["Business Strategy and the Environment, Volume 35, Issue 4, Page 5394-5409, May 2026. ", "\nABSTRACT\nSustainability labels and certifications are widely promoted as tools for guiding markets toward fair and environmentally responsible practices. However, research shows that they often fall short of their transformative ambitions, becoming fragmented, confusing, or vulnerable to being captured by powerful actors. Existing studies focus mainly on credibility, consumer behavior, or firm performance, leaving underexplored the ethical processes through which certifications translate, reshape, or dilute sustainability ideals. This paper addresses this gap by introducing a syncretic ethics perspective—an approach that examines how heterogeneous values are blended and negotiated within certification systems. Drawing on insights from sustainability governance and syncretism studies, the paper identifies four mechanisms through which certification schemes may sustain incremental change rather than systemic transformation: (1) translating broad ideals into narrow metrics, (2) normalizing compromise to facilitate adoption, (3) providing reassurance that stabilizes legitimacy, and (4) governance arrangements that privilege dominant actors. Illustrations from Fairtrade, Rainforest Alliance, carbon‐neutral labels, and B‐Corp clarify how these mechanisms operate in practice. The paper advances the literature by conceptualizing certifications as normative infrastructures rather than neutral signals, and by specifying the conditions—transparent translation, participatory governance, and rigorous accountability—under which certification can support more ambitious sustainability transitions. This framework enriches debates on sustainability strategy by clarifying how the ethical design and governance of labels shape their capacity to drive meaningful change.\n"]