ( email )

Guildford, Surrey GU2 8DN
United Kingdom

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