When one size does not fit all: A problem of fit rather than failure for voluntary management standards

Dayna Frith Simpson, Damien Power, Robert David Klassen

Research output: Contribution to journalArticleResearchpeer-review

41 Citations (Scopus)

Abstract

Voluntary management standards for social and environmental performance ideally help to define and improve firms related capabilities. These standards, however, have largely failed to improve such performance as intended. Over-emphasis on institutional factors leading to adoption of these standards has neglected the role of firms existing capabilities. External pressures can drive firms to adopt standards more than their technical capacity to employ them. This can lead to problems of fit between institutional requirements and a firm s existing capabilities. We describe a conceptual model that considers the impact of an interaction between a firm s institutional requirements and its existing capabilities on standards failure. We suggest solutions that align institutional requirements to appropriate governance forms as a means to improve standards success. We contribute to theory by describing the role of firms internal capabilities to the success of voluntary management standards and the reliability of self-regulation generally.
Original languageEnglish
Pages (from-to)85 - 95
Number of pages11
JournalJournal of Business Ethics
Volume110
Issue number1
DOIs
Publication statusPublished - 2012

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