Civil society organizations have many important functions. They provide a platform for association, which is the cornerstone of democracy. They represent the interests of their members, helping them speak with one voice on important policy issues. They can be watchdogs enhancing the transparency of public life and monitoring whether the government follows the rule of law. But can they do more? Can they change the entrenched monopolistic structures where public officials are able to influence the price for their services through bribery or coercion? And can they ensure that the high transparency and anti-corruption standards they demand from decision-makers are implemented in their own ranks?
As we celebrate the International Anti-Corruption Day, it is important to keep in mind that a key role of civil society organizations in that respect is self-regulation. Although self-regulation may seem counter-intuitive to some as a means of reducing corruption, it is in fact a proven way to reduce corruption, improve governance, and foster more transparent business environments.
Business standards developed and voluntarily adopted by civil society organizations are often more effective than government regulation that may be inadequate or poorly enforced. Self-regulation limits opportunities for corruption by empowering associations to enforce their own rules. It also creates a culture of compliance where each participating organization has a vested interest in all other participants’ adherence to the standards.
In this Feature Service article, Richard C. O’Sullivan, Principal of Change Management Solutions, draws on examples from both developed and developing countries to explain the rationale and mechanisms of self-regulation. From ensuring responsible forest management in 26 countries (Forest Stewardship Council), though raising the compliance standard and encouraging greater transparency in hundreds of commercial transactions (TRACE International), to quality assurance in road construction projects in the Philippines (Transparency and Accountability Network), associations are making a difference by enforcing themselves the highest standards of ethical business.
O’Sullivan concludes, “By engaging directly in regulating economic environments, civil society organizations become responsible and accountable for the end result. Through this greater responsibility, self-regulating organizations become proactive partners with government in promoting social goals and not just demanding action by others.”
Article at a Glance
- Self-regulation by civil society organizations is a market-driven approach to anti-corruption that often provides a more effective and efficient alternative to top-down government regulation.
- Associations, whose authority rests in acceptance in the marketplace rather than government enforcement, can play a crucial role in rooting out government corruption and creating more transparent markets by adopting and self-managing voluntary codes of business conduct and quality standards.
- Because participation and compliance are voluntary and, therefore, do not require legislation or official endorsement to succeed, self-regulated standards are more easily transferred from one country to another, making them well suited for developing markets whose limited domestic resources demand that they both compete and cooperate regionally in order to grow.
Published Date: December 09, 2011