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RESEARCH METHODOLOGY BRCC Regional Dialogue (Northern India) Bangalore, 12 th July 2011

Can Business Regulation Stimulate Responsible Corporate Conduct – Gathering Evidence from a Few Indian States. RESEARCH METHODOLOGY BRCC Regional Dialogue (Northern India) Bangalore, 12 th July 2011. OUTLINE OF RESEARCH METHODOLOGY. Research Question & Diagram

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RESEARCH METHODOLOGY BRCC Regional Dialogue (Northern India) Bangalore, 12 th July 2011

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  1. 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

  2. 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

  3. Research Question & Figure Effective Responsible • 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? Business Regulation Corporate Conduct

  4. 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

  5. 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)

  6. Corporate Conduct: Typology • Economy (tax, consumer protection, fair competition) • Environment (air, water, land, forest) • Social (worker, communities, vulnerable groups) • Governance (disclosure, transparency, compliance)

  7. BUSINESS REGULATION Social/political/historical context Value systems of government Compliance and enforcement mechanisms CORPORATE CONDUCT Market (profit) vs. non-market (value systems) Voluntary vs. mandatory Incentive mechanisms Influence of value chains Drivers of (E)BR & (R)CC

  8. 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. Metrics of (E)BR & (R)CC How to measure? Indices for analysis? Methods for analysis?

  9. 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?

  10. Framework of Analysis

  11. 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

  12. Thank You!

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