Shared Goals, Different Logics: Comparison of Multi-Stakeholder and Business-Led Initiatives

Multi-stakeholder initiatives (MSIs) and business-led initiatives (BLIs) constitute prevalent models of private governance, yet little is known about their differences or the implications thereof. This study adopts an institutional logics perspective to compare MSIs and BLIs and theorize about their potential to address sustainability challenges. Is it better to give a hungry person a fish or a fishing rod, and when? Using the case of the Bangladesh garment industry, this study compares a MSI and BLI which arose simultaneously and shared the same broad goals, but conducted their work in very different ways. It develops a framework of differing logics of private governance, finding that MSIs embody a collective logic, best suited for addressing systemic issues and process rights, and BLIs exemplify a benevolent logic, befitting for narrowly-defined problems and measurable outcomes. Overall, this study contributes to our understanding of the distinctiveness and utility of different models of private governance.