Business Ethics and Corporate Governance, Second Edition

FORMS OF GOVERNMENT REGULATION

The object of government regulation, as has been pointed out earlier, is to steer the wheel of the economy in the direction of maximum social good without replacing it. This can be achieved through regulatory action at all-important points in the economic system. However, the regulatory system and the context of regulation may vary from country to country, the degree of maturity of political governance and the degree of economic growth. The more important forms of regulation of private enterprises by the government especially in developing countries like India are as follows:

• General direction and regulation of investment activity in private enterprise. This is achieved through economic planning and industrial ...