- Coglianese, Cary, Thomas J. Healey, Elizabeth K. Keating, Michael L. Michael. The Role of Government on Corporate Governance. HKs.Harvard.edu. Harvard University, 2014. Web. 10 Nov. 2014
- History of Search: google search with words ” The role of government on corporations”. I decided to use this because it explains how self-regulatory agencies work, how corporations are governed, and how regulations are enforced plus the theoretical theory of how things can be enforced. Book is a PDF.
- Identification: Scholarly source because it is backed by Harvard university, multiple citations and sources, authors are all professional in the field of business or professors.
The present day economy of the United States is recovering from the shambles of a recession that shook the nation. The cause of this recession was the massive deregulation the market went through prior to it happening. The Role of Government in Corporate Governance is a book about what the market is regulated by, what kind of rules are created, and the enforcement of these rules.
Self-regulatory agencies are organizations owned by a private party that express power to regulate businesses on the market. These agencies are one of two organizations that regulate the market, the other being the government’s regulatory agencies. Self regulation is a very useful method in overseeing corporations. They are in close proximity to businesses and aren’t held back by long processes unlike the government is. The problem is that some self-regulatory agencies have little power compared to the government and sometimes may not reflect the same interest as the government would in some cases. If these agencies were supervised closely by the government agencies themselves then they’ll be much more effective in governing corporations.
The government and self-regulatory agencies must figure a way to govern corporations and enforce their policies. They can govern and regulate following rules or principles. Rules create a clear line on what can be done,but usually do not cover everything so their could be cases that the rule does not talk about. Principles cover a large area and can be stretched to situations. The two are best used as a combination to create policies to govern by because one is clear in what is saying and the other can cover most situations. A hybrid creation from rules and principles would be the best bet.
Once the rules are established then the question is who enforces and how. An argument about who is the enforcer is split between the self-regulatory agencies themselves and the different levels of government. The hard question is who’s jurisdiction it falls under because of where the corporations reside. For example if a business is in the state of Virginia but has made a violation that affects the federal, self-regulatory and state policies; Who would get the case? A clear line must be drawn and that goes for enforcement also.
In conclusion, the way the market is being regulated must be refined and changed to fit the modern corporations today so that a recession may not occur again anytime soon.