Advertisement

Voluntary Business Regulation for Sustainability: Intends, Norms and Motivations of Building Public Trust of Corporate Managers

  • László Fekete
Chapter
Part of the Ethical Economy book series (SEEP, volume 56)

Abstract

Although tackling climate change and the environmental degradation are the shared responsibility of the global community for averting catastrophic consequences and the likelihood of severe welfare losses on global level, the majority of the states are not willing to give up their short-term economic interests and to pool their sovereignty to make legally binding international environmental agreements. Therefore, the implementation and enforcement of a comprehensive and coercive international regulatory regime have been stalled in the international fora for a long time. At the same time, private regulation, voluntary environmental assessment and reporting framework initiated by business, civic and professional organizations have been proliferating since the beginning of the 1990s. The question is whether these private self-regulatory initiatives of assessing and monitoring environmental performances, especially, of the large corporations are the adequate and proper substitute of mandatory multilateral environmental agreements; whether those regarding global environmental outcomes can counterbalance the unwillingness of the majority of the states to comply with a stringent international regulatory regime.

Keywords

Sustainability Public and private regulatory regimes Copenhagen accord Paris climate agreement Corporate reputation 

References

  1. Ackerman, F., E. Stanton, and R. Massey. 2006. European chemical policy and the United States: The impacts of REACH. Medford: Tufts University.Google Scholar
  2. Aldred, Jonathan. 2012. The ethics of emissions trading. New Political Economy 17 (3): 339–360.CrossRefGoogle Scholar
  3. Appleton, Arthur E. 2015. Product labeling: What has the Appellate Body wrought? BIORES 9 (8): 4–5.Google Scholar
  4. Baddeley, Shane, Peter Cheng, and Robert Wolfe. 2012. Trade policy implications of carbon labels on food. Estey Centre Journal of International Law and Trade Policy 13 (1): 59–93.Google Scholar
  5. Barrett, S. 2005. Environment and statecraft: The strategy of environmental treaty-making. Oxford: OUP.CrossRefGoogle Scholar
  6. Bartley, T. 2007. Institutional emergence in an era of globalization: The rise of transnational private regulation of labor and environmental conditions. American Journal of Sociology 113 (2): 297–351.CrossRefGoogle Scholar
  7. Bernstein, L., et al. 2007. Industry. In Climate change 2007: Mitigation, Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, ed. B. Metz et al. Cambridge/New York: CUP.Google Scholar
  8. Böhm, S.. 2013. Why are carbon markets failing? Guardian Professional. Friday, 12 April, 11.50 BST.Google Scholar
  9. Boyle, Alan. 2007. Relationship between international environmental law and other branches of international law. In Oxford handbook of international environmental law, ed. Daniel Bodansky, Jutta Brunnée, and Ellen Hey, 125–146. Oxford: OUP.Google Scholar
  10. Broder, J. M.. 2010. Remember the Copenhagen Accord? The New York Times. June 8, 2:02 pm.Google Scholar
  11. Cafaggi, Fabrizio. 2015. The many features of transnational private rule-making: Unexplored relationships between custom, Jura Mercatorum and Global Private Regulation. University of Pennsylvania Journal of International Law 36 (4): 875–983.Google Scholar
  12. Campbell, J.L. 2007. Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review 32 (3): 946–967.CrossRefGoogle Scholar
  13. CAN Europe. 2010. Think globally sabotage locally. Brussels: Climate Action Network Europe.Google Scholar
  14. Caney, S. 2010. Markets, morality and climate change: What, if anything, is wrong with emissions trading? New Political Economy 15 (2): 197–224.CrossRefGoogle Scholar
  15. Cassidy, J. 2009. How markets fail: The logic of economic calamities. New York: Farrar, Straus and Giroux.Google Scholar
  16. CDP. 2013. Global 500 climate change report 2013: Sector insights: What is driving climate change action in the world’s largest companies? New York: CPD-PwC.Google Scholar
  17. ———. 2014. CDP S&P 500 climate change report 2014: Climate action and profitability. New York: CPD.Google Scholar
  18. ———. 2015. CDP Global 500 climate change report 2013: At the tipping point? New York: CPD.Google Scholar
  19. Charnovitz, Steve. 2002. The law of environmental “PPMs” in the WTO: Debunking the myth of illegality. Yale Journal of International Law 27 (1): 59–110.Google Scholar
  20. Daly, H.E., and J. Farely. 2011. Ecological economics: Principles and applications. 2nd ed. Washington, DC: Island Press.Google Scholar
  21. Darnall, N., and S.R. Sides. 2008. Assessing the performance of voluntary environmental programs: Does certification matter? Policy Studies Journal 36 (1): 95–117.CrossRefGoogle Scholar
  22. Dasgupta, Dipak, et al. 2015. Climate change finance, analysis of a recent OECD report: Some credible facts needed. New Delhi: Ministry of Finance, Government of India.Google Scholar
  23. Davies, G., et al. 2001. The personification metaphor as a measurement approach for corporate reputation. Corporate Reputation Review 4 (2): 113–127.CrossRefGoogle Scholar
  24. Delmas, M.A., and V.C. Burbano. 2011. The drivers of greenwashing. California Management Review 54 (1): 64–87.CrossRefGoogle Scholar
  25. Dietz, G., and N. Gillespie. 2012. The recovery of trust: Case studies of organisational failures and trust repair. London: Institute of Business Ethics.Google Scholar
  26. Dingwerth, Klaus. 2008. North-South Parity in Global Governance: The affirmative procedures of the forest stewardship council. Global Governance: A Review of Multilateralism and International Organizations 14 (1): 53–72.Google Scholar
  27. Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003. Establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC Annex I.Google Scholar
  28. Doha Ministerial Declaration. 2001. Adopted on 14 November 2001.Google Scholar
  29. Dowling, Grahame, and Peter Moran. 2012. Corporate reputations: Built in or bolted on? California Management Review 54 (2): 25–42.CrossRefGoogle Scholar
  30. Driesen, D.M. 2008. Sustainable development and market liberalism’s shotgun wedding: Emissions trading under the Kyoto protocol. Indiana Law Journal 83 (1): 21–69.Google Scholar
  31. Dudley, N., J.-P. Jeanrenaud, and F. Sullivan. 1995. Bad harvest? The timber trade and the degradation of the world’s forests. London: Earthscan.Google Scholar
  32. Dunbar, R.L.M., and J. Schwalbach. 2001. Corporate reputation and performance in Germany. Corporate Reputation Review 3 (2): 115–123.CrossRefGoogle Scholar
  33. Duran, Gracia Marin. 2015. Carbon labeling schemes at the WTO: Real or imagined conflict? BIORES 9 (8): 6–10.Google Scholar
  34. Eckersley, R. 2004. The big chill: The WTO and multilateral environmental agreements. Global Environmental Politics 4 (2): 24–50.CrossRefGoogle Scholar
  35. Egenhofer, Christian, et al. 2012. The EU emissions trading system and climate policy towards 2050: Real incentives to reduce emissions and drive innovation? Brussels: CEPS.Google Scholar
  36. Emblemsvåg, Jan. 2016. Reengineering capitalism: From industrial revolution towards sustainable development, 52–59. Cham: Springer.Google Scholar
  37. European Commission. 2001. Promoting a European framework for corporate social responsibility. Luxembourg: EU.Google Scholar
  38. ———. 2009. Contributing to sustainable development: The role of fair trade and nongovernmental trade-related sustainability assurance schemes. Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee. Brussels: EC COM(2009) 215 final.Google Scholar
  39. Fliess, B., et al. 2007. CSR and trade: Informing consumers about social and environmental conditions of globalised production, OECD Trade Policy Working Paper No. 47 – PART I. Paris: OECD.Google Scholar
  40. Fligstein, N. (2005) The political and economic sociology of international economic arrangements. Handbook of economic sociology, N. Smelser, R. Swedberg (Princeton, N.J.: Princeton Princeton University Press) 183–204.Google Scholar
  41. General Motors. 2007a. Our message: 2005/2006 corporate responsibility report. Detroit: General Motors.Google Scholar
  42. ———. 2007b. Proxy statement for annual meeting of stockholders to be held June 5, 2007. Detroit: General Motors.Google Scholar
  43. GEO-5. 2012. Global environment outlook: Environment for the future we want. New York: United Nations Environment Programme.Google Scholar
  44. Gerstetter, Christiane. 2014. Regulatory cooperation under TTIP – a risk for democracy and national regulation? Berlin: Ecologic Institute.CrossRefGoogle Scholar
  45. Green Life. 2006. Don’t be fooled 2005: Americas 10 worst greenwashers. Boston: Green Life.Google Scholar
  46. Horiuchi, R., et al. 2009. Understanding and preventing greenwash: A business guide. London: Business for Social Responsibility.Google Scholar
  47. Horn, Henrik, and Petros C. Mavroidis. 2014. Multilateral environmental agreements in the WTO: Silence speaks volumes. International Journal of Economic Theory 10 (1): 147–165.CrossRefGoogle Scholar
  48. IEA. 2002–2016. International environmental agreements database project (2002–2016). http://iea.uoregon.edu/page.php?query=home-contents.php.
  49. International Energy Agency. 2016. World energy outlook 2016. Paris: OECD/International Energy Agency.CrossRefGoogle Scholar
  50. Jensen, M.C. 2001. Value maximization, stakeholder theory, and the corporate objective function. Journal of Applied Corporate Finance 14 (3): 8–21.CrossRefGoogle Scholar
  51. Kelly, Ch., et al. 2005. Deriving value from corporate values. Washington, DC: The Aspen Institute and Booz Allen Hamilton.Google Scholar
  52. Kudryavtsev, A. 2015. Private-sector standards as technical barriers in international trade in goods: In search of WTO disciplines. Oisterwijk: Wolf Legal Publishers.Google Scholar
  53. Lipschutz, R.D., and J.K. Rowe. 2005. Globalization, governmentality and global politics: Regulation for the rest of us? London: Routledge.Google Scholar
  54. Lohmann, Larry. 2010. Uncertainty markets and carbon markets: Variations on polanyian themes. New Political Economy 15 (2): 225–254.CrossRefGoogle Scholar
  55. Lyon, Th.P., and J.W. Maxwell. 2011. Greenwash: Corporate environmental disclosure under threat of audit. Journal of Economics and Management Strategy 20 (1): 3–41.CrossRefGoogle Scholar
  56. Mattoo, A., and A. Subramanian. 2012. A greenprint for international cooperation on climate change. Washington, DC: Center for Global Development.Google Scholar
  57. Maxwell, J.W., Th.P. Lyon, and S.C. Hackett. 2000. Self-regulation and social welfare: The political economy of corporate environmentalism. The Journal of Law and Economics 43 (2): 583–617.CrossRefGoogle Scholar
  58. Michaels, D. 2008. Doubt is their product: How industry’s assault on science threatens your health. Oxford: OUP.Google Scholar
  59. Mitchell, R.B. 2003. International environmental agreements: A survey of their features, formation and effects. Annual Review of Environment and Resources 28: 429–461.CrossRefGoogle Scholar
  60. ———. 2010. Compliance theory: Compliance, effectiveness, and behavior change in international environmental law. In Oxford handbook of international environmental law, ed. Daniel Bodansky, Jutta Brunnée, and Ellen Hey, 893–921. Oxford: OUP.Google Scholar
  61. Monbiot, Georg. 2015. Grand promises of Paris climate deal undermined by squalid retrenchments. The Guardian. Saturday 12 December, 15.53 GMT, https://www.theguardian.com/environment/georgemonbiot/2015/dec/12/paris-climate-deal-governments-fossil-fuels.
  62. Morseletto, Piero, Frank Biermann, Philipp Pattberg. 2016. Governing by targets: Reductio ad unum and evolution of the two-degree climate target, International environmental agreements: Politics, Law and Economics. online.CrossRefGoogle Scholar
  63. Myant, Martin, and Ronan O’Brien. 2015. The TTIP’s impact: Bringing in the missing issue. Brussels: ETUI aisbl.Google Scholar
  64. Nakhooda, Smita, et al. 2014. Climate finance: Is it making a difference? A review of the effectiveness of multilateral climate funds. London: Overseas Development Institute.Google Scholar
  65. Ni, Kuei-Jung. 2015. Legal aspects (barriers) of granting compulsory licenses for clean technologies in light of WTO/TRIPS rules: Promise or mirage? World Trade Review 14 (4): 701–719.CrossRefGoogle Scholar
  66. Nissen, J.L. 1997. Achieving a balance between trade and the environment: The need to amend the WTO/GATT to include multilateral environmental agreements. Law and Policy in International Business 28 (3): 901–928.Google Scholar
  67. OECD-CPI. 2015. Climate finance in 2013-14 and the USD 100 billion goal. Paris: OECD.Google Scholar
  68. Öko-Institut e.V. 2009. Product carbon footprint memorandum. Freiburg: Öko-Institut e.V.Google Scholar
  69. Paris Climate Agreement. 2015. Adopted on 12 December 2015.Google Scholar
  70. Pattberg, Philipp, and Oscar Widerberg. 2015. Theorising global environmental governance: Key findings and future questions. Journal of International Studies 43 (2): 684–705.Google Scholar
  71. Polányi, K. 1957. The great transformation: The political and economic origins of our time. Boston: Beacon Press.Google Scholar
  72. Reputation Institute. 2012. Navigating the reputation economy: A global survey of corporate reputation officer. New York: Reputation Institute.Google Scholar
  73. Rhodes, Carl. 2016. Democratic business ethics: Volkswagen’s emissions scandal and the disruption of corporate sovereignty. Organization Studies 37 (10): 1501–1518.CrossRefGoogle Scholar
  74. Sahai, Neeraj. 2014. Climate change: What are the risks to corporations? http://fortune.com/2014/07/09/climate-change-what-are-the-risks-to-corporations/.
  75. Sassen, S. 2003. The state and globalization. Interventions 5 (2): 241–248.CrossRefGoogle Scholar
  76. ———. 2005. The ecology of global economic power: Changing investment practices to promote environmental sustainability. Journal of International Affairs 58 (2): 11–32.Google Scholar
  77. Schatz, A. 2008. Discounting the clean development mechanism. Georgetown International Environmental Law Review 20 (4): 704–742.Google Scholar
  78. Schwaiger, M. 2004. Components and parameters of corporate reputation: An empirical study. Schmalenbach Business Review 56 (1): 46–71.CrossRefGoogle Scholar
  79. Schwartz, B., and K. Tilling. 2009. ‘ISO-lating’ corporate social responsibility in the organizational context: A dissenting interpretation of ISO 26000. Corporate Social Responsibility and Environmental Management 16 (5): 289–299.CrossRefGoogle Scholar
  80. Sethi, S.P. 2011. Self-regulation through voluntary codes of conduct. In Globalization and self-regulation: The crucial role that corporate codes of conduct play in global business, ed. S.P. Sethi. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  81. Skovgaard, Jakob. 2017. Limiting costs or correcting market failures? Finance ministries and frame alignment in UN climate finance negotiations. International Environmental Agreements: Politics, Law, and Economics 17 (1): 89–106.CrossRefGoogle Scholar
  82. Smith, A. 1976. An inquiry into the nature and causes of the wealth of nations. Vol. 1. Chicago: UCP.Google Scholar
  83. Spash, Clive L. 2016. The political economy of the Paris Agreement on human induced climate change: A brief guide. Real-World Economics Review 75: 67–75.Google Scholar
  84. Stern, N. 2007. The economics of climate change: The stern review. Cambridge: CUP.CrossRefGoogle Scholar
  85. Stiglitz, J.E. 2006. A new agenda for global warming. Economists’ Voice. July, www.bepress.com/ev.
  86. Stone, Christopher D. 2007. Ethics in international environmental law. In Oxford handbook of international environmental law, ed. Daniel Bodansky, Jutta Brunnée, and Ellen Hey, 291–312. Oxford: OUP.Google Scholar
  87. Terrachoice. 2007, 2009, 2010. Greenwashing reports. http://sinsofgreenwashing.org/findings/index.html.
  88. Tonello, M. 2007. Reputation risk: A corporate governance perspective. New York: Conference Board.Google Scholar
  89. Vidal, J., and J. Watts. 2009. Copenhagen closes with weak deal that poor threaten to reject. guardian.co.uk. Saturday, 19 December, 15.54 GMT.
  90. Vogel, D. 2005. The market for virtue. Washington, DC: Brookings Institute Press.Google Scholar
  91. Waxman, H.A. 2004. A special interest case study: The chemical industry, the bush administration, and European efforts to regulate chemicals. Washington, DC: United States House of Representatives.Google Scholar
  92. Weikmans, Romain, et al. 2016. Toward transparency: The 2016 adaptation finance transparency gap report, White Paper, 10–15. London: Adaptation Watch.Google Scholar
  93. Welford, R. 1997. Hijacking environmentalism: Corporate responses to sustainable development. London: Earthscan.Google Scholar
  94. Weng, Pei-Shih, and Wan-Yi Chen. 2017. Doing good or choosing well? Corporate reputation, CEO reputation, and corporate financial performance. North American Journal of Economics and Finance 39: 223–240.CrossRefGoogle Scholar
  95. White, Rob. 2015. Climate change, ecocide and crimes of the powerful. In Routledge international handbook of the crimes of the powerful, ed. Gregg Barak. New York: Routledge Ch. 14.Google Scholar
  96. World Bank. 2004. Sustaining forests: A development strategy. Washington, DC: World Bank.CrossRefGoogle Scholar
  97. Wright, Christopher, and Daniel Nyberg. 2015. Climate change, capitalism, and corporations: Processes of creative self-destruction. Cambridge: CUP.CrossRefGoogle Scholar
  98. WTO. 1994. Marrakesh agreement establishing the world trade organization. 15 April 1994.Google Scholar
  99. ———. 2010. Summary report of the information session on product carbon footprint and labeling schemes. WT/CTE/M/49/Add.1, 28 May.Google Scholar
  100. Young, Oran R. 2011. Effectiveness of international environmental regimes: Existing knowledge, cutting-edge themes, and research strategies. Proceedings of the National Academy of Sciences of the United States of America 108 (50): 19853–19860.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Business Ethics CenterCorvinus University of BudapestBudapestHungary

Personalised recommendations