The Role of Business in Global Governance: Corporations as Norm-Entrepreneurs PDF
Preview The Role of Business in Global Governance: Corporations as Norm-Entrepreneurs
Global Issues Series General Editor: Jim Whitman This exciting new series encompasses three principal themes: the interaction of human and natural systems; cooperation and conflict; and the enactment of values. The series as a whole places an emphasis on the examination of complex systems and causal relations in political decision-making; problems of knowledge; authority, control and accountability in issues of scale; and the reconciliation of conflicting values and competing claims. Throughout the series the concentration is on an inte- gration of existing disciplines towards the clarification of political possibility as well as impending crises. Titles include: Berhanykun Andemicael and John Mathiason ELIMINATING WEAPONS OF MASS DESTRUCTION Prospects for Effective International Verification Mike Bourne ARMING CONFLICT The Proliferation of Small Arms Roy Carr-Hill and John Lintott CONSUMPTION, JOBS AND THE ENVIRONMENT A Fourth Way? John N. Clarke and Geoffrey R. Edwards (editors) GLOBAL GOVERNANCE IN THE TWENTY-FIRST CENTURY Malcolm Dando PREVENTING BIOLOGICAL WARFARE The Failure of American Leadership Neil Davison “NON-LETHAL” WEAPONS Nicole Deitelhoff and Klaus Dieter Wolf (editors) CORPORATE SECURITY RESPONSIBILITY? Corporate Governance Contributions to Peace and Security in Zones of Conflict Toni Erskine (editors) CAN INSTITUTIONS HAVE RESPONSIBILITIES? Collective Moral Agency and International Relations Annegret Flohr, Lothar Rieth, Sandra Schwindenhammer and Klaus Dieter Wolf THE ROLE OF BUSINESS IN GLOBAL GOVERNANCE Corporations as Norm-Entrepreneurs Brendan Gleeson and Nicholas Low (editors) GOVERNING FOR THE ENVIRONMENT Global Problems, Ethics and Democracy Beth K. Greener THE NEW INTERNATIONAL POLICING Roger Jeffery and Bhaskar Vira (editors) CONFLICT AND COOPERATION IN PARTICIPATORY NATURAL RESOURCE MANAGEMENT Ho-Won Jeong (editor) GLOBAL ENVIRONMENTAL POLICIES Institutions and Procedures APPROACHES TO PEACEBUILDING Alexander Kelle, Kathryn Nixdorff and Malcolm Dando CONTROLLING BIOCHEMICAL WEAPONS Adapting Multilateral Arms Control for the 21st Century W. Andy Knight A CHANGING UNITED NATIONS Multilateral Evolution and the Quest for Global Governance W. Andy Knight (editor) ADAPTING THE UNITED NATIONS TO A POSTMODERN ERA Lessons Learned Kelley Lee (editor) HEALTH IMPACTS OF GLOBALIZATION Towards Global Governance GLOBALIZATION AND HEALTH An Introduction Nicholas Low and Brendan Gleeson (editors) MAKING URBAN TRANSPORT SUSTAINABLE Catherine Lu JUST AND UNJUST INTERVENTIONS IN WORLD POLITICS Public and Private Robert L. Ostergard Jr. (editor) HIV, AIDS AND THE THREAT TO NATIONAL AND INTERNATIONAL SECURITY Graham S. Pearson THE UNSCOM SAGA Chemical and Biological Weapons Non-Proliferation THE SEARCH FOR IRAQ’S WEAPONS OF MASS DESTRUCTION Inspection, Verification and Non-Proliferation Andrew T. Price-Smith (editor) PLAGUES AND POLITICS Infectious Disease and International Policy Michael Pugh (editor) REGENERATION OF WAR-TORN SOCIETIES David Scott ‘THE CHINESE CENTURY’? The Challenge to Global Order Marco Verweij and Michael Thompson (editors) CLUMSY SOLUTIONS FOR A COMPLEX WORLD Governance, Politics and Plural Perceptions Bhaskar Vira and Roger Jeffery (editors) ANALYTICAL ISSUES IN PARTICIPATORY NATURAL RESOURCE MANAGEMENT Simon M. Whitby BIOLOGICAL WARFARE AGAINST CROPS Global Issues Series Series Standing Order ISBN 978–0–333–79483–8 (outside North America only) You can receive future titles in this series as they are published by placing a standing order. 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Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England The Role of Business in Global Governance Corporations as Norm-Entrepreneurs Annegret Flohr Research Associate, Department of Political Science, Technische Universität Darmstadt, Germany Lothar Rieth Research Associate, Department of Political Science, Technische Universität Darmstadt, Germany Sandra Schwindenhammer Research Associate, Department of International Politics, FernUniversität in Hagen, Germany and Klaus Dieter Wolf Professor for International Relations at Technische Universität Darmstadt and Deputy Director of the Peace Research Institute Frankfurt (PRIF), Germany © Annegret Flohr, Lothar Rieth, Sandra Schwindenhammer and Klaus Dieter Wolf 2010 Softcover reprint of the hardcover 1st edition 2010 978-0-230-24397-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-31871-1 ISBN 978-0-230-27753-3 (eBook) DOI 10.1057/9780230277533 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 19 18 17 16 15 14 13 12 11 10 Contents List of Illustrations vii Foreword ix Acknowledgments x Notes on the Authors xi List of Abbreviations xii Part I The Research Context 1 Introduction: Corporate Norm-entrepreneurship and Global Governance 3 1.1 Corporations as political actors: from problem causers to problem solvers? 7 1.2 Corporate norm-entrepreneurship and the future global governance architecture 13 1.3 Aim and structure of this book 16 2 Basic Concepts and Assumptions 18 2.1 W hat is corporate norm-entrepreneurship? 18 2.2 How to identify corporate norm-entrepreneurs? 23 2.3 How to explain corporate norm-entrepreneurship? 29 Part II Causes of Corporate Norm-entrepreneurship 3 The Social and Political Environment 41 3.1 Transnational public 41 3.2 The home state 52 3.3 The heterogeneity of regulatory environments 66 4 Actor Characteristics 81 4.1 Corporate vulnerability 81 4.2 O wnership structure 94 4.3 Corporate culture 108 5 Institutional Arrangements 126 5.1 Structural autonomy 126 5.2 Flexibility 136 5.3 Legitimacy perceptions 146 v vi Contents 6 Comparisons for Conclusions: Different Paths to Corporate Norm-entrepreneurship 161 6.1 Necessary pre-conditions 162 6.2 The rationalist narrative – from vulnerability to norm-entrepreneurship 164 6.3 The constructivist narrative – norm-entrepreneurship via home state socialization 165 6.4 The pull factors 166 Part III Evaluating Corporate Norm-entrepreneurship 7 The Effectiveness of Transnational Private Governance 171 7.1 Developing a conceptual frame for analyzing the effectiveness of institutions 171 7.2 Empirical application 174 7.3 Comparing the effectiveness of self-regulatory arrangements 194 8 The Legitimacy of Transnational Private Governance 202 8.1 A governance perspective on the legitimacy of corporate norm-entrepreneurship 203 8.2 The legitimacy potential of different types of corporate norm-entrepreneurship 211 9 A New Architecture for Global Governance 232 9.1 T he gap between likely and meaningful corporate contributions to norm setting and norm development 233 9.2 T he constitutional background of policy recommendations 236 9.3 General policy guidelines 243 9.4 Policy recommendations 248 Bibliography 256 Index 281 Illustrations Tables 2.1 Types of corporate norm-entrepreneurship 20 2.2 I nitiative-specific indicators of corporate norm-entrepreneurship 28 2.3 D egrees of norm-entrepreneurship 28 2.4 Key data about the systematic norm-entrepreneurs 30 2.5 Hypotheses to explain corporate norm-entrepreneurship 36 3.1 Industry sector hits on the business and human rights website 47 3.2 Home state distribution per systematic norm-entrepreneur 56 3.3 Corporate home states and their ERRI ranking 2002 56 3.4 Different types of business-government relations 61 3.5 Total number of corporate host states 70 3.6 Corporate host states of systematic norm-entrepreneurs located in selected RTA 70 3.7 Corporate home and host states in the Global Competitiveness Index (GCI) ranking 2008–09 72 3.8 The home state and host state variance in the Global Competitiveness Index (GCI) ranking 2008–09 74 4.1 Norm-entrepreneurship (NE) and product type 87 4.2 Norm-entrepreneurship (NE) and brand status (global level) 87 4.3 Norm-entrepreneurship (NE) and brand status (national level) 88 4.4 Systematic/sporadic Norm-entrepreneurs, brand value, and product type 91 4.5 Ownership structure of systematic norm-entrepreneurs 104 5.1 Steering instruments and norm-entrepreneurship 133 5.2 The flexibility of the six selected initiatives 142 5.3 Flexibility assessment of additional initiatives 144 5.4 Legitimacy criteria in the public sphere 151 7.1 Different dimensions of the effectiveness of self-regulatory arrangements 172 7.2 Case selection of comprehensive individual and collective self-regulatory arrangements 175 7.3 Suspicious transactions reported in Switzerland 181 7.4 GRI Reports using G2 or G3 190 7.5 GRI reports with application level A and A+ 191 7.6 Effectiveness records of self-regulatory arrangements 195 8.1 The legitimacy potential of different types of corporate norm-entrepreneurship 228 vii viii Illustrations Figures 2.1 C orporate norm-entrepreneurs by type 29 2.2 V ariables encouraging corporate norm-entrepreneurship 32 3.1 Ratio of sporadic norm-entrepreneurs vs. norm-consumers within the Global Compact 62 3.2 Ratio of sporadic norm-entrepreneurs and norm-consumers within the GRI 63 4.1 Shareholder structure of sporadic and systematic norm-entrepreneurs (percentage of public, institutional investors, and individual owners) 103 6.1 Paths to corporate norm-entrepreneurship 164 9.1 B ridging the gap between the business case and the public case in corporate norm-entrepreneurship 235 Foreword In this book the new political role of corporations in the execution of trans- national governance functions is analyzed. Governance beyond the state faces considerable challenges since economic globalization has exceeded the capabilities of any single state and even of intergovernmental govern- ance systems to provide public goods effectively. Against this background, new forms of self-regulation, notably in the socioeconomic and environ- mental fields, are emerging in which business corporations participate in norm setting. There is a shift in the division of labor between the public and the private sector in the provision of governance functions. By conceptualizing this role change of business actors as corporate norm- entrepreneurship and employing a coherent set of criteria for its evaluation this book examines to what extent the contributions by private norm- entrepreneurs to global governance can be meaningful supplements or even substitutes for public regulation. We believe that the results of our research will contribute to a better understanding of the potential and the limits of private self-regulatory arrangements as components of a future global governance architecture. We take stock of private contributions to transnational governance, investigate under what conditions which kinds of contributions can be expected, and evaluate their implications for the effectiveness and legitimacy of governance beyond the state. ix
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