ABSTRACT
This chapter focuses on three recommendations in which nongovernmental organizations and national governments should be specifically involved: bridge governance gaps, join forces of sustainability councils, and use more effective methods in international policy-making. The first step for national and international policy-makers and regulators is the integration of experts from different disciplines and various affected non-state actors, including corporate actors, in the formulation of adequate regulations and the identification of new governance structures. Founded on an institutional economics perspective, incentive structures and interest conflicts are clarified and possible alternatives for better governance are developed. Corporate involvement at institutional level regulation is often equated with lobbyism, a 'dirty' business in which companies try to influence policy-makers in order to gain improper advantages over competitors. There are several levels of regulation and, accordingly, different spheres in which companies take a role in the regulatory process. The integration of transnational governance structures with the organisation and strategic behaviour of individual companies highlights institutional problems.
