ADM 1301 Chapter Notes - Chapter 10: Tax Expenditure, Accelerated Depreciation, Price Controls
19 Nov 2012
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Document Summary
More efficient and effective than government regulation. Allows government to focus on other priorities. Impairs business competition and innovation due to self-serving restraint. May result in lower standards than those imposed by government. Ineffective when competition and other laws forbid memberships. Lack of adequate penalties for those who violate the regulations. Government regulation is necessary because society cannot trust business to regulate itself. Government regulation is criticized for being oppressive, ineffectual, confused, conflictual, costly, rigid, and weakly enforced. This approach is where government does not interfere with business. Government regulation is less needed if in a competitive market, due to market forces. Consumers are involved as they can refuse to purchase goods or services. Norms or standards are enforced by the corporation itself. Done through mission and value statements, or codes of conduct or ethics. Csr is the most general form of self-regulation. Members of an industry attempt to influence corporate behavior and enforce standards.
