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Hardening corporate accountability in commodity supply chains under the European Union Deforestation Regulation

Bibliographic Data

ID7997720
AuthorsLaila Berning (0000-0003-3313-020X, corresponding author), Metodi Sotirov (0000-0002-3548-707X)
Year2023
Volume17
Issue4
Pages870-890
Publication date2023-06-09
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueRegulation & Governance (JOURNAL)
Journal identifiersISSN: 1748-5983 • E-ISSN: 1748-5991
PublisherWiley (PUBLISHER • GB)
DOI10.1111/rego.12540
OpenAlexW4379986042
LanguageEN
Citations received34
References cited57

The European Union (EU) has recently introduced the Deforestation Regulation to close regulatory gaps in the sustainability and legality of global forest and agricultural commodity supply chains. We analyze this regulatory policy change by drawing on accountability scholarship and institutionalist theories of regulation. Our results show that the Regulation aims to enhance corporate accountability mechanisms through mostly state‐based hard regulation of commodity supply chains, reducing the role of market incentives and private regulation. This policy change is found to be the result of strategic policy‐oriented learning from perceived accountability failures of existing soft market‐based instruments, voluntary trade agreements, and experience with market‐correcting EU timber legality trade rules in a politically favorable context. The institutionalization of new forest‐risk commodity supply chain accountability norms in new EU trade rules would, by design, harden foreign corporate accountability for negative socio‐environmental externalities. However, the de‐facto hardening will depend on the final regulatory design, acceptance, compliance, implementation, enforcement improvements, and avoidance of leakage effects

Accountability · Business · Economics · European union · Incentive · International trade · Market economy · Supply chain · Forest Management and Policy · Global trade, sustainability, and social impact · Regulation and Compliance Studies

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Unique citing works34
Citations per year11,33
Citation span2023 - 2026 (4)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 33
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