4: Business, labour and global social policy

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Business and labour groups are better organised and exert greater influence at the international level than ever before. Cooperation and organisation beyond borders has increased, as has international lobbying. Some business and labour organisations operate independently and on the periphery of intergovernmental organisations (IGOs), trying to influence them from the outside. Others are institutionally embedded within the decision- and policy-making structures of IGOs. As the number and importance of IGOs has grown, so too have the number of formal and informal opportunities for engagement in global policy processes. Although business and labour organisations can find common ground between them on certain issues, they often pursue policies that are at odds with each other, especially when it comes to questions of economic and social regulation. This chapter examines all of these issues. The first section provides an overview of how major business and labour actors exercise power, and how they are represented in global social policy (GSP). The second section outlines the competing perspectives business and labour have on social policy. The third section examines some important global issues relevant to labour and business interests, including labour standards, corporate regulation and international taxation. The fourth section examines global governance and the responses of IGOs to business and labour positions.

As global frameworks and agreements on trade, regulations and social policies have become more important and, in some instances, more binding, so business and labour organisations have sought to shift their spheres of influence to the global and world-regional levels in addition to the national level to defend their interests.

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