Table 1.
Governance arrangements and policy instruments in value chains
| Governance arrangement | ||||
|---|---|---|---|---|
| Role of government: | Mandating: | Partnering: | Facilitating: | Endorsing: |
| Government regulation | Closed co-governance | Open co-governance | Market governance | |
| Policy instruments and interventions: | Coercion, ‘command and control’ legislation, regulators and inspectors, legal and fiscal penalties, payments e.g., transfer payments and grants, tax regimes, public labels & standards, anti-trust rules, policies, direct action | Combining resources, actors engagement, dialog, public private partnerships, covenants/agreements | 'Enabling legislation’, actor dialog, awareness raising, incentives, subsidies, tax rebates, procurement policies, capacity building, supporting spread of labels, self-governing agencies | Product labeling, support for/by civil society initiatives, Industry ‘Best practices’, voluntary labeling and certification standards |
| Corporate governance Codes: | Stock exchange regulations and codes, company law, mandatory reporting, disclosure rules | Multi-actor code development, shared monitoring of government, market or civil society initiated or shared incentives | Implementing international principles, reporting stimuli/guidelines, internalization, incentives | Own responsibility: civil society and market initiated, voluntary codes and reporting; peer reviews/pressure |