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*Adapted from conditions a regulator must meet in order to increase general welfare in Armstrong & Green’s (2013) “Effects of
Corporate Social Responsibility and Irresponsibility Policies” on 5 October 2016. The published paper is available from
http://dx.doi.org/10.1016/j.jbusres.2013.02.014, and a working paper version is available from http://ssrn.com/abstract=2207952.
Checklist available from ironlawofregulation.com
Conditions Necessary for a Regulation to be Successful*
A Checklist for Regulators & Reviewers
Name of regulation:
Name of regulator/reviewer:
Has the regulator...? Evidence on whether the regulator met the condition
(Include links to reports of analysis)
1
Identified stakeholders’ endowments,
relationships, and preferences that are
relevant to the regulation
[See Nisbett & Wilson (1977) re difficulty]
2
Designed the regulation to produce only the
intended changes
3
Designed the regulation to avoid requiring
that individuals commit acts that they
believe to be immoral or that would violate
any existing law or regulation
4
Ensured that those affected will be aware of
the regulation, understand what changes
they must make, and know how to appeal
wrongful applications of the regulation
5
Established rewards and penalties that
ensure that the regulation is followed
6
Established fair procedures independent of
the regulator for resolving disputes arising
from enforcement and to remedy any
unintended consequences
7
Ensure that the party harmed, and not the
regulator or any other interest group,
benefits financially from the identification of
violations of regulations
8
Avoided “capture” by those being regulated,
and by any other interest group
[Few men have virtue enough to withstand the
highest bidder—George Washington]
9
Ensured that the public and private costs of
administering the regulation are
substantially lower than the benefits
10
Established independent scientific
monitoring and evaluation to assess whether
the conditions continue to be met, and
rectification or repeal procedures in case not
Comments and Conclusions (Consider including links to reviews of similar regulations):
Signature (or your initials):______________ Date (dd/mmm/yy): ___/____/___