Eco-labeling and the Conditions for Rigorous and Credible Transnational Governance

Eco-labeling schemes now exist in nearly every country on Earth and are gaining traction with some of the world’s largest companies. However the rigour and credibility of these schemes varies widely. Whereas some eco-labeling organizations (ELOs) adhere to best practices designed to increase the likelihood that their schemes will be rigorous and credible, others do not. In this dissertation, I explain variation in the level of adherence to best practices amongst transnational eco-labeling organizations using a two-phased mixed-method research design. In the first phase, I build and analyze an original dataset comprising information on the policies and practices of 123 transnational ELOs. In the second phase, I build on my statistical findings by further investigating both deductive and abductive hypotheses in the context of two representative case studies, sustainable aquaculture and carbon labeling. My central argument is that who an eco-labeling organization targets for governance holds a strong relationship to its propensity to follow best practices. Specifically, ELOs that “aim big” – meaning those that target a large proportion of a relevant global market – are more likely to follow best practices than those with narrower ambitions. “Aiming big” subjects ELOs to heightened critical scrutiny, increases demand for democratic legitimacy, and over time, augments their organizational capacity. These three conditions, in turn, drive attention to best practices and help create rigorous and credible eco-labels with a better chance of meeting environmental objectives. This dissertation contributes in several ways to scholarship on private authority and global governance. First, it suggests that renewed scholarly attention be directed towards the targets of governance, since pressure towards procedural rigour often comes from the governed community and not the owners of a governance scheme. Second, it argues that there is no unitary pathway to rigorous and credible governance; different causal mechanisms and multiple behavioral logics are operative in steering ELOs towards increased best practice adherence. Lastly, it holds implications for policy by suggesting that ELOs should purposively seek global presence and target large businesses when seeking to maximize their environmental impacts.Ph.D