Issues and Challenges of Oil Palm Cooperatives towards Greater Sustainability: A Proposal of Conceptual Framework

In the cooperative sector, the notion of sustainability is not new as it is being regarded as changemaker that plays an essential role in implementing Sustainable Development Goals by 2030. However, in most cooperative studies, the issues of sustainability, namely climate change, economic uncertainties and social inclusivity are neglected, even though they are often at the crux of global trends. Indeed, there is a crucial need to integrate social, economic and environmental dimensions into the concept and practice of both, sustainability and cooperative sector simultaneously. Given the oil palm cooperatives are among the essential players in the palm oil industry, the potential of cooperatives to engage in sustainability is underestimated and limited research has examined their sustainability-oriented practices (SOP) implementation. However, the complexity and multidimensional sustainability issues have negatively alleged upon the palm oil industry, such as deforestation, transboundary haze, loss of biodiversity and the poor wellbeing of smallholders and plantation workers. These sustainability issues, consequently, motivate this study to focus on the oil palm cooperatives which remains crucial and relevant as Malaysia’s socio-economic contributor, albeit the negative allegations from certain quarters. Thus, the aim of this study is to initiate a discourse about SOP in the oil palm cooperatives, primarily comprised of independent smallholding oil palm growers. The outcome of this study is to suggest a conceptual framework which will motivate the smallholders to implement SOP, that ultimately distinguishes Malaysia as the world’s leading sustainable palm oil producer. The present study, therefore, contributes to the literature on sustainability and cooperatives by recommending a conceptual framework towards greater sustainability and exceptional performance of the oil palm cooperatives in particular.