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Stigler's ‘private interest theory' proposes that regulatory bodies are made up of individuals who are self-interested, and these individuals will define regulation that best serves their own self-interest. If regulators acted in accordance with the predictions given by private interest theory of regulation, what is the likely of the introduction of regulation aimed at reducing the problems related with climate change, particularly if business corporations opposed such regulations?
Required
a. Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler above.
b. Show the standards that are inherent in Global Reporting Initiative (GRI).
c. Select a company listed on the ASX and discuss how the company has disclosed Corporate Social Responsible (CSR) issues.
d. Determine your company performance in relation to GRI standards and comment on Stigler's theory.
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