Abstract

Multi-stakeholder initiatives are increasingly used as a default mechanism to address human rights challenges in a variety of industries. MSI is a designation that covers a broad range of initiatives from best-practice sharing learning platforms to certification bodies and those targeted at addressing governance gaps. Critics contest the legitimacy of the private governance model offered by MSIs. The objective of this paper is to theoretically develop a typology of MSIs, and to empirically analyze the legitimacy of one specific type of MSI, namely industry-specific MSIs. We argue that industry-specific MSIs that set out to govern corporate behavior have great potential to develop legitimacy. We analyze two industry-specific MSIs—the Fair Labor Association and the Global Network Initiative—to get a better understanding of how these MSIs formed, how they define and enforce standards, and how they seek to ensure accountability. Based on these empirical illustrations, we discuss the value of this specific MSI model and draw implications for the democratic legitimacy of private governance mechanisms.