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Books > Business & Economics > Economics > Political economy
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Making Global Self-Regulation Effective in Developing Countries (Hardcover)
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Making Global Self-Regulation Effective in Developing Countries (Hardcover)
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As companies 'go global' they increasingly use factories and
facilities spread across the world. But who regulates their
activities in far flung corners of the world economy? In many
sectors such as textiles and apparel, chemicals, and forestry, the
answer is that companies regulate their own behavior through codes
and standards which they agree among themselves. The recent growth
in corporate self-regulation of labor, environmental and financial
practices has attracted the attention of scholars who have detailed
the number and content of self-regulatory efforts in various
sectors. Missing so far, however, has been an analysis of the
effectiveness and impact of self-regulation. Does self-regulation
actually work and under what conditions is it most likely to be
effective? The answer to this question is particularly important
for developing countries where corporate self-regulation is often
seen as substitute for weak governance structures.
The chapters in this volume evaluate the effectiveness of
self-regulation compared to other forms of global regulation.
Across sectors and states, corporate self-regulation works best
when those who are regulated have a voice in deciding the content
of codes and standards and when some mechanism of compliance exists
at the level of the state. Unfortunately, opportunities for voice
and state capacity for regulation are often lacking in developing
countries. Given this, the book suggests some minimal forms of
government action and participation by global actors that can make
global corporate self-regulation more effective in bettering
conditions in the developing world.
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