Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-848d4c4894-jbqgn Total loading time: 0 Render date: 2024-06-28T15:49:02.947Z Has data issue: false hasContentIssue false

3 - Measuring Compliance in the Age of Governance: How the Governance Turn Has Impacted Compliance Measurement by the State

from Part 1 - The Compliance Industry, the State, and Measurement Needs

Published online by Cambridge University Press:  17 February 2022

By
Karin van Wingerde  and
Lieselot Bisschop
Edited by
Melissa Rorie  and
Benjamin van Rooij
Melissa Rorie
Affiliation:
University of Nevada, Las Vegas
Benjamin van Rooij
Affiliation:
University of Amsterdam, School of Law
Get access

Summary

Abstract: Since the 1980s, the governance of business behavior in Western societies has been characterized by a move away from state-centered hierarchical forms of governance to networks of governance which include a wide variety of public and private actors. This chapter illustrates how this so-called governance turn has impacted compliance measurement by the state. The chapter begins by outlining the characteristics of the turn to governance and the questions this raises for the measurement of compliance by the state. The chapter is subsequently organized around two key issues: 1) What is it that we measure when we measure compliance? and 2) The reliability, magnitude, and ownership of the data used. Drawing on examples of certification and the global anti-money laundering regime, each section discusses how the governance turn has made compliance measurement by regulatory authorities more challenging.

Keywords

Governance, Decentering of Regulation, Corporate Crime, Compliance, Anti-Money Laundering, Certification
Type
Chapter
Information
Measuring Compliance
Assessing Corporate Crime and Misconduct Prevention
 , pp. 55 - 70
Publisher: Cambridge University Press
Print publication year: 2022

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abbott, Kenneth and Snidal, Duncan. 2009. The governance triangle: Regulatory standards institutions and the shadow of the state. In The Politics of Global Regulation. Princeton University Press, pp. 44–88.Google Scholar
Auld, Graeme. 2014. Confronting trade‐offs and interactive effects in the choice of policy focus: Specialized versus comprehensive private governance. Regulation & Governance, 8(1), 126–48.Google Scholar
Ayres, Ian and Braithwaite, John. 1992. Responsive Regulation. Transcending the Deregulation Debate. New York: Oxford University Press.Google Scholar
Baldwin, Robert and Black, Julia. 2008. Really responsive regulation. The Modern Law Review, 71, 59–94.Google Scholar
Baldwin, Robert and Black, Julia. 2016. Driving priorities in risk-based regulation: What’s the problem? Journal of Law and Society, 43, 565–95.Google Scholar
Bardach, Eugine and Kagan, Robert A.. 1982. Going by the Book: The Problem of Regulatory Unreasonableness. Philadelphia: Temple University Press.Google Scholar
Bartley, Tim. 2003. Certifying forests and factories: States, social movements and the rise of private regulation in the apparel and forest product fields. Politics and Society, 31, 433–64.Google Scholar
Bartley, Tim. 2007. Institutional emergence in an era of globalization: The rise of transnational private regulation of labor and environmental conditions. American Journal of Sociology, 113(2), 297–351.Google Scholar
Bergström, Maria. 2018. The global AML regime and the EU AML Directives: Prevention and control. In Walker, Clive, King, Colin, and Gurulé, Jimmy, eds., The Palgrave Handbook of Criminal and Terrorism Financing Law. Cham, Switzerland: Palgrave Macmillan, pp. 33–56.CrossRefGoogle Scholar
Bisschop, Lieselot. 2016. Governance of the Illegal Trade in E-Waste and Tropical Timber: Case Studies on Transnational Environmental Crime. London: Routledge.Google Scholar
Black, Julia. 2001. Decentring regulation: Understanding the role of regulation and self regulation in a “postregulatory” world. Current Legal Problems, 54, 103–47.Google Scholar
Black, Julia. 2010. Risk-based regulation. Choices, practices and lessons being learnt. In OECD, ed., Risk and Regulatory Policy. Improving the Governance of Risk. Paris: OECD Publishing, pp. 185–236.Google Scholar
Black, Julia and Baldwin, Robert. 2010. Really responsive risk-based regulation. Law & Policy, 32, 181–213.Google Scholar
Börzel, Tanja and Risse, Thomas. 2010. Governance without a state: Can it work? Regulation & Governance, 4, 113–34.Google Scholar
Braithwaite, John. 2005. Neoliberalism or regulatory capitalism. RegNet Occasional Paper No. 5, Geraadpleegd op 21 juni 2012. http://ssrn.com/abstract=875789.Google Scholar
Braithwaite, John. 2008. Regulatory Capitalism. How It Works, Ideas for Making It Work Better. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Cashore, Benjamin, Auld, Graeme, and Renckens, Stefan. 2011. The impact of private, industry and transnational civil society regulation and their interaction with official regulation. In Parker, Christine and Nielsen, Vibeke Lehmann, eds., Explaining Regulatory Compliance. Business Responses to Regulation. Cheltenham, UK: Edward Elgar, pp. 170–95.Google Scholar
Cliff, Gerald and Wall-Parker., April 2017. Statistical analysis of white-collar crime. Oxford Research Encyclopedia, Criminology and Criminal Justice. doi: 10.1093/acrefore/9780190264079.013.267.Google Scholar
Coglianese, Cary and Lazer, David. 2003. Management-based regulation: Prescribing private management to achieve public goals. Law & Society Review, 37(4), 691–730.Google Scholar
Coglianese, Cary and Nash, Jennifer. 2001. Regulating from the Inside: Can Environmental Management Systems Achieve Policy Goals? Washington, DC: Resources for the Future.Google Scholar
Coglianese, Cary and Nash, Jennifer. 2006. Leveraging the Private Sector: Management-Based Strategies for Improving Environmental Performance. Washington, DC: Resources for the Future.Google Scholar
Crawford, Adam. 2006. Networked governance and the post-regulatory state? Steering, rowing and anchoring the provision of policing and security. Theoretical Criminology, 10(4), 449–79.Google Scholar
Edelman, Lauren B. 2007. Overlapping fields and constructed legalities: The endogeneity of law. In O’Brien, Justin, ed., Private Equity, Corporate Governance, and the Dynamics of Capital Markets Regulation. Singapore: World Scientific Publishing Co., pp. 55–90.Google Scholar
FIU-the Netherlands. 2019. Annual Report 2018. www.fiu-nederland.nl/sites/www.fiu-nederland.nl/files/documenten/fiu-the_netherlands_annual_report_2018.pdf.Google Scholar
Garrett, Brandon L. 2014. Too Big to Jail. How Prosecutors Compromise with Corporations. Cambridge, MA: Harvard University Press.Google Scholar
Gibbs, Carole and Simpson, Sally. 2009. Measuring corporate environmental crime rates: Progress and problems. Crime, Law and Social Change, 51(1), 87–107.Google Scholar
Gilad, Sharon. 2010. It runs in the family: Meta-regulation and its siblings. Regulation & Governance, 4(4), 485–506.CrossRefGoogle Scholar
Grabosky, Peter. 1995. Using non-governmental resources to foster regulatory compliance. Governance: An International Journal of Policy and Administration, 8(4), 527–50.CrossRefGoogle Scholar
Grabosky, Peter. 2013. Beyond Responsive Regulation: The expanding role of non‐state actors in the regulatory process. Regulation & Governance, 7, 114–23.Google Scholar
Gulbrandsen, Lars H. 2010. Transparency in nonstate certification: Consequences for accountability and legitimacy. Global Environmental Politics, 10(3), 97–119.Google Scholar
Gulbrandsen, Lars H. 2014. Dynamic governance interactions: Evolutionary effects of state responses to nonstate certification programs. Regulation & Governance, 8(1), 74–92Google Scholar
Gunningham, Neil. 2009. Environmental law, regulation and governance: Shifting architectures. Journal of Environmental Law, 21(2), 179–212.Google Scholar
Gunningham, Neil and Johnstone, Richard. 1999. Regulating Workplace Safety. Systems and Sanctions. Oxford: Oxford University Press.Google Scholar
Gunningham, Neil and Sinclair, Darren. 1999. Regulatory pluralism: Designing policy mixes for environmental protection. Law & Policy, 21(1), 49–76.Google Scholar
Gunningham, Neil and Sinclair, Darren. 2009. Organizational trust and the limits of management-based regulation. Law & Society Review, 43(4), 865–900.Google Scholar
Gunningham, Neil, Philipson, Martin, and Grabosky, Peter. 1999. Harnessing third parties as surrogate regulators: Achieving environmental outcomes by alternative means. Business, Strategy and the Environment, 8(4), 211–24.Google Scholar
Johnston, Les and Shearing, Clifford. 2003. Governing Security: Explorations in Policing and Justice. New York: Routledge.Google Scholar
Kourula, Arno, Moon, Jeremy, Salles-Djelic, Marie-Laure, and Wickert, Christopher. 2019. New roles of government in the governance of business conduct: Implications for management and organizational research. Organization Studies, 40(8), 1101–23.Google Scholar
Krawiec, Kimberly. 2003. Cosmetic compliance and the failure of negotiated governance. Washington University Law Quarterly, 81, 487–544.Google Scholar
Levi-Faur, David. 2005. The global diffusion of regulatory capitalism. The Annals of the American Academy of Political and Social Science, 598(1), 12–32.Google Scholar
Levi-Faur, David and Gilad, Sharon. 2004. The rise of the British regulatory state: Transcending the privatization debate. Comparative Politics, 37, 105–24.Google Scholar
Lobel, Orly. 2004. The Renew Deal: The fall of regulation and the rise of governance in contemporary legal thought. Minnesota Law Review, 89, 342–470.Google Scholar
Lord, Nicholas. 2013. Regulating transnational corporate bribery: Anti-bribery and corruption in the UK and Germany. Crime Law Soc. Change, 60, 127–45.CrossRefGoogle Scholar
Lord, Nicholas and Levi, Michael. 2018. In pursuit of the proceeds of transnational corporate bribery: The UK experience to date. In The Handbook of Criminal and Terrorist Financing Law. Cham, Switzerland: Palgrave Macmillan, pp. 621–48.Google Scholar
Marx, Axel. 2013. Varieties of legitimacy: A configurational institutional design analysis of eco-label. Innovation: The European Journal of Social Science Research, 26(3) 268–87.Google Scholar
Marx, Axel and Wouters, Jan. 2015. Competition and cooperation in the market of voluntary sustainability standards. UNFSS Discussion Papers, no. 3. unfss-dp-no-3-final-version-15april_full.pdf.Google Scholar
Mascini, Peter and van Erp, Judith. 2014. Regulatory governance: Experimenting with new roles and instruments. Recht der Werkelijkheid, 35(3), 3–11.Google Scholar
McBarnet, Doreen. 2001. When Compliance Is Not the Solution but the Problem: From Changes in Law to Changes in Attitude. In Centre for Tax System Integrity, The Australian National University, Working Paper No. 18. https://openresearch-repository.anu.edu.au/bitstream/1885/41635/2/WP18.pdf.Google Scholar
Netherlands Court of Audit. 2021. An Invisible Problem. https://english.rekenkamer.nl/latest/news/2021/01/20/data-errors-hamper-enforcement-of-environmental-rules.Google Scholar
NPPS. 2018 . Investigation Houston. Criminal Investigation into ING Bank N.V. Statement of Facts and Conclusions of the Netherlands Public Prosecution Service. www.om.nl/vaste-onderdelen/zoeken/@103952/ing-pays-775-million/.Google Scholar
OECD. 2018. OECD Regulatory Enforcement and Inspections Toolkit. Paris: OECD Publishing.Google Scholar
Ostrom, Elinor. 2010. Beyond markets and states: Polycentric governance of complex economic systems. American Economic Review, 100(3), 641–72.Google Scholar
Parker, Christine. 2002. The Open Corporation: Effective Self-Regulation and Democracy. Cambridge, UK: Cambridge University Press.Google Scholar
Parker, Christine and Gilad, Sharon. 2011. Internal corporate compliance management systems: Structure, culture and agency. In Parker, Christine and Nielsen, Vibeke Lehmann, eds., Explaining Regulatory Compliance. Business Responses to Regulation. Cheltenham, UK: Edward Elgar, pp. 170–95.CrossRefGoogle Scholar
Parker, Christine and Nielsen, Vibeke. 2009. The challenge of empirical research on business compliance in regulatory capitalism. Annu. Rev. Law Soc. Sci. 5, 45–70.CrossRefGoogle Scholar
Pfaff, Alexander S. P. and Sanchirico, Chris W.. 2000. Environmental self-auditing: Setting the proper incentives for discovery and correction of environmental harm. Journal of Law, Economics, and Organization, 16, 189–208.Google Scholar
Potoski, Matthew and Prakash, Aseem. 2011. Voluntary programs, regulatory compliance and the regulation dilemma. In Parker, Christine and Nielsen, Vibeke Lehmann, eds., Explaining Regulatory Compliance. Business Responses to Regulation. Cheltenham, UK: Edward Elgar, pp. 245–62.Google Scholar
Rhodes, Roderick A. W. 1996. The new governance: Governing without government. Political Studies, 44, 652–67.Google Scholar
Scheltema, Martijn. 2014. The need for an integrated comparison of the effectiveness of international sustainable forestry, coffee and cocoa initiatives. Recht der Werkelijkheid, 35(3), 134–57.Google Scholar
Scheltema, Martijn. 2016. Balancing public and private regulation. Utrecht Law Review, 12(1), 16–31.Google Scholar
Schneiberg, Marc and Bartley, Tim. 2008. Organizations, regulation, and economic behavior: Regulatory dynamics and forms from the nineteenth to twenty-first century. Annual Review of Law and Social Science, 4(1), 31–61.Google Scholar
Scott, Colin. 2004. Regulation in the age of governance: The rise of the post-regulatory state. In Jordana, Jacint and Levi-Faur, David. The Politics of Regulation: Institutions and Regulatory Reforms for the Age of Governance. Cheltenham, UK: Edward Elgar, pp. 145–74.Google Scholar
Shamir, Ronen. 2010. Capitalism, governance, and authority: The case of corporate social responsibility. Annual Review of Law and Social Science, 6, 531–53.CrossRefGoogle Scholar
Shamir, Ronen. 2011. Socially responsible private regulation: World-culture or world-capitalism? Law & Social Inquiry, 45(2), 313–36.Google Scholar
Shearing, Clifford and Wood, Jennifer. 2003. Nodal governance, democracy, and the new “denizens.” Journal of Law and Society, 30, 400–19.Google Scholar
Short, Jodi and Toffel, Michael. 2008. Coerced confessions: Self-policing in the shadow of the regulator. The Journal of Law, Economics, & Organization, 24(1), 45–71.Google Scholar
Short, Jodi and Toffel, Michael. 2010. Making self-regulation more than merely symbolic: The critical role of the legal environment. Administrative Science Quarterly, 55(3), 361–96.Google Scholar
Short, Jodi L., Toffel, Michael W., and Hugill, Andrea R.. 2014. Monitoring the monitors: How social factors influence supply chain auditors. Strategic Management Journal. https://repository.uchastings.edu/faculty_scholarship/1194.Google Scholar
Søreide, Tina and Makinwa, Abiola. 2020. Negotiated Settlements in Bribery Cases: A Principled Approach. Cheltenham, UK: Edward Elgar.Google Scholar
Staring, Richard, Bisschop, Lieselot, Roks, Robby, Brein, Elisabeth, and van de Bunt, Henk. 2019. Drugscriminaliteit in de Rotterdamse Haven: Aard en Aanpak van het Fenomeen. (Drugcrime in the Port of Rotterdam). The Hague: Boom criminologie.Google Scholar
Steinzor, Rena. 2014. Why Not Jail?: Industrial Catastrophes, Corporate Malfeasance, and Government Inaction. Cambridge, UK: Cambridge University Press.Google Scholar
Uhlmann, David M. 2013. Deferred prosecution and non-prosecution agreements and the erosion of corporate criminal liability. Maryland Law Review, 72, 1295–344.Google Scholar
UNFSS. 2013. Voluntary Sustainability Standards. Today’s landscape of issues and initiatives to achieve public policy objectives. United Nations Forum on Sustainability Standards 3rd Flagship Report of the United Nations Forum on Sustainability Standards (UNFSS).Google Scholar
UNFSS. 2020. Scaling up Voluntary Sustainability Standards through Sustainable Public Procurement and Trade Policy. 4th Flagship Report of the United Nations Forum on Sustainability Standards (UNFSS). https://unfss.org/wp-content/uploads/2020/10/UNFSS-4th-Report_revised_12Oct2020.pdf.Google Scholar
van Rooij, Benjamin, Stern, Rachel, and Fürst, Kathinka. 2015. The authoritarian logic of regulatory pluralism: Understanding China’s new environmental actors. Regulation & Governance, 10, 3–13.Google Scholar
van Wingerde, Karin and Merz, Anna. 2021. Responding to money laundering across Europe: What we know and what we risk. In Lord, Nicholas, Inzelt, Eva, Huisman, Wim, and Faria, Rita, eds., European White-Collar Crime. Exploring the Nature of European Realities. Bristol: Bristol University Press, pp. 103–21.Google Scholar
Vandenbergh, Michael. 2007. The new Wal-Mart effect: The role of private contracting in global governance. UCLA Law Review, 54, 913–64.Google Scholar
Verbruggen, Paul. 2014a. Enforcing Transnational Private Regulation. A Comparative Analysis of Advertising and Food Safety. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Verbruggen, Paul. 2014b. Regulatory governance by contract: The rise of regulatory standards in commercial contracts. Recht der Werkelijkheid, 35(3), 79–100.Google Scholar
Vogel, Steven K. 1996. Freer Markets, More Rules. Regulatory Reform in Advanced Industrial Countries. New York: Cornell University Press.Google Scholar
Walburg, Christian. 2015. The measurement of corporate crime, an exercise in futility? In van Erp, Judith, Huisman, Wim, and Vande Walle, Gudrun, eds., The Routledge Handbook of White-Collar and Corporate Crime in Europe. London: Routledge, pp. 25–38.Google Scholar
Warin, Joseph, Day, Kendall, Brooker, Stephanie et al. 2018. To disclose or not to disclose: Analyzing the consequences of voluntary self-disclosure for financial institutions. Compliance and Enforcement NYU Blog. https://wp.nyu.edu/compliance_enforcement/2018/07/17/to-disclose-or-not-to-disclose-analyzing-the-consequences-of-voluntary-self-disclosure-for-financial-institutions/.Google Scholar
Wood, Jennifer and Shearing, Clifford. 2013. Imagining Security. London: Routledge.CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×