Global rule-setting for business: A critical analysis of multi-stakeholder standards

In the field of global rule-setting for responsible business
behaviour, multi-stakeholder standards have emerged in recent years
because of their potential for effective consensus-building, knowledgesharing
and interest representation. Proponents also hold that multistakeholder
standards could address problems related to other forms
of global rule-setting for business. Despite alleged advantages, however,
analyses of multi-stakeholder initiatives, considering benefits and
drawbacks, have been lacking. This article examines multi-stakeholder
standards compared to other collaborative standards adopted in the past
decade, and focuses subsequently on the peculiarities of multi-stakeholder
standards regarding participation, governance and implementation. Multistakeholder
standards, which involve business and NGOs, and sometimes
also governments, are more specifi c and well-elaborated than other types
of standards. But monitoring and implementation are rarely used as means
for increasing participation from multiple stakeholders, including most
notably those from developing countries. The article also discusses the
implications of the current lack of specifi city of the (multi-)stakeholder
concept and suggests refi nement of multi-stakeholder standards in terms
of narrow versus broad inclusiveness. Key words. business; codes of conduct;
corporate responsibility standards; corporate social responsibility;
global governance; international organizations; NGOs; stakeholders