Voluntary Programs: A Club Theory Perspective
Matthew Potoski and Aseem Prakash
Abstract
The growth of voluntary programs has attracted the attention of policymakers, nongovernmental organizations, and scholars. Thousands of firms around the world participate in these programs, in which members agree to undertake socially beneficial actions that go beyond the requirements of government regulations, such as following labor codes in the apparel industry, adhering to international accounting standards, and adopting internal environmental management systems. This book analyzes the efficacy of a variety of voluntary programs using a club theory, political-economy framework, and examine ... More
The growth of voluntary programs has attracted the attention of policymakers, nongovernmental organizations, and scholars. Thousands of firms around the world participate in these programs, in which members agree to undertake socially beneficial actions that go beyond the requirements of government regulations, such as following labor codes in the apparel industry, adhering to international accounting standards, and adopting internal environmental management systems. This book analyzes the efficacy of a variety of voluntary programs using a club theory, political-economy framework, and examines how programs’ design influences their effectiveness as policy tools. It finds that voluntary programs have achieved uneven success because of their varying standards and enforcement procedures. The club theory framework views voluntary programs as institutions that create incentives for firms to incur the costs of taking progressive action beyond what is required by law in exchange for benefits which nonmembers do not enjoy (such as enhanced standing with stakeholders). The book develops this theoretical framework and applies it to voluntary programs sponsored by industry associations, governments, and nongovernmental organizations, organized around policy issues such as “blood diamonds,” shipping, sweatshops, and the environment.
Keywords:
labor codes,
environmental management,
policy tools,
stakeholders,
industry associations,
governments,
nongovernmental organizations,
blood diamonds,
shipping,
sweatshops
Bibliographic Information
| Print publication date: 2009 |
Print ISBN-13: 9780262162500 |
| Published to MIT Press Scholarship Online: August 2013 |
DOI:10.7551/mitpress/9780262162500.001.0001 |
