Enforcement Challenges in the Face of Harmful but Legal Corporate Conduct
35 Pages Posted: 18 Nov 2021
Date Written: June 4, 2018
At least seventeen out of twenty-three Dutch regulatory agencies counteract harmful but legal corporate conduct through informal interventions. Interviewed regulators struggle to position themselves in the ensuing cat-and-mouse game, broker adverse interests, and uphold legitimacy. This paper explores these core challenges, regulators’ administrative strategies to cope with these challenges as well as factors that may influence their stance. The paper interprets the ensuing extrajudicial interaction between regulators and firms as a reciprocal game in which regulators balance efficacy and legitimacy in absence of a ‘big stick’.
Keywords: regulation, enforcement, harmful but legal conduct, informal interventions
JEL Classification: K23
Suggested Citation: Suggested Citation