Ppp with medium effectiveness

Several PPPs in the areas of social rights, health, and water and sanitation have been partially effective. The United Nations Global Compact (GC), probably the best-known transnational PPP, has the goal to mainstream ten principles in business activities around the world and to catalyze actions in support of broader U.N. goals, such as the Millennium Development Goals. To achieve these objectives, the GC facilitates policy dialogues, also within national or local networks, and partnership projects. And indeed, the GC produced an impressive output in that respect. Outcome and impact of its work are hard to measure and arguably rather low. An evaluation by McKinsey estimates, for example, that 90 percent of projects pertaining to Corporate Social Responsibility (CSR) would have taken place even without membership in the GC (McKinsey&Company 2003; Mohaupt et al. 2005, 9, as quoted in Kaan 2008b). Yet, especially for companies in developing countries, the GC has often led the sole initiative to make them familiar with the principle of corporate social responsibility. Consequently, we rank the GC’s effectiveness as medium: the GC achieved most of its objectives concerning output. However, while most members comply with the GC’s rule to produce an annual Communication on Progress, the impact of these activities in terms of mainstreaming the GC’s ten principles in business activities around the world is barely visible.

The Global Code on Ethics in Tourism is a standard set by the World Tourism Organization’s General Assembly in 1999. The World Committee on Tourism Ethics (WCTE), a public-private reconciliation body-composed of delegates from member states and representatives of labor and employer organizations-is responsible for the proliferation of the code, its evaluation and monitoring, and dispute settlement. While one output has been to translate the code into thirty-three languages, the output of proliferation has not been met. Furthermore, the outcome is low: the private sector hardly knows about the code or prefers other initiatives, such as the Global Compact. Furthermore, the committee has so far failed to fulfill its task of dispute settlement. During its five annual meetings, the committee “has not decided on any major issue of dispute” (Kaan 2007b, 2). Hence, WCTE has hardly achieved its goals and provided only low output, low outcome, and no impact. Compared to others in the sample, the effectiveness of the initiative is ranked as low.

How can we account for the different degrees of effectiveness? In the following section, we will turn to the institutional design of the PPP as our major explanatory variable.

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