Background Context: Rapid processes of economic globalization have led to expanding global value chains and a subsequent rise in responsibility challenges, including environmental and community impacts and worker wellbeing and rights. Research justification: In response, there has been a proliferation of ‘Responsible Business Initiatives’ or non-governmental organisations which seek to influence corporate behaviour on their sustainability performance, both internally and along their supply chains. There is a lack of conceptualisation of how such initiatives seek to influence corporate behaviour, as well as how companies respond in diverse ways, and the relative effectiveness of RBIs compared with other forms of intervention. These intermediary initiatives are voluntary, but increasingly work in contexts of normative frameworks, stock exchange requirements and legislation. RBI examples include the Global Reporting Initiative, the UN Global Compact, B-Lab, Shift, Ethical Trading Initiative, Better Work, etc. RBIs offer diverse services such as tools, standards, learning processes, and reporting systems to shape corporate internal and supply chain performance. The research aim is to conceptualize how RBIs seek to affect company behaviour and the diverse ways in which companies may or may not respond. It seeks to review the current evidence base and what it tells us about RBI-effectiveness/impact. Methods: Using theory-based evaluation, methods include: a) a review of academic and grey literature; b) two years of engagement with RBIs as part of a donor programme evaluation; c) limited interviews with specialists; d) conceptual work to articulate theories of change and associated assumptions; e) analysis of available evidence using the theory of change. A literature on corporate reporting covered four scientific databases, 18 search terms, a screening process and a review of sixty-six articles. Findings cover the drivers of corporate reporting uptake, the quality of corporate reporting, stakeholder utility, corporate behaviour change and ultimate impacts. Evidence on sustainability standards was found via web searches, own work and critical analysis of two recent systematic reviews. Other literature was identified via research networks/snowball approaches. Findings: The paper presents a conceptualization of how RBIs work. Theories of change have been articulated for responsible business per se, but also for individual mechanisms (employed singly or in combination), including corporate reporting, product standards, new legal forms, investor pressure etc. Major gaps are found in the evidence base, plus mixed or weak evidence where evidence is available to indicate a credible contribution story. Conclusions: There are significant uncertainties about the effectiveness/impact of RBIs and corporate responses, particularly from a sector-wide or industry perspective. Alternative drivers of change are explored beyond RBIs, as well as suggestions on a future research agenda.
5d. Value chains & trade
