Sustainable Palm Oil: What Drives it and Why Aren’t We There Yet?

Manuscript type: Research paper aims: This study explores the institutional pressure and motivation that drives Malaysian palm oil companies to embark on sustainability practices, uncovers impediments of substantive change in producing truly sustainable oil. Design/Methodology/Approach: A case methodology was employed, gathering primary secondary data through semistructured interviews with company’s personnel external stakeholders, informal conversations group discussions company workers, document analyses, observations. The neo-institutional legitimacy theory were used as lens explain findings. findings: results indicate both pressures internal issues have forced engage practices – primarily certification. Unlike independent stakeholder found previous studies, a chain reaction from NGOs competitors multinational buyers, whom turn put company, thus jeopardising their financial bottom lines. Regulatory pressures, conforming industry norms, wooing host country’s government, investors, financiers add motivation. Reputational problems labour shortages, business for sustainability, philanthropic nature family-owned firms are elements behind endeavour. barrier towards mainly caused by cost concern, technical difficulties, mindset unsupportive environment impracticalities safety equipment design. Originality/value: findings shed light inner motive barriers oil, understanding which is vital driving further changes development. limitation/Implication: restricted single hence, generalisation onto another context should be done cautious manner. Keywords: Organisational change, Neo-institutional theory, Legitimacy Palm Sustainability reporting practice JEL Classification: Q56