PALM OIL INDUSTRY: CERTIFICATION DEVELOPMENT
DOI:
https://doi.org/10.51200/jobsts.v6i1.2788Keywords:
Sustainability, Acceptance, Trust,, Malaysia Sustainable Palm Oil, Smallholders, StakeholdersAbstract
The agricultural industry has been the backbone of Sabah's economy for decades. The industry has eradicated poverty and supported connectivity between the rural with the urban area. At the same time, it has undergone numerous shifts of cash crops to sustain the economy with the oil palm as the latest crop. The palm oil industry has both novelty and challenges to thrive with the demand for sustainability. For the mandatory certification of Malaysia Sustainable Palm Oil, growers, mainly smallholders, faced restrictions on the certification process despite incentives from the federal government. This has put a setback to the effort by the palm oil industry in their commitment to being sustainable. In this study, the researchers plan to examine the palm oil industry's certification approach on the smallholders on their way to achieving a sustainable palm oil industry based on a case study approach. Therefore, the methodology for the study was using content analysis on public-domain literature found through electronic databases encompasses publications dating from 2000 to 2020. The study found that the acceptance and trust in smallholders' certification process are in correspond with the incomprehension and the certification process approach.
References
Aaltonen, K., Jaakko, K., & Tuomas, O. (2008). Stakeholder Salience in Global Projects. International Journal of Project Management, 26(5), 509–516.
Abazue, C. M., Er, A. C., Ferdous Alam, A. S. A., & Begum, H. (2015). Oil Palm Smallholders and Its Sustainability Practices in Malaysia. Mediterranean Journal of Social Sciences, 6(6), 482–488.
Abdullah, R. (2013). Technical Efficiency of Independent Oil Palm Smallholders (ISH) in Peninsular Malaysia with Respect to Fertiliser and Land Size. Oil Palm Industry Economic Journal, 13(2).
Albanya, A., & Er, A. C. (2018). Social Responsibility of Oil Palm Plantations Among Smallholders in Lahad Datu, Sabah. Journal of Fundamental and Applied Science, 10(3S), 369–382.
Alexander, S. M., Andrachuk, M., & Armitage, D. (2016). Navigating Governance Networks for Community-based Conservation. Frontiers in Ecology and the Environment, 14(3), 155–164.
Ang, A. (2017). Issues and Challenges in MSPO Certification. In Sirim QAS International.
Ansell, C., & Gash, A. (2008). Collaborative Governance in Theory and Practice. Journal of Public Administration Research and Theory, 18(4), 543–571.
Azima, A. M., Choy, E. A., & Lyndon, N. (2018). Oil Palm Smallholders in Sabah: The Institution Constraints of Innovation. International Information Institute (Tokyo). Information, 21(6), 1677–1684.
Bakke, S. (2019). The Significance of Palm Oil and its Opportunities in Pakistan. Palm Oil Trade Fair and Seminar (POTS), India 2019.
Barry, M., Cashore, B., Clay, J., Fernandez, M., Lebel, L., Lyon, T., … Kennedy, T. (2012). Toward sustainability: The Roles and Limitations of Certification. In RESOLVE Washington DC.
Begum, H., Siwar, C., Alam, A. S. A. F., Choy, E. A., Ishak, S., & Alam, L. (2018). Enhancing Sustainability Amongst Oil Palm Smallholders in Malaysia. International Journal of Agricultural Resources, Governance and Ecology, 14(1), 62–79.
Bek-Nielsen, C. (2019). RSPO Should Not Become Elitist Certification. The Star Online, pp. 9–12.
Bernama. (2019). Smallholders Look to Other Buyers for Their Palm Oil. The Star Online, pp. 7–9.
Brandi, C. A. (2017). Sustainability Standards and Sustainable Development – Synergies and Trade-Offs of Transnational Governance. Sustainable Development, 25(1), 25–34.
Chin, S. C. (2019). Adding Value Through MSPO to Benefit Smallholders in the Long Term. The Star Online, pp. 1–5.
Corley, R. H. . (2018). Does the RSPO Have a Future? The Star Online, 1–6.
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management, 20(1), 65–91.
Edelenbos, J., & van Meerkerk, I. (2018). Finding Common Ground in Urban Governance Networks: What are its Facilitating Factors? Journal of Environmental Planning and Management, 61(12), 2094–2110.
Emerson, K., Nabatchi, T., & Balogh, S. (2012). An Integrative Framework for Collaborative Governance. Journal of Public Administration Research and Theory, 22(1), 1–29.
Gallemore, C., & Jespersen, K. (2019). Offsetting, Insetting, or Both? Current Trends in Sustainable Palm Oil Certification. Sustainability (Switzerland), 11(19), 1–15.
Gianto, B. (2019). Palm Oil Watchdog to Create Separate Standards for Smallholders - Indonesia Director. The Star Online, pp. 5–7.
Greenpeace, I. (2015). Under Fire. Greenpeace.
Hancock, D. R., & Algozzine, B. (2006). Doing Case Study Research: A Practical Guide for Beginning Researchers. In Teachers College Press (Vol. 53).
Harrison, J. S., & Wicks, A. C. (2019). Harmful Stakeholder Strategies. Journal of Business Ethics.
Haward, M., Jabour, J., & McDonald, J. (2013). Small Fish in a Big Pond: Lessons from the Abel Tasman Controversy. Australian Journal of Maritime & Ocean Affairs, 5(1), 22–27.
Hidayat, N. K., Offermans, A., & Glasbergen, P. (2018). Sustainable Palm Oil as a Public Responsibility? On the Governance Capacity of Indonesian Standard for Sustainable Palm Oil (ISPO). Agriculture and Human Values, 35(1), 223–242.
Jones, T. M., & Wicks, A. C. (1999). Theory Convergent. Academy of Management Review, 24(2), 206–221.
Jopke, P., & Shconeveld, G. (2018). Corporate Commitments to Zero Deforestation. Center for International Forestry Research.
Kok, T. (2019). MSPO Certification Enables Palm Oil to Fetch Higher Price. MalaysiaKini.
Kumaran, S. (2018). The Dynamics of Malaysian Sustainable Palm Oil (MSPO) and its Implementation. In Malaysia Sustainable Palm Oil.
Kuntom, A., & Carotino. (2014). Malaysian Sustainable Palm Oil. JC Chang Group of Companies, (60), 1–4.
Lee, J. S. H., Rist, L., Obidzinski, K., Ghazoul, J., & Koh, L. P. (2011). No Farmer Left Behind in Sustainable Biofuel Production. Biological Conservation, 144(10), 2512–2516.
Ling, S. (2019). Govt to Maintain Target of 100% MSPO Certification by Year-end. The Star Online, pp. 9–11.
Macdonald, K. (2020). Private Sustainability Standards as Tools for Empowering Southern Pro-regulatory Coalitions? Collaboration, Conflict and the Pursuit of Sustainable Palm Oil. Ecological Economics, 167(June).
Macdonald, K., & Balaton-Chrimes, S. (2016). A Review of the Complaints System of the Roundtable on Sustainable Palm Oil. In Corporate Accountability Research (Vol. 15).
Meijaard, E., & Sheil, D. (2019). The Moral Minefield of Ethical Oil Palm and Sustainable Development. Frontiers in Forests and Global Change, 2(May).
MIDF, R. (2019). MIDF Maintains ‘negative’ Call on Plantation Industry on Set of Challenges. Malay Mail, pp. 9–12.
Miles, S. (2017). “Stakeholder Theory Classification, Definitions and Essential Contestability”, Stakeholder Management. Business & Society 360, 1, 21–47.
Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Academy of Management Review, 22(4), 853–886.
Muir, B. M. (1994). Trust in Automation: Part I. Theoretical Issues in the Study of Trust and Human Intervention in Automated Systems. Ergonomics, 37(11), 1905–1922.
Mukherjee, I., & Sovacool, B. K. (2014). Palm Oil-based Biofuels and Sustainability in Southeast Asia: A Review of Indonesia, Malaysia, and Thailand. Renewable and Sustainable Energy Reviews, 37, 1–12.
Olsen, T. D. (2017). Political Stakeholder Theory: The State, Legitimacy, and the Ethics of Microfinance in Emerging Economies. Business Ethics Quarterly, 27(1), 71–98.
Pacheco, P., Gnych, S., Dermawan, A., Komarudin, H., & Okarda, B. (2017). The Palm Oil Global Value Chain. Implications for Economic Growth and Social and Environmental Sustainability. Center for International Forestry Research.
Parasuraman, R., & Riley, V. (1997). Humans and Automation: Use, Misuse, Disuse, Abuse. Human Factors, 39(2), 230–253.
Parsons, R., & Moffat, K. (2014). Constructing the Meaning of Social Licence. Social Epistemology, 28(3–4), 340–363.
Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations. New York: Harper & Row, 309–311.
Pirker, J., Mosnier, A., Kraxner, F., Havlík, P., & Obersteiner, M. (2016). What are the Limits to Oil Palm Expansion? Global Environmental Change.
Rahgu, A. (2019). World Has Loads of Sustainable Palm Oil; Just No One Buys It. Bloomberg, 1–7. Retrieved from https://www.bloomberg.com/news/articles/2019-01-13/world-has-loads-of-sustainable-palm-oil-just-no-one-wants-it
Rott, P. (2019). Certification – Trust , Accountability , Liability. In Springer International Publishing.
Rowley, T. J. (2017). The Power of and in Stakeholder Networks. Business & Society 360, 1, 101–122.
RSPO. (2008). Fact Sheet: Membership. RSPO.
Schaefer, K. E., Chen, J. Y. C., Szalma, J. L., & Hancock, P. A. (2016). A Meta-Analysis of Factors Influencing the Development of Trust in Automation: Implications for Understanding Autonomy in Future Systems. Human Factors, 58(3), 377–400.
Schepel, K. (2005). The Constitution of Private Governance. Product Standards in the Regulation of Integrating Markets. Hart Publishing.
Schouten, G., & Glasbergen, P. (2011). Creating Legitimacy in Global Private Governance: The Case of the Roundtable on Sustainable Palm Oil. Ecological Economics, 70(11), 1891–1899.
Simeh, A., & Tengku Ahmad, T. M. A. (2001). The Case Study on the Malaysian Palm Oil. Regional Workshop on Commodity Export Diversification and Poverty Reduction in South and South-East Asia.
TheStar. (2019). Call to Defer implementing MSPO. The Star Online, pp. 1–2.
Trade, I. (2019). Malaysia Urges EU to Recognise MSPO Certication. New Straits Times, pp. 1–5.
Umesha, S., Manukumar, H. M. G., & Chandrasekhar, B. (2017). Sustainable agriculture and food security. In Biotechnology for Sustainable Agriculture: Emerging Approaches and Strategies (pp. 67–92). https://doi.org/10.1016/B978-0-12-812160-3.00003-9
UN. (2019). Growing at a Slower Pace, World Population is Expected to Reach 9.7 Billion In 2050 and Could Peak at Nearly 11 Billion Around 2100: UN Report. Communications, United Nations Department of Global, (June), 1–3.
UNWCED. (1987). Our Common Future. In Oxford University Press (Vol. 29).
Vijayakumaran, S. A., Rahim, S. A., Ahmi, A., Rahman, N. A. A., & Mazlan, A. U. (2020). Factors Influencing Sustainable Supplier Selection: Evidence from Palm Oil Refining and Oleochemical Manufacturing Industry. International Journal of Supply Chain Management, 9(1), 437–446.
Vince, J., & Haward, M. (2017). Hybrid Governance of Aquaculture: Opportunities and Challenges. Journal of Environmental Management, 201, 138–144.
Yin, R. K. (2018). Case Study Research and Applications: Design and Methods. In SAGE Publications Ltd (6th ed., p. 509).
Zulhusni, A., Nordin, A., & Ahmad, S. M. (2017). An Economic Study on Technical Efficiency Among Independent Oil Palm Smallholders in Sabah and Sarawak. Oil Palm Industry Economic Journal, 17(1), 16–31.
Downloads
Published
How to Cite
Issue
Section
Total Views: 415
| 
Total Downloads: 554
