Strengthening Stakeholder Trust: The Impact of Regulatory Accountability

In this paper, we explore the connection between regulatory accountability and stakeholder trust. By examining the effects of mechanisms favouring stakeholders voice and interaction with regulatory institutions -as transparency, inclusiveness, or participation-, we aim to understand how these mechanisms can positively influence stakeholders' trust in regulatory core actors. We expect that regulatory accountability to foster positive stakeholder perceptions about the task of regulators, and, in turn, higher levels of trust placed in them. In particular, we anticipate that responsive bilateral or multilateral interactions such as detailed feedback and continuous information sharing promotes stakeholder trust. To this end, we analyse data gathered in the framework of the EU-Horizon 2020 project on Trust in Governance and Regulation in Europe (TiGRE). Specifically, we combine data on regulators’ de jure and de facto measures related to accountability, with survey results displaying stakeholders’ perceived levels of trust and distrust in the regulator. Ultimately, we expect that establishing various institutional mechanisms for stakeholder engagement can enhance trust in regulatory bodies and reduce distrust.