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

1338 Words May 4th, 2016 6 Pages
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 difficult.. In addition, this essay will look at the challenges that private regulation pose for HRM departments of Global Corporations such as the monitoring of labour standards and ways they try to address these issues. Closing with recommendations on ways to ensure that private voluntary regulation is used effective.
Private voluntary regulations involve looking at the corporate codes of conduct, monitoring, certification and reporting of a firm. It is important to look at the reason behind the rise of private voluntary regulations to get a better picture. Private voluntary regulations came about because of activist pressure on how people in the supply chain of developing countries where being treated and because of the failure of national…

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