Firms, Associations and the Governance of HIV/AIDS in South Africa
Firms relocating production to countries with lower social standards are regarded as driving force behind a regulatory ‘race to the bottom’. However, there are numerous instances in which the behavior of firms reveals just the opposite: They adhere to corporate social responsibility (CSR) standards and even pressure governments to issue stricter public regulations. This paper explores the role associations play thereby and analyzes to what extent the strength of associational structures shapes the preferences of companies for self- and state regulation. Empirically we compare the behavior of the textile and automotive industries in South Africa and their contribution to the fight against HIV/AIDS.