Global Rule-Setting for Business: A Critical Analysis of Multi-Stakeholder Standards

Organization, Vol. 14, No. 5, pp. 667-684, 2007

18 Pages Posted: 17 Oct 2007

See all articles by Luc Fransen

Luc Fransen

University of Amsterdam

Ans Kolk

University of Amsterdam Business School

Abstract

In the field of global rule-setting for responsible business behaviour, multi-stakeholder standards have emerged in recent years because of their potential for effective consensus-building, knowledge-sharing and interest representation. Proponents also hold that multi-stakeholder standards could address problems related to other forms of global rule-setting for business. Despite alleged advantages, however, analyses of multi-stakeholder initiatives, considering benefits and drawbacks, have been lacking. This article examines multi-stakeholder standards compared to other collaborative standards adopted in the past decade, and focuses subsequently on the peculiarities of multi-stakeholder standards regarding participation, governance and implementation. Multi-stakeholder standards, which involve business and NGOs, and sometimes also governments, are more specific and well-elaborated than other types of standards. But monitoring and implementation are rarely used as means for increasing participation from multiple stakeholders, including most notably those from developing countries. The paper also discusses the implications of the current lack of specificity of the (multi-)stakeholder concept and suggests refinement of multi-stakeholder standards in terms of narrow versus broad inclusiveness.

Keywords: business, code of conduct, corporate responsibility, corporate social responsibility, global governance, international organizations, NGOs, stakeholders

JEL Classification: D21, F23, H7, G38, L1, L2, M1, M14, O19

Suggested Citation

Fransen, Luc and Kolk, Ans, Global Rule-Setting for Business: A Critical Analysis of Multi-Stakeholder Standards. Organization, Vol. 14, No. 5, pp. 667-684, 2007, Available at SSRN: https://ssrn.com/abstract=1021732

Luc Fransen

University of Amsterdam ( email )

Amsterdam, 1012 CX
Netherlands

Ans Kolk (Contact Author)

University of Amsterdam Business School ( email )

Plantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands
+31 20 525 4289 (Phone)
+31 20 525 5281 (Fax)

HOME PAGE: http://www.anskolk.eu

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