IDEAS home Printed from https://ideas.repec.org/a/wly/reggov/v15y2021i4p1183-1208.html
   My bibliography  Save this article

Private regulation, public policy, and the perils of adverse ontological selection

Author

Listed:
  • Janina Grabs
  • Graeme Auld
  • Benjamin Cashore

Abstract

What problems can private regulatory governance solve, and what role should public policy play? Despite access to the same empirical evidence, the current scholarship on private governance offers widely divergent answers to these questions. Through a critical review, this paper details five ontologically distinct academic logics – calculated strategic behavior; learning and experimentalist processes; political institutionalism; global value chain and convention theory; and neo‐Gramscian accounts – that offer divergent conclusions based on the particular facets of private governance they illuminate, while ignoring those they obfuscate. In this crowded marketplace of ideas, scholars and practitioners are in danger of adverse ontological selection whereby certain approaches and insights are systematically ignored and certain problem conceptions are prioritized over others. As a corrective, we encourage scholars to make their assumptions explicit, and occasionally switch between logics, to better understand private governance's problem‐solving potential and its interactions with public policy.

Suggested Citation

  • Janina Grabs & Graeme Auld & Benjamin Cashore, 2021. "Private regulation, public policy, and the perils of adverse ontological selection," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1183-1208, October.
  • Handle: RePEc:wly:reggov:v:15:y:2021:i:4:p:1183-1208
    DOI: 10.1111/rego.12354
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rego.12354
    Download Restriction: no

    File URL: https://libkey.io/10.1111/rego.12354?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wil Martens & Bastiaan Linden & Manuel Wörsdörfer, 2019. "How to Assess the Democratic Qualities of a Multi-stakeholder Initiative from a Habermasian Perspective? Deliberative Democracy and the Equator Principles Framework," Journal of Business Ethics, Springer, vol. 155(4), pages 1115-1133, April.
    2. David L. Levy & Daniel Egan, 2003. "A Neo‐Gramscian Approach to Corporate Political Strategy: Conflict and Accommodation in the Climate Change Negotiations," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 803-829, June.
    3. Gilles Grolleau & Sandoss BenAbid, 2001. "Fair trading in markets for credence goods," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 36(4), pages 208-214, July.
    4. Brécard, Dorothée, 2014. "Consumer confusion over the profusion of eco-labels: Lessons from a double differentiation model," Resource and Energy Economics, Elsevier, vol. 37(C), pages 64-84.
    5. Luc Fransen, 2015. "The politics of meta-governance in transnational private sustainability governance," Policy Sciences, Springer;Society of Policy Sciences, vol. 48(3), pages 293-317, September.
    6. Dentoni, Domenico & Hospes, Otto & Ross, R. Brent, 2012. "Managing Wicked Problems in Agribusiness: The Role of Multi-Stakeholder Engagements in Value Creation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(B), pages 1-12, December.
    7. Graeme Auld & Lars H. Gulbrandsen, 2010. "Transparency in Nonstate Certification: Consequences for Accountability and Legitimacy," Global Environmental Politics, MIT Press, vol. 10(3), pages 97-119, August.
    8. Sabel, Charles & O'Rourke, Dara & Fung, Archon, 2000. "Ratcheting labor standards : regulation for continuous improvement in the global workplace," Social Protection Discussion Papers and Notes 23071, The World Bank.
    9. Paul Ingenbleek & Matthew T.G. Meulenberg, 2006. "The battle between “good” and “better”: A strategic marketing perspective on codes of conduct for sustainable agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 22(4), pages 451-473.
    10. Rick Harbaugh & John W. Maxwell & Beatrice Roussillon, 2011. "Label Confusion: The Groucho Effect of Uncertain Standards," Management Science, INFORMS, vol. 57(9), pages 1512-1527, February.
    11. Vandergeest, Peter, 2007. "Certification and Communities: Alternatives for Regulating the Environmental and Social Impacts of Shrimp Farming," World Development, Elsevier, vol. 35(7), pages 1152-1171, July.
    12. Benoit Daviron & Isabelle Vagneron, 2011. "From Commoditisation to De‐commoditisation … and Back Again: Discussing the Role of Sustainability Standards for Agricultural Products," Development Policy Review, Overseas Development Institute, vol. 29(1), pages 91-113, January.
    13. Büthe Tim, 2010. "Private Regulation in the Global Economy: Guest Editor's Note," Business and Politics, De Gruyter, vol. 12(3), pages 1-2, October.
    14. Tad Mutersbaugh, 2005. "Fighting Standards with Standards: Harmonization, Rents, and Social Accountability in Certified Agrofood Networks," Environment and Planning A, , vol. 37(11), pages 2033-2051, November.
    15. David Levy & Juliane Reinecke & Stephan Manning, 2016. "The Political Dynamics of Sustainable Coffee: Contested Value Regimes and the Transformation of Sustainability," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 364-401, May.
    16. Büthe Tim, 2010. "Private Regulation in the Global Economy: A (P)Review," Business and Politics, De Gruyter, vol. 12(3), pages 1-40, October.
    17. Helen Tregidga & Kate Kearins & Eva Collins, 2019. "Towards Transparency? Analysing the Sustainability Governance Practices of Ethical Certification," Social and Environmental Accountability Journal, Taylor & Francis Journals, vol. 39(1), pages 44-69, January.
    18. Bartley Tim, 2010. "Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia," Business and Politics, De Gruyter, vol. 12(3), pages 1-36, October.
    19. Mayer, Frederick & Gereffi, Gary, 2010. "Regulation and Economic Globalization: Prospects and Limits of Private Governance," Business and Politics, Cambridge University Press, vol. 12(3), pages 1-25, October.
    20. Antje Wahl & Gary Bull, 2014. "Mapping Research Topics and Theories in Private Regulation for Sustainability in Global Value Chains," Journal of Business Ethics, Springer, vol. 124(4), pages 585-608, November.
    21. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Clark University, vol. 86(2), pages 197-222, April.
    22. Andreas Georg Scherer & Andreas Rasche & Guido Palazzo & André Spicer, 2016. "Managing for Political Corporate Social Responsibility: New Challenges and Directions for PCSR 2.0," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 273-298, May.
    23. Ford,Cristie, 2017. "Innovation and the State," Cambridge Books, Cambridge University Press, number 9781107644892.
    24. Carrington, Michal J. & Neville, Benjamin A. & Whitwell, Gregory J., 2014. "Lost in translation: Exploring the ethical consumer intention–behavior gap," Journal of Business Research, Elsevier, vol. 67(1), pages 2759-2767.
    25. Eleni Papaoikonomou & Gerard Ryan & Matias Ginieis, 2011. "Towards a Holistic Approach of the Attitude Behaviour Gap in Ethical Consumer Behaviours: Empirical Evidence from Spain," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(1), pages 77-88, February.
    26. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Taylor & Francis Journals, vol. 86(2), pages 197-222, April.
    27. Robert Falkner, 2003. "Private Environmental Governance and International Relations: Exploring the Links," Global Environmental Politics, MIT Press, vol. 3(2), pages 72-87, May.
    28. Luc Fransen & Brian Burgoon, 2012. "A market for worker rights: Explaining business support for international private labour regulation," Review of International Political Economy, Taylor & Francis Journals, vol. 19(2), pages 236-266.
    29. Maja Tampe, 2018. "Leveraging the Vertical: The Contested Dynamics of Sustainability Standards and Labour in Global Production Networks," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 43-74, March.
    30. Wendt, Alexander E., 1987. "The agent-structure problem in international relations theory," International Organization, Cambridge University Press, vol. 41(3), pages 335-370, July.
    31. Ralph Espach, 2006. "When is Sustainable Forestry Sustainable? The Forest Stewardship Council in Argentina and Brazil," Global Environmental Politics, MIT Press, vol. 6(2), pages 55-84, May.
    32. Green Jessica F, 2010. "Private Standards in the Climate Regime: The Greenhouse Gas Protocol," Business and Politics, De Gruyter, vol. 12(3), pages 1-39, October.
    33. Michael F. Maniates, 2001. "Individualization: Plant a Tree, Buy a Bike, Save the World?," Global Environmental Politics, MIT Press, vol. 1(3), pages 31-52, August.
    34. Raynolds, Laura T., 2009. "Mainstreaming Fair Trade Coffee: From Partnership to Traceability," World Development, Elsevier, vol. 37(6), pages 1083-1093, June.
    35. Henrik Vetter & Kostas Karantininis, 2002. "Moral hazard, vertical integration, and public monitoring in credence goods," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(2), pages 271-279, June.
    36. Schouten, Greetje & Leroy, Pieter & Glasbergen, Pieter, 2012. "On the deliberative capacity of private multi-stakeholder governance: The Roundtables on Responsible Soy and Sustainable Palm Oil," Ecological Economics, Elsevier, vol. 83(C), pages 42-50.
    37. Macdonald, Emma K. & Sharp, Byron M., 2000. "Brand Awareness Effects on Consumer Decision Making for a Common, Repeat Purchase Product:: A Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 5-15, April.
    38. Tim Büthe & Walter Mattli, 2011. "The New Global Rulers: The Privatization of Regulation in the World Economy," Economics Books, Princeton University Press, edition 1, number 9470.
    39. Green, Jessica F., 2010. "Private Standards in the Climate Regime: The Greenhouse Gas Protocol," Business and Politics, Cambridge University Press, vol. 12(3), pages 1-37, October.
    40. McKeown, Timothy J., 1999. "Case Studies and the Statistical Worldview: Review of King, Keohane, and Verba's Designing Social Inquiry: Scientific Inference in Qualitative Research," International Organization, Cambridge University Press, vol. 53(1), pages 161-190, January.
    41. Laura Raynolds & Douglas Murray & Andrew Heller, 2007. "Regulating sustainability in the coffee sector: A comparative analysis of third-party environmental and social certification initiatives," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(2), pages 147-163, June.
    42. repec:kap:iaecre:v:17:y:2011:i:1:p:77-88 is not listed on IDEAS
    43. Ponte, Stefano, 2008. "Greener than Thou: The Political Economy of Fish Ecolabeling and Its Local Manifestations in South Africa," World Development, Elsevier, vol. 36(1), pages 159-175, January.
    44. Cashore, Benjamin & Nathan, Iben, 2020. "Can finance and market driven (FMD) interventions make “weak states” stronger? Lessons from the good governance norm complex in Cambodia," Ecological Economics, Elsevier, vol. 177(C).
    45. Taylor, Peter Leigh, 2005. "In the Market But Not of It: Fair Trade Coffee and Forest Stewardship Council Certification as Market-Based Social Change," World Development, Elsevier, vol. 33(1), pages 129-147, January.
    46. Abbott, Kenneth W. & Green, Jessica F. & Keohane, Robert O., 2016. "Organizational Ecology and Institutional Change in Global Governance," International Organization, Cambridge University Press, vol. 70(2), pages 247-277, April.
    47. Lars H. Gulbrandsen, 2004. "Overlapping Public and Private Governance: Can Forest Certification Fill the Gaps in the Global Forest Regime?," Global Environmental Politics, MIT Press, vol. 4(2), pages 75-99, May.
    48. Thomas Hale & Charles Roger, 2014. "Orchestration and transnational climate governance," The Review of International Organizations, Springer, vol. 9(1), pages 59-82, March.
    49. Braithwaite,John & Drahos,Peter, 2000. "Global Business Regulation," Cambridge Books, Cambridge University Press, number 9780521784993.
    50. Hall, Peter A. & Taylor, Rosemary C. R., 1996. "Political science and the three new institutionalisms," MPIfG Discussion Paper 96/6, Max Planck Institute for the Study of Societies.
    51. Mayer Frederick & Gereffi Gary, 2010. "Regulation and Economic Globalization: Prospects and Limits of Private Governance," Business and Politics, De Gruyter, vol. 12(3), pages 1-27, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Janina Grabs & Rachael D. Garrett, 2023. "Goal-Based Private Sustainability Governance and Its Paradoxes in the Indonesian Palm Oil Sector," Journal of Business Ethics, Springer, vol. 188(3), pages 467-507, December.
    2. Fiona Kinniburgh & Henrik Selin & Noelle E. Selin & Miranda Schreurs, 2023. "When private governance impedes multilateralism: The case of international pesticide governance," Regulation & Governance, John Wiley & Sons, vol. 17(2), pages 425-448, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Dietz & Janina Grabs & Andrea Estrella Chong, 2021. "Mainstreamed voluntary sustainability standards and their effectiveness: Evidence from the Honduran coffee sector," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 333-355, April.
    2. Auld Graeme & Cashore Benjamin & Balboa Cristina & Bozzi Laura & Renckens Stefan, 2010. "Can Technological Innovations Improve Private Regulation in the Global Economy?," Business and Politics, De Gruyter, vol. 12(3), pages 1-42, October.
    3. Baudot, Lisa & Cooper, David J., 2022. "Regulatory mandates and responses to uncomfortable knowledge: The case of country-by-country reporting in the extractive sector," Accounting, Organizations and Society, Elsevier, vol. 99(C).
    4. Janina Grabs, 2020. "Assessing the institutionalization of private sustainability governance in a changing coffee sector," Regulation & Governance, John Wiley & Sons, vol. 14(2), pages 362-387, April.
    5. Khalid Nadvi & Gale Raj‐Reichert, 2015. "Governing health and safety at lower tiers of the computer industry global value chain," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 243-258, September.
    6. Graeme Auld & Stefan Renckens & Benjamin Cashore, 2015. "Transnational private governance between the logics of empowerment and control," Regulation & Governance, John Wiley & Sons, vol. 9(2), pages 108-124, June.
    7. Agni Kalfagianni, 2014. "Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities," Journal of Business Ethics, Springer, vol. 122(2), pages 307-320, June.
    8. van der Ven, Hamish & Sun, Yixian & Cashore, Benjamin, 2021. "Sustainable commodity governance and the global south," Ecological Economics, Elsevier, vol. 186(C).
    9. FabianG. Neuner, 2020. "Public Opinion and the Legitimacy of Global Private EnvironmentalGovernance," Global Environmental Politics, MIT Press, vol. 20(1), pages 60-81, February.
    10. Bartley Tim, 2010. "Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia," Business and Politics, De Gruyter, vol. 12(3), pages 1-36, October.
    11. Benjamin Cashore & Jette Steen Knudsen & Jeremy Moon & Hamish van der Ven, 2021. "Private authority and public policy interactions in global context: Governance spheres for problem solving," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1166-1182, October.
    12. Helen Packer & Wilf Swartz & Yoshitaka Ota & Megan Bailey, 2019. "Corporate Social Responsibility (CSR) Practices of the Largest Seafood Suppliers in the Wild Capture Fisheries Sector: From Vision to Action," Sustainability, MDPI, vol. 11(8), pages 1-24, April.
    13. Stefan Renckens & Graeme Auld, 2022. "Time to certify: Explaining varying efficiency of private regulatory audits," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 500-518, April.
    14. Martin Fougère & Nikodemus Solitander, 2020. "Dissent in Consensusland: An Agonistic Problematization of Multi-stakeholder Governance," Journal of Business Ethics, Springer, vol. 164(4), pages 683-699, July.
    15. Bennett, Elizabeth A., 2017. "Who Governs Socially-Oriented Voluntary Sustainability Standards? Not the Producers of Certified Products," World Development, Elsevier, vol. 91(C), pages 53-69.
    16. Sandra Moog & André Spicer & Steffen Böhm, 2015. "The Politics of Multi-Stakeholder Initiatives: The Crisis of the Forest Stewardship Council," Journal of Business Ethics, Springer, vol. 128(3), pages 469-493, May.
    17. Auld, Graeme & Renckens, Stefan, 2021. "Private sustainability governance, the Global South and COVID-19: Are changes to audit policies in light of the pandemic exacerbating existing inequalities?," World Development, Elsevier, vol. 139(C).
    18. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    19. Wenlong He & Wei Yang & Seong-jin Choi, 2018. "The Interplay Between Private and Public Regulations: Evidence from ISO 14001 Adoption Among Chinese Firms," Journal of Business Ethics, Springer, vol. 152(2), pages 477-497, October.
    20. Lasse Folke Henriksen & Stefano Ponte, 2018. "Public orchestration, social networks, and transnational environmental governance: Lessons from the aviation industry," Regulation & Governance, John Wiley & Sons, vol. 12(1), pages 23-45, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:reggov:v:15:y:2021:i:4:p:1183-1208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1748-5991 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.