How useful are voluntary codes of practice in achieving corporately Essay

How useful are voluntary codes of practice in achieving corporately responsible behaviour - Essay Example This research will begin with the statement that it has become a necessity for corporations to regulate themselves regardless of the rules and guidelines in place to regulate them. Ability of industries to regulate themselves is composed of programmes that are not actually needed by law, but are meant to supplement the law and provide the necessary conducive environment for corporations to operate in. These programmes consist of initiatives such as policies, environment codes of conduct and consensus with government. These self regulations by corporations can be termed as voluntary corporate initiatives. Nevertheless, voluntary codes of practice are most important as they avail an all-round environment inside and outside the corporation. Responsibility and accountability are two vital terms that are used day in day out in governments and corporations. Government plays very decisive and important roles in monitoring corporations. It does this by structuring regulatory guidelines requi red to protect the society and environment upon which all corporations under its jurisdiction have an influence over. This enables it to solve the intricate challenges that are as a result of development. While the government can formulate, pass, amend and impose rules and regulations governing actions of corporations, it is not omnipresent. Hence, government cannot be everywhere every time to make sure that rules and regulations are followed in equal measure by all corporations.