Transcript Research Methodology BRCC Regional Dialogue

Can Business Regulation
Stimulate Responsible Corporate
Conduct – Gathering Evidence
from a Few Indian States
RESEARCH METHODOLOGY
BRCC Regional Dialogue
(Northern India)
Bangalore, 12th July 2011
OUTLINE OF RESEARCH
METHODOLOGY
• Research Question & Diagram
• Definition & Typology (Business Regulation,
Corporate Conduct)
• Drivers of BR & CC
• Metrics of BR & CC
• Frame of Analysis (Indicators of BR & CC)
• Choice of Sectors
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Research Question & Figure
•
•
•
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Effective
Responsible
Business
Regulation
Corporate
Conduct
What are the Elements of Effective Business Regulation?
What are the Elements of Responsible Corporate Conduct?
Are Business Regulation and Corporate Conduct Linked?
What are the Linkages between Effective Business Regulation
and Responsible Corporate Conduct?
• How to Measure and Influence such Inter-linkages so as to
achieve Optimal Business Regulation and Corporate Conduct?3
Business Regulation: Definition &
Typology
• Business Regulation
– Public regulation: between government (executive
and judiciary arm) and business. (Acts, rules,
notifications, etc)
– Co-regulation: interplay between industry
associations, civil society or other pressure groups
and the business (Standards, certification)
– Self regulation: firm level action to adopt voluntary
norms and standards of conduct for itself
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Corporate Conduct : Definition
Business Responsibility involves businesses being
thoroughly aware and conscious of their social,
environmental and economic responsibilities, and
balance these different considerations in an ethical
manner (National Guidelines for Social, Economic
and Environmental responsibilities of business,
2010)
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Corporate Conduct: Typology
– Economy (tax, consumer protection, fair
competition)
– Environment (air, water, land, forest)
– Social (worker, communities, vulnerable groups)
– Governance (disclosure, transparency,
compliance)
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Drivers of (E)BR & (R)CC
BUSINESS REGULATION
• Social/political/historical
context
CORPORATE CONDUCT
• Market (profit) vs. nonmarket (value systems)
• Value systems of
government
• Voluntary vs. mandatory
• Incentive mechanisms
• Compliance and
enforcement mechanisms
• Influence of value chains
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Metrics of (E)BR & (R)CC
BUSINESS REGULATION
• Macro indicators
• Business facilitation
measures (taxes, time to
open business, e.g.)
• Governance: compliance
rates
CORPORATE CONDUCT
• Economic: competition,
consumer welfare, e.g.
• Environmental: measures
of environmental
protection or conservation
• Social: impacts on
workers, minority groups,
e.g.
How to measure? Indices for analysis? Methods for analysis?
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Framework of Analysis
• What are the indicators of Responsible Corporate
Conduct?
• What are the indicators of Effective Business
Regulation?
• How can the linkage be traced between them?
Elements of
Responsible
Corporate Conduct
ECONOMY
Specific Aspects
Tax
Impact Indicators
pertaining to each
Aspect
Impact Indicator
Factors (Public Regulation + Self
Regulation) impacting each Impact
Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Fair Competition
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Consumer Welfare
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Etc.
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
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Framework of Analysis
Elements of Responsible
Corporate Conduct
Specific Aspects
Impact Indicators
pertaining to each Aspect
Factors (Public Regulation + Self Regulation)
impacting each Impact Indicator
ENVIRONMENT
Air
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Land
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Water
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
Forests
Impact Indicator
Factors (Public Regulation)
Factors (Self Regulation)
SOCIAL
Workers
Communities
Vulnerable Groups
Etc.
GOVERNANCE
Accountability
Transparency
Disclosure
Compliance
Etc.
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Choice of Sectors for Study
• Large Vs. SMEs
• Manufacturing, Services
• Brown vs. non Brown -- Pharma, Chemicals Vs.
Banking, IT services
• Global Vs. local (MNC Vs. Local; Export-oriented,
part of global supply chains)
• Place in the value chain – final, intermediary
• Impacts – Visible vs. Invisible
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Thank You!
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