Sustainable Development in the Forest Sector: Analysing Corporate Initiatives

Abstract

Over the past three decades, tropical forest governance has increasingly shifted from state‐centered regulation toward hybrid arrangements in which private companies, certification bodies, and civil society organizations jointly shape sustainability standards. This study examines how forestry companies operationalize sustainable development in concession management by comparing PALLISCO and GRUMCAM in Cameroon. Drawing on Political Ecology and Legitimacy Theory, the study addresses three questions: (1) how companies interpret sustainable development; (2) whether voluntary certification produces more substantive outcomes than legality‐based compliance; and (3) under what conditions certification risks becoming symbolic. Using a structured desk‐based qualitative design, 50 peer‐reviewed publications, FSC and OLB audit reports, company disclosures, and independent NGO assessments were coded across environmental, social, economic, and governance dimensions. Greenwashing was operationalized as systematic discrepancies between corporate sustainability claims and independently documented practices, particularly regarding Free, Prior and Informed Consent (FPIC), benefit‐sharing, and transparency. Findings show that PALLISCO's long‐standing FSC certification is associated with stronger institutionalization of Reduced‐Impact Logging, High Conservation Value management, and public reporting, whereas GRUMCAM has historically emphasized legality and traceability, only recently attaining FSC Forest Management certification. Nevertheless, both companies exhibit persistent implementation gaps in FPIC and equitable benefit‐sharing. The study demonstrates that certification can improve forest management, but its transformative potential is constrained by weak state enforcement, asymmetric power relations, and market incentives favoring reputational legitimacy over substantive change. These findings contribute to debates on non‐state governance and corporate sustainability in tropical forestry.