Private regulation,public policy,and the perils of adverse ontological selection

What problems can private regulatory governance solve, and what role should public policy play? Despite access to the same empirical evidence, the current scholarship on private governance offers widely divergent answers to these questions. Through a critical review, this paper details five ontologically distinct academic logics – calculated strategic behavior; learning and experimentalist processes; political institutionalism; global value chain and convention theory; and neo-Gramscian accounts – that offer divergent conclusions based on the particular facets of private governance they illuminate, while ignoring those they obfuscate. In this crowded marketplace of ideas, scholars and practitioners are in danger of adverse ontological selection whereby certain approaches and insights are systematically ignored and certain problem conceptions are prioritized over others. As a corrective, we encourage scholars to make their assumptions explicit, and occasionally switch between logics, to better understand private governance's problem-solving potential and its interactions with public policy.     

Can private governance boost public policy? Insights from public–private governance interactions in the fisheries and electricity sectors

Based on the inductive analysis of two parallel cases of private environmental governance – private, market-driven fisheries governance and private, market-driven governance for electricity decarbonization – this paper uncovers a trigger for positive public policy spillovers from private environmental governance. It identifies circumstances that prompt groups of business actors working as private regulators to also take on a role as public policy advocates and supporters, revealing a potential for private governance initiatives that are targeted at a particular environmental problem to serve as a bolster for the public regulatory governance of that problem as well. Both private governance cases at the basis of this analysis feature groups of business actors seeking to meet voluntary sustainability goals through the tools of private governance (specifically, through flexing buyer power and private authority in an effort to reform environmentally problematic practices among particular groups of suppliers). In both cases, the business's inability to attain private sustainability goals though private governance means alone has given rise to business demand for facilitative public environmental policy and regulation. The analysis presented in this paper thus points to the occurrence of a particular and intriguing pattern of complementarity between private authority and public policy – one where public policy is called on to fill gaps left by private environmental governance and authority. And it identifies key conditions for such private-governance-driven recentering of public policy to occur, namely the presence of private supply chain greening goals and commitments that are economically, reputationally, and/or competitively critical for businesses to attain, combined with shortfalls in the capacity of businesses' private authority to bring about such attainment. The two case analysis further suggests the importance of ENGOs in identifying and activating some of the opportunities for leveraging shortfalls in private environmental governance to the advantage of public environmental policy and regulation.     

Disaggregating public-private governance interactions: European Union interventions in transnational private sustainability governance

Transnational private sustainability governance, such as eco-certification, does not operate in a regulatory or jurisdictional vacuum. A public authority may intervene in private governance for various reasons, including to improve private governance's efficient functioning or to assert public regulatory primacy. This article argues that to properly understand the nature of public-private governance interactions—whether more competitive or complementary—we need to disaggregate a public authority's intervention. The article distinguishes between four features of private governance in which a public authority can intervene: standard setting, procedural aspects, supply chain signaling, and compliance incentives. Using the cases of the European Union's policies on organic agriculture and biofuels production, the article shows that public-private governance interaction dynamics vary across these private governance features as well as over time. Furthermore, the analysis highlights the importance of active lobbying by private governance actors in influencing these dynamics and the resulting policy outputs.     

Being a Good Senior Manager in Indigenous Community Governance: Working with Public Purpose and Private Benefit

This article seeks to understand the role of being a senior manager in Indigenous community governance, particularly though not exclusively in remote Aboriginal communities. It argues against the tendency of would‐be reformers of Indigenous community governance to focus on the competence and ethical qualities of those who occupy these roles and asks instead how can isolated managerialism in Indigenous community governance be overcome? The article begins with an overview of Ralph Folds' analysis of relations between Pintupi settlements and the larger Australian polity. While taking much from Folds' analysis, the article argues that ultimately he relies too heavily on the idea of antithetical worldviews across the settlement interface, on a problematic distinction between the official and private uses of publicly allocated resources and on too idealist a view of the Australian state. The article argues that the state's allocation of public resources inevitably involves a flow of private benefits and that public purposes and private benefits are not different phenomena, but rather different perspectives on state action. In contrast to Folds' idealism about the state, the article outlines a more thoroughly realist or materialist analysis of being a good senior manager in Indigenous community governance. In its concluding section, the article makes some suggestions for overcoming isolated managerialism in Indigenous community governance oganisations.     

The Conditional Effect of Specialized Governance on Public Policy

What are the policy consequences of creating functionally specialized venues for decision making? This study directly compares special districts with general purpose local governments to evaluate how specialization influences responsiveness and policy choice. Previous theorizing has assumed that specialization should have the same effect across all policy contexts. The findings presented here show instead that its effect is conditional on the status of public problems. Objective conditions related to a policy issue more strongly influence the responsiveness of multipurpose legislatures than that of special districts; thus the institutional effect of functional specialization varies with the severity of the public problem. The result is that governing structure matters most where problems are least severe. The findings demonstrate the importance of considering policy context when analyzing the effects of political institutions.     

Public orchestration,social networks,and transnational environmental governance: Lessons from the aviation industry

This article contributes to current debates on the potential and limitations of transnational environmental governance, addressing in particular the issue of how private and public regulation compete and/or reinforce each other – and with what results. One of the most influential approaches to emerge in recent years has been that of “orchestration.” But while recent discussions have focused on a narrow interpretation of orchestration as intermediation, we argue that there is analytical traction in studying orchestration as a combination of directive and facilitative tools. We also argue that a social network analytical perspective on orchestration can improve our understanding of how governments and international organizations can shape transnational environmental governance. Through a case study of aviation, we provide two contributions to these debates: first, we propose four analytical factors that facilitate the possible emergence of orchestration (issue visibility, interest alignment, issue scope, and regulatory fragmentation and uncertainty); and second, we argue that orchestrators are more likely to succeed when they employ two strategies: (i) they use a combination of directive and facilitative instruments, including the provision of feasible incentives for industry actors to change their behavior, backed up by regulation or a credible regulatory threat; and (ii) they are robustly embedded in, and involved in the formation of, the relevant transnational networks of actors and institutions that provide the infrastructure of governance. © 2017 JohnWiley & Sons Australia, Ltd     

The Authority to Do Good: Publicly Responsible Behavior among Private Mortgage Lenders

Private organizations are increasingly relied on, explicitly and implicitly, to carry out public objectives. But given that profit and public motives are not always aligned, why do private firms behave in publicly responsible ways? Specifically, how do diverse regulative, economic, normative, and cultural influences combine to enable or constrain publicly responsible behavior? This analysis focuses on a specific group of private actors: mortgage lenders. Through semi‐structured interviews with private lending agents participating in a public mortgage program, this analysis investigates influences that contribute to publicly responsible behavior. From the interviews, four different publicness dispositions are identified: pecuniary (sensitive to economic and regulative constraints), traditional (sensitive to regulative and isomorphic constraints), altruistic (sensitive to isomorphic and cultural‐cognitive influences), and opportunistic (sensitive to multiple influences). Even for organizations (and their actors) operating within the same policy context and the same public program, responses to political authority likely are contingent on varying publicness dispositions.     

To Manage Is to Govern

Governance structures constrain and enable the actions of public managers. Principal–agent theory has played a dominant role in our understanding of governance structures. This theory suggests that politicians create relatively static governance structures in a top–down fashion and hold managers accountable for mandated results. In other words, public managers are influenced by governance structures but do not affect governance structures. However, we argue that public managers do affect governance structures, and, in order to understand how this influence takes place, we need a new way of thinking about governance structures. We propose thinking about governance structures as relationships created through the interactions of people in different and reciprocal roles that are relatively dynamic. Public managers are an important source of the multiple, reciprocal, and dynamic interactions that produce governance (relationship) structures. As such, managers are accountable not only for policy outcomes, but also for the appropriateness of the relationships they create and support.     

Understanding Business Improvement Districts: A New Governance Framework

What is the current state of research on business improvement districts (BIDs)? What is an appropriate framework for analysis? What are key questions for advancing future BID research? BIDs can be understood best within a network governance framework. The research shows, first, a blurring of the line between the public and private spheres as a result of BIDs; second, BIDs are increasingly important actors in urban governance; third, BIDs engage in collaborative, conflictual, and co‐optative relations with local and state governments; and fourth, difficult accountability and management problems are created by their interdependent relationships with local governments. Future research needs to focus on understanding the role of BIDs in urban governance and assessing their impacts on metropolitan areas, as well as their inherently complicated public accountability and management challenges.     

Private and public authority interactions and the functional quality of sustainability governance: Lessons from conservation and development initiatives in Tanzania

The changing shape of sustainability governance has been a key academic and policy concern in the past two decades, as part of a wider debate on the interactions between public and private authority in governing the economy, society, and the environment. In this article, we contribute to these debates by examining how these interactions operate locally and across jurisdictions in three conservation and development initiatives in Tanzania and what impact they have on the functional quality of sustainability governance. We find that clear division of responsibilities, coupled with material incentives for communities and equal and transparent distribution of benefits, are key positive contributors to functional quality. These factors underpin the complementary interactions (collaborative at the local level; institutional layering across jurisdictions) that are needed to successfully negotiate and implement the compromises needed to balance conservation and development goals. We also find that competitive dynamics are harmful to functional quality, especially those taking the form of local institutional duplication and of dominance by central government across jurisdictions. These tend to appear especially when sustainability initiatives involve multiple stakeholders with wide discrepancies in resources, interests, and power, which leads to compromises determined in a top-down manner.     

Grounding transnational business governance: A political-strategic perspective on government responses in the Global South

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.     

Performance in Public Organizations: Clarifying the Conceptual Space

Performance in public organizations is a key concept that requires clarification. Based on a conceptual review of research published in 10 public administration journals, this article proposes six distinctions to describe the systematic differences in performance criteria: From which stakeholder's perspective is performance being assessed? Are the criteria formal or informal? Are the criteria subjective? Which process focus and product focus do they have, if any? What is the unit of analysis? Based on these distinctions, the performance criteria of existing studies used in an empirical review of management and performance are classified. The results illustrate how a systematization of the conceptual space of performance in public organizations can help researchers select what to study and what to leave out with greater accuracy while also bringing greater clarity to public debates about performance.     

A Comparative Assessment of Elite Policy Recruits in Canada

Recent case studies and large-N survey evidence has confirmed long-suspected shortages of public sector “policy capacity”. Studies have found that government policy workers in various jurisdictions differ considerably with respect to types of policy work they undertake, and have identified uneven capacity for policy workers to access and apply technical and scientific knowledge to public issues. This suggests considerable difficulties for government’s ability to meet contemporary policy and governance challenges. Despite growing attention to these matters, studies have not examined the “elite” policy workers many governments recruit to address these capacity shortages. Using an established survey instrument, this study of two Canadian recruitment programs provides the first comparative analysis of elite policy recruits, as policy workers. Three research questions anchor the study: (1) What is the profile of these actors? (2) What types of policy work do “elite” policy analysts actually engage in? (3) How does their policy work compare by recruitment program? The article provides fresh comparative data on the nature of elite policy work and policy analytical capacity, but, more importantly, a crucial baseline for future comparative study of how elite recruitment may facilitate “supply-side” capacity gains expected from recruitment programs.     

Collaborative Innovation: A Viable Alternative to Market Competition and Organizational Entrepreneurship

There are growing pressures for the public sector to be more innovative but considerable disagreement about how to achieve it. This article uses institutional and organizational analysis to compare three major public innovation strategies. The article confronts the myth that the market‐driven private sector is more innovative than the public sector by showing that both sectors have a number of drivers of as well as barriers to innovation, some of which are similar, while others are sector specific. The article then systematically analyzes three strategies for innovation: New Public Management, which emphasizes market competition; the neo‐Weberian state, which emphasizes organizational entrepreneurship; and collaborative governance, which emphasizes multiactor engagement across organizations in the private, public, and nonprofit sectors. The authors conclude that the choice of strategies for enhancing public innovation is contingent rather than absolute. Some contingencies for each strategy are outlined.     

Organizational Pathology Compared to What? Impacts of Job Characteristics and Career Trajectory on Perceptions of Organizational Red Tape

Early studies of organizational red tape emphasized that worker perceptions of organizational rules and procedures are dependent on workers’ frames of reference. However, most prior studies do not account sufficiently for how and why these reference points vary across employees, even if they work within the same or similar organizational contexts. While the effects of contemporaneous employee attitudes on perceptions of red tape have been considered in prior analyses, how do perceptions of organizational rules and procedures as red tape relate to workers’ prior career trajectories and occupational contexts? Variable norms and expectations across organizations as well as across the public and private sectors may produce different attitudes toward rules and procedures. Of equal import, current occupational characteristics are relatively unexamined in studies of worker perceptions of red tape. Using a survey of state level public managers, this paper examines how employees’ perceptions of red tape are mediated by their prior career trajectories and experiences, as well as by their occupational context. Implications for theory and practice are discussed.     

The Power of Nonprofits: Mechanisms for Nonprofit Policy Influence

The dramatic increase in public funding for nonprofit organizations has raised concerns about the potential disadvantages of a nonprofit sector that is too reliant on government funding. Using nonprofits to deliver public programs also presents risks for the public sector, but the question of nonprofit policy influence is largely absent from discussions of public–nonprofit service collaborations. The motivation for this article stems from the contradiction between the perceived weakness of publicly funded nonprofits and their potential for policy influence. This research asks, how do nonprofits exert policy influence? Using a grounded theory approach, the research draws on the attitudes and experiences of professionals and elected officials involved in policy making and policy implementation in the area of low‐income housing. The findings indicate a variety of mechanisms through which the government–nonprofit relationship can strengthen the power of nonprofit organizations, sometimes while weakening their government counterparts.     

Private regulatory capture via harmonization: An analysis of global retailer regulatory intermediaries

Studies using the Regulatory–Intermediary–Target (RIT) framework have examined a variety of forms of regulatory capture, including how targets capture intermediaries (T?I) and how intermediaries capture regulators (I?R). Little attention has been paid to why and how regulators themselves might engage in capture. Yet such a scenario is likely in transnational governance settings characterized by regulatory competition and conflict, as well as power differentials between different types of private regulators (non‐governmental organizations, multinational corporations, and business associations). This paper elucidates why and how a private regulator might capture another private regulator via a regulatory intermediary: R1?I?R2. Drawing on interview and archival data, I examine three industry‐driven regulatory intermediaries created to harmonize private labor codes of conduct and ethical audit processes. These are founded and governed by a small group of retail trade associations and global retailers who also fulfill the role of private regulators (R1). My analysis reveals that the creation of these intermediaries is driven by global retailers’ reliance on standardization, low transaction costs, and regulatory harmonization across all aspects of their operations. It further reveals how the harmonization platforms are designed to leverage global retailers’ market power and evolve from regulatory intermediaries into de facto regulators that supplant existing private regulators (R2), and thereby capture transnational governance of consumer product supply chains. The article concludes by discussing contributions, implications, and avenues for future research.     

Varieties of Social Policy by Other Means: Lessons for Comparative Welfare State Research

Abstract

Scholars can take a broader look at social policy and understand that traditional public welfare state programs are only one of the many potential sources of social protection and regulation. The contributions of this special issue invite social policy scholars to explore policy instruments that provide “social policy by other means” across a wide array of areas, including agriculture, energy, immigration, taxation, and legal regulation of private benefits and services. The article provides a concise overview of some of the key theoretical and empirical implications of social policy by other means for comparative welfare state research. In order to do this, it is divided into two main sections, which respectively discuss the nature and boundaries of social policy and the varieties of social policy by other means. This is followed by a short conclusion, which summarizes the key lessons of this special issue for comparative welfare state research.     

Why Do Private Governance Organizations Not Converge? A Political–Institutional Analysis of Transnational Labor Standards Regulation

Voluntary governance arrangements focusing on responsible business behavior have proliferated over the past decades, and in many sectors of industry, different governance organizations now compete for business participation. This private governance competition has negative consequences for the effective functioning of these arrangements. In the literature up until now, optimism prevails on how a process of policy convergence between organizations may come about that would solve some of the problems that arise because of this competition. It is remarkable, however, that in one of the key industries referred to in this literature, the garments industry, convergence is virtually absent. This article explains why this is so and suggests that next to three existing approaches to the evolution and possible convergence of private governance organizations, actually a fourth, pessimistic type should be introduced, taking into account the evolution and perseverance of political difference between interest groups creating and supporting private governance arrangements.     

Achilles' heels of governance: Critical capacity deficits and their role in governance failures

This article assesses the usefulness of conceptions of policy capacity for understanding policy and governance outcomes. In order to shed light on this issue, it revisits the concept of governance, derives a model of basic governance types and discusses their capacity pre‐requisites. A model of capacity is developed combining competences over three levels of activities with analysis of resource capabilities at each level. This analysis is then applied to the common modes of governance. While each mode requires all types of capacity if it is to match its theoretically optimal potential, most on‐the‐ground modes do not attain their highest potential. Moreover, each mode has a critical type of capacity which serves as its principle vulnerability; its “Achilles' heel.” Without high levels of the requisite capacity, the governance mode is unlikely to perform as expected. While some hybrid modes can serve to supplement or reinforce each other and bridge capacity gaps, other mixed forms may aggravate single mode issues. Switching between modes or adopting hybrid modes is, therefore, a non‐trivial issue in which considerations of capacity issues in general and Achilles' heel capacities in particular should be a central concern.