Skip to main content Accessibility help
×
Home
Hostname: page-component-747cfc64b6-nvdzj Total loading time: 0.219 Render date: 2021-06-14T06:26:36.632Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "metricsAbstractViews": false, "figures": true, "newCiteModal": false, "newCitedByModal": true, "newEcommerce": true }

Stakeholder scrutiny, urban bias, and the private provision of public goods

Published online by Cambridge University Press:  21 November 2017

Abstract

While many scholars have studied “urban bias” in public policy, the potential for bias in the private provision of public goods has received little attention. Private certification is a mechanism encouraging private provision of environmental public goods. We show that within countries, there are often wide disparities in certification rates between firms located in urban and non-urban areas. However, these disparities can be mitigated if there is a countervailing force: scrutiny of firms' practices by key stakeholders. We suggest that the presence of strong civil society, independent media, a functioning state regulatory apparatus, and multinational owners can ameliorate the urban bias in certification uptakes. We test this argument with global, firm-level data covering over 40,000 firms in ninety-three countries. Our analyses suggest that an urban bias is mitigated when stakeholders—both public and private—have the freedom and capacity to scrutinize firms' activities.

Type
Research Article
Copyright
Copyright © V.K. Aggarwal 2017 and published under exclusive license to Cambridge University Press 

Access options

Get access to the full version of this content by using one of the access options below.

References

Amengual, Matthew. 2014. “Pathways to Enforcement: Labor Inspectors Leveraging Linkages with Society in Argentina.” Industrial & Labor Relations Review 67 (1): 333.CrossRefGoogle Scholar
Avant, Deborah, Finnemore, Martha, and Sell, Susan. eds. 2010. Who Governs the Globe? Cambridge, United Kingdom: Cambridge University Press.CrossRefGoogle Scholar
Bates, Robert. 1981. Markets and States in Tropical Africa: The Political Basis of Agricultural Policies. Berkeley: University of California Press.Google Scholar
Baron, David P. 2000. Business and Public Policy, 3rd edition. Upper Saddle River, NJ: Prentice Hall.Google Scholar
Bednar, Michael K., Boivie, Steven, and Prince, Nicholas R.. 2013. “Burr under the Saddle: How Media Coverage Influences Strategic Change.” Organization Science 24 (3): 910–25.CrossRefGoogle Scholar
Berliner, Daniel and Prakash, Aseem. 2014. “Public Authority and Private Rules: How Domestic Regulatory Institutions Shape the Adoption of Global Private Regimes.” International Studies Quarterly 58 (4): 793803.CrossRefGoogle Scholar
Bernardo, Merce, Casadesus, Marti, Karapetrovic, Stanislav, and Heras, Iñaki. 2009. “How integrated are environmental, quality and other standardized management systems? An empirical study.” Journal of Cleaner Production 17 (8): 742–50.CrossRefGoogle Scholar
Bob, Clifford. 2005. The Marketing of Rebellion: Insurgents, Media, and International Activism. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Böhmelt, Tobias and Betzold, Carola. 2013. “The Impact of Environmental Interest Groups in International Negotiations: Do ENGOs Induce Stronger Environmental Commitments?International Environmental Agreements 13 (2): 127–51.CrossRefGoogle Scholar
Bradshaw, York W. 1987. “Urbanization and Underdevelopment: A Global Study of Modernization, Urban Bias, and Economic Dependency.” American Sociological Review (1987): 224–39.CrossRefGoogle Scholar
Brambor, Thomas, Clark, William Roberts, and Golder, Matt. 2006. “Understanding Interaction Models: Improving Empirical Analyses.” Political Analysis 14: 6382.CrossRefGoogle Scholar
Bullard, Robert Doyle. 1993. Confronting Environmental Racism. Boston, MA: South End Press.Google Scholar
Büthe, Tim and Mattli, Walter. 2011. The New Global Rulers: The Privatization of Regulation in the World Economy. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
Carroll, Craig E. and McCombs, Maxwell. 2013. “Agenda-Setting Effects of Business News on the Public's Images and Opinions about Major Corporations.” Corporate Reputation Review 6 (1): 3646.CrossRefGoogle Scholar
Castka, Pavel and Corbett, Charles J.. 2015. “Management Systems Standards: Diffusion, Impact and Governance of ISO 9000, ISO 14000, and Other Management Standards.” Foundations and Trends in Technology, Information and Operations Management 7 (3–4): 161379.CrossRefGoogle Scholar
Christmann, Petra and Taylor, Glen. 2001. “Globalization and the Environment: Determinants of Firm Self-Regulation in China.” Journal of International Business Studies 32 (3): 439–58.CrossRefGoogle Scholar
Chrun, Elizabeth, Dolsak, Nives, and Prakash, Aseem. 2016. “Corporate Environmentalism: Motivations and Mechanisms.” Annual Review of Environment and Resources 41: 341–62.CrossRefGoogle Scholar
Coase, Ronald. 1960. “The Problem of Social Cost.” Journal of Law and Economics 3: 144.CrossRefGoogle Scholar
Coglianese, Cary and Nash, Jennifer. 2001. Regulating from the Inside: Can Environmental Management Systems Achieve Policy Goals? Washington, D.C.: Resources for the Future.Google Scholar
Coglianese, Cary and Lazer, David. 2003. “Management-Based Regulation: Prescribing Private Management to Achieve Public Goals.” Law & Society Review 37 (4): 691731.CrossRefGoogle Scholar
Corbett, Charles J., and Kirsch, David A.. 2001. “International Diffusion of ISO 14000 Certification.” Production and Operations Management 10: 327–42.CrossRefGoogle Scholar
Cox, Gary and McCubbins, Mathew. 1986. “Electoral Politics as a Redistributive Game.” Journal of Politics 48 (2): 370–89.CrossRefGoogle Scholar
Cutler, A. Claire, Haufler, Virginia, and Porter, Tony (eds.). 1999. Private Authority and International Affairs. New York: SUNY Press.Google Scholar
Darnall, Nicole and Edwards, Daniel. 2006. “Predicting the Cost of Environmental Management System Adoption: The Role of Capabilities, Resources and Ownership Structure.” Strategic Management Journal 27 (2): 301–20.CrossRefGoogle Scholar
Delmas, Magali and Montiel, Ivan. 2008. “The Diffusion of Voluntary International Management Standards: Responsible Care, ISO 9000, and ISO 14001 in the Chemical Industry.” Policy Studies Journal 36 (1): 6593.CrossRefGoogle Scholar
Erp, Judith Van. 2008. “Reputational Sanctions in Private and Public Regulation.” Erasmus Law Review 1 (5): 145–62.Google Scholar
Gelman, Andrew and Hill, Jennifer. 2007. Data Analysis Using Regression and Multilevel/Hierarchical Models. Cambridge, United Kingdom: Cambridge University Press.Google Scholar
Grossman, Gene M. and Helpman, Elhanan. 1996. “Electoral Competition and Special Interest Politics.” The Review of Economic Studies 63 (2): 265–86.CrossRefGoogle Scholar
Guler, Isin, Guillén, Mauro F., and Macpherson, John Muir. 2002. “Global Competition, Institutions, and the Diffusion of Organizational Practices: The International Spread of ISO 9000 Quality Certificates.” Administrative Science Quarterly 47 (2): 207–32.CrossRefGoogle Scholar
Gupta, Aarti. 2008. “Transparency under Scrutiny: Information Disclosure in Global Environmental Governance.” Global Environmental Politics 8 (2): 17.CrossRefGoogle Scholar
Hamilton, James T. 1995. “Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data.” Journal of Environmental Economics and Management 28 (1): 98113.CrossRefGoogle Scholar
Hendrix, Cullen S. and Wong, Wendy H.. 2013. “When Is the Pen Truly Mighty? Regime Type and the Efficacy of Naming and Shaming in Curbing Human Rights Abuses.” British Journal of Political Science 43: 122.CrossRefGoogle Scholar
Héritier, Adrienne, Mueller-Debus, Anna K., and Thauer, Christian R.. 2009. “The Firm as an Inspector: Private Ordering and Political Rules.” Business and Politics 11 (4): 132.Google Scholar
Kahn, Matthew. 2002. “Demographic Change and the Demand for Environmental Regulation.” Journal of Policy Analysis and Management 21(1): 4562.CrossRefGoogle Scholar
Kalyvas, Stathis. 2004. “The Urban Bias in Research Civil Wars.” Security Studies 13(3): 160–90.CrossRefGoogle Scholar
Karapetrovic, Stanislav and Casadesus, Marti. 2009. “Implementing Environmental with Other Standardized Management Systems: Scope, Sequence, Time and Integration.” Journal of Cleaner Production 17 (5): 533–40.CrossRefGoogle Scholar
Katz, Eliakim, Nitzan, Shmuel, and Rosenberg, Jacob. 1990. “Rent-Seeking for Pure Public Goods.” Public Choice 65: 4960.CrossRefGoogle Scholar
Khanna, Madhu and Anton, William Rose Q.. 2002. “Corporate Environmental Management: Regulatory and Market-Based Incentives.” Land Economics 78 (4): 539–58.CrossRefGoogle Scholar
King, Andrew and Myles Shaver, J.. 2001. “Are Aliens Green? Assessing Foreign Establishments’ Environmental Conduct in the U.S.” Strategic Management Journal 22(11): 244–56.CrossRefGoogle Scholar
Kolk, Ans. 2000. The Economics of Environmental Management. Edinburgh: Prentice Hall/Financial Times.Google Scholar
Konisky, David and Reenock, Christopher. 2013. “Compliance Bias and Environmental (In)Justice.” The Journal of Politics 75 (2): 506–19.CrossRefGoogle Scholar
Kosack, Stephen and Fung, Archon. 2014. “Does Transparency Improve Governance?Annual Review of Political Science 17: 6587.CrossRefGoogle Scholar
Lipton, Michael. 1977. Why Poor People Stay Poor: A Study of Urban Bias in Development. London: Temple Smith.Google Scholar
Lyon, Thomas and Shimshack, Jay. 2015. “Environmental Disclosure: Evidence From Newsweek's Green Companies Rankings.” Business & Society 54 (5): 632–75.CrossRefGoogle Scholar
Majumdar, Sumon, Mani, Anandi, and Mukand, Sharun W.. 2004. “Politics, Information and the Urban Bias.” Journal of Development Economics 75 (1): 137–65.CrossRefGoogle Scholar
Mitchell, Ronald B. 1998. “Sources of Transparency: Information Systems in International Regimes.” International Studies Quarterly 42 (1): 109–30.CrossRefGoogle Scholar
Mitchell, Ronald K., Agle, Bradley R., and Wood, Donna J.. 1997. “Toward a Theory of Stakeholder Identification and Salience.” Academy of Management Review 22 (4): 853–86.Google Scholar
Molina-Azorín, José F., Tarí, Juan J., Claver-Cortés, Enrique, and López-Gamero, María D.. 2009. “Quality Management, Environmental Management and Firm Performance: A Review of Empirical Studies and Issues of Integration.” International Journal of Management Reviews 11 (2): 197222.CrossRefGoogle Scholar
Monshipouri, Mahmood, Welch, Claude E. Jr., and Kennedy, Evan T.. 2003. “Multinational Corporations and the Ethics of Global Responsibility: Problems and Possibilities.” Human Rights Quarterly 25 (4): 965–89.CrossRefGoogle Scholar
Murdie, Amanda M. and Davis, David R.. 2012. “Shaming and Blaming: Using Events Data to Assess the Impact of Human Rights INGOs.” International Studies Quarterly 56 (1): 116.CrossRefGoogle Scholar
Neumayer, Eric and Perkins, Richard. 2004. “What Explains the Uneven Take-up of ISO 14001 at the global level? A Panel Data Analysis.” Environment and Planning A 36: 823–39.CrossRefGoogle Scholar
Ostrom, Elinor. 1990. Governing the Commons. Cambridge, United Kingdom: Cambridge University Press.CrossRefGoogle Scholar
Pan, Jeh-Nan. 2003. “A Comparative Study on Motivation for and Experience with ISO 9000 and ISO 14000 Certification among Far Eastern Countries.” Industrial Management & Data Systems 103 (8–9): 564–78.CrossRefGoogle Scholar
Pargal, Sheoli and Wheeler, David. 1996. “Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia.” Journal of Political Economy 104 (6): 1314–27.CrossRefGoogle Scholar
Perkins, Richard and Neumayer, Eric. 2012. “Does the “California Effect” Operate across Borders? Trading- and Investing-up in Automobile Emission Standards.” Journal of European Public Policy 19: 217–37.CrossRefGoogle Scholar
Pfeffer, Jeffrey and Salancik, Gerald R.. 2003. The External Control of Organizations. Redwood City, CA: Stanford University Press.Google Scholar
Pollock, Timothy G. and Rindova, Violina P.. 2003. “Media Legitimation Effects in the Market for Initial Public Offerings.” Academy of Management Journal 46 (5): 631–42.CrossRefGoogle Scholar
Prakash, Aseem and Potoski, Matthew. 2006. The Voluntary Environmentalists. Cambridge, United Kingdom: Cambridge University Press.CrossRefGoogle Scholar
Prakash, Aseem and Potoski, Matthew. 2007. “Investing Up: FDI and the Cross-Country Diffusion of ISO 14001 Management Systems.” International Studies Quarterly 51 (3): 723–44.CrossRefGoogle Scholar
Prakash, Aseem and Potoski, Matthew. 2011. “Voluntary Environmental Programs: A Comparative Perspective.” Journal of Policy Analysis and Management 31 (1): 123–38.CrossRefGoogle Scholar
Prakash, Aseem and Potoski, Matthew, 2014. “Global Private Regimes, Domestic Public Law: ISO 14001 and Pollution Reduction.” Comparative Political Studies 47 (3): 369–94.CrossRefGoogle Scholar
Raustiala, Kal. 1997. “States, NGOs, and International Environmental Institutions.” International Studies Quarterly 41 (4): 719–40.CrossRefGoogle Scholar
Rees, Joseph. 1997. “The Development of Communitarian Regulation in the Chemical Industry.” Law and Policy 19 (4): 477528.CrossRefGoogle Scholar
Risse, Thomas. 2004. “Global Governance and Communicative Action.” Government and Opposition 39 (2): 288313.CrossRefGoogle Scholar
Jorge, Rivera and De Leon, Peter. 2004. “Is Greener Whiter? The Sustainable Slopes Program and the Voluntary Environmental Performance of Western Ski Areas.” Policy Studies Journal 32: 417–37.Google Scholar
Roethlisberger, Fritz Jules and Dickson, William John. 1964. Management and the Worker. Cambridge, MA: Harvard University Press.Google Scholar
Sabatier, Paul A., Focht, Will, Lubell, Mark, Trachtenberg, Zev, Vedlitz, Arnold, and Matlock, Marty (eds.). 2005. Swimming Upstream: Collaborative Approaches to Watershed Management. Cambridge, MA: MIT Press.Google Scholar
Scholz, John T. and Gray, Wayne B.. 1997. “Can Government Facilitate Cooperation? An Informational Model of OSHA Enforcement.” American Journal of Political Science 41 (July): 693717.CrossRefGoogle Scholar
Smith, Jackie and Wiest, Dawn. Transnational Social Movement Organization Dataset, 1953–2003. ICPSR33863-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research. https://doi.org/10.3886/ICPSR33863.v1CrossRefGoogle Scholar
Terlaak, Ann and King, Andrew A.. 2006. “The Effect of Certification with the ISO 9000 Quality Management Standard: A Signaling Approach.” Journal of Economic Behavior & Organization 60 (4): 579602.CrossRefGoogle Scholar
Thomson, Henry. 2017. “Food and Power: Agricultural Policy under Democracy and Dictatorship.” Comparative Politics 49 (2): 273–96.CrossRefGoogle Scholar
Varshney, Ashutosh. 1993. “Introduction: Urban Bias in Perspective.” The Journal of Development Studies 29 (4): 322.CrossRefGoogle Scholar
Vogel, David. 2005. The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Washington, D.C.: Brookings Institution Press.Google Scholar
Walker, Jack L. 1983. “The Origins and Maintenance of Interest Groups in America.” The American Political Science Review 77 (2): 390406.CrossRefGoogle Scholar
Wallace, Jeremy. 2013. “Cities, Redistribution, and Authoritarian Regime Survival.” The Journal of Politics 75 (3): 632–45.CrossRefGoogle Scholar
Weimer, David and Vining, Aida. 2010. Policy Analysis: Concept and Practice, 5th edition. London: Routledge.Google Scholar
Søren, Winter and May, Peter J.. 2001. “Motivation for Compliance with Environmental Regulations.” Journal of Policy Analysis and Management 20: 675–98.Google Scholar
World Governance Indicators. 2012. World Governance Indicators. Washington, D.C.: World Bank.Google Scholar
Zeng, Ka and Eastin, Joshua. 2012. “Do Developing Countries Invest up? The Environmental Effects of Foreign Direct Investment from Less-Developed Countries.” World Development 40 (11): 2221–33.CrossRefGoogle Scholar
Zeng, S.X., Shi, Jonathan J., and Lou, G.X.. 2007. “A synergetic model for implementing an integrated management system: an empirical study in China.” Journal of Cleaner Production 15(18): 1760–67.CrossRefGoogle Scholar
Supplementary material: File

Chrun et al supplementary material

Chrun et al supplementary material 1

Download Chrun et al supplementary material(File)
File 683 KB
1
Cited by

Send article to Kindle

To send this article to your Kindle, first ensure no-reply@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 sending to your Kindle. Find out more about sending to your Kindle.

Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent 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.

Stakeholder scrutiny, urban bias, and the private provision of public goods
Available formats
×

Send article to Dropbox

To send this article to your Dropbox account, please select one or more formats and 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 <service> account. Find out more about sending content to Dropbox.

Stakeholder scrutiny, urban bias, and the private provision of public goods
Available formats
×

Send article to Google Drive

To send this article to your Google Drive account, please select one or more formats and 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 <service> account. Find out more about sending content to Google Drive.

Stakeholder scrutiny, urban bias, and the private provision of public goods
Available formats
×
×

Reply to: Submit a response

Please enter your response.

Your details

Please enter a valid email address.

Conflicting interests

Do you have any conflicting interests? *