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Socially responsible investment (SRI) engagement currently performs a variety of supportive regulatory functions such as reframing norms, establishing dialogue and providing resources to improve performance, however corporate responses are voluntary. This chapter will examine the potential gains in effectiveness for SRI engagement in a responsive regulatory regime.

Global warming is a pressing environmental, social and governance (ESG) issue. By using the example of climate change the effectiveness of SRI engagement actors and the regulatory context can be considered. This chapter builds the conceptual framework for responsive regulation of climate change.

SRI engagement may face resistance from corporations due to its voluntary nature and conflict with other goals. Legitimacy and accountability limit the effectiveness of SRI engagement functioning as a voluntary regulatory mechanism. This chapter argues that the effectiveness of SRI engagement on climate change could be enhanced if it served as part of a responsive regulation regime.

Engagement is used by SRIs for ESG issues. A comprehensive regulatory regime could enhance corporate adaptation to climate change through increasing compliance with SRI engagement. The implication for SRI practitioners is that lobbying for a supportive regulatory regime has a large potential benefit.

Responsive regulatory policy involves both support and sanctions to improve compliance, enhancing policy efficiency and effectiveness. There are potentially large net social benefits from utilising SRI engagement in a regulatory regime.

In seeking to re-articulate voluntary and legal approaches this research addresses a gap in the literature on climate change regulation.

Perceptions about the frequency of misconduct – among the public, academics and even regulators – have largely been formed by examining enforcement statistics, which rely on the detection and sanctioning of the misconduct. This study aims to illuminate the real occurrence of corporate misconduct, much of which escapes public detection.

By examining confidential firm records describing misconduct within organizations, the author shows that public enforcement statistics significantly underestimate the amount of serious malfeasance that arises within firms.

Through analyzing records for several large multinational firms, the author finds that there are, on average, more than two instances of internally substantiated misconduct per week per firm.

Ultimately, this analysis illustrates the challenge of addressing corporate malfeasance within large organizations.

The purpose of this paper is to consider whether a move from self‐regulation in the form of the Banking Code to statutory regulation by the Financial Services Authority (FSA) of retail banking conduct of business is to be supported.

The paper begins by examining the nature of the self‐regulatory process and then considers its strengths and weaknesses in the context of the Banking Code. It then looks at the changes proposed by the FSA. Focusing in particular on the issue of enforcement, the paper contrasts the powers of the Banking Code Standards Board and the FSA.

The paper concludes that, while a move to statutory regulation is to be supported, there is concern about whether such a move will bring the benefits that might have been expected.

More attention needs to be paid to the ways that different forms of regulation operate in practice, with empirical research particularly valuable.

The paper adds to the (relatively brief ) literature on consumer protection in banking, and the even briefer body of research on self‐regulation.

The purpose of this study is to examine the relationship between mandatory environmental performance disclosure and subsequent environmental regulatory performance.

Using legitimacy theory as the interpretive lens, regulatory non‐compliance disclosures threaten organizational legitimacy and non‐compliant firms are expected to respond to these threats. The potential effectiveness of different legitimation strategies for reducing these threats is evaluated.

Regression analysis shows a negative correlation between the mandatory disclosure of environmental legal sanctions and subsequent regulatory violations using firms in the US oil refining industry. These results are interpreted as demonstrating that subsequent regulatory compliance is a tactic employed by managers to minimize the delegitimizing effect of organizational impropriety revealed by mandatory accounting disclosures.

Implications for practice include linking financial reporting to environmental performance. This link gains greater importance as concern about the environmental effects of business operations becomes more acute within the investor, regulatory, and public interest arenas.

The paper makes original contributions to research on mandatory environmental disclosures that are embedded in US financial reporting. In addition, a conception of legitimacy theory that is broader than previously relied upon in accounting research literature is reviewed. The study examines a single industry within a single country. Further research may determine whether similar relationships are observed in other industries, and whether equivalent relationships can be examined in international settings. In addition, the possibilities and limits of regulatory compliance as a measure of environmental performance, and of environmental accounting as a policy tool in the governance of the commons are discussed.

The purpose of this paper is to explore regulation in India’s healthcare sector and makes recommendations needed for enhancing the healthcare service.

The literature was reviewed to understand healthcare’s regulatory context. To understand the current healthcare system, qualitative data were collected from state-level officials, public and private hospital staff. A patient survey was performed to assess service quality (QoS).

Regulation plays a central role in driving healthcare QoS. India needs to strengthen market and institutional co-production based approaches for steering its healthcare in which delivery processes are complex and pose different challenges.

This study assesses current healthcare regulation in an Indian state and presents a framework for studying and strengthening regulation. Agile regulation should be based on service delivery issues (pull approach) rather than monitoring and sanctions based regulatory environment (push approach).

Healthcare pitfalls across the world seem to follow similar follies. India’s complexity and experience is useful for emerging and developed economies.

The author reviewed around 70 publications and synthesised them in healthcare regulatory contexts. Patient’s perception of private providers could be a key input towards steering regulation. Identifying gaps across QoS dimensions would be useful in taking corrective measures.

If the UK retail financial services sector is to seize the opportunities which will emerge in the future, it will be necessary to restore consumer confidence in the market. This paper argues that this will only be achieved through a radical transformation in the nature of regulatory compliance. The roots of the current consumer crisis of confidence are exposed by retracing the recent history of the sector; particular consideration is given to how the sector has responded to the changing political, economic and regulatory conditions of the post‐War era. It is possible to characterise the sector prior to the 1980s as somewhat anti‐competitive and lacking in innovation. Changes during the 1980s led to highly favourable business conditions, without stringent regulation, making it easy and profitable for the sector to continue to be short term in outlook without considering the longer‐term consequences for consumer confidence. Not surprisingly, the drive for short‐term profits led to the exploitation of many consumers and the subsequent scandals have reduced general confidence in the sector and also resulted in a regulatory backlash. Demographic changes and an emerging political consensus on a reduction in state welfare provision mean that the future business environmnent is potentially very promising. However, if the sector and its constituent organisations do not evolve to regain the trust of consumers and satisfy the demands of their regulators they will face severe competition from outside competitors and an even more hostile regulatory environment. Many of the organisations in the sector will need a complete overhaul in their attitudes to compliance if they are to succeed. Current approaches to developing internal compliance cultures may not be enough but emerging technology may soon provide a revolutionary new approach.

The Foreign Narcotics Kingpin Designation Act was enacted on 3rd December, 1999, as part of the Intelligence Authorization Act for Fiscal Year 2000. The Kingpin Act calls for the imposition of a series of US economic and financial sanctions — with a worldwide reach — on ‘foreign narcotics traffickers’, their related ‘organisations’, and those ‘foreign persons’ who support their activities, enforced by penalties ranging up to fines of $10m and imprisonment for ten years. In passing this legislation, Congress specifically looked to the example provided by an earlier set of economic sanctions that prohibited dealings with Colombian narco‐traffickers or entities which they controlled, established by the President under the International Emergency Economic Powers Act (IEEPA) and administered by the Treasury Department's Office of Foreign Assets Controls (OFAC). The controls established by the Kingpin Act, and the associated Foreign Narcotics Kingpin Sanctions Regulations (FNKSR), accordingly, are neither a unique nor an isolated programme. Rather, they represent the latest step in the evolution of a series of distinct, but related, economic sanctions programmes administered by OFAC.

Whilst the criminal justice system has evolved over the last seven years, it can be argued that the ability of the current criminal justice system in England and Wales to deal with the investigation, prosecution and trial of serious and complex fraud can still be challenged. Using material gathered whilst undertaking research for the Diploma in Compliance Studies at Exeter University, this paper makes a number of recommendations in this context. The existence of civil remedies and the regulatory structure created under the Financial Services Act 1986 may offer a limited opportunity to deal with some categories of commercial malpractice in an expedient and cost‐effective manner, outside the scope of the criminal justice system. This paper derives from research carried out with the purpose of reviewing the investigation, prosecution and trial of serious fraud in England and Wales in order to assess whether commercial malpractice is in fact a proper subject for ‘public law’, or whether it could be more effectively and expediently dealt with through civil law remedies, or by the self‐regulatory agencies created under the Financial Services Act 1986. This paper represents a summary of the main findings and interpretations of that research, which included interviews with three experts in the field. In considering this issue, one is bound in two ways. If one concludes that the criminal justice system can offer an effective and efficient method of the disposal of commercial fraud, the arguments for and against the use of the regulatory system become commensurably less significant. If, however, the conclusions suggest that major legislative and procedural changes are required to facilitate the effective and efficient prosecution of commercial fraud, the scope for use of regulatory sanctions where appropriate takes on a greater significance. Thus there are two elements in the writer's conclusion. First, there was concern to assess the veracity of the conclusions drawn by the Fraud Trials Committee in 1986 to the present, and other problems faced by the criminal justice system in the investigation, prosecution and trial of commercial fraud. Secondly, it was important to consider arguments for and against the use of regulatory sanctions for the disposal of commercial crime. The conclusions drawn from a review of the problems faced by the criminal justice system are, it is suggested, fundamental to the question of whether the increased use of regulatory sanctions is necessary, or desirable.

The purpose of this study is to examine regulatory sanctions from an emerging economy perspective and analyzing the impact of regulators imposed monetary sanctions on banks’ performance.

The study adopted correlational research design to examine the effect of regulatory penalties on the performance of deposit money banks in Nigeria. This study used panel data from a sample of 15 deposit money banks in Nigeria for the period of 2006-2015. Multiple regression analysis was carried out.

Results showed that penalties imposed by regulators in the Nigerian banking industry have no significant impact on the bottom line of the defaulters. Penalties imposed on foreign exchange and international trade related infraction showed that the cost of penalties is below the benefits enjoyed from such infractions.

The insignificant impact of penalties on performance implies that deposit money banks have considered penalties imposed by regulators as operational expenses and transferred such to customers.

The study differs from other studies that examined regulatory penalties on performance by focusing on financial performance and using data from an emerging economy perceived to have weak regulatory environment.

Throughout the history of commerce, individuals have searched for informational advantages that will lead to their enrichment. In a time of global capital markets, 24 hours a day trading opportunities, and a professional services corps of market experts, informational advantages are pursued by virtually every market participant. This paper examines one of the most vilified informational advantages in modern capital markets: insider trading. In the USA during the 1980s, insider trading scandals occupied the front pages of not only the trade papers, but also quotidian tabloids. Assailed for its unfairness and characterised by some as thievery, insider trading incidents increased calls for stricter regulation of the marketplace and its participants. In the aftermath of the spectacular insider trading litigation in the USA in the late 1980s, many foreign states began to re‐evaluate the effectiveness of their own regulatory structures. In large part, this reassessment was not the produce of domestic demand, but constituted a response to American agitation for increased regulation of insider trading.