Transnational Business Governance Interactions

From agriculture to sport and from climate change to indigenous rights, transnational regulatory regimes and actors are multiplying and interacting with poorly understood effects. This interdisciplinary book investigates whether, how and by whom transnational business governance interactions (TBGIs) can be harnessed to improve the quality of transnational regulation and advance the interests of marginalized actors.

This special issue demonstrates the importance of interactions in transnational business governance. The number of schemes applying non-state authority to govern business conduct across borders has vastly expanded in numerous issue areas. As these initiatives proliferate, they increasingly interact with one another and with state-based regimes. The key challenge is to understand the implications of these interactions for regulatory capacity and performance, and ultimately for social and environmental impact. In this introduction, we propose an analytical framework for the study of transnational business governance interactions. The framework disaggregates the regulatory process to identify potential points of interaction, and suggests analytical questions that probe the key features of interactions at each point.

Overlaps and interactions among diverse legal rules, actors and orders have long preoccupied legal scholars. This preoccupation has intensified in recent years as transnational efforts to regulate business have proliferated. This proliferation has led to increasingly frequent and intense interactions among transnational regulatory actors and programs. These transnational business governance interactions (TBGI) are the subject of an emerging interdisciplinary research agenda. This paper situates the TBGI research agenda in the broader field of transnational legal theory by presenting a critical review of the ways in which legal scholars have addressed the phenomenon of governance interactions. Legal scholars frequently recognize the importance of transnational governance interactions, but their accounts are tentative and incomplete for the most part. Scholars bring varying -- often sharply divergent -- theoretical, methodological and normative perspectives to bear on the issue. Some scholars focus on rule formation, others on monitoring or adjudication. Some investigate cooperation and convergence, others conflict and competition. Some examine interactions within a particular organization or program, others among programs or even between entire normative orders. Some emphasize description or explanation, others evaluation or prescription. In short, while understanding intersections among the multiple sites, scales and instances of law is a central concern of transnational legal scholarship, the picture that emerges is incomplete and fragmented.

Most transnational regulatory problems involve technical systems: extended sets of productive connections between humans, organized knowledge, and material objects. The functioning and relations between transnational business governance (TBG) schemes in any particular issue area are usually shaped by these technical systems. These technical systems and the material world that they interact with are not simply exogenous environments for TBG schemes. Individual TBG schemes can enhance their power and influence by expanding their function in a technical system, by incorporating the material aspects of the system into their activities, or by producing the system's technical knowledge. I hypothesize that where a robust technical system exists, the degree of integration and the need for coordination of the activities it involves will mean that in most cases that technical system will be coordinated overall by only one TBG scheme. There are two exceptions: where technical systems overlap; or where the system is so weak that competitive pressures outweigh the factors contributing to specialization. The article develops these themes by drawing on theories that have focused on the social and political aspects of technical systems. The article identifies the contributions and limits of these theories and of a focus on technical systems in analyzing interactions among TBG schemes. The relevance of the theoretical points is assessed with regard to the TBG schemes that are active in global finance.

This article analyses the United Nations (UN) Guidelines on Business and Human Rights adopted in 2011 by the UN Human Rights Council from the perspective of Transnational Business Governance Interactions (TBGI) analytical framework (Eberlein et al. 2014). The article identifies and discusses dimensions of interaction and components of regulatory governance which characterise the Guiding Principles, focusing in particular on the rule formation and implementation. The article notes that the Guiding Principles actively enrolled other actors for the rule-making process ensuring support in a politically and legally volatile field. It identifies mutual 'piggy-backing' by the Guiding Principles and other TBGI schemes, complementing the Principles' very limited limitation and enforcement modalities and lending support to the rule-making and implementation of other schemes. The article concludes that the UN Guiding Principles are unique in several respects of relevance to transnational business governance interaction and indicate the relevance of the TBGI approach to public regulatory transnational business governance initiatives. The analysis of the Guiding Principles as interactional transnational business governance suggests that this form of governance offers prospects for public institutions as a means towards regulating global sustainability concerns.

This book deals with a key feature of globalization: the rise of regulation beyond the state. It examines the emergence of transnational regulatory cooperation between public and private actors and pursues an inquiry that is at once legal, empirical and theoretical. It asks why a private actor and an international organization would regulate cooperatively and what this tells us about the material meaning of concepts such as 'expertise', 'authority' and 'legitimacy' in specific domains of global governance. Additionally, the book addresses the structures and patterns in which cooperation evolves and how this affects the broader global order. It does so through an investigation of two public-private cooperative agreements: one between the International Standards Organization, the Organisation for Economic Co-operation and Development, the Global Compact and the International Labor Organization and one between the International Olympic Committee and the United Nations Environment Programme.

This paper analyzes interactions within standard-setting networks in the area of social and labor rights. We examine the shape of transnational business governance interactions (TBGI), pathways, and interaction mechanisms in three sectors: garments, toys and agriculture. Our comparative analysis of each of these sectors reveals meaningful differences in both the organization of regulation networks and the resulting level of competition among participants. Overall, we find that the creation of a more inclusive and more coherent standard in a whole business sector comes with the cost of weaker rules and less monitoring. These industry-specific observations provide a springboard for future studies of TBGI.

This volume explores a variety of forms of transnational private governance where non-state actors cooperate across borders to establish rules and standards accepted as legitimate by other agents. Transnational private governance is a core feature of the devolution of power that we observe in the global realm and that is bringing about new forms of authority. Transnational Private Governance provides theoretically and empirically informed insights into the interactions between states and non-state actors including domains beyond intergovernmental organizations, conventional non-governmental organizations, and multinational enterprises, covering a wide range of arrangements, from highly formal devolutions of power to lax and informal platforms of interaction between private actors. Contributing to the latest generation of globalization studies, the authors consider the relationship between states and markets as closely integrated and seek to broaden the scope of enquiry by including new patterns and agents of change on a transnational basis. This book will be of great interest to researchers and students of political science, international political economy, economics, business studies, globalisation and law.

The paper analyzes the process of global diffusion of Corporate Social Responsibility (CSR) in the oil industry and how interactions between different actors have contributed to this outcome. It starts from the empirical puzzle that CSR has spread globally among transnational corporations since the mid 1990s (diffusion of CSR as a dependent variable). To explain this phenomenon, the paper presents a theoretical argument based on insights from sociological neo-institutionalism. It uses the concept of organizational fields as social spaces where organizations interact with one another. The structuration of an organizational field leads to processes of homogenization among the organizations belonging to it. Empirically, the paper explores the case of the oil industry. It can be shown that an organizational field has developed around the issue of CSR. Actors constituting the organizational field are identified, including multi-stakeholder-initiatives (e.g. EITI and Voluntary Principles), international organizations, NGOs, governmental actors and transnational corporations. The organizations interact with each other and engage in the definition and promotion of CSR standards. As a result of field-level interactions an increasingly dense normative transnational environment has developed where expectations regarding the appropriate behavior of corporations are formulated. With regard to the dependent variable, data on the diffusion of CSR is presented and similarities and differences between corporate CSR approaches are discussed.