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Thresholds Are Everywhere: A Systems Approach to Public Policy

Abstract

The analysis of public policies often fails to account for effects beyond mere cost-benefit analysis. Incorporating elements from the literature on system dynamics, complexity and legitimacy, the present paper develops a framework to understand long-term effects and important constraints for public policies. We call it the thresholds framework, considering the existence of different thresholds in the life of a policy. The framework relies on the application of conceptual lenses to understand essential aspects of the social reality. Using the proposed conceptual repertoire, the paper applies the framework to a specific policy, the Brazilian Worker Food Program (WFP), which currently benefits around 20 million employees working for 250,000 companies in Brazil. The thresholds framework incorporates legitimacy and complexity issues and it is sufficiently flexible for the pursuit of different strategies of inquiry. It may be used to guide the design of business programs in dynamic contexts, such as the ones found in modern social cause environments.

Keywords:
public policy; system dynamics; complexity science; legitimacy; worker food programs

Introduction

After analyzing recent decades of American foreign policy, Monat and Ganon (2017)Monat, J. P., & Gannon, T. F. (2017). Failures of systems thinking in U. S. foreign policy. American Journal of Systems Science, 5(1), 1-12. https://doi.org/10.5923/j.ajss.20170501.01
https://doi.org/10.5923/j.ajss.20170501....
concluded that it lacks systems thinking, thus producing a stream of shortsighted policies with unintended, dire consequences, such as the rise of ISIS and other terrorist groups. In the same vein, Morecroft (2015)Morecroft, J. D. W. (2015). Strategic modelling and business dynamics. West Sussex, UK: Wiley. stresses that event-oriented thinking very often leads to public policies that target symptoms instead of root causes. Such issues are not new. Public policies in different contexts often show the hallmarks of poor design and linear thinking (Dodgson, Hughes, Foster, & Metcalfed, 2011Dodgson, M., Hughes, A., Foster, J., & Metcalfed, S. (2011). Systems thinking, market failure, and the development of innovation policy: The case of Australia. Research Policy, 40(9), 1145-1156. https://doi.org/10.1016/j.respol.2011.05.015
https://doi.org/10.1016/j.respol.2011.05...
; Lee et al., 2017Lee, B. Y., Bartsch, S. M., Mui, Y., Haidari, L. A., Spiker, M. L., & Gittelsohn, J. (2017). A systems approach to obesity. Nutrition Reviews, 75(1), 94-106. https://doi.org/10.1093/nutrit/nuw049
https://doi.org/10.1093/nutrit/nuw049...
; Magro & Wilson, 2013Magro, E., & Wilson, J. R. (2013). Complex innovation policy systems: Towards an evaluation mix. Research Policy, 42(9), 1647-1656. https://doi.org/10.1016/j.respol.2013.06.005
https://doi.org/10.1016/j.respol.2013.06...
; Stroh, 2015Stroh, D. P. (2015). Systems thinking for social change. White River Junction, VT: Chelsea Green Publishing.). Examples of inefficacious policies include the building of new roads to alleviate traffic congestion, the war on drugs in America, the interventions to tackle the skyrocketing obesity epidemic, and the zero tolerance policies on forest fires (Buchanan, 2000Buchanan, M. (2000). Ubiquity: Why catastrophes happen. New York, NY: Three Rivers Press.; Ludwig & Rogoff, 2018Ludwig, D. S., & Rogoff, K. S. (2018, August 9). The toll of America’s obesity. The New York Times. Retrieved from: https://www.nytimes.com/2018/08/09/opinion/cost-diabetes-obesity-budget.html
https://www.nytimes.com/2018/08/09/opini...
; Morecroft, 2015Morecroft, J. D. W. (2015). Strategic modelling and business dynamics. West Sussex, UK: Wiley.; Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.).

In fact, notwithstanding systems science’s long academic history, there seems to be slow progress towards the incorporation of its major tenets into the repertoire of managers and state agents. Societies as a whole - and actors in the public policy ecosystem in particular - often fail to understand the systemic causes of complex social problems. The typical response tends to produce superficial and inefficacious policies, which frequently exacerbate the root causes of the problems (Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.).

As the list of problems faced by modern societies and organizations keeps growing, there is a clear need for better policies. In this paper, using a conceptual repertoire drawn from the literature on system dynamics, complexity science and legitimacy, we present a framework with the goal of addressing that gap. Thus, the research question springs from the perceived need to cope with the systemic complexity in the policy space faced by organizations and governments. Specifically, we use the case of the Brazilian Worker Food Program (hereafter referred to as WFP) to illustrate the framework’s contribution to the analysis of public policies. In other words, we aim to offer a systemic framework, using a real and relevant case, which can be used to analyze or produce better policies (Stroh, 2015Stroh, D. P. (2015). Systems thinking for social change. White River Junction, VT: Chelsea Green Publishing.), especially in complex systems. We believe this framework is sufficiently flexible to allow for the pursuit of different strategies of inquiry.

The paper is organized as follows. We begin by presenting the thresholds framework and outlining the methodology used in the study. Next, we apply the framework to the WFP, while presenting the context, characteristics and history of similar programs throughout the world. We conclude by discussing the results under the light of the proposed framework, acknowledging limitations and making suggestions for future studies.

Thresholds Framework

All public policies have a life cycle. The thresholds framework considers the relevance of thresholds in determining transitions of phase (i.e., growing, maturing and declining) during the life cycle of a public policy. Those thresholds involve both the physical aspects of a policy, such as the number of people reached in the different stages of implementation, and the symbolic aspects, such as legitimacy support for the policy. While in this paper we rely on system dynamics as the quantitative grammar of the framework, the elements drawn from complexity science are treated as conceptual lenses, in a qualitative fashion, with the goal of increasing the discernment of a policy’s effects. To enhance the comprehensiveness of the framework, we incorporate elements usually associated with complexity science, namely power laws, networks and evolving ecosystems. Finally, we draw on legitimacy literature to understand how public policies make headway and on what basis challenges to their existence may arise over time. Therefore, as the thresholds are the backbone of our proposed framework (Figure 1), we follow with the three theoretical bodies: system dynamics, complexity science, and legitimacy.

Figure 1
Thresholds framework

Elements from system dynamics

System dynamics is a simulation method pioneered by Forrester (1961)Forrester, J. W. (1961). Industrial dynamics. Cambridge, MA: Productivity Press. and further described in works by Sterman (2000)Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill. and Ford (2010)Ford, A. (2010). Modeling the environment. Washington, DC: Island Press.. It focuses on understanding the structures in a system that dynamically produce certain behavioral patterns. The method is especially suited for modeling complex social systems, where several actors interact under the influence of factors playing out over a long time horizon.

System dynamics propitiates a 10,000 meters view of the system, portraying its structures and policies in an aggregate manner. A staple tool in the repertoire of the field is the use of causal loop diagrams (CLDs), which illustrate the causal interrelationships among the different variables producing the phenomenon under analysis. This simulation method is essential to understanding dynamic complexity as commented by Ford (2010)Ford, A. (2010). Modeling the environment. Washington, DC: Island Press.:

Climate change, pandemics, and boom and bust in real estate are complex dynamics that challenge our understanding. We are unable to anticipate the dynamic consequences of policies adopted today, especially when there are long delays between our actions and the system’s reactions. Our understanding is also limited by the complexity of the feedback processes that control system behavior. Our actions may be partially erased by the system’s internal responses, and the system’s apparent resistance to our interventions is confusing. Sorting out the effects of delays and multiple feedbacks is beyond our cognitive abilities, so we look to the past for lessons. But how are we to interpret past patterns in climate change, pandemics and boom-and-bust cycles? Our understanding of the dynamics of historical patterns is limited by the same complexities that make it difficult to think about the future. There are many interpretations of past behavior, and we are left with limited understanding of both past trends and current problems (p. xi).

From system dynamics literature, the major characteristics of social phenomena associated with public policies are endogeneity, delays, nonlinearities, and path dependence. Considering that many policies are ineffective or sub-optimal, we draw on the system archetypes stream from the same literature.

Endogeneity

The hallmark of system dynamics is its endogeneity viewpoint (Richardson, 1999Richardson, G. P. (1999). Feedback thought in social science and systems theory. Waltham, MA: Pegasus Communications.). In this view, there is no simple, unidirectional relationship between variables, but usually a set of feedback loops linking all the variables together. Hence, the exogeneity that is part of common sense analysis is misleading. All variables are meshed in dynamical, reciprocal causal interrelationships. In this view, the dynamics of all systems arise from their internal structure. Self-reinforcing and balancing feedback loops define how the system behaves over time. Random perturbations, in turn, can be amplified by the system’s feedback structure, creating different patterns in space and time. As Richardson (1999)Richardson, G. P. (1999). Feedback thought in social science and systems theory. Waltham, MA: Pegasus Communications. puts it,

The concepts of feedback and circular causality are essential to reliable policy analysis. Experience with dynamic, nonlinear models of feedback systems repeatedly shows that failure to take account of existing feedback effects in the analysis of a policy initiative can cause exactly the wrong conclusions to be reached. More subtly, information feedback can be used to explain the observed tendency of social systems to be ‘policy resistant’, to react more weakly and more perversely to policy shifts than some experts predict (p. 4).

Policy resistance is indeed a major characteristic of complex social systems, which is often ignored in the analysis of public policies. Thus, while accounting for first-order effects, there is a need to ponder the n-order effects that play out over a longer time span, as the agents in the system adapt to and respond to the interventions.

Delays

Not only do many problems take a long time horizon to manifest, but also the effects of public policies often are different as time unfolds. As an example of the former case, at the time of writing, Brazil has been facing a scorpion infestation that took two decades to unfold (Carvalho, 2019Carvalho, H. C. (2019). O Brasil está infestado por escorpiões. Poder360. Retrieved from https://www.poder360.com.br/opiniao/brasil/o-brasil-esta-infestado-por-escorpioes-escreve-hamilton-carvalho/
https://www.poder360.com.br/opiniao/bras...
). The typical example of counterintuitive long-term effects of policies is road building to alleviate traffic congestion, in particular beltways that circle big cities, which produce improvements in the short term, only to lead to more vehicles on the roads over time (Morecroft, 2015Morecroft, J. D. W. (2015). Strategic modelling and business dynamics. West Sussex, UK: Wiley.; Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.).

Thus, delays are a major hallmark of interventions in complex systems. The root causes of a complex problem, Stroh (2015)Stroh, D. P. (2015). Systems thinking for social change. White River Junction, VT: Chelsea Green Publishing. asserts, can be found in the many interdependent and often delayed relationships among the system’s parts. Indeed, as hinted above, delays are a major reason behind the failure of usual policies. First, because all interventions produce consequences beyond the first-order effects their sponsors expect, as social agents try to adapt and resist the policies (Arthur, 2014Arthur, W. B. (2014). All systems will be gamed: Exploitive behavior in economic and social systems [SFI Working Paper 2014-06-016]. Santa Fe Institute, Santa Fe, NM, USA. Retrieved from https://sfi-edu.s3.amazonaws.com/sfi-edu/production/uploads/sfi-com/dev/uploads/filer/c3/5b/c35bf350-39f2-4ded-8fd1-0b4afa3daaed/14-06-016.pdf
https://sfi-edu.s3.amazonaws.com/sfi-edu...
; Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.). Second, because the n-order effects usually take time to play out and are unanticipated. Thus, policies often produce misleading positive results in the short term (Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.). Moreover, even when they go in the right direction, policies usually require a long-time horizon to manifest their results as material (e.g., financial resources, people) and immaterial stocks (e.g., reputation, brand image) slowly accumulate.

As a rule, the more units of time are accounted for in the analysis of a policy, the better.

Nonlinearities

Effects of policies are rarely proportional to cause (Sterman, 2012Sterman, J. D. (2012). Sustaining sustainability: Creating a systems science in a fragmented academy and polarized world. In M. Weinstein, & R. E. Turner (Eds.), Sustainability science: The emerging paradigm and the urban environment (pp. 21-58). New York, NY: Springer.). In social systems, the interactions weaving together the different variables are typically nonlinear. For instance, the effect of the additional numbers of circulating cars on traffic ranges from mild to extreme, which means that, at some critical tipping point or threshold, adding a few cars to the streets is the recipe for monumental gridlocks. Nonlinearities thus define the existence of thresholds or tipping points in social phenomena. Worker satisfaction, sales of new products, economic development, support for political candidates, consumers’ tolerance limits (Agénor, Canuto, & Jelenic, 2012Agénor, P.-R., Canuto, O., & Jelenic, M. (2012, November). Avoiding middle-income growth traps. Retrieved from http://documents.worldbank.org/curated/pt/422121468155111398/pdf/NonAsciiFileName0.pdf
http://documents.worldbank.org/curated/p...
; De Langue, Puntoni, & Larrick, 2017De Langue, B., Puntoni, S., & Larrick, R. (2017). Linear thinking in a nonlinear world. Harvard Business Review, 95(3), 130-139.), all have clear thresholds that influence the performance of the respective systems.

Path dependence

Sterman (2000)Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill. defines path dependence as “a pattern of behavior in which the ultimate equilibrium depends on the initial conditions and random shocks occurring as the system evolves” (p. 350). In any system, decisions change the state of the world, causing further changes in the system and triggering other social actors to act. The new situation constrains the path for following courses of action. Thus, choosing a path often leads to irreversible consequences that practically seal the fate of the system, making it history-dependent. Many actions are hardly reversible: during the cold war, the great powers produced more than 250 tons of plutonium for use in weapons, an element whose half-life is about 24,000 years (Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.).

Most policies suffer from inertia. In fact, Banerjee and Duflo (2012)Du, S., & Vieira, E. T., Jr. (2012). Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of Business Ethics, 110(4), 413-427. https://doi.org/10.1007/s10551-012-1490-4
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refer to the triad ignorance-inertia-ideology as the major plague affecting public policies. From a practical perspective, we should look at the history of a policy, the ecosystem it creates, and the constraints emerging from the combination of inertia, embedded rules and the capabilities created by the prevailing networks of social agents.

Archetypes

Many public policies fail in predictable ways. We draw on the so-called system archetypes literature within the system dynamics field to illustrate how fitting a policy under analysis to one of the major archetypes may help in the identification of critical factors of success or failure. Senge (1990)Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York, NY: Doubleday. helped in the popularization of the concept of system archetypes, while Braun (2002)Braun, W. (2002). The system archetypes. Retrieved from https://www.albany.edu/faculty/gpr/PAD724/724WebArticles/sys_archetypes.pdf
https://www.albany.edu/faculty/gpr/PAD72...
provides a helpful guide in the management context. As Senge (1990)Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York, NY: Doubleday. stresses, if feedback and delays are the nouns and verbs of systems thinking, system archetypes are similar to simple stories that get retold again and again in different contexts. They are underlying generic structures that reveal the source of many management and policy problems.

It is hard to find a public policy that do not exemplify a systems archetype. Even in the case of success, the dynamics generated by a policy will inevitably match an archetype, such as limits to growth or growth and underinvestment. Often, a systems audit shows that policies once deemed successful are producing inefficacious results or simply worsening the actual problems.

Table 1 presents common system archetypes along with their basic definition and examples in the context of public policy.

Table 1
System archetypes

Elements from complexity science

The literature on complexity science has been flourishing in recent years (M. Mitchell, 2009Mitchell, M. (2009). Complexity: A guided tour. Oxford, UK: Oxford University Press.) notwithstanding the diverging definitions about what a complex system is. Perhaps the most concise definition is the one provided by Thurner, Hanel, and Klimek (2018)Thurner, S., Hanel, R., & Klimek, P. (2018). Introduction to the theory of complex systems. Oxford, UK: Oxford University Press., stating that complex systems are co-evolving multilayer networks. Indeed, networks comprise the core of most popular definitions, along with the concepts of emergence, adaptation and self-organization (M. Mitchell, 2009Mitchell, M. (2009). Complexity: A guided tour. Oxford, UK: Oxford University Press.). Evidently, many public policies do not fit the complexity profile. Many are simple interventions whose effects do not ripple beyond their specific contexts or do not create unexpected consequences. However, in the most important contexts of modern life, these policies seem to be the exception rather than the norm. From this literature, we highlight the concepts of power laws, networks and evolving ecosystems.

Power laws

Technically, a power law is a relationship between variables so that one of them is a function of the other raised to some fixed power, such as y = x2 (Miller, 2015Miller, J. H. (2015). A crude look at the whole: The science of complex systems in business, life, and society. New York, NY: Basic Books.). Power laws are ubiquitous in natural and social systems. The Pareto distribution - the idea that roughly 80% of a phenomenon depends on 20% of the agents or causes - is probably the most known example of a power law (Thurner, Hanel, & Klimek, 2018Thurner, S., Hanel, R., & Klimek, P. (2018). Introduction to the theory of complex systems. Oxford, UK: Oxford University Press.). We are interested in one major consequence of power laws: concentration of resources, problems or success in few social actors or cases. Some examples discussed in Buchanan (2000)Buchanan, M. (2000). Ubiquity: Why catastrophes happen. New York, NY: Three Rivers Press., Miller (2015)Miller, J. H. (2015). A crude look at the whole: The science of complex systems in business, life, and society. New York, NY: Basic Books. and M. Mitchell (2009)Mitchell, M. (2009). Complexity: A guided tour. Oxford, UK: Oxford University Press. help in making the point, since all exhibit the similar profiles of concentration: number of deaths by wars in human history, distribution of size of cities or corporations, frequency of use of words in texts, scientific citations by academics, and magnitude of earthquakes. Therefore, thresholds arise naturally when a policy reaches the most accessible segments of a population, creating an often-unintended concentration.

Networks

Margaret Thatcher once said, “They are casting their problems at society. And, you know, there’s no such thing as society. There are individual men and women and there are families” (Margaret Thatcher Foundation, 1987Margaret Thatcher Foundation. (1987, September 23). Interview for woman's own. Retrieved from https://www.margaret thatcher.org/document/106689
https://www.margaret thatcher.org/docume...
). Contrary to that assertion, which exemplifies a popular view, virtually all social phenomena comprise the existence of networks of agents organized in nodes and hubs (M. Mitchell, 2009Mitchell, M. (2009). Complexity: A guided tour. Oxford, UK: Oxford University Press.). Like the varying number of friends per person, some nodes have few connections while others are densely connected - the hubs. The latter are major conduits for the flow in activities or information in networks (M. Mitchell, 2009Mitchell, M. (2009). Complexity: A guided tour. Oxford, UK: Oxford University Press.).

Public policies may draw on existing networks, such as anti-tobacco organizations that help in the effort to curb cigarette consumption, or they may induce the development of new ones, such as when a policy stimulates the development of a social ecosystem for recycling. The importance of adopting network lenses resides in acknowledging the capacity of networks to store knowledge and know-how (Hidalgo, 2015Hidalgo, C. (2015). Why information grows: The evolution of order, from atoms to economies. New York, NY: Basic Books.) as well their potential for continuous restructuration (Thurner et al., 2018Thurner, S., Hanel, R., & Klimek, P. (2018). Introduction to the theory of complex systems. Oxford, UK: Oxford University Press.). They can achieve much more than isolated social actors, and they are essential in the process of spreading information.

We are interested in identifying which existent or potential networks may be present in the social ecosystem under analysis. Depending on the case, it may be important also to estimate their relative power. For instance, in the case of highly contentious social issues, such as tobacco consumption or fossil fuel-induced climate change, the power of business networks often leads to distortions in the design of public policies. Hence, it may be of interest the identification of supporting and opposing networks in the social ecosystem under analysis.

Evolving ecosystems

A major tenet of complexity science is the existence of systems that evolve and adapt. In fact, we can conceive society as an agglomeration of constantly evolving social ecosystems, comprised by networks of actors in constant interaction, based on institutions, norms and broader cultural patterns. The evolution is often driven by macro forces such as technology, science and cultural trends.

Changes are increasingly faster. For instance, Wilensky and Rand (2015)Wilensky, U., & Rand, W. (2015). An introduction to agent-based modeling: Modeling natural, social, and engineered complex systems with Netlogo. Cambridge, MA: The MIT Press. assert that,

In the current day, the world we live in has become increasingly complex, in part because, in earlier periods of history, we did not have to pay attention to complex interactions, we could get by with understanding simples systems and local effects. Yet, as technology and science have advanced, we have become more affected by complex interactions. We are now aware that changes to the rain forest in Brazil can have dramatic effects on the climate of faraway countries, that unwise financial decisions in one country can have significant economic impact on the rest of the world (p. 5).

In turn, social processes that drive change are evolutionary, path-dependent, out-of-equilibrium and context-dependent (Thurner et al., 2018Thurner, S., Hanel, R., & Klimek, P. (2018). Introduction to the theory of complex systems. Oxford, UK: Oxford University Press.). Consequently, social systems are in continuous change even when they appear to be still. Changes often do not lead to adequate adaptation. Indeed, one major force within social systems is the proneness to entropy or drift to lower performance. Worsening performance may arise out of exploitation of the system by its agents (Arthur, 2014Arthur, W. B. (2014). All systems will be gamed: Exploitive behavior in economic and social systems [SFI Working Paper 2014-06-016]. Santa Fe Institute, Santa Fe, NM, USA. Retrieved from https://sfi-edu.s3.amazonaws.com/sfi-edu/production/uploads/sfi-com/dev/uploads/filer/c3/5b/c35bf350-39f2-4ded-8fd1-0b4afa3daaed/14-06-016.pdf
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) or by processes of decision forged under false premises of predictability and linear thinking (Forrester, 1971Forrester, J. W. (1971). Counterintuitive behavior of social systems. Theory & Decision, 2(2), 109-140. https://doi.org/10.1007/bf00148991
https://doi.org/10.1007/bf00148991...
; Sterman, 2000Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: Mc-Graw-Hill.).

For the purposes of our framework, we recommend sketching the history of social ecosystems under analysis and understanding what macro forces may be driving the course of events, including, as discussed above, inertia and traditional macro forces (i.e., economy, culture, technology, science, nature, and sociopolitical trends).

Elements from legitimacy literature

Finally, the third arm of the thresholds framework is legitimacy. The evaluation of public policies, typically focused on effectiveness, efficiency and performance issues, often ignores the essential aspect of legitimacy - good policies often fail by inadequate management of this dimension (Wallner, 2008Wallner, J. (2008). Legitimacy and public policy: Seeing beyond effectiveness, efficiency, and performance. The Policy Studies Journal, 36(3), 421-443. https://doi.org/10.1111/j.1541-0072.2008.00275.x
https://doi.org/10.1111/j.1541-0072.2008...
). Legitimacy is the generalized assumption that the actions of an entity are desirable or appropriate within a socially constructed system of beliefs, values and norms. It is crucial for social agents (e.g., organizations) and social artifacts, such as public policies. It fosters credibility, which is essential to garner support and social resources, including symbolic ones (Suchman, 1995Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
https://doi.org/10.5465/amr.1995.9508080...
).

Regarding legitimacy, we can conceive two typical thresholds in the life of a public policy: in the beginning, when there is need to acquire legitimacy, and during its life course, when different threats may erode support for the policy. The management of legitimacy around both thresholds may be tricky, involving adequate engagement of existent and potentially salient stakeholders, manipulation of symbols, and the crafting of narratives that resonate with stakeholders and the broader public (Du & Vieira, 2012Du, S., & Vieira, E. T., Jr. (2012). Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of Business Ethics, 110(4), 413-427. https://doi.org/10.1007/s10551-012-1490-4
https://doi.org/10.1007/s10551-012-1490-...
; Wallner, 2008Wallner, J. (2008). Legitimacy and public policy: Seeing beyond effectiveness, efficiency, and performance. The Policy Studies Journal, 36(3), 421-443. https://doi.org/10.1111/j.1541-0072.2008.00275.x
https://doi.org/10.1111/j.1541-0072.2008...
).

Indeed, changes in macro environmental forces tend to challenge the legitimacy of public policies. As pointed previously, the broader environment where public policies exist is constantly changing, as cultural, technological and other forces shape and reshape its constraints and affordances. As the velocity of such changes seem to be accelerating, many speak of a VUCA world - volatile, uncertain, complex, and ambiguous (Millar, Groth, & Mahon, 2018Millar, C. C. J. M, Groth, O., & Mahon, J. F. (2018). Management innovation in a VUCA world: Challenges and recommendations. California Management Review, 61(1), 5-14. https://doi.org/10.1177/0008125618805111
https://doi.org/10.1177/0008125618805111...
). This new world where unknown unknowns are the rule (Thurner et al., 2018Thurner, S., Hanel, R., & Klimek, P. (2018). Introduction to the theory of complex systems. Oxford, UK: Oxford University Press.) challenges the capabilities of private and public organizations, in particular their dynamic capabilities of learning and adapting. Therefore, legitimacy of public policies, once taken for granted, may erode if not actively managed.

Perceived efficacy seems to be key to sustain a policy’s legitimacy. New institutional developments, such as new alternatives to evaluate a policy cost-effectiveness, may nibble at what Suchman (1995)Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
https://doi.org/10.5465/amr.1995.9508080...
call pragmatic legitimacy - the policy’s expected value for a particular set of stakeholders. This may be particularly true when often-ignored opportunity costs are pitted against traditional evaluations of a policy’s effectiveness. On the other hand, moral legitimacy - the perception that a policy is fair, good and right (Suchman, 1995Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
https://doi.org/10.5465/amr.1995.9508080...
) - may suffer when a typical paradox arises in the context of public policies: the public wants better services or benefits, but the government pushes for lower costs and greater efficiency (Sonpar, Pazzaglia, & Kornijenko, 2010Sonpar, K., Pazzaglia, F., & Kornijenko, J. (2010). The paradox and constraints of legitimacy. Journal of Business Ethics, 95(1), 1-21. https://doi.org/10.1007/s10551-009-0344-1
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). Ironically, the previous existence of stakeholders who benefit from current status quo may provide legitimacy to cost-ineffective policies, while also hindering the development of more adequate policies.

Summary of research questions

The research questions enabled by the thresholds framework and the possible strategies of inquiry are presented in Table 2. The list of questions and suggested methods is non-exhaustive, as the referenced literature is broad and multifaceted. While we have previously defended the idea that system dynamics is the most suited method to use with the framework, we acknowledge possible contributions from the other methods indicated in Table 2. The framework should be read as a set of conceptual lenses that help in seeing systemic and complexity features of a given problem, policy or social ecosystem.

Table 2
Research questions and strategies of inquiry

Applying the thresholds framework to the Brazilian WFP

There has been a long tradition of research on the topic of food programs and their effects, including the British Food Stamp Program (Hoynes & Schanzenbach, 2012Hoynes, H. W., & Schanzenbach, D. W. (2012). Work incentives and the food stamp program. Journal of Public Economics, 96(1-2), 151-162. http://doi.org/10.1016/j.jpubeco. 2011.08.006
http://doi.org/10.1016/j.jpubeco. 2011.0...
; Landers, 2007Landers, P. S. (2007). The food stamp program: History, nutrition education, and impact. Journal of the American Dietetic Association, 107(11), 1945-1951. http://doi.org/10.1016/j.jada.2007.08.009
http://doi.org/10.1016/j.jada.2007.08.00...
), school meal programs (Afridi, 2010Afridi, F. (2010). Child welfare programs and child nutrition: Evidence from a mandated school meal program in India. Journal of Development Economics, 92(2), 152-165. https://doi.org/10.1016/j.jdeveco.2009.02.002
https://doi.org/10.1016/j.jdeveco.2009.0...
; Gleason, 2010Gleason, B. P. (2010). School meal program participation and its association with dietary patterns and childhood obesity. Princeton, NJ: Diane Publishing.) and even behavioral consequences of meals (R. J. Mitchell & Bates, 2011Mitchell, R. J., & Bates, P. (2011). Measuring health-related productivity loss. Population Health Management, 14(2), 93-98. http://doi.org/10.1089/pop.2010.0014
http://doi.org/10.1089/pop.2010.0014...
). Most studies adopt a nutritional or public health perspective (e.g., Veloso & Santana, 2002Veloso, I. S., & Santana, V. S. (2002). Impact of the worker food program in Brazil. Pan American Journal of Public Health, 11(1), 24-31. http://dx.doi.org/10.1590/S1020-49892002000100004
http://dx.doi.org/10.1590/S1020-49892002...
). We did not find any study employing a systems perspective, so a case in this context seemed a good candidate for applying our framework. Thus, we employ the thresholds framework to analyze the Brazilian WFP. Next, we provide context for the diverse worker food programs created in the second half of the last century, while also discussing the specifics of the Brazilian case.

Worker food programs and specifics of the Brazilian case

Worker food programs have a long history. The first country to create such a program was the United Kingdom during the Second World War. France, Belgium and Italy soon followed the Britannic lead (Mazzon et al., 2016Mazzon, J. A., Barros, F. M. de O., Zilveti, F. A., Isabella, G., Carvalho, H. C., Marques, J. A., & Guilhoto, J. J. M. (2016). 40 anos programa de alimentação do trabalhador. Conquistas e desafios da política nutricional com foco em desenvolvimento econômico e social. São Paulo, Brazil: Edgard Blücher.). The WFP in Brazil - in Portuguese, Programa de Alimentação do Trabalhador (PAT) - was created by law in 1976 (Lei n. 6.321, 1976Lei n. 6.321, de 14 de abril de 1976. (1976). Dispõe sobre a dedução, do lucro tributável para fins de imposto sobre a renda das pessoas jurídicas, do dobro das despesas realizadas em programas de alimentação do trabalhador. Retrieved from http://www.planalto.gov.br/ccivil_03/leis/L6321.htm
http://www.planalto.gov.br/ccivil_03/lei...
) and thereafter other Latin American countries followed the Brazilian pioneer initiative. Similar to in other countries, the main goal inspiring the WFP was the improvement of the nutritional status of Brazilian workers, at that time a hindrance to improve productivity in the country. Undernutrition and malnutrition were the rule among the working force. In the context of work, undernutrition and malnutrition can lead to accidents and productivity losses (Wanjek, 2005Wanjek, C. (2005). Food at work: Workplace solutions for malnutrition, obesity and chronic diseases. Geneva, Switzerland: International Labor Office.). Colares (2005)Colares, L. G. T. (2005). Evolução e perspectivas do programa de alimentação do trabalhador no contexto político brasileiro. Nutrire Rev. Soc. Bras. Aliment. Nutr, 29(6), 141-158. reports a study with sugar cane cutters showing increases in productivity (52%) and reduction in absenteeism (38%) as a consequence of a WFP-like program running for five years. Work accidents, in turn, are more than a matter of simple, direct economic costs. Not only do work accidents represent a loss of productivity for firms, but they also increase social security costs and can disrupt familiar structures, especially when they result in death (R. J. Mitchell & Bates, 2011Mitchell, R. J., & Bates, P. (2011). Measuring health-related productivity loss. Population Health Management, 14(2), 93-98. http://doi.org/10.1089/pop.2010.0014
http://doi.org/10.1089/pop.2010.0014...
). Low-income workers, with salaries ranging from one to five times the minimum wage, have been the main target since the inception of the program, comprising 85% of current beneficiaries (Mazzon et al., 2016Mazzon, J. A., Barros, F. M. de O., Zilveti, F. A., Isabella, G., Carvalho, H. C., Marques, J. A., & Guilhoto, J. J. M. (2016). 40 anos programa de alimentação do trabalhador. Conquistas e desafios da política nutricional com foco em desenvolvimento econômico e social. São Paulo, Brazil: Edgard Blücher.).

Overall, WFPs throughout the world have undergone some changes regarding their structure and operational mechanisms (Colares, 2005Colares, L. G. T. (2005). Evolução e perspectivas do programa de alimentação do trabalhador no contexto político brasileiro. Nutrire Rev. Soc. Bras. Aliment. Nutr, 29(6), 141-158.). Nevertheless, they usually share the same goals: reduction in work accidents, increase in workers’ productivity and promotion of well-being and better quality of life (Wanjek, 2005Wanjek, C. (2005). Food at work: Workplace solutions for malnutrition, obesity and chronic diseases. Geneva, Switzerland: International Labor Office.).

The networks that integrate Brazilian WFP’s social ecosystem comprise government agencies, businesses, workers and their unions, and the diverse set of companies and agents that integrate complementary economic sectors. The latter includes businesses from the agro-industrial sector, restaurants, brokers, firms that manage vouchers, companies offering consulting services, etc.

A WFP-like program has attractive benefits for companies willing to provide better meals and nutrition to workers. It has also short and long-term benefits for economic sectors, such as restaurants, the food industry and the other actors that operate in the economic ecosystem. However, the generation of positive multiplicative effects from a WFP program requires some necessary conditions. First, governments must create an adequate conceptual and legal framework. Calibrated incentives and adequate coordination make possible the first transition of state - it works like a metaphorical ladder that invites the economic actors to start climbing. The most common design of WFPs shares the costs of the program among three networks of social actors: companies offering the benefit, their employees, and government.

Governments create the legal infrastructure for a WFP. They typically institute regulations that attribute legal status to the benefits. In a WFP, the benefit does not share the same status of regular salaries. This means that benefits are exempt from social security or income taxes. On the other hand, workers share some of the costs, usually limited to a small fraction of their salaries, while businesses share the remaining costs.

In most countries, governments offer tax incentives to attract companies to the system, which means, in practice, the public sector also shoulders part of the costs, while receiving taxes generated by the program through its multiplicative effects on the economy (Mazzon et al., 2016Mazzon, J. A., Barros, F. M. de O., Zilveti, F. A., Isabella, G., Carvalho, H. C., Marques, J. A., & Guilhoto, J. J. M. (2016). 40 anos programa de alimentação do trabalhador. Conquistas e desafios da política nutricional com foco em desenvolvimento econômico e social. São Paulo, Brazil: Edgard Blücher.; Wanjek, 2005Wanjek, C. (2005). Food at work: Workplace solutions for malnutrition, obesity and chronic diseases. Geneva, Switzerland: International Labor Office.). This structure is important insofar as it creates path dependence and inertia. The rules tend to be difficult to change; at the same time, constraints from strained public budgets have been preventing the offering of new tax incentives to attract small businesses to the program.

Overall, the programs in different countries have been successful. They usually decrease problems of inadequate nutrition among workers, providing them and their families with access to better and varied food. By reducing sickness and work accidents, the programs also decrease costs in the public health system. By increasing productivity at work, they generate economic gains to participant firms. Finally, by generating network effects through positive multipliers, they induce the growth and development of related economic sectors, increasing the collection of taxes over time. The effects are widespread. For instance, a study in Portugal showed that WFPs could help to distribute income in society, considering that the price of meals is proportionally higher for lower income workers. By providing meals and food vouchers, WFPs represent an actual increase in their budgets (Vassalo, 2012Vassalo, D. (2012). Estudo sobre o regime jurídico aplicável aos benefícios sociais relacionados com a alimentação, transporte, educação e saúde (Unpublished report/2012), Lisbon, PT, Endered Portugal.). Thus, the history of social ecosystems created by worker food programs typically presents several benefits spreading through different channels.

Understanding the effects through a system dynamics model

The Brazilian WFP puts in motion a complex web of effects that spreads through different sectors, creating a virtuous cycle. Firms provide better nutrition to workers, leading to increases in worker satisfaction and productivity, improved capital-work relationships, and better occupational health (i.e., lower incidence of diseases, reduction in absenteeism, and less work accidents). The federal government incurs in less costs compensating victims of work accidents. Moreover, tax incentives lead, though multipliers, to increased tax revenue over time. The expansion of economic activity in the food, meals and agribusiness sectors increases tax revenues and jobs, and stimulates the sophistication of those industries. Nevertheless, the effects are not immediate. There is a delay before entrepreneurs perceive an increase in demand for meals, for instance. Similarly, it takes time in the food and other industries to perceive a need to expand their capacity. In practice, such delays can amount to years.

Based on the general scheme displayed in Figure 2 for a WFP that accounts for the existence of delays and multipliers, we created a system dynamics model to represent the main effects of the Brazilian WFP over a time horizon of 50 years, starting in 1976, the year when the program was created. Whenever available, we used data from official sources, such as the average tax burden. Otherwise, we adopted conservative estimates. The model can be obtained from the authors.

Figure 2
General scheme of a worker food program

As stated before, a major feedback loop drives the dynamics illustrated by the model. The endogeneity in the program is directly linked to taxes. Tax breaks incentivize companies to join the WFP, setting in motion several multiplier effects in the economy, which, in turn, generate new tax revenues, thus closing the cycle. Hence, the main trade-off made in the program, from a public policy perspective, is the concession of tax incentives versus the possibility of future tax revenues. Such revenues take time to manifest, especially due to delays associated with the development of new businesses in the WFP ecosystem. Another important aspect is the nonlinearity in adoption rates. They depend on the level of tax breaks, knowledge of the rules, normative pressure (e.g., perception that similar companies are doing the same) and the easiness in enrolling and complying. Similarly, it takes some years, in practice, to potential entrepreneurs realize unaddressed demands in the meals market and invest in new restaurants. The trade-off may elicit opposition to the program based on its short-term foregone taxes (in the initial years) or represent a temptation to public executives to cut tax incentives in times of constrained fiscal budgets.

Thus, regarding delays, it is important to emphasize that any governmental program offering tax incentives faces a temporal trade-off when it has positive multipliers. Losses in the short-term and gains in long-term characterize the trade-off. The size of the multiplier and the delays involved in the production of effects may make the introduction of such program sensitive to budget constraints and political pressures.

Figure 3 shows the simulation for 50 years. It depicts accumulated numbers for tax breaks and tax revenues generated by the program. It is worth noting in the simulated series that the breakeven point takes about seven years to occur. After that point, however, the accumulated increase in tax revenues grows at a steeper rate. The payback in taxes is equivalent to $7 for each $1 invested by government (through tax incentives).

Figure 3
Simulated results for the Brazilian WFP: Accumulated tax break and accumulated tax revenue

Thresholds appeared clearly in the Brazilian WFP. After a steady expansion since its launch, it exhausted the pool of beneficiaries afforded by the rules (i.e., workers from big firms). Thus, the program fits nicely the limits to growth archetype. More than three decades after creation, the Brazilian WFP has never surpassed a crucial threshold, never reaching the most vulnerable segment represented by employees of small firms. As expected when power laws are present, there is concentration of beneficiaries in a relatively few number of big companies, while the majority of potential beneficiaries work for small businesses.

Nonetheless, the last available data shows that, in December 2015, around 20 million employees (almost 20% of the Brazilian workers), working in more than 250,000 companies, received either meals or other benefit (typically, food vouchers) from companies operating within the program (Ministério do Trabalho, 2016Ministério do Trabalho. (2016). Relatórios e gráficos do PAT. Retrieved from http://trabalho.gov.br/pat/relatorios-e-graficos-do-pat
http://trabalho.gov.br/pat/relatorios-e-...
). On the other hand, nearly 80% of Brazilian workers do not benefit from the program, because they are not employed in big firms. In addition, according to the Brazilian statistics bureau (IBGE, 2015Instituto Brasileiro de Geografia e Estatística. (2015). Pesquisa industrial mensal de emprego e salário. Retrieved from https://ww2.ibge.gov.br/home/estatistica/indicadores/industria/pimes/default.shtm
https://ww2.ibge.gov.br/home/estatistica...
), only 40% of private sector workers are in formal job contracts in Brazil. Critically, employees from small companies are typically from lower social classes, have lower educational levels, work more hours and are more prone to work accidents (Mazzon et al., 2016Mazzon, J. A., Barros, F. M. de O., Zilveti, F. A., Isabella, G., Carvalho, H. C., Marques, J. A., & Guilhoto, J. J. M. (2016). 40 anos programa de alimentação do trabalhador. Conquistas e desafios da política nutricional com foco em desenvolvimento econômico e social. São Paulo, Brazil: Edgard Blücher.).

The broader point illustrated by the case is that the hardest segments to reach in almost any governmental intervention tend to be the ones where such intervention is more pressing. This seems true for interventions in any field related to development of human capital, particularly education and health. This is also the case of the Brazilian WFP. While it has been successful since its introduction, around four decades ago, it has never surpassed a crucial threshold, failing to reach the most vulnerable segment of employees.

Overcoming Brazilian WFP thresholds: Nonlinearities

The Brazilian WFP led to clear nonlinear effects in the economy. The rationale for the existence of at least two thresholds in these effects is explained as follows. First, an increase in demand for meals produced by a WFP generates the minimum viable demand for new restaurants and service providers as well as the addition of new costumers to existing businesses. Threshold analysis (Deller & Ryan, 1996Deller, S. C., & Ryan, W. F. (1996). Retail and service demand thresholds for Wisconsin [Staff paper 96.1]. Center for Community Economic Development, University of Wisconsin, Madison, WI, USA.) suggests that this effect tends to be stronger in middle and small cities where fixed and variable costs are smaller.

Over time, the accelerated expansion in the number of restaurants and meal providers leads to an increase in economic complexity, which, given a certain threshold for scale effects, may transform the associated economic sectors. They become more sophisticated, new services flourish (such as in consulting, development and education) and there is increasing differentiation in the culinary of restaurants, among other consequences. In Brazil, an innovation in the meal industry in the 1980s was the popular pay by weight restaurant - where people choose from a diverse set of plates and pay according to the weight of the food. Sophistication has been accelerating since then. In the city of São Paulo, for instance, there have been increased competition and professionalization among restaurants, creation of undergraduate programs in gastronomy, greater availability of fresh produce and other inputs, and development of human capital (Masano, 2011Masano, I. R. (2011). A gastronomia paulistana: O local e o global no mesmo prato (Dissertação de mestrado). Universidade de São Paulo, São Paulo, SP, Brasil.).

The multiplicative and threshold effects of the WFP are favorable both to providers of inputs (tableware, silverware, food), who also become more sophisticated over time, and to the creation of special services, such as management, nutrition and gastronomy consulting. In turn, new services create positive feedback in the system, inducing the emergence of premium restaurants, new formats for meal provision, and so on. Network effects are depicted in Figure 4.

Figure 4
Network effects of a WFP

Threats to legitimacy

A major challenge to the Brazilian program comes from the increase of obesity in the population. In 1975, a staggering percentage of 22.3% of Brazilians suffered from undernutrition (Mazzon, 1981Mazzon, J. A. (1981). Avaliação do programa de alimentação do trabalhador sob o conceito de marketing social (Doctoral dissertation). Universidade de São Paulo, São Paulo, Brazil.). Only in 2007, Brazil would overcome this health problem. Since then, the numbers of undernutrition in the country have been undetectable (i.e., below 5%). While undernutrition seems no longer a problem, obesity has taken the spotlight. Most recent data shows that 52.5% of Brazilians are overweight, with a corporal mass index (CMI) above 25 Kg/m2, and 17.9% of the population are obese, with a CMI above 30 Kg/m2 (Portal Brasil, 2015Portal Brasil. (2015). Metade dos brasileiros está com excesso de peso. Retrieved from http://www.brasil.gov.br/saude/2015/04/metade-dos-brasileiros-esta-com-excesso-de-peso
http://www.brasil.gov.br/saude/2015/04/m...
). According to Cardoso (2015)Cardoso, L. O. (2015, January). Sobrepeso e obesidade atingem crianças e adolescentes cada vez mais cedo. Época. Retrieved from https://epoca.globo.com/vida/noticia/2015/01/bsobrepeso-e-obesidadeb-atingem-criancas-e-adolescentes-cada-vez-mais-cedo.html
https://epoca.globo.com/vida/noticia/201...
, Brazil is the fifth country in the world in number of obese individuals, and the problem has become epidemic. The costs to the health system have skyrocketed, reaching 2.4% of Brazilian GDP. Like undernutrition in the past, obesity is strongly related to socio-economic status, affecting disproportionately the poor in developing countries (McLaren, 2007McLaren, L. (2007). Socioeconomic status and obesity. Epidemiologic Reviews, 29(1), 29-48. http://doi.org/10.1093/epirev/mxm001
http://doi.org/10.1093/epirev/mxm001...
).

Hence, while there are several recognized benefits of WFPs, they can become ill adapted when obesity becomes the norm in the social landscape. According to the World Health Organization (WHO, 2018World Health Organization (2018). Obesity and overweight. Retrieved from http://www.who.int/mediacentre/factsheets/fs311/en/
http://www.who.int/mediacentre/factsheet...
), overweight and obese populations represent more than 1.9 billion adults in the world. This is more than 30% of the world’s adult population. Excessive consumption of industrialized food is a serious challenge to many countries, especially considering its effects on the growth of cardiovascular diseases, diabetes, musculoskeletal disorders and cancer. The growth in obesity associated with the virtual elimination of undernutrition thus may pose a serious threat to the legitimacy of WFPs.

The second threat comes from the increased strain in the public budget, which has led to overall resistance to tax incentives in Brazil (Leahy, 2016Leahy, J. (2016). Brazil warned of budget 'time bomb'. Financial Times. Retrieved from https://www.ft.com/content/22c16ec6-1ed1-11e6-8fa5-44094f6d9c46
https://www.ft.com/content/22c16ec6-1ed1...
). Opportunity costs of public policies may also be a rising concern among specialists (Dunn, 2015Dunn, W. N. (2015). Public policy analysis. New York, NY: Routledge.). Thus, the socioeconomic landscape has changed but the program rules have led to path dependence, as discussed previously. In fact, social programs in general tend to face similar challenges: their rules are stickier than the dynamic reality in which they operate.

Finally, another threat to the legitimacy of the program comes from the belief that giving benefits in cash is better. In monetary terms, a benefit in cash can be even higher than in vouchers, given the elimination of administrative costs (Vassalo, 2012Vassalo, D. (2012). Estudo sobre o regime jurídico aplicável aos benefícios sociais relacionados com a alimentação, transporte, educação e saúde (Unpublished report/2012), Lisbon, PT, Endered Portugal.). However, people do not treat money as a fungible resource; instead, at least in industrialized societies, they perform mental accounting to decide how to allocate their expenses (Thaler, 1999Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183-206. https://doi.org/10.1002/(sici)1099-0771(199909)12:3%3C183::aid-bdm318%3E3.0.co;2-f
https://doi.org/10.1002/(sici)1099-0771(...
). Thus, a benefit in cash would seem to have higher probability of being used to cover other expenses than food, since the elimination of vouchers would blur the boundaries of the (mental) account for meals. Consider that someone necessarily uses a voucher to pay for meals or food. Cash, on the other hand, goes to a general pool of financial resources. It is easier to spend what otherwise would be the price of a meal on another more pressing need or desire. People could then resort to meals of poorer nutritional quality.

Thresholds framework applied to the Brazilian case

Today’s VUCA environment requires deeper understanding of the effects of public policies. Systems thinking, and particularly system dynamics, offers a valuable repertoire of tools to help in this endeavor. In this paper, we weave together systems thinking and the literature on complexity and legitimacy to propose the thresholds framework. The application of the proposed framework to the Brazilian WFP is summarized in Table 3.

Table 3
Thresholds framework applied to the Brazilian case

Conclusion

The paper offers both theoretical and practical contributions. From a theoretical point of view, there has been several attempts at designing systemic frameworks to analyze or produce better policies (Stroh, 2015Stroh, D. P. (2015). Systems thinking for social change. White River Junction, VT: Chelsea Green Publishing.). However, most frameworks either ignore legitimacy and complexity issues or offer complicated recipes to incorporate systems thinking into the analysis (Cook & Tõnurist, 2016Cook, J. W., & Tõnurist, P. (2016). From transactional to strategic: Systems approaches to public service challenges. Retrieved from https://www.oecd.org/governance/observatory-public-sector-innovation/blog/page/systemsapproachesforpublicpolicychallenges.htm
https://www.oecd.org/governance/observat...
). To our knowledge, the thresholds framework is the first to incorporate both literatures along with more traditional system dynamics tools. By emphasizing the role of conceptual lenses, the framework is sufficiently flexible to allow the pursuit of different strategies of inquiry.

The framework also addresses theoretical and practical gaps that have been surfacing in the management literature, such as the so-called complexity gap and the non-linear nature of modern business challenges (Dekker, 2011Dekker, S. (2011). Drift into failure: From hunting broken components to understanding complex systems. Surrey, UK: Ashgate.; De Langue et al., 2017De Langue, B., Puntoni, S., & Larrick, R. (2017). Linear thinking in a nonlinear world. Harvard Business Review, 95(3), 130-139.; Denning, 2013Denning, S. (2013, November 18). A new center of gravity for management? Forbes. Retrieved from: https://www.forbes.com/sites/stevedenning/2013/11/18/a-new-center-of-gravity-for-management/
https://www.forbes.com/sites/stevedennin...
; Zolli & Healy, 2012Zolli, A., & Healy, A. M. (2012). Resilience: Why things bounce back. London, UK: Headline.). It can be used to orient the design of business programs in dynamic contexts, such as the environment of social cause marketing. For instance, responding to a perceived threat of tougher regulation, a growing number of companies are starting to measure the carbon generated by their activities (Aldy & Gianfrate, 2019Aldy, J. E., & Gianfrate, G. (2019). Future-proof your climate strategy. Harvard Business Review, May-June, 86-97.). Preparing for a warming planet may require developing networks or ecosystems of new suppliers, building or repairing the legitimacy of business activities and avoiding the common traps exemplified by systems archetypes. The framework presented in this paper provides lenses to identify critical thresholds and constraints that often arise in such endeavors.

As for practical contributions, this study includes the propositions of a set of questions that can be helpful in the design of policies (presented in Table 2) and the evaluation of a current program, including the identification of threats and opportunities for expansion. Studies on the effect of worker food programs usually adopt a nutritional or public health perspective (Veloso & Santana, 2002Veloso, I. S., & Santana, V. S. (2002). Impact of the worker food program in Brazil. Pan American Journal of Public Health, 11(1), 24-31. http://dx.doi.org/10.1590/S1020-49892002000100004
http://dx.doi.org/10.1590/S1020-49892002...
), providing limited guidance to decision makers willing to understand broader social effects.

Concerning limitations, the paper does not address the issue of opportunity costs, which is a major concern in the evaluation of public programs. Suggestion for future studies include the application of the framework to other policies or social problems, such as the scorpion infestation in Brazil or the policy of beltway construction in big cities. We also suggest the use of other methodologies, such as agent-based modelling and grounded theory, to illuminate questions not covered in this paper.

  • Corrigendum
    As per the author’s request, we inform that in document “Thresholds are everywhere: A systems approach to public policy”, http://dx.doi.org/10.1590/1807-7692bar2019180106, published in BAR – Brazilian Administration Review, 16(3), e180106, the correct affiliation of author Giuliana Isabella is Insper Instituto de Ensino e Pesquisa.
    Page 1, where it reads:
    Giuliana Isabella1
    1Universidade de São Paulo, São Paulo, SP, Brazil
    It should read:
    Giuliana Isabella2
    2Insper Instituto de Ensino e Pesquisa, São Paulo, SP, Brazil
    Page 22, where it reads:
    Giuliana Isabella
    Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade
    Av. Professor Luciano Gualberto, 908, 05508-010, São Paulo, SP, Brazil
    It should read:
    Giuliana Isabella
    Insper Instituto de Ensino e Pesquisa
    Rua Quatá, 300, Sala 609, Vila Olímpia, 04546-042, São Paulo, SP, Brazil

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Daniel Pacheco Lacerda was the associate editor for this article.
Editorial assistant: Luciane Kato Kiwara
Editor-in-chief: Carlo Gabriel Porto Bellini

Publication Dates

  • Publication in this collection
    15 Aug 2019
  • Date of issue
    2019

History

  • Received
    10 Sept 2018
  • Accepted
    05 July 2019
  • Published
    05 Aug 2019
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