Governance for Sustainability: Patterns of Regulation and Self-Regulation in the German Wine Industry

Abstract

To foster sustainability pursuits, regulation by state-imposed legislation is often crucial, but self-regulation by corporations, associations, and other non-state actors increasingly exerts pressures and provides incentives for sustainable practices. In order to shed more light on the complex interplay among sustainability regulations and self-regulation, this study focused on a highly regulated field: the German wine industry. Using a social network analysis, this study identified the most central actors (e.g., associations, regulatory institutions) that need to be addressed in order to ensure the enforcement of sustainability. By analyzing 15 semi-structured interviews with the key actors, we outlined their understanding of sustainability, and classified three distinctive governance patterns. These mixed methods and in-depth analyses revealed that self-regulation by associations plays a crucial role in terms of enhancing sustainability, but regulation remains an important trigger in this context. This article concludes with some lessons for regulation and self-regulation policies that can ensure sustainability within an organizational field.

Follow the genuine leader: The “green imitation”

“…Companies often struggle to keep up to date with abundant and ever‐changing national, regional or local regulations. Within a globalized economy there is also an absence of any overarching global authority capable of both facilitating competitive global markets and enforcing environmental standards, undermining the effectiveness of regulation (Scherer et al, 2016; Spraul & Höfert, 2021). On the other hand, while the effectiveness of global regulatory control diminishes, activism on the part of many social, political, or religious movements, amplified by revolutionary digital technologies, is raising the awareness of stakeholders (Waldron et al, 2022).…”

“…For collective action on international environmental challenges, many authors highlight the important role of industry, arguing that it industry itself can serve to institutionalize responsible environmental policy (Cf. Marques, 2017; Spraul & Höfert, 2021; Wahga et al, 2018).…”

“…The role of government in promoting voluntary environmental encounters should be expanded along with the actions of intermediate or SOE's (Vitiea & Lim, 2019; Wahga et al, 2018). Thus, within this context, identifying the most influential actors within corporate social networks is essential (Spraul & Höfert, 2021).…”

Aligning the Sustainable Development Goals in the Wine Industry: A Bibliometric Analysis

“…This aids in reducing the impact of agriculture on soil, water and air, helping to protect biodiversity and prevent pollution [32]. In terms of gender equality, the wine industry has made great efforts to remove gender barriers in the production, consumption, and marketing of wine [33]. This has allowed more women to become involved in the industry, which, in turn, has increased family incomes and improved their quality of life [34].…”

“…However, wine production can negatively affect sustainable development if it is carried out inappropriately. The use of pesticides and fertilizers for grape production can have harmful effects on the environment, such as soil, watercourse, and air pollution [33]. Intensive agriculture can also affect local biodiversity, as it reduces the number of habitats and can lead to the extinction of some species [30].…”