Increasing economic competition combined with the powerful
threat of transnational activism are pushing firms to develop new
political strategies. Over the past decade a growing number of
corporations have adopted policies of industry self-regulation
--corporate codes of conduct, social and environmental standards,
and auditing and monitoring systems. A Public Role for the Private
Sector explores the phenomenon of industry self-regulation through
three different cases --environment, labor, and information privacy
--where corporate leaders appear to be converging on industry
self-regulation as the appropriate response to competing pressures.
Political and economic risks, reputational effects, and learning
within the business community all influence the adoption of a
self-regulatory strategy, but there are wide variations in the
strength and character of it across industries and issue areas.
Industry self-regulation raises significant questions about the
place of the private sector in regulation and governance, and the
accountability, legitimacy and power of industry at a time of rapid
globalization.
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