Ethical Business Practice & Ethical Business Regulation

ETHICAL BUSINESS PRACTICE & ETHICAL BUSINESS REGULATION

The research led to the ideas of EBP and EBR. Those concepts influenced UK Government in adopting its major January 2017 policy on Future Regulation, involving ‘regulated self-assurance’ and ‘assured advice’: see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/582283/Regulatory_Futures_Review.pdf 
(especially pages 22-23). The Review recommended that all UK regulators should move towards models of 'regulatory self-assurance' and 'earned recognition'. The idea is that businesses should be invited to produce evidence of compliance and systems from a wide range of stakeholders, including not only regulators but also, trade bodies, businesses networks, assurance bodies, with the ‘influence of users and consumers, of buyers and commissioners, and other professionals involved in the sector’. The Review noted that such a system has to be based on evidence of trust, that people will all 'do the right thing', based on ethical business practices, in return for which they would be regulated with a 'very light touch' in a no blame relationship.

PILOT STUDIES ON EBP & EBR

A sequence of pilot studies on EBP&EBR is underway in diverse sectors. One is in water price setting in Scotland. The Water Industry Commission for Scotland the Hodges EBR model throughout their policy paper, and specifically adopts the approach: "In developing our approach to this price review, we have sought to act in a manner consistent with the principles of ethical business regulation, set out by Professor Christopher Hodges of Oxford University." Innovation and Collaboration: future proofing the water industry for customers. Methodology for the Strategic Review of Charges 2021-2027 (Water Industry Commission for Scotland, 2017), http://www.watercommission.co.uk/UserFiles/Documents/SRC21_Innovation%20and%20Collaboration_Methodology_WICS_amended.pdf.

THE EBR MODEL AS THE INSPIRATION FOR UK HIGHER EDUCATION REGULATION POLICY

The Department for Education has stated that the Office for Students 'will draw on' Prof Hodges' Ethical Regulation model in developing its unique regulatory model for universities. He is cited on page 40 of Securing student success: risk-based regulation for teaching excellence, social mobility and informed choice in higher education. Government consultation on behalf of the Office for Students (DfE, 2017), https://consult.education.gov.uk/higher-education/higher-education-regulatory-framework/supporting_documents/HE%20reg%20framework%20condoc%20FINAL%2018%20October%20FINAL%20FINAL.pdf