Ethical Business Regulation policy approved by the UK Committee on Standards in Public Life

On 14 September 2016 the UK's Committee on Standards in Public Life (CSPL) published a major report on ethics for regulators, Striking the Balance. Upholding the Seven Principles of Public Life in Regulation (Committee on Standards in Public Life, 2016) 

This applied the seven 'Nolan Principles' to public regulatory authorities. In preparation for this, the Committee commissioned Professor Hodges to prepare a paper on 'Ethics in Business Practice and Regulation' 

The CSPL's Report firmly endorsed the general thrust of Professor Hodges' conclusions (see pages 62, 69-70), which are based on his 2015 book Law and Corporate Behaviour. First, that encouraging an ethical approach to compliance on the part of those regulated - as well as those working in the regulator itself - is both a sound regulatory and commercial strategy. Second, that regulators should actively engage with those they regulate and take a leadership role by encouraging positive compliance, and collaborative relationships. Third, that various practical actions could be taken, and the Committee particularly recommended amendment of the Regulators' Code.

Professor Hodges is continuing to work with the Cabinet Office, Regulatory Delivery Division of the Department for Business Energy and Regulatory Strategy, the Scottish Government, and a range of regulators and businesses to take forward such closer cooperative relationships embedding a culture of ethical practice. A Policy Brief on Ethical Business Regulation: Growing Empirical Evidence explains the basic ideas.