Legitimacy Gaps Research Articles

When legitimacy becomes the object of politics: the politicization of political support in European democracies

Democratic legitimacy is essential for democratic stability, as democracies rely on citizen support to survive. However, perceived legitimacy gaps can also be an important catalyst for change and potential democratic renewal, begging the question when challenges to legitimacy become problematic for democratic survival. Easton distinguished between citizen support for political authorities and the political system, and argued that if support for political authorities declined, such declining support could either be resolved by the current political authorities changing course, or by citizens electing new political authorities at the next elections. However, if dissatisfaction with political authorities would not be resolved, lacking support had the potential to eventually “spill-over” and undermine support for the political system as a whole. In most empirical research on legitimacy, the assumption is that such “spill-over” is visible only if declining levels of political trust and satisfaction with democracy start to undermine support for democracy as a political system. In this paper, we argue that “spill-over” can also manifest in a different way: through the politicization of political support. When politics is no longer (only) about substantive policy decisions, but rather (increasingly) about the system itself, agreement on the rules of the game, or even on democracy as “the only game in town”, is no longer self-evident. In this paper we further develop our theoretical argument about the connection between legitimacy and politicisation, and argue that European democracies appear to experience growing politicization of political support, in terms of the association of political support with citizens’ substantive issue positions and voting behaviour. The paper demonstrates empirical evidence of such politicization of political support in 17 European democracies with European Social Survey data from 2002–2022. The paper concludes by reflecting on the implications of the politicization of political support for democratic stability and renewal.

No Borrowing Without Taxing? Fiscal Solidarity of Next Generation EU in Light of the American Experience

This article argues that the EU response to the pandemic, the Next Generation EU (NGEU), dubbed a “Hamiltonian moment” for Europe, can be better understood if compared to the US under the Articles of Confederation. The key aspect of the original Hamiltonian moment was the assumption of states’ debts after the Union was given tax power. None of this happened with the NGEU. The EU was not given any significant new sources of revenue, apart from some environmental levies, and was only allowed to borrow more on the financial markets to finance new fiscal solidarity mechanisms. In the US, this kind of borrowing power gave rise to monetary financing of the debt and enormous inflation. Instead of backing the enlarged borrowing powers with a fiscalization process leading to tax powers, the EU created a hybrid system of temporary, limited quasi-fiscalization in the form of the NGEU, which has legitimacy gaps. Simultaneously, the EU introduced enhanced fiscal regulation with conditionalities in the form of the new European Semester (an annual EU cycle of economic and fiscal coordination) tied to the allocation of the NGEU funds. Additionally, the EU has only promised to work in the future on various forms of revenue needed to pay the new debt. Hence, I will show that the NGEU could be better described as a “Morrisian moment” for Europe, as Robert Morris, the superintendent of finance of the US (1781–1784), was the very first finance minister of a similar kind of a union, with the power to borrow but no power to tax, governed by the unanimity rule in fiscal matters, which led to the failure of his proposals for national revenue.

Does Brock’s theory of migration justice adequately account for climate refugees?

ABSTRACT In Justice for People on the Move, Gillian Brock develops a promising, original account of migration justice. In her view, states have a robust (though conditional) right to self-determination, which includes a reasonably strong right to regulate migration. However, in order for these rights to be justified, three legitimacy requirements must be met. Most obviously, states must respect the human rights of their own citizens and the international state system itself must be legitimate. This latter condition also requires states to do their part in sustaining a justified state system, which includes helping to alleviate ‘legitimacy gaps,’ including significant human rights violations in other states. Brock uses this framework to address several pressing migration-related policy issues, including Muslim bans, the deportation of unauthorized migrants, temporary labour migration, and refugee protection. However, one topic is notably absent from her analysis: climate-related displacement. Some theorists insist that climate change migrants should not be considered refugees because they do not fit the standard definition of a refugee. In particular, climate migrants were displaced by droughts, floods, storms, or sea level rise rather than by war or persecution, and many are able to remain in their homes at present but will be forced to relocate at some point in the future. This paper explores the implications of Brock’s theory of migration justice for climate migration. I suggest that although her approach to refugee protection may initially appear to exclude climate migrants, her understanding of the right to self-determination yields strong obligations to assist them. I take this to be a strength of her framework, which makes an important, albeit indirect, contribution to current debates on climate change migration.

Territorial governance and Smart Specialisation: empowering the sub-national level in EU regional policy

ABSTRACT The concept of territorial governance has been promoted by the European Commission as a central element of European Regional Policy. This article examines the key dimensions of territorial governance, arguing that it is distinct but complementary to multilevel governance as it focuses on the mobilization of regional actor groups and the integration of indigenous knowledge into policymaking processes. It further explores whether there is merit in understanding Smart Specialisation processes as a territorial governance model, using examples of the development and implementation of Smart Specialisation Strategies from across four Nordic regions. The article finds that Smart Specialisation can be considered a territorial governance approach because it promotes bottom-up policymaking that is driven by local knowledge. By empowering the sub-national level, a territorial governance lens may help mitigate regional disparities and bring European Union regional policymaking closer to citizens. In doing so, territorial governance can help address some of the accountability and legitimacy gaps that have caused widening discontent with the European project at regional and local levels.

Crafting Digital Transparency: Implementing Legal Values into Algorithmic Design

According to the EU’s General Data Protection Regulation, transparency should be considered by design in data processing activities. Transparency entails the promise of control and legitimacy: if we can see inside algorithmic systems, we can ensure compliance with legal rights and principles. But is “by design” able to ensure compliance? I interrogate the relationship of law and technology by asking how law can capture the products and intricacies of design processes. Combining socio-legal and science and technology studies, I argue that “transparency by design” does not exert meaningful control. I assert that design should be understood not only as production of algorithms but as human-driven contextual social processes, in which values are prioritized and negotiated, ignored and assumed, and at times fought over and compromised. Design processes often lack transparency and democratic participation, leading to legitimacy gaps. Yet transparency of design is not at the core of data protection. Despite the limitations of transparency, transparent design would make these social practices explicit and reintroduce participation. Furthermore, it repoliticizes technological design by creating space for value prioritization and operationalization. The shift to design facilitates a discursive turn to procedural language of access to justice. If we prioritize access alongside transparency as a guiding design constraint, the humans involved in design processes and interacting with algorithmic systems become visible, giving us new tools, e.g., measurable accessibility and usability, for legally informed technological design.

Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance

PurposeThis study explores the levels of and trends in corporate environmental disclosure (CED) among a sample of Sri Lankan listed companies from 2015 to 2019. Furthermore, this article examines the firm-level determinants of CED, including corporate governance (CG) mechanisms, in Sri Lanka from a multi-theoretical perspective.Design/methodology/approachUsing a sample of 205 firm-year observations, this paper distinctively applies a panel quantile regression (PQR) model to examine the determinants of CED in Sri Lanka. This method was supported by estimating a two-step generalized method of moment (GMM) model to tackle any possible existence of endogeneity concerns.FindingsThe authors’ findings indicate an increasing trend in CED practice among the sampled companies (i.e. 41 firms, the only adopters of the GRI framework) in Sri Lanka from 2015 to 2019. However, it is still considered at an early stage compared with other developed counterparts. Furthermore, this study suggests that board size, board independence, board meetings, industry type, profitability and firm size are positively associated with CED level. In contrast, and consistent with our expectation, CEO duality is negatively attributed to the disclosed amount of environmental information in the Sri Lankan context.Research limitations/implicationsThe authors’ empirical evidence reiterates the crucial need to propagate and promote further substantive CG reforms, mandating CED in Sri Lanka.Originality/valueThe authors’ findings provide much-needed insights for indigenous companies, operating across similar emerging economies, to understand how CED can be incorporated into their reporting process based on the GRI framework in order to enhance their firm value, reduce legitimacy gaps and mitigate other operational risks.

Fake, Faulty, and Authentic Stand-Taking: What Determines the Legitimacy of Corporate Social Advocacy?

ABSTRACT This study experimentally interrogates the critical preconditions of how an organization legitimizes its corporate social advocacy (CSA) initiatives as an integral part of strategic communication. A 2 × 2 factorial design survey (N = 398) indicates that companies must find a way to bridge two perceptual gaps a factual gap and a conformity gap. The factual gap refers to perceived inconsistency of values – that is, that the company may not walk its talk on moral values. In contrast, the conformity gap refers to values incongruity between public expectations and corporate performance. Using these two conceptual constructs, we classify CSA initiatives into authentic, faulty, and fake. Authentic CSA initiatives project clear corporate moral values and meet public value expectations; unsurprisingly, they are found to generate more substantial perceptions of legitimacy and more positive behavioral willingness than other types of CSA initiative. Previously, few attempts to measure experimentally the legitimacy gaps that frequently arise between public expectations and companies’ actual CSA performance. The authentic CSA could not only fulfill corporate strategic communication missions but also generate the legitimate end of mutual understanding between the organization and the publics.

Filling Legitimacy Gaps by Using the Implements of Analogy of Law and Statute

Filling Legitimacy Gaps by Using the Implements of Analogy of Law and Statute

University Engagement for Enlightening CSR: Serving Hegemony or Seeking Constructive Change

This exploratory essay argues that of all organizations least analyzed for the quality, social impact, of their public relations engagement, universities probably head that list. Such impact, idiosyncratic to universities’ unique and complex sociopolitical role, justifies their corporate social responsibility (CSR) as organizational legitimacy, license to operate. Judged against strategic issues management’s (SIM) rationale for using stakeholder expectations to define legitimacy gaps (between organizational impact and stakeholder expectations), the engagement role unique to universities tests their functional and moral ability to enact themselves constructively in communities where they operate and in society at large. Stakeholder voices of all kinds engage to set CSR standards as means for improving the qualitative functioning of society; no society can be better than the organizations that engage to draw conclusions and create norms by which to enact it. Unique CSR engagement roles of universities include (1) elevating the functional and moral standards which guide them, (2) engaging in internal and external public arenas to foster constructive social impact, and (3) fostering research, teaching, and community service as engagement that produces social change by raising standards of moral and functional impact. This aspirational principle focuses attention as to whether universities’ CSR/legitimacy efforts reinforce hegemony or seek constructive social change.

Facial Recognition and the Fourth Amendment

Facial recognition offers a totalizing new surveillance power. Police now have the capability to monitor, track, and identify faces through networked surveillance cameras and datasets of billions of images. Whether identifying a particular suspect from a still photo, or identifying every person who walks past a digital camera, the privacy and security impacts of facial recognition are profound and troubling. This Article explores the constitutional design problem at the heart of facial recognition surveillance systems. One might hope that the Fourth Amendment – designed to restrain police power and enacted to limit governmental overreach – would have something to say about this powerful and permeating surveillance technology. But current doctrine and constitutional theory offers little privacy protection and less practical security than one might expect. Even worse, by studying the Fourth Amendment through the lens of facial recognition technology other doctrinal limitations come into focus. Issues of error rates, racial bias, unfairness, and transparency in policing more generally become magnified when trying to design a new surveillance system for law enforcement. The Article then offers a constitutional design solution to some forms of facial recognition surveillance. The Supreme Court’s recent cases on digital technologies suggest a way to “future-proof” the Fourth Amendment in the face of certain types of mass surveillance technologies. In addition, this Article suggests a new legislative framework for facial recognition to fill in the privacy and legitimacy gaps left by the current Fourth Amendment doctrine.

‘Ourworld’: A feminist approach to global constitutionalism

Abstract:Global constitutionalism offers a utopian picture of the future of international law. Its advocates suggest a governance system is emergent that will fill the gaps in legitimacy, democracy and the rule of law present in international law. Speculation about the future of international law is shaped, partly at least, by global constitutionalism aspiring to create a better global legal order, by filling these legitimacy gaps with both normative and procedural constitutionalism. But this raises the question ‘better for whom’? Feminist theory has challenged the foundations of both international law and constitutionalism; demonstrating that the design of normative structures accommodates and sustains prevailing patriarchal forms that leave little room for alternative accounts or voices. Both international and constitutional law’s structures support the status quo and are resistant to critical and feminist voices. The question is whether it is possible for constitutionalism to change international law in ways that will open it up to alternate possibilities. Building on a seven-point manifesto of feminist constitutionalism, previously proffered by the authors, which inculcated feminist concerns into global constitutionalism, this article offers an alternative starting point: feminist science fiction. Feminist utopian tracts such as Charlotte Perkins Gilman’sHerlandand Ursula K Le Guin’sThe Left Hand of Darknessoffer valuable lessons for global constitutionalist discourses. The article uses feminist utopias in science fiction to better understand how to dismantle hierarchical structures, how to build feminist societies, and how to find approaches to governance not predicated on patriarchy. It does so by focusing on feminist alternatives for constructing communities, for understanding constituent power and constituent moments, and dismantling manifestations of the public/private divide. This article demonstrates that reading feminist utopian science fiction facilitates the reimagining of global constitutionalism.

The legitimacy crisis of investor-state arbitration and the new EU investment court system

In response to the ongoing legitimacy crisis of investor-state arbitration, the European Union (EU) developed a new model of investor-state dispute settlement (ISDS) that replaces international arbitration with a system of bilateral investment courts. In this article, we draw on literature on the role of legitimacy in driving institutional change in international institutions to explain the rise of the new EU model. We further examine the extent to which the new EU model is able to overcome this crisis, thereby potentially giving the ISDS a new legitimation. We argue that the new EU model in large part does provide a substantial response to several frequently contested legitimacy gaps of ISDS. At the same time, however, we suggest that the EU model does not effectively address the most fundamental criticism of ISDS, which questions the very existence of a specific judicial forum providing exclusive rights for international investors, particularly between states with highly developed economies and legal orders.

Strategies for Social and Environmental Disclosure: The Case of Multinational Gambling Companies

This study investigates how firms in the gambling industry manage their corporate social disclosures (CSDs) about controversial issues. We performed thematic content analysis of CSDs about responsible gambling, money laundering prevention and environmental protection in the annual reports and stand-alone CSR reports (2009–2016) of four USA-based multinational gambling firms and their four Macao counterparts. This study draws on impression management theory, camouflage theory and corporate integrity theory to examine the gambling firms’ CSDs. We infer that the CSD strategies of gambling firms in Macao and the USA did not serve as vehicles for reflexivity about social responsibility or social responsiveness. Instead, the firms camouflaged legitimacy gaps about sensitive topics by adopting assertive or defensive facades, disclaiming ethical responsibility, curtailing disclosure, or offering zero disclosure. Differences between CSD strategies according to topic, location, time, and reporting channel appear to reflect four factors: pressure to report, availability of good news, whether a firm was assuming ethical responsibility for addressing the topic, and the prospective readership. This study extends our understanding of the contextual and topic-specific factors affecting the quantity and character of CSDs by firms in a contested industry.

Legitimacy in Australia’s Financial System External Dispute Resolution Framework: New and Improved or Simply New?

The new Australian Financial Complaints Authority (‘AFCA’) has become an important and influential fixture in the Australian financial services landscape. It must be regarded as legitimate in order to adequately fill this role. This article examines AFCA’s legitimacy, by reference to the predecessor schemes on which it was modelled, to assess whether recent reforms to the financial system external dispute resolution (‘EDR’) framework have rectified previously existing legitimacy gaps and, consequently, improved the EDR framework. Considering AFCA’s largest predecessor scheme, the Financial Ombudsman Service, provides evidence that certain features of EDR schemes’ informal justice model potentially give rise to legitimacy gaps with accompanying adverse consequences. AFCA’s underpinning legislation and rules are closely scrutinised to ascertain the likelihood of these adverse consequences continuing, notwithstanding recent reforms. Mitigating factors and further items for consideration are proposed, noting that adaptability built in to AFCA’s design eases the way for further legitimacy-constructing reforms, if needed.

Enfrentando a crise financeira: como constrangimentos jurídicos causaram a fragmentação institucional do poder monetário brasileiro no pós-2008

Resumo O prestamista de última instância é o agente financeiro, que tem a capacidade econômica e está disposto a emprestar liquidez, no momento em que outros agentes se recusam a fazê-lo. Autoridades de resolução estão legalmente habilitadas a empregar ferramentas técnicas para conter crises de solvência. Diferentemente de países desenvolvidos, em que bancos centrais criaram diversas modalidades de operações de liquidez emergencial e, ocasionalmente, desempenharam o papel de autoridades de resolução bancária, o Banco Central do Brasil (BCB) foi legalmente impedido de aumentar suas ações devido à Lei de Responsabilidade Fiscal. Este artigo argumenta que, devido a constrangimentos legais, a gestão da crise causou a fragmentação institucional do poder monetário no Brasil: as funções do BCB e também do Fundo Garantidor de Créditos (FGC) precisaram ser reestruturadas. Define-se poder monetário como a capacidade econômica, combinada ou não com a competência legal, para influenciar a criação de moeda-crédito na economia. Um modelo analítico é proposto para identificar a extensão do rearranjo institucional no pós-2008 e seus limites inerentes. É possível identificar problemas significativos de eficiência econômica e de legitimidade. A estrutura legal, criada principalmente por regras ad hoc do Poder Executivo, parece ser ainda incapaz de responder efetivamente a crises financeiras mais profundas.

The legitimacy gaps of the European Semester: who decides, what and how

Cet article analyse la manière dont les institutions européennes ont tenté de résoudre les problèmes de légitimité du Semestre européen depuis sa première itération. L’article montre que depuis 2010 le Semestre a connu plusieurs adaptations tant de iure (suite à l’adoption du Two et Six Pack) que de facto, à travers des interactions et accords interinstitutionnels. L’article est organisé en trois temps : la première section présente le Semestre européen, mettant en exergue ses caractéristiques et les acteurs impliqués. La deuxième section passe en revue les problèmes de légitimité, alors que la troisième et dernière partie se penche sur l’évolution institutionnelle du Semestre comme résultat de l’évolution de sa base légale et des processus d’apprentissage, de négociation et de compromis entre les institutions européennes.

Norm Contestation and Global Governance: Taking Actor Configurations and Practical Reasoning Seriously

Norm Contestation and Global Governance: Taking Actor Configurations and Practical Reasoning Seriously

Cosmopolitan jurisprudence for economic governance

PurposeThe paper aims to extend deliberation on legal and political aspects of debate over globalisation versus cosmopolitanism into the field of jurisprudence – philosophy of law. It gives particular attention to questions of the legitimacy of international law and emerging forms of economic governance for business enterprises, soft law, rule of law, accountability and human rights.Design/methodology/approachIn terms of research method, the paper proceeds from normative, as opposed to empirical studies. The paper develops arguments connected with cosmopolitan jurisprudence, a value-based frame of reference for corporate social responsibility. In legal and moral philosophy, normative statements derive from arguments concerning what states of affairs ought to be, how they are to be valued, which things and actions are good or bad. Normative claims contrast with positive (descriptive or explanatory) claims with respect to types of theories, beliefs or propositions. Value is both independent of fact and, at the same time, of an objective nature.FindingsA cosmopolitan jurisprudence frame of reference for economic governance treats human communities as interdependent and takes seriously the human rights obligations and ethical and legal responsibilities of international business enterprises presupposed by international rule of law. In contrast to globalisation jurisprudence, the cosmopolitan philosophy of international law seeks justificatory ground, not only exclusively for traditional forms of centralised governmental authority but also for decentralised, polycentric, private and hybrid public–private forms of authority.Research limitations/implicationsThe paper demonstrates the insufficiency of just describing, as political science and economics does, the emergence of new arrangements for global economic governance. As well, it is insufficient for management theory to propose instrumental strategies for managing various stakeholder interests at play in emerging forms of governance. Efforts of empirical researchers in documenting, classifying and providing empirical analysis of power shifts do not provide moral justifications or groundings of legitimacy from human rights and rule of law. The paper shows how a cosmopolitan jurisprudence standpoint is a fertile theoretical source for addressing such justificatory issues.Practical implicationsIn the context of a rapidly globalising economy, the justification of responsible business conduct across borders and cultures is more and more becoming a pressing practical concern. Increasingly, private actors are operating in authoritative positions, fulfilling governing functions once perceived to be the exclusive domain of nation-states.Social implicationsThe paper suggests that more important than focusing exclusively on descriptive, coercive and instrumental features of law, and seeking some overarching sanctions system that would necessitate pledging allegiance to a global super-sovereign, is cultivating social awareness of the importance of non-instrumental internal dispositions of actors to respect the normative obligatory nature of norms. The intrinsic value of rule of law and human rights provides a vital intellectual pathway for surmounting legitimacy gaps in global economic governance.Originality/valueThe paper breaks new ground by developing a cosmopolitan jurisprudence as an alternative to globalisation jurisprudence. This new articulation of cosmopolitan jurisprudence serves to provide analysis of philosophical justifications for emerging soft law syndicates that purport to establish obligations for business enterprises and other participants towards soft law regimes touching upon sustainability and human rights responsibilities.

Legitimacy gaps, taxpayer conflict, and the politics of austerity in the UK

Research Highlights and Abstract Examines how fiscal deficit reduction has been legitimated in the United Kingdom Uses focus groups with taxpayers in order to explore how members of the public make sense of the fairness of austerity measures Highlights how participants consistently identified themselves as hardworking taxpayers who face a high tax burden due to redistribution to undeserving poor and rich others Argues that this leads to a ‘legitimacy gap’ in state redistribution that austerity measures can be seen to close Following the 2008 financial crisis, fiscal deficit reduction has become the name of the game for many Western states. This article uses focus group data to explore the legitimation of austerity in the United Kingdom. It is argued that fiscal consolidation speaks to real concerns citizens have over unfair redistribution to supposed ‘undeserving’ groups. The undeserving rich and poor are stigmatised during times of austerity since they are assumed to take more than they give from the public purse—leaving taxpayers, the assumption goes, to pick up the bill. By speaking to this legitimacy gap between prudent normative expectations and the lived experiences of state profligacy, fiscal consolidation can appear to speak to the interests of ‘the taxpayer’—a group conceptualised as a sense of group position that arises from collective sense-making rather than a pre-given constituency.

Corporate social responsibility through sport: a longitudinal study of the FTSE100 companies

Purpose– Under growing public scrutiny of their behaviour, the vast majority of multinational enterprises (MNEs) have been undertaking significant investments through corporate social responsibility (CSR) in order to close legitimacy gaps. The purpose of this paper is to provide a descriptive account of the nature and scope of MNEs’ CSR programmes that have sport at their core. More specifically, the present study addresses the following questions. First, how do Financial Times Stock Exchange (FTSE) 100 firms utilise sport as part of their CSR agendas? Second, how do different industries have different approaches to CSR through sport? And third, can the types of CSR through sport be classified?Design/methodology/approach– Centred on legitimacy theory and exploratory in nature, the study employed a content analysis method, and examined three types of document from each of the FTSE100 firms, namely, annual reports, annual reviews and CSR reports over the ten-year period from 2003 to 2012. In total, 1,473 documents were content analysed, thereby offering a sound representation of CSR disclosure of the FTSE100.Findings– From the analysis, three main streams emerged: “Philanthropy”, “Sponsorships” and “Personnel engagement” with the first showing the smallest growth compared with the other main streams. Findings show the general rise in CSR through sport, thereby demonstrating that the corporate world has practically acknowledged that the sporting context is a powerful vehicle for the employment of CSR.Originality/value– Previous empirical studies have sought to investigate CSR through sport, yet they have generally suffered from sampling limitations which have, in turn, rendered the drawing of reliable conclusions problematic. Particularly, the lack of an explicit focus on longitudinality is a typical limitation, meaning that no conclusions can be made regarding the trend. The study outlined in this paper offers the most comprehensive longitudinal study of CSR through sport to date, and thus contributes to the increasing volume of literature that examines the application of CSR in relation to the sport sector.