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Input and output legitimacy of multi-stakeholder initiatives

Mena, S. and Palazzo, G. (2012). Input and output legitimacy of multi-stakeholder initiatives. Business Ethics Quarterly, 22(3), pp. 527-556. doi: 10.5840/beq201222333

Abstract

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy.

Publication Type: Article
Additional Information: Copyright Cambridge University Press 2012. This version may have been revised following peer review but may be subject to further editorial input by Cambridge University Press.
Publisher Keywords: Corporate social responsibility, Deliberative democracy, Legitimacy, Multi-stakeholder initiative, Soft law
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/4274
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