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Industry-Specific Multi-Stakeholder Initiatives That Govern Corporate Human Rights Standards: Legitimacy assessments of the Fair Labor Association and the Global Network Initiative

Dorothée Baumann-Pauly (), Justine Nolan (), Auret Heerden () and Michael Samway ()
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Dorothée Baumann-Pauly: New York University
Justine Nolan: University of New South Wales
Auret Heerden: New York University
Michael Samway: Georgetown University

Journal of Business Ethics, 2017, vol. 143, issue 4, No 9, 787 pages

Abstract: Abstract Multi-stakeholder initiatives (MSIs) are increasingly used as a default mechanism to address human rights challenges in a variety of industries. MSI is a designation that covers a broad range of initiatives from best-practice sharing learning platforms (e.g., the UN Global Compact) to certification bodies (e.g., the Forest Stewardship Council) and those targeted at addressing governance gaps (e.g., the Fair Labor Association). Critics contest the legitimacy of the private governance model offered by MSIs. The objective of this paper is (1) to theoretically develop a typology of MSIs, and (2) to empirically analyze the legitimacy of one specific type of MSI, namely industry-specific MSIs. We argue that industry-specific MSIs that set out to govern corporate behavior have great potential to develop legitimacy. We analyze two industry-specific MSIs—the Fair Labor Association and the Global Network Initiative—to get a better understanding of how these MSIs formed, how they define and enforce standards, and how they seek to ensure accountability. Based on these empirical illustrations, we discuss the value of this specific MSI model and draw implications for the democratic legitimacy of private governance mechanisms.

Keywords: Legitimacy; Multi-stakeholder initiatives; Business and human rights; Private governance mechanisms; Voluntary corporate social responsibility initiatives (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (20)

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DOI: 10.1007/s10551-016-3076-z

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