Drawing Lines and Taking Sides: How National Context Influences Private Governance Arrangements

Companies increasingly engage in CSR via international private governance arrangements, yet little is known about why companies make the choices that they do. By building upon the concept of national business system variations in CSR practices, this study uses the concept of organizing to propose a framework for explaining how international private governance arrangements reflect the nation systems from which they originate. It then uses the case of the Accord and Alliance – parallel private governance arrangements created by European and North American brands in response to the Rana Plaza tragedy – to empirically test the framework. The paper argues that home national business systems are reflected in international CSR private governance arrangements, regardless of country host. Overall, this study contributes to our understanding of the drivers and constraints of international CSR practices, as well as the implications for business’s role in a global society.