8: Business influence in complex global governance

Overview & Synopsis

This entry explores the implications of growing complexity of global governance on business behaviour through the lens of international regime complex theory. It demonstrates how complexity provides opportunities for businesses to influence global governance through sponsoring and inhibiting existing public regulations in their interest, or providing regulation in lieu of the state. It draws from International Regime Complexity theory, which centers around institutional complexity and interactions. While originally developed as a state-centric theory; IRC theory offers a useful starting point to explore the opportunities complexity creates for the role of businesses in international regulation and their consequences for business compliance. Based on IRC theory, we identify the main theoretical mechanisms and pathways through which these roles become manifest. We illustrate our argument through the example of the global anti-money laundering regime complex, where business actors have employed the sponsor and provider roles to shape the regulation and in turn, their compliance obligations.