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In 2006, the Australian Government incorporated research into corporate social responsibilities to determine if there is a need to include social and environmental responsibilities within the Corporation Act through amendment procedure. It was decided not to incorporate a particular regulation through legislation, instead rely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressed that if companies did not look after the environment or did not act in a socially responsible manner, people would not want to consume the organisations' products. From the equity market perspective, potential investors would not want to invest in the organisations, and further workers wouldn't want to work for them, and so forth. Because companies were aware of such market forces, they would do the 'right thing' even in the absence of legislation.
Requirement:
Problem 1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theory to critically evaluate and discuss the Government's decision for not introducing a particular regulation.
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