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Many firms vie to attain a strategic bottleneck position in their industry, as it promises superior value appropriation over an extended period. Using a mixed-methods approach, we investigated the power dynamics between bottleneck and challenger segments in the airline ticket distribution sector. Our study of the bottleneck formed by the global distribution system (GDS) firms reveals the mechanisms that these firms employed to maintain power, as well as the mechanisms that airlines in the challenger segment used to attain power. These mechanisms strongly influenced the momentum of power shifts as the industry evolved towards greater modularization; we show how they worked recursively in a process of power distribution dynamics during that evolution. In addition, these mechanisms explain the dynamics at work between the incumbent and challenger segments, with airlines increasing the pressure to modularize and the GDS firms resisting that pressure. Our findings contribute to the literature on industry architectural change and industry evolution by providing a comprehensive understanding of the power dynamics that affect when and how strategic bottlenecks dissolve. [ABSTRACT FROM AUTHOR]

Almost every contribution to the symposium shows that it is not possible to import LPE positions from the US without friction. At the same time, an LPE Europe research agenda exists that is theoretically sound and embedded in a concretising practice. This could be used to reorganise important social infrastructures in a stable, climate-friendly and innovative way.

Multi-stakeholder initiatives (MSIs)—private governance mechanisms involving firms, civil society organizations, and other actors deliberating to set rules, such as standards or codes of conduct, with which firms comply voluntarily—have become important tools for governing global business activities and the social and environmental consequences of these activities. Yet, this growth is paralleled with concerns about MSIs' deliberative capacity, including the limited inclusion of some marginalized stakeholders, bias toward corporate interests, and, ultimately, ineffectiveness in their role as regulators. In this article, we conceptualize MSIs as deliberative systems to open the black box of the different elements that make up the MSI polity and better understand how their deliberative capacity hinges on problems in different elements. On the basis of this conceptualization, we examine how deliberative mini-publics—forums in which a randomly selected group of individuals from a particular population engage in learning and facilitated deliberations about a topic—can improve the deliberative capacity of MSIs. [ABSTRACT FROM AUTHOR]

The article discusses the importance of complaints systems in improving private labor regulation in global value chains, using the Fair Labor Association (FLA) as an example. It highlights the significant limits that impede workers' outcomes and advocates for national, societal, and business improvements to system performance. It emphasizes the need for broad reforms to improve the effectiveness of complaint systems across private regulatory initiatives.

Although firms in diverse industries increasingly adopt private regulation of labor standards for workers in their global supply chains, growing scholarly evidence suggests that this approach has not generated sustainable improvements in working conditions for those workers. The authors draw on recent developments in institutional theory regarding the development of opaque institutional fields that cause the decoupling between practices and outcomes to develop a new explanation for the lack of sustainable improvement in labor practices in supply chains. Using qualitative and quantitative data from a global apparel supplier and a global home products retailer, they demonstrate the various ways in which opacity causes decoupling between private regulation practices of global firms and outcomes for workers in supply chains. [ABSTRACT FROM AUTHOR]

Firms are increasingly responding to social and environmental issues in highly complex and heterogeneous organizational fields that transcend national boundaries. Yet, we still have a limited understanding of how these fields are structured and the implications of structural variation on how issues are addressed over time. We advance theory in this area by arguing that issue fields are characterized by varying settlement constellations that structure these fields. We develop a typology of three settlement constellations—unified, fragmented, and bifurcated—and describe their impact on field structure and the challenges they raise for addressing field-defining issues. We then theorize the evolution of fields with different settlement constellations and explain how and why constellations are sustained over time as well as when they may change. Our paper helps advance theory on organizational fields, private regulation, and firm responses to social and environmental issues. More broadly, our paper highlights the unique position of organizational and institutional scholars to examine complex social and environmental issues, or "grand challenges." [ABSTRACT FROM AUTHOR]

Recent research shows that the focus of labor-standards advocacy by transnational civil society organizations (CSOs) has shifted to building the organizational capacity of workers' organizations in developing countries, suggesting cooperation between transnational CSOs and local trade unions potentially improving working conditions in global supply chains. However, scant attention has been paid to how the two actors interact in practice. Based on fieldwork in Cambodia, including in-depth interviews with garment sector stakeholders, this article examines the interaction between transnational CSOs and trade unions in improving working conditions in the garment industry. The data analysis shows that transnational CSOs and trade unions have distinct comparative advantages in improving working conditions. Rather than the conflicting relationship between CSOs and trade unions as suggested in the literature, this article demonstrates a complementary relationship between the two, indicating the significance of the cooperation between these actors in improving working conditions within global supply chains. [ABSTRACT FROM AUTHOR]

The forces that threaten to break apart private regulatory institutions are well known, but the forces that sustain them are not. Through a longitudinal inductive study of the Towards Sustainable Mining (TSM) program in the Canadian mining industry, we demonstrate how private regulatory institutions are sustained by strategically manipulating different aspects of an institution's stringency. Our findings show how shifts in external conditions decreased benefits of participation for firms, triggering institutional destabilization. We demonstrate how the interdependent mechanisms of hollowing—actions that ratchet down aspects of stringency associated with high compliance costs—and fortifying—actions that ratchet up aspects of stringency associated with low compliance costs—worked together to stabilize the institution by rebalancing the competing pressures that underpin it. However, these same mechanisms can hinder the ability of these institutions to substantively address the targeted issues, even as they become more stringent in some areas. Our study advances research on private regulation by showing how different aspects of stringency can be simultaneously ratcheted up and ratcheted down to sustain private regulatory institutions. Further, in positioning institutional stability as an ongoing negotiation, we elucidate the key custodial role of governing organizations like trade associations in institutional maintenance. Funding: Financial support fromthe Social Sciences and Humanities Research Council of Canada [Grant 752-2012-2294] is gratefully acknowledged. [ABSTRACT FROM AUTHOR]

With a focus on the concept of grounding, this special section argues that the politics of transnational private governance should be understood in the double meaning of, on the one hand, its local implementation and, on the other hand, practices of political contestation and translation. The concept of grounding thus allows for a localised focus on practices used by actors in transnational private governance. By doing so, we hope to make three contributions to the current debate. The first is to never lose sight that governance is first and foremost about politics; the second is to provide a conceptual framework making more explicit the intrinsic limits of transnational private governance efforts; the third is about the form of power exercised by transnational private regulatory initiatives in global production networks. This introduction provides historiographical and conceptual background to this special section, which brings in scholars across social sciences, including political science, sociology, law and philosophy. It introduces the contributions from research communities that usually remain separate in their analysis of standards used in global production networks in the domain of labour, environment, and human rights. [ABSTRACT FROM AUTHOR]

This article takes stock of the many private and public instruments enacted transnationally to tackle the pressing problem of deforestation, ecosystem conversion, and associated human rights violations caused by international demand for and trade in agricultural commodities. The article argues that non-financial due diligence based on no-conversion criteria, and in line with the United Nations Guiding Principles on Business and Human Rights, holds considerable potential for ensuring deforestation-free value chains by enrolling and scaling up firm-level supply-chain management systems and private standards. The article introduces the main features of a possible European Union measure that disciplines via non-financial due diligence the placing on the market of commodities and products associated with deforestation, ecosystem conversion, degradation of forests and ecosystems, and associated human rights violations. Such a measure would also have the effect of streamlining initiatives enacted by private authority. [ABSTRACT FROM AUTHOR]

With the proliferation of private regulation of food safety, governments have shown interests in engaging private schemes as co‐regulators. This raises the issue of accountability in private schemes; that is holding the bodies auditing the standards accountable. The ability to do so affects the integrity of private regulatory schemes. Holding auditors accountable can be conceived of as a principal–agent problem. This article analyses the two most widely used global private food safety standard schemes in the Australian food sector. The analysis shows that the existence of well‐developed accountability mechanisms and multiple principals has resulted in a multi‐layered and comprehensive system of accountability. Hence, holding auditors accountable to their principals does not appear to be a concern for governments considering to engage in co‐regulatory arrangements with private schemes. However, concerns about integrity have been raised. The prescriptive nature of the standards and the multitude of standard schemes with their own accountability arrangements has brought about a situation in which the individual auditors have to devote disproportionately much time to respond to the accountability mechanisms. Private regulation has proliferated in the food sector in order to manage food safety. Holding auditors accountable within the private standard schemes is important for their integrity. The article shows that the existence of multiple principals has resulted in a comprehensive system of multiple accountability, but some integrity issues remain [ABSTRACT FROM AUTHOR]

As a global epidemic of the social media age, COVID-19 has also resulted in an 'infodemic', which means the uncontrolled spreading of false information about the health situation. Spreading of health information is a special intersection point of the freedom of speech, freedom of science, and the fundamental right to life and health. The paper analyses the European and Hungarian legal framework for health communication from multiple perspectives. Regulatory challenges and solutions differ for professional health communication, commercial communication and health communication by laypeople. As with all forms of misinformation, private regulations of platform operators have a significant regulatory role to play in relation to health disinformation. As a result of the analysis, the paper provides a detailed regulatory map that also covers private regulation solutions and explores the factors that need to be considered when designing a comprehensive future regulation. [ABSTRACT FROM AUTHOR]

Voluntary Sustainability Standards have become a popular private governance framework for more sustainable agri‐food value chains. Yet, amid increasing concerns over the decoupling of standards and practices, it is still unclear to what extent agricultural standard requirements are implemented on the ground, and what may account for such differential implementation. This study employs a novel dataset of 659 Honduran coffee producers to examine this puzzle, focusing on the most widely used standards in the coffee sector (Common Code for the Coffee Community, Fairtrade, Fairtrade/organic, UTZ Certified, and Rainforest Alliance). It first presents results on implementation and behavioral change, based on matched groups of certified and non‐certified farmers, for eight representative social and environmental sustainability practices. Analyzing determinants of implementation success, it finds that the stringency of rules – if they are known by farmers – and the level of farm‐gate prices are significantly correlated with farmers' performance and lower levels of decoupling across a majority of indicators. These results speak to the importance of supporting small‐scale actors' awareness of and financial capacity to comply with proposed sustainability rules. [ABSTRACT FROM AUTHOR]

Globally, standards govern and organise the production and exchange of food. This article uses insights from science and technology studies to study the translation of multiple standards in the Ghanaian pineapple industry. The data demonstrate a translation process that is best described as nesting. Nesting is the process through which producers translate multiple standards into a locally contingent network of human and non-human actors, which is represented materially by the perfect fruit. For nesting to take place, producers develop intra-organisational collective practices that we call: prioritising standards, enrolling additives, and creating residues. The concept of nesting explains how food producers translate multiple standards, while simultaneously regaining agency. While nesting enables us to speak about what it means to implement the multiple standards that materially embody the consumers' vision of perfection, it also contributes to the sociology of standards, the literature on standards adoption, and organisation studies. [ABSTRACT FROM AUTHOR]

In this paper, we develop an account of the failure of private market-governance institutions to maintain market order by highlighting how control of their distributional function by powerful elites limits their regulatory capacity. We examine the New York Clearing House Association (NYCHA), a private market-governance institution among commercial banks in Manhattan that operated from 1853 to 1913. We find that the NYCHA, founded to achieve coordinating benefits among banks and to limit the effect of financial panics, evolved at the turn of the twentieth century into a device for large, elite market players to promote their own interests to the disadvantage of rival groups that were not members. Elites prevented the rest of the market from having equal opportunities to participate in emergency loan programs during bank panics. The elites’ control not only worsened the condition of the rest of the market by allowing non-member banks to fail; it also diminished the influence of the NYCHA and escalated market crises as bank failures spread to member banks. As a result, crises developed to an extent that exceeded the control of the NYCHA and ended up hurting even elites’ own interests. This paper suggests that institutional stability rests on a deliberate balance of interests between different market sectors and that, without such a balance, the distributional function of market-governance institutions plants the seeds of institutional destruction. [ABSTRACT FROM PUBLISHER]

Scholars of international relations and global governance are increasingly interested in the transnational commercial arbitration system. So far, they have tended to characterize the system as a form of private global governance. However, using a combination of empirical and legal analysis, this article draws attention to the critical role of the state in the transnational commercial arbitration system, and shows that both rule-making and enforcement in the system depend largely on interactions between private and public actors. By treating arbitration as a form of private governance, scholars run the risk of obscuring these interactions and hindering their understanding of how transnational economic activity is governed. This article therefore argues for a modest reorientation of global governance scholarship on transnational commercial arbitration in a direction that focuses more closely on private-public interaction. More broadly, this article suggests that understanding interactions between private and public actors is a key to understanding global governance in general, and it raises doubts about the analytical desirability of a sharp distinction between private and public forms of global governance. © 2010 Berkeley Electronic Press. All rights reserved.

Regulation of climate change is caught up in a stalemate. Differences between developed and developing countries prevent reaching an international agreement. Transnational private regulation has unclear legitimacy, effectiveness and enforcement. National efforts are valuable, but their limited geographical reach creates incentives for companies to outsource environmentally heavy activities to countries with weaker regimes, the socalled “carbon leakage” effect. As a result the carbon emissions among international supply chains amount to multiple yearly emissions of some developed countries. This gap needs to be closed if we aim for effective global solutions to climate change. The majority of scholars agree that no single regulatory tool alone can remedy the situation, but that a combination of public and private, mandatory and voluntary regimes is necessary. The author proposes that supply chain contracts are the missing piece in the international climate change regulatory matrix. The article discusses why, despite their potential, supply chain contracts have hitherto experienced only little attention and why they can be successful where other regulation fails. It concludes that the potential of private contracting should be triggered by adequate regulation.

Sociological approaches to law in both Germany and the UK have been characterized by internal divisions and divergent methodologies and aspirations. While, in the UK, empirical socio-legal studies have been a prominent way of studying how law shapes and is shaped by social institutions, in Germany, the "grand theory" of systemtheoretical approaches to law has had a lasting impact. In this Article, I discuss the epistemological contrast between these two sociological approaches to law by focusing on how they address transnational private regulation. Empirical socio-legal studies share an epistemic commitment to an objective and knowable social reality, and they tend to see human actors as the motors of history. Thus they focus on the interrelational dynamics within Global Value Chains (GVCs), searching for "what works" in transnational private regulation. On the contrary, systemstheory oriented sociological jurisprudence views social reality as constructed and fragmented into the epistemes of different social systems. GVCs are understood as selfreferential normative orders, in which the question of agency and human actors is secondary—the emphasis is on communications and anonymous forces of ordering. Attempting to inspect the possibilities for synthesis, I ask how "big" we can and should think in law and society. I thus attempt to outline an approach that starts from the materiality of social structures to investigate processes beyond individual agency and to uncover elements of normative reconstruction of the particular area of social activity. [ABSTRACT FROM AUTHOR]

Scholars and practitioners of global private business regulation have often recognised the importance of political and institutional dynamics "on the ground," in shaping the degree to which social and environmental regulatory norms are institutionalised or resisted at the local level. Local dynamics of norm contestation generate dilemmas for global regulators who aspire to be responsive to varied contexts in producing countries without "watering down" global regulatory agendas. Drawing on a range of empirical illustrations from Southeast Asia and Latin America, this paper develops a typology of domestication strategies currently being used by global private regulators and examines the effects of these strategies on supporting or undermining the overall values and purposes of global regulatory agendas. In the presence of pervasive local contestation surrounding global regulatory norms, norm domestication strategies are shown to offer important means of countering challenges to the power and legitimacy of global regulators. Nonetheless, the effects of such strategies remain highly contingent on path‐dependent contests between competing regulatory coalitions at both local and global levels. [ABSTRACT FROM AUTHOR]

This article analyzes the impact competition agencies have on the orchestrating role of states in domestic private regulation. I argue that these agencies can significantly affect interactions in the governance triangle through the way they apply a "logic of the market" to evaluate agreements between firms. The regulatory framework of European Union competition law has increasingly constrained the ability of firms to take into account broader interests when making agreements to foster social objectives. This logic of the market clashes with the ever‐increasing emphasis governments place on enabling firms to enter into such agreements. I analyze this tension through a case study of a pact of Dutch retailers to collectively introduce higher animal welfare standards for poultry. Using regulatory network analysis I trace the governance interactions between the governance triangle on the one hand (government, non‐governmental organizations, and firms), and the Dutch competition authority, Autoriteit Consument en Markt (ACM) and the European Commission on the other hand. Attempts by the Dutch government to instruct the ACM to be more lenient toward private regulation were blocked twice by the European Commission. As a result, the Dutch government abandoned private regulation as the preferred mode and proposed a bottom‐up process that would generate public regulation as a way to avoid conflict with competition policy. I argue that paradoxically enough the intervention of these non‐majoritarian competition agencies against the "will" of the governance triangle has potentially increased the effectiveness and legitimacy of orchestration processes. [ABSTRACT FROM AUTHOR]

Research recognizes that strategic business interests can provide an important driver of private regulation, even in the absence of significant societal pressure and non‐governmental organization‐constructed demand. This article examines a range of competition and collective action‐related interests that can motivate firms to promote and adopt certification schemes. We pay particular attention to the hitherto underexplored collective action interest to safeguard common‐pool resources, upon which an industry may depend to sustain yields. Based on a case study of salmon aquaculture certification, the article argues that while the corporate motives repertoire includes strengthening competitiveness and industry reputation, safeguarding shared waters for culturing salmon is key to explaining industry commitment to and adoption of private regulation in this sector. [ABSTRACT FROM AUTHOR]

This article argues that modern international sales law has a hybrid character as it increasingly makes provision for interfaces between public and private, State and non-State, hard and soft, law. Although private forms of regulation are often associated with the lex mercatoria, this article shows that they rarely reflect or constitute mercantile custom or trade usage. However, they often address issues that State law does not. As a result, these forms of regulation have become an effective tool in supply chains, especially in the context of sustainable development. Whether private forms of regulation constitute law is a matter for debate, though. This article concludes that in the context of international sales, private forms of regulation mostly obtain their legitimacy through contract, which "hardens" them into law. [ABSTRACT FROM AUTHOR]

A voluntary climate initiative that has emerged over the past two decades as an institutional arrangement for corporations around the globe to signal and demonstrate their proactive climate leadership is the CDP (formerly known as the Carbon Disclosure Project). Unlike the extant literature that has emphasized stakeholder and regulatory pressures, this paper argues that voluntary carbon disclosure is both beneficial and costly for corporations with respect to the existence of supportive management structures, explicit CSR practices, and the existence of complementary assets. Moreover, there is variation between European firms and other global businesses because of Europe's distinctive national business systems framework in conjunction with global supply chain imperatives. Empirically, this study employs a novel discrete‐continuous modeling approach to distinguish between a corporation's decision to disclose and the linked but subsequent decision of how much to disclose climate change information. Results indicate that the main drivers of participation in voluntary carbon disclosure by the Global 500 firms is the existence of senior managers and executive‐level officers and the adoption of ESG principles by global businesses. Conditional on participation, European Union‐based and other global businesses that articulate a corporate vision for environmental sustainability, adopt ESG principles, and invest in complementary assets disclose climate change strategies and emissions at higher levels than companies without these internal firm capabilities. This study has implications for national climate policy and global climate change governance more generally, both of which increasingly focus on concrete climate solutions by corporations. [ABSTRACT FROM AUTHOR]

This scoping study builds on the recent uncovering that in terms of health and safety (H&S), the Nigerian construction industry is self-regulated in various forms, not unregulated and that the size of company can further explain H&S self-regulation. Consequently, the barriers identified through literature review were assessed using questionnaires. Analysis of the data collected from construction practitioners in Nigeria shows that ‘economic factors’ mostly explains the barriers to construction H&S self-regulation. This is followed by the ‘ability to self-regulate’ and ‘lack of awareness’. Furthermore, the results show significant differences among small, medium and large construction contractors on seven factors of which include ‘normative case’ factors, ‘H&S is a duty’, ‘H&S is the right thing’ and ‘unfair H&S standards or legislation’. Although a scoping study, the study draws attention to the barriers to construction H&S self-regulation in Nigeria and demonstrates an alternative to state regulation of H&S.

Like any regulatory effort, private transnational standard-setters need to legitimate themselves to the audiences from which they seek support or obedience. While early scholarship on private transnational governance has emphasized the centrality of democratic legitimation narratives in rendering private governance socially acceptable, evidence from more recent standard-setting schemes suggests a declining relevance of that narrative over time. In my analysis of private sustainability regulation, I identify a combination of two factors that jointly contribute to this diminished role of democratic legitimation. First, private transnational governance has become a pervasive phenomenon. This means that new entrants to the field no longer face the same liability of newness that required first movers to make an extra effort in legitimation. Second, private standard-setting has moved from areas characterized by ‘governance gaps’ to areas in which meaningful intergovernmental regulation already exists. In these areas, however, the ‘state prerogative’ in legitimating governance holds. As a result, transnational standard-setters rely not so much on stressing their democratic credentials, but instead emphasize their contribution to achieving internationally agreed goals.