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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Virginia Haufler directed the Project on the Role of the Private Sector in International Affairs at the Carnegie Endowment. She is an associate professor at the University of Maryland, College Park.
"Anyone seeking to become better-informed about the changing role of business in the modern world should read this book. " —Debora L. Spar, Harvard Business School
"Breaks new ground in explaining the nature of industry self-regulation in today's globalizing economy. The rich case material makes this book essential reading for understanding the role of business in the 21st century. " —Georg Kell, UN Office of the Global Compact
"Offers a useful framework for assessing the drivers and mechanisms for industry self-regulation and poses a set of questions that policy makers, business leaders, activists, and academics cannot afford to ignore. " —Jane Nelson, International Business Leaders Forum
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