I believe governmental regulatory agencies are more effective than self
regulation. However, marketers view self regulation more favorably than
government action because they have more opportunity to take part in
creating guidelines. Self regulation may be less expensive than
government regulation and its guidelines are generally more realistic,
but such regulation generally can not ensure agreement as effectively as
government agencies. Federal, state, and local regulatory agencies
usually have power to enforce specific laws and some discretion in
establishing operating rules and drawing up regulations to guide certain
types of industry practices.
Governmental regulatory agencies
are more effective because if it was self regulation, than all marketers
would make it so they could save as much money as possible and be free
to make as many moves as possible. It wouldn't work out in the long run
because everybody would be looking out for themselves. The government is
the most powerful system around and therefore overpowers any other
option. The government has to step in for cases like this and has
responsibility to look after everything/everyone and make regulations,
even if people disagree.
What do you think businesses would be like if they were all self regulated?
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