To What Extent Do Third Parties Influence Business Compliance?

32 Pages Posted: 12 Aug 2008

See all articles by Vibeke Lehmann Nielsen

Vibeke Lehmann Nielsen

University of Aarhus - Department of Political Science

Christine Parker

Melbourne Law School, University of Melbourne

Abstract

Regulatory scholars have increasingly observed that it is not only public regulatory agencies and official enforcement action that motivate and enforce businesses' compliance with the law; in many situations, certain third parties may have greater capacity and power to motivate and enforce compliance with the law than do official regulatory agencies. This paper examines the extent to which businesses' worries about, and perceptions of pressure from, various third parties influence their internal compliance management activities and moral commitment in relation to complying with the objectives of competition and consumer protection law. Using data from a survey of 999 large Australian businesses, we find that businesses worry a lot about the reactions of a range of third parties including customers, shareholders, employees, and business partners to non-compliance. We find little evidence that these worries have much impact on what businesses actually do. However, perceptions of risk of complaints do influence what they do.

Suggested Citation

Nielsen, Vibeke Lehmann and Parker, Christine, To What Extent Do Third Parties Influence Business Compliance?. Journal of Law and Society, Vol. 35, Issue 3, pp. 309-340, September 2008. Available at SSRN: https://ssrn.com/abstract=1218728 or http://dx.doi.org/10.1111/j.1467-6478.2008.00441.x

Vibeke Lehmann Nielsen (Contact Author)

University of Aarhus - Department of Political Science ( email )

Bartholins Allé è
DK-8000 Aarhus, 8000
Denmark

Christine Parker

Melbourne Law School, University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

HOME PAGE: http://law.unimelb.edu.au/about/staff/christine-parker

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