Credible, third-party standards provide increased transparency and accountability along corporate value chains on environmental and social dimensions. By establishing and adhering to best business practices, companies can better measure and manage environmental and labor compliance. Consumers can then reward companies for their compliance through purchasing decisions.

Desired Equilibrium

Best business practices and profit are synonymous with long-term, sustainable value creation for all stakeholders. Private markets are governed by industry standards rooted in responsible social and environmental stewardship. Companies are held accountable for standards through consumer- and policy-driven systems of transparency. Investors and governments reward responsible standards through capital investment and supportive policy, while consumers reward best practices through their everyday purchases.

Ways Skoll social entrepreneurs are addressing the issue:

• Establishing industry certifications that provide businesses with legal frameworks for social and environmental sustainability (B Lab, Fair Trade USA, GoodWeave, Marine Stewardship Council, Telapak)
• Partnering with corporations to ensure responsible sourcing of wholesale products (Fair Trade USA, GoodWeave, Verite)
• Collecting and presenting data to drive transparency and accountability (Fair Trade USA, GoodWeave, Marine Stewardship Council, Verite)
• Influencing consumer purchasing power through product labeling and advocacy (Fair Trade USA, GoodWeave, Marine Stewardship Council)