SUSTAINABILITY CERTIFICATIONS IN THE COCOA VALUE CHAIN IN ECUADOR ¿WHO EXERCISES GOVERNANCE, THE GOVERNMENT OR THE MULTINATIONALS?

Códigos JEL: F63, F13, J88, L52

Abstract

Context: Since 1998, the Ecuadorian government, through public policy, has been applying changes in the value chain and adopting sustainable cocoa practices as a strategy for competitiveness. These types of quality standards required by the countries of export destination will be the focus of this research in order to determine who exercises governance in the chain. Theories: this paper revolve around two theories: a macro one, named economic development theory, and a micro one developed at the firm level, the strategic planning theory. Method: The methodology to be applied in this research is deductive and qualitative, the secondary information gathered on sustainability issues in the processes corresponds to the national and international documentary analysis of value chains in the agroindustry sector, state quality control agencies, national and international technical documents, as well as journals indexed in Scopus. Results: The three study objectives are covered: 1. Description of the characterization of the chain and the Ecuadorian government's strategy; 2. Analysis of the types of national regulations governing the chain; and, 3. Identificaton of who exercises governance. Conclusions: Finally, the research shows how sustainability certifications become governance mechanisms in the cocoa value chain through international consulting firms.