Strategies, functions and benefits of forest certification in wood products marketing: Perspectives of Finnish suppliers

This study examined the strategic importance and marketing functions of forest certification in the Finnish wood products industry, as well as the benefits of certification to suppliers. A nationwide survey was conducted to examine prevailing perceptions in both chain-of-custody certified and non-certified companies. Personal interviews were conducted using a structured questionnaire from September to December 2004 with 50 Finnish companies that supply primary and value-added wood products, half of which had a chain-of-custody certificate from the Finnish Forest Certification System. The results indicate that certified companies are typically profiled as primary wood producers, mainly focused on export to the United Kingdom and Germany where there is strong demand for certified products. In certified companies, forest certification was considered important for indicating a company's sense of responsibility, for keeping market share and selling products in an existing market. Employees of certified companies perceived forest certification as a reactive measure against market pressure, while employees of non-certified companies expected that certification would help in the exploitation of new markets. Certified companies did not fully exercise their right to use certification labels; they used minimal cost and effort in deploying existing channels to demonstrate that their products were certified. Charging a price premium was not possible for most certified companies. Although certified companies tended to gain improved customer retention and satisfaction, in addition to a positive public reputation, certification did not generally help them to improve their financial performance.