Voluntary Programs: A Club Theory Perspective

The recent growth of voluntary programs has attracted the attention ofpolicymakers, nongovernmental organizations, and scholars. Thousands of firms aroundthe world participate in these programs, in which members agree to undertakesocially beneficial actions that go beyond the requirements of governmentregulations, such as following labor codes in the apparel industry, adhe

The recent growth of voluntary programs has attracted the attention ofpolicymakers, nongovernmental organizations, and scholars. Thousands of firms aroundthe world participate in these programs, in which members agree to undertakesocially beneficial actions that go beyond the requirements of governmentregulations, such as following labor codes in the apparel industry, adhering tointernational accounting standards, and adopting internal environmental managementsystems. This book analyzes the efficacy of a variety of voluntary programs using aclub theory, political-economy framework. It examines how programs' designinfluences their effectiveness as policy tools. It finds that voluntary programshave achieved uneven success because of their varying standards and enforcementprocedures.The club theory framework views voluntary programs as institutions thatcreate incentives for firms to incur the costs of taking progressive action beyondwhat is required by law in exchange for benefits that nonmembers do not enjoy (suchas enhanced standing with stakeholders). Voluntary Programs develops thistheoretical framework and applies it to voluntary programs sponsored by industryassociations, governments, and nongovernmental organizations, organized aroundpolicy issues such as "blood diamonds," shipping, sweatshops, and theenvironment. The wide diversity of cases--across sectors, sponsoring organizations, and objectives--provides valuable applications of the club framework, generates newinsights for future research, and offers practical guidance for designing effectiveprograms.ContributorsDavid P. Baron, Tim Bartley, Tim B?the, Cary Coglianese, Elizabeth R. DeSombre, Daniel W. Drezner, Daniel Fiorino, Mary Kay Gugerty, VirginiaHaufler, Matthew J. Kotchen, Mimi Lu, Jennifer Nash, Matthew Potoski, Aseem Prakash, Klaas van 't Veld