Ethical Business Practice and Regulation: A Behavioural and Values-Based Approach to Compliance and Enforcement

This book explains the concepts of Ethical Business Practice (EBP) and Ethical Business Regulation (EBR), a new approach that goes beyond compliance and enforcement. It provides the basis for a continuously effective relationship between a business and its regulators, based on evidence of consistent ethical behaviour involving the business and all its stakeholders. EBR is attracting extensive attention from regulators and businesses around the world. The UK Government's 2017 Regulatory Futures Review draws on EBR as the foundation for its policy of 'regulatory self-assurance'. EBR draws on findings from behavioural science, responsive regulation, safety and business, and integrity management to create a holistic approach. Examples of EBR include: the open culture that is essential for civil aviation safety, the Primary Authority agreements between regulators and national businesses, and feedback mechanisms provided by market vigilance systems and sectoral consumer ombudsmen. This book will be an essential blueprint for effective future regulation. "This book makes an insightful case for business to benefit from being values-driven rather than focussed on short-term profits, and for promoting an open, just culture rather than a blame culture. It also convincingly contends that while business regulators must take closing businesses and deterrence seriously, deterrence can also have counterproductive effects. This is a book rich in lessons about how we can all learn how to build more ethical corporate cultures."--John Braithwaite, Australian National U.*** "Regulation is fundamentally about how people in organisations actually behave. This book pulls together the evidence on "what works" in getting the right results. There is a wealth of material here for smart regulators who are pursuing effectiveness through actual outcomes, not compliance with rules for its own sake."--Richard Thomas CBE, Information Commissioner (2002-9), Committee on Standards in Public Life (2012-17) (Series: Civil Justice Systems) (Subject: Business Ethics, Company Law, Commercial Law, Corporate Law]