Recent scholarship on transnational business governance has begun to examine public-private interactions and the active role of governments. We make two key contributions that integrate and expand this literature. First, in juxtaposition to functionalist accounts, we foreground the fundamentally political and often contentious character of these interactions. As private transnational governance schemes and standards "hit the ground," private-public interactions, we argue, are embedded in national political arenas and tied to domestic distributional struggles among competing regulatory coalitions. Building upon multiple empirical streams of research, we develop a political-strategic framework that maps the diversity of Southern government responses (substitute, adopt, repurpose, replace, or reject) to transnational private governance. Our framework shows that government responses are a function of both strategic fit with domestic industrial capabilities and structures, and strength of developmental state capacity. Second, our proposed framework adopts the vantage point of Global South governments and industries, particularly how development challenges and strategic options within global value chains affect their understanding of, and responses to, transnational schemes and standards. This is an important corrective to a Northern bias in the private governance literature.
The number and scale of business associations focused on corporate responsibility and sustainability has grown dramatically in recent decades and they are becoming influential actors in both national and international governance. Yet surprisingly little research exists on such organizations and recognition of the organizational lineage they share with special interest groups is yet to be examined-are industry business associations merely lobbies for their members' own interests or are they viable self-regulatory institutions capable of addressing contemporary social and sustainability issues? This paper identifies and reviews fragmented insights from literatures that address this question. Drawing on various streams of research within the political science, economics and management disciplines that provide diverse lenses on the phenomenon of business associations, it juxtaposes and groups them into two broad perspectives: business associations as special interest groups that are detrimental to society (''peril''); business associations as self-regulatory institutions capable of addressing contemporary challenges (''promise'').
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