In some instances, businesses come together forming alliances or coalitions,[4] also referred to multi-stakeholder initiatives (MSI) with a belief that harmonization could reduce compliance costs and simplify the process of meeting requirements.
In the information and communication technologies (ICT) sector, companies initially formed closed groups to develop private standards, for reasons which included competitive advantage.
An example being the phrase "embrace, extend, and extinguish" used internally by Microsoft which led to legal action taken by United States Department of Justice.
This uses an international standard, ISO 13485 Medical devices — Quality management systems — Requirements for regulatory purposes.
The harmonization approach for multiple private standards has led to criticism from various organizations including the Institute for Multi-Stakeholder Initiative Integrity[19] and The International Food and Agribusiness Management Review.
[23] Private corporations are not allowed to be members or have voting rights over international standards, because they are consensus-based.
An example is the term “insetting” that has been introduced by the private sector, despite it not being part of IWA 42 Net Zero Guidelines.
[25] Another example of corporate lobbying of a standards setter relates to the Science Based Targets initiative (SBTi).
One of their funders, the Bezos Earth Fund exerted influence on SBTi to relax their position on carbon offsets.
This resulted in an open letter from SBTi staff to the Board of Trustees disagreeing with the decision.