Private Voluntary Regulation Is Not An Effective Substitute For National And Multilateral Regulations

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This essay will argue that private voluntary regulation is not an effective substitute for national and multilateral regulations. Although it has advantages, it requires certain situations to ensure that the regulations are effective; it also poses a lot of disadvantages. Concluding private voluntary regulation should maybe be seen as complementing national and multilateral regulations instead of substituting to maximize effectiveness. Firstly we will begin by looking at the reasons why there has been a rise in voluntary regulations. This essay will then proceed to look at merits of private regulation and the counter arguments which will looks at factors, such as the nature of codes or conducts, whether monitoring these standards are…show more content…
So private voluntary regulations arose with the intention of fixing and improving the problems raised. So to regulate labour standards of there supply change and environmental and ethical standards…. A benefit of private voluntary regulations is that since it has evolved we have seen a rise in Fair trade this is where producers in developing countries are working in better trading conditions and are suppose to be earning a higher wage than others in developing countries who are not part of Fair trade. A regulation has two standards outcome standards and process standards. Outcome standards can be seen as health and safety, child labour and Process standards can be seen as labour rights. An advantage of private voluntary regulations is that its helps to improve outcome standards. For example Nike made sure that all their workers in the supply chain was where over the age of 18. This is an example of improving outcome standards According to Mayer and Gereffi private voluntary regulations is likely to be effective under 6 hypotheses. With the first 4 situations producing the most effective forms of private regulator. For the purpose of the essay only the four hypothesis in which private voluntary is likely to be effective will be discussed hypothesis - 1) Firms who are large and lead in there
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