With page number and Good Reference(IMPORTANT) Document Preview: Q 1 Let us assume that the government has become concerned that existing disclosure regulation , tends to fixate on thef inancial...

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Q  1    Let  us  assume  that  the  government  has  become  concerned  that  existing  disclosure    regulation  ,  tends  to  fixate  on  thef  inancial  performance  of  organisations    but  fails  to  address  other  aspects  of  corporate  performance  including  a  failure  to  provide  information  about  corporate  social  and  environmental  impacts  as  well  as  about  various  initiatives  and  investment  an  organization  has  undertaken  to  improve  its  social  and  environmental  performance  .As  such  the  government  has  decided  to  introduce  legislation  that  will  require  business  corporation  to  provide  information  about    the  social  and  environmental  impacts    of  the  operations  as  well  as  the  social  and  environmental  initiatives  undertaken  by  the  corporations  .You  are  required  to  do    the  following.  a) Explain    from  a  public  interest  theory  perspective  the  rational  for  the  government  introducing  the  legislation  and  how  the  government  will  ultimately  assess  whether  any  proposed  legislation  should  actually    be  introduced    b) Predict    from  a  capture    theory  perspective  the  types  of  constituents  that  will  benefit  in  the  long  run  from  any  social  and  environmental  disclosure  legislation  c) Predict  from  an  economic  interest  group  theory  perspective  of  regulation  whether  any  potential  legislation  to  be  introduced  will  lead  to  an  increase  in  the  accountability  despite  any  implication  that  this...

Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
1 | P a g e

Public Interest Theory: The public theory explains the regulation of the government that
seeks the protection and benefit of the public at large. When we speak about regulation, its
considered as one of the most integral core function of the state. It is nothing but a boundary
within which a private body should be working. One implication of the public regulation is
that if the same services and goods are produced by a government unit or body, then we can
conclude that the government regulation theory has no importance. The same goods or
services are produced by the private body, the regulation word gains wide importance.
The most conclusive definitions of the regulation theory was that of Ba
y Mitnick who said
that “Regulation is the public administrative policing of a private activity with respect to the
ule prescribed in the public interest” (Mitnick 1980, 7). The definitions was based on a three
central idea mainly that regulation is directed towards the activities of a private body; it is
ased on the administrative controls defined by the government and on the grounds of general
ules; and the rules so defined are attributed to the public interest at large.
But the main discussion lies on the scope of such regulation and how will the government
assess the needs of the proposed legislation to be introduced? The scope of the regulation lies
on the working environment of the private bodies and their impact on the society regarding
the needs of a good social responsibility. The crux of the regulation introduction is that the
safeguarding of third party interest from the adverse consequences of the private activities.
The moment the government lifts the regulation, these private bodies will work according to
their own set of rules and regulations and hence the society will be in danger from the hands
of these bodies. They will face adverse effects of monopoly and price escalation, inferior
goods and services and other social issues such as environmental pollution and employee
discrimination.
2 | P a g e

The government in order to assess the needs of the society for the proposed legislation will
make their decisions based on the form of general rules after acting on the mandate of the
voters. The needs are so based on the regulations that the moment the private bodies go ultra
wires any rules or regulations, the government can intervene such activities and make their
own judgement on the basis of the voters.
Capture Theory Perspective: The perspective of a capture theory defines the operating of a
legal agency by those organizations, generally the businesses of a given industry, that the
organization is bound to control. The bodies which is assigned with the task of economic
control and is intended to safeguard the interests of the society from a large perspective,
where they actually find it troublesome to apply the theory of constructive to apply the
influence over the legal agency. When the motive is to influence the constructive theory over
the legal agency, it is better to have a former employee of the organization where they can
influence by working temporarily for the agencies. Hence, looking at the above, we can
throw some potential constituents that will benefit these organizations from the capture
theory interests in the long run are as follows: -
 The administrators who are involved in the decision of financial products need to
focus on the environmental, social and ethical issues while making capital decisions.
 Creation of an action plan for sustainability of procurement from the society, and
controlling the aspects of environment, social and morality.
 Firms which are publically listed should adhere to the code of conduct based on the
environmental hazards and ways to control those hazards.
 The environmental protection act which requires providing data and information on
hazardous emissions.
3 | P a g e

 The governments Green Securities policy requires that listed companies to disclose
about their requirements and policies of environment issues.
 The companies, who are in the mining industries, are to present a report on the
quarterly audit of environment.
 The hydroca
on activities must publish a quarterly report on ecological activities of
their firm
 Listed firms must divulge data on 40 labour and sociological criteria’s.
 Industries which are administering public fund to show how their investment policies
and guidelines to address sociological and environmental issues.
There are some of the constituents that could help the institutions from the perspective of
captive theory which could actually benefit these institutions when it comes to the welfare of
the society and implement the corporate...
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