Law and Corporate Behaviour: Integrating Theories of Regulation, Enforcement, Compliance and Ethics

by Christopher Hodges

Overview

This book examines the theories and practice of how to control corporate behaviour through legal techniques. The principal theories examined are deterrence, economic rational acting, responsive regulation, and the findings of behavioural psychology. Leading examples of the various approaches are given in order to illustrate the models: private enforcement of law through litigation in the USA, public enforcement of competition law by the European Commission, and the recent reform of policies on public enforcement of regulatory law in the United Kingdom. Noting that behavioural psychology has as yet had only limited application in legal and regulatory theory, the book then analyses various European regulatory structures where behavioural techniques can be seen or could be applied. Sectors examined include financial services, civil aviation, pharmaceuticals, and workplace health&safety. Key findings are that 'enforcement' has to focus on identifying the causes of non-compliance, so as to be able to support improved performance, rather than be based on fear motivating complete compliance. Systems in which reporting is essential for safety only function with a no-blame culture. The book concludes by proposing an holistic model for maximising compliance within large organisations, combining public regulatory and criminal controls with internal corporate systems and external influences by stakeholders, held together by a unified core of ethical principles. Hence, the book proposes a new theory of ethical regulation.

This title is included in Bloomsbury Professional's International Arbitration online service.

Product Details

ISBN-13:	9781782255833
Publisher:	Bloomsbury Publishing
Publication date:	10/22/2015
Series:	Civil Justice Systems
Sold by:	Barnes & Noble
Format:	eBook
Pages:	704
File size:	3 MB

About the Author

Christopher Hodges is Professor of Justice Systems, and Fellow of Wolfson College, University of Oxford and an Honorary Professor at China University of Political Science and Law, Beijing.
Christopher Hodges OBE is Emeritus Professor of Justice Systems at the Centre for Socio-Legal Studies, Oxford, UK; Supernumerary Fellow of Wolfson College, University of Oxford, UK; and Chair of the Regulatory Horizons Council, UK.

Photo courtesy of Faculty of Law, University of Oxford.

Table of Contents

Introduction
Part A: Psychology
1. The Findings of Social Psychology
Part B: Deterrence
2. Deterrence Theory
3. Private Enforcement in USA
4. Enforcement of Competition Law
5. Criticisms of Deterrence
6. Empirical Evidence
7. Conclusions
Part C: Regulation
8. Public Regulation
9. The Structure of Regulation and Self-Regulation in the UK
10. Developments in Criminal Enforcement in the United Kingdom
11. Responsive, Meta and Compliance Theories
12. OECD Policy on Regulation and Enforcement
13. The Enforcement Policies of Individual Agencies
14. Consumer Trading and Protection
15. Competition
16. Conclusions on Current Enforcement Policy
Part D: Regulation and Compliance by Business
17. Standards, Accreditation, Self-Regulation and Co-Regulation
18. Compliance within Business Organisations
Part E: Regulatory Architectures
19. Regulating Safety
20. Financial Services
Part F: Conclusions
21. Business Values: Culture, Commitment, Trust and Ethics
22. Conclusions: Ethical Regulation ction

B. Compliance Systems
C. The Deterrence Tradition/Models
1. Deterrence in criminal law
2. Deterrence in economic theory
3. The example of private enforcement in USA
4. The example of competition enforcement by the European Commission
D. Responsive Regulation Models
1. The empirical research and its theories
2. Some examples: Braithwaite, Hawkins, Haines, Hutter
3. Developments in enforcement of criminal law
4. The example of the reform of UK regulatory policy from 2007
E. Behavioural psychology
1. The findings of the psychology research
2. Examples of where elements can be seen in regulatory systems
i. pharmaceutical safety regulation
ii. airline safety
iii. HSE
iv. financial services
3. integrating public and corporate compliance and sanctioning systems
F. Conclusions
1. Discussion of the various theories, and how they can be combined
2. A holistic model:
i. A quality system
ii. Internal and external
iii. Self-regulation
iv. Stakeholders and transparency
v. External checking, audit
vi. whistleblowing
vii. Add CDR to regulation
viii. Toolbox of powers (Denmark)
ix. safeguards
3. An example of how a holistic system of corporate behaviour would work

Editorial Reviews

"a treasure trove of socio-legal facts from many a relevant country, .. a unique traversal and systematisation of the subject matter … numerous suggestions empowering practitioners based on real-life experience to enhance their endeavours with full effect and real impact in their respective companies. In a company acting according to the maxims laid out in this book, [VW's] Dieselgate would not have been possible."” —comply - Das Fachmagazin für Compliance-Verantwortliche

“This is a book I will pull off my shelf often to discover all manner of practical things like how British civil aviation regulation works, how British environmental regulation provides for restorative justice, the latest financial regulatory developments at Basel, the Organisation for Economic Co-operation and Development ('OECD') Best Practice Principles on Regulatory Enforcement and Inspections, and much more.” —Sidney Law Review

“If Hodges is right many authors – including legal economists – should revise their texts on the preventative effect of laws.” —Nederlands Tijdschrift voor Burgerlijk Recht

From the Publisher