Industry Business Associations: Self-Interested or Socially Conscious?

Abstract

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'').

Identifying Political Risk Management Strategies in International Construction Projects

“…Good relations with powerful local groups are very helpful for ICEs in terms of obtaining the necessary resources and reducing interference. For example, ICEs can obtain useful market and policy information through partnerships with industry associations and business coalitions [55], but they may suffer from extra checks from labor unions because of disputes with local workers [56]. It is well known that opposition to international construction projects is often initiated by the local public [32].…”

What do business associations do?

“…A widespread approach in the literature distinguishes between the beneficial, market-supporting and the harmful, rent-seeking role of BAs, the latter which is often associated with lobbying (Battisti − Perry, 2015;Duvanova, 2013;Marques, 2017;Sukiassyan − Nugent, 2011;Ville, 2007). We suggest that it is perhaps better to approach the issue starting with the understanding of BAs as institutions intended to further the goals of a business community.…”

“…BAs can be used for resolving conflicts that arise from the external effects of the business community's activities on other social groups. Marques (2017) provides a recent review of the social-responsibility-related activities of BAs. These might allow for structured engagement and bargaining with stakeholders (Dickson − Arcodia, 2010), defining and enforcing professional standards for dealing with external effects (Font et al, 2019;King − Lenox, 2000), or generating self-regulation that helps maintain a shared social reputation (King et al, 2002;Tucker, 2008).…”

How Do Domestic Regulatory Traditions Shape CSR in Large International US and UK Firms?

“…I read each company's CSR or sustainability report to determine which major CSR initiatives each company has adopted in the areas of labor, human rights and anti-corruption. I also benefitted from state-of-the art research on company participation in voluntary CSR initiatives in apparel (Bair and Palpacuer, 2012;Fransen and Burgoon, 2014;Hughes et al, 2007;Marques, 2016;O'Rourke, 2006). I identified relevant CSR initiatives in extractives and apparel by reviewing Ethical Corporation, a specialist practitioners' CSR publication and I also explored company websites as well as ministerial and EU official reports about CSR regulation in apparel and extractives.…”

“…The SAI is a buyer and supplier standard that also was developed in a multi-stakeholder process. According to Marques (2016), these are the main multi-stakeholder initiatives in apparel together with the Fair Wear Foundation (FWF) that originated in the Netherlands. I include the Accord as well as one business-led initiative (the Alliance for Bangladesh Worker Safety (Alliance) which was set up by US businesses as a reaction to the Accord -I discuss the Alliance and the Accord in more detail below).…”