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Proactive Compliance? Repercussions of National Product Regulation in Standards of Transnational Business Networks
   
In his chapter Olaf Dilling illustrates the links between private self-regulation and the law by analysing the management of chemical substances in the electric and electronic equipment industry. National product regulation (and to some extent also the regulation of production processes) influences product standards employed by leading corporations within their transnational supplier networks. It turns out that the diffusion of the regulatory standards within transnational business networks is not a linear process: to some extent corporate actors selectively adopt legal standards and proactively self-regulate substances of concern. In the analysed corporate standards, various mixed forms of generalisation, proactive adoption and anticipation of national laws can be found. Thus, the distinction between regulatory compliance and self-regulation is blurred. The relationship between national law and self-regulatory corporate standards is thus symptomatic of a changed ralationship between the state and the private sector, especially multinational corporations: it could be characterised by the mutual reliance of national legislators and globally operating corporations, rather than by classic hierarchic patterns of linear determination.
Dilling, Olaf
2008
Oxford: Hart Publishing, pp. 89-122 in: Olaf Dilling, Martin Herberg and Gerd Winter (eds.): Responsible Business - Self-Governance and Law in Transnational Business Transactions


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