In this module, we will be examining the political, economic, social and legal issues surrounding the enactment, implementation and enforcement of regulatory policy. We will begin by discussing various justifications for regulation, with particular focus on the market failure framework. We will then look at how regulatory authority is delegated, how standards are set, then enforced and how businesses comply (or do not comply) with these regulations. Students examine different forms of regulation, from the incentive-based standards of carbon taxes/cap and trade programs, to the stricter standards of anti-bribery laws, to the softer, voluntary standards of corporate social responsibility and supply chain governance.

We also look closely at whether businesses comply with regulations, as well as the organisational challenges that regulations can produce for different companies. In addition to learning about domestic standards in various jurisdictions, students will also study the regulation of transnational business, how international standards are negotiated and whether corporate social responsibility has succeeded in enforcing environmental and labour standards in global supply chains. Students will study network industries and the problem of concentrated markets, particularly in the context of the powerful tech industry. Finally, students will also learn the basic structure and tools of regulatory impact analysis and the challenges of measuring regulatory costs and benefits.

We will examine all these issues in conventional business settings, as well as the context of an ever-changing global economy that now includes: enormous tech companies like Google, Facebook and Amazon; the gig economy, on-demand services and the precarious labour that accompanies these services; and artificial intelligence and the use of algorithms and machine learning.

Questions we will address in this module include:
• How much influence do businesses have over the creation and implementation of regulations?
• What factors affect the design of regulatory standards? How are such standards implemented? Do businesses comply with such standards?
• What is the thinking behind cap and trade programs like the E.U. Emissions Trading System? Do such programs work?
• What effect does international trade have on domestic and international regulatory standards?
• Why do some businesses join voluntary regulatory organisations? How effective are such organisations in monitoring global supply chains?
• What explains the occurrence of regulatory crises, such as the Great Recession, the B.P. oil spill, the Fukushima nuclear disaster, the Eurozone crisis, and other crises of regulatory policy?
• How will Brexit affect the regulation of business, both in the UK and in the rest of the European Union?
• How do regulators deal with the many regulatory issues raised by emerging and innovative companies, such as Google, Facebook, Amazon, Uber?

By the end of the module, you will have an understanding of the forces that shape the creation and implementation of regulatory policy. You will have knowledge of a wide variety of regulatory tools, the conditions under which they are used and how they affect business compliance. You will be able to understand regulatory processes at domestic and international levels, and will have an understanding of the tools necessary to evaluate regulations as well. Finally, the readings and assessment will give students the tools to craft and scientifically analyse questions surrounding contemporary regulation of business.