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Voluntary programs have emerged as important instruments of public policy. We explore whether programs lacking monitoring and enforcement mechanisms can curb participants' shirking with program obligations. Incentive-based approaches to policy see monitoring and enforcement as essential to curb shirking, while norm-based approaches view social mechanisms such as norms and learning as sufficient to serve this purpose. The United Nations Global Compact (UNGC), a prominent international voluntary program, encourages firms to adopt socially responsible policies. Its program design, however, relies primarily on norms and learning to mitigate shirking. Using a panel of roughly 3,000 U.S. firms from 2000 to 2010, and multiple approaches to address endogeneity and selection issues, we examine the effects of Compact membership on members' human rights and environmental performance. We find that members fare worse than nonmembers on costly and fundamental performance dimensions, while showing improvements only in more superficial dimensions. Exploiting the lack of monitoring and enforcement, UNGC members are able to shirk: enjoying goodwill benefits of program membership without making costly changes to their human rights and environmental practices.

Why do political actors undertake reforms that constrain their own discretion? We argue that uncertainty generated by political competition is a major driver of such reforms, and test this argument using subnational data on Mexican states’ adoption of state-level access to information (ATI) laws. Examining data from 31 Mexican states plus the Federal District, we find that more politically competitive states passed ATI laws more rapidly, even taking into account the party in power, levels of corruption, civil society, and other factors. The fine-grained nature of our data, reflecting the staggered timing of elections, inauguration dates, and dates of passage, allows us to distinguish between different theoretical mechanisms. We find the greatest evidence in favor of an insurance mechanism, by which incumbent parties who face uncertainty over future political control seek to ensure access to government information, and means of monitoring incumbents, in the future in case they lose power.

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