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Parker, Christine; Gilad, Sharon --- "Internal Corporate Compliance Management Systems: Structure, Culture and Agency" [2011] ELECD 938; in Parker, Christine; Nielsen, Lehmann Vibeke (eds), "Explaining Compliance" (Edward Elgar Publishing, 2011)

Book Title: Explaining Compliance

Editor(s): Parker, Christine; Nielsen, Lehmann Vibeke

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848448858

Section: Chapter 8

Section Title: Internal Corporate Compliance Management Systems: Structure, Culture and Agency

Author(s): Parker, Christine; Gilad, Sharon

Number of pages: 27

Extract:

8. Internal corporate compliance
management systems: structure,
culture and agency
Christine Parker and Sharon Gilad*

INTRODUCTION

Since the 1970s a number of influential regulatory scholars have sug-
gested that it ought to be possible to empirically identify internal man-
agement structures, decision making processes, employee training and
other practices that can effectively prevent misconduct in corporations
(e.g. Braithwaite, 1984: 248­262; Stone, 1975: 119­121). Moreover, it has
been suggested that it should be possible to design government or volun-
tary regulatory programs that would force or encourage corporations to
self-regulate by putting in place these corporate compliance management
systems. Parker (2002: 245­291; 2007) has labeled this type of regulation
`meta-regulation' because it attempts to regulate self-regulation. It is
also known as `enforced self regulation' (Ayres and Braithwaite, 1992),
`management-based regulation' (Coglianese and Lazer, 2003; Coglianese
and Nash, 2006; May, 2007), `systems-based regulation' (Kagan and
Scholz, 1984; Gunningham and Johnstone, 1999), `principles-based regu-
lation' (Black, 2008; Ford, 2008) or, more broadly, `process regulation'
(Gunningham, 2007). Gilad (2010) suggests that the term `process-oriented
regulation' best denotes this family of similar, albeit not identical, regula-
tory institutions that mandate and monitor firms' self-evaluation, design
and management of their operations, governance and controls.
Stone (1975: 120­1) was among the first to suggest the importance of
meta-regulation to require corporate compliance systems:

. . . to steer corporations we cannot continue to rely as heavily as we do on
threats posed to the organization as ...