Reference no: EM133646501

Assignment:

News stories and public pressure drive government regulations. They also drive many industries to more self-regulation. The hope is to demonstrate to the government and the public that these industries are aware of the problem and are taking action. An industry prefers to self-regulate for two key reasons: Cost and flexibility. There's a perception that regulations increase cost because they can be restrictive and require lots of compliance evidence to be collected. Additionally, regulations can require specific solutions to a problem. Retaining the flexibility to select from an array of solutions and apply new technology is one reason given to avoid regulations. The counterargument is that, without laws, industries won't fully address problems.

Answer the following question(s):

1. Why do private industries prefer self-regulation over government regulations?

2. What are the counterarguments to self-regulation in industries?

3. How do news stories and public pressure influence the decision of private industries to engage in self-regulation, and what role do these industries play in demonstrating awareness and action to the government and the public?

4. In the context of self-regulation, how do private industries balance the perceived benefits of cost savings and flexibility against the potential drawbacks of not having specific laws and regulations to address problems comprehensively?