Positive Regulation

Abstract

This chapter explores the case for viewing regulation positively. It argues that regulation is part of the process for creating economic wealth and social welfare. It proposes that using regulation to tame the corporation is about harnessing corporate capacities and motivations so as to maximize the excess of benefits over costs—taking both economic and social factors into account. The chapter looks at the elements of ‘positive regulation’ and it surveys the economic and social rationales for regulating. In doing so it looks at the reasons why companies and entrepreneurs need regulation in order to create wealth—and hence why fostering business activity looms large among the reasons for regulating. Taming the corporation, it is contended, is as much about the successful aligning of corporate and social objectives as about constraining business activity. The chapter, accordingly, outlines a positive approach to steering corporate power in productive and useful directions.