Essay on The higher efficiency of the organisational performance due to self-regulation

Self-regulation also contributes to the higher efficiency of the organisational performance because corporations implementing self-regulatory policies improve the quality and efficiency of internal business processes, while employees become more responsible, while performing their professional functions[1]. Self-regulation enhances individual responsibility of each employee and manager. The growing individual responsibility and higher efficiency of employees’ performance is beneficial for corporations and they naturally introduce self-regulation to improve their performance and to increase the efficiency of employees’ performance.

5 Rules match corporate needs

Rules elaborated in terms of self-regulation match corporate needs[2]. Therefore, corporations develop rules that meet their needs and interests and, therefore, are beneficial for them. In such a context, self-regulation is definitely better compared to the government regulation, for instance. Hence, corporations shift to self-regulation instead of the government regulation or other forms of external regulation. Corporations can negotiate self-regulatory rules that naturally make self-regulation more attractive for corporations than government regulation, when corporations have to struggle with legislators and regulatory bodies to protect their business interests and to prevent the misuse of power by government regulators or external auditors[3]. Corporations can elaborate self-regulatory rules respectively to their specificities. The only limitation is the necessity to match self-regulatory rules to the existing legislation.


Thus, self-regulation plays an important part in the contemporary business environment because it becomes an important tool of the corporate control. Self-regulation emerges in response to the growing public pressure on corporations that force them to enhance their social responsibility, while self-regulation is a part of social responsibility of corporations. They introduce self-regulation to improve the organisational culture and the internal atmosphere. At the same time, today, self-regulation is often an essential step being undertaken by corporations in response to the public demand of the higher social responsibility of corporations and growing value chains.

On the other hand, self-regulation brings considerable benefits to organizations that stimulate them to introduce self-regulatory policies. Corporations can benefit from the higher efficiency of command and control due to self-regulation. In addition, self-regulation helps to prevent corporate crimes. More important, self-regulation improves the organisational performance. Anyway, benefits of self-regulation outweigh its costs significantly. In fact, self-regulation is beneficial not only to corporations but also to the government and public. Hence, self-regulation is widely-introduced in contemporary corporations and organisations and this trend is likely to grow stronger in the future.



[1] Ibid.

[2] Jenkins, R. (2001). “Corporate Codes of Conduct: Self-Regulation in a global economy,” Technology, Business and Society Programme, 2, 45

[3] Kaserman, D. L., and Mayo, J. W. (1995). Government and Business: The Economics of Antitrust and Regulation. Fort Worth, Tex.: Dryden Press, 195

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