ABSTRACT
This chapter provides an overview account of instances where regulators have taken intermediate steps that fall between the reliance on purely voluntary and market-driven choices on the one hand and mandatory requirements on the other. The potential of greater transparency to encourage market-based change is a key element of the French government’s policy rationale for expanding its corporate responsibility measures in 2002. The United Kingdom’s Companies Act 2006 requires London Stock Exchange listed companies to report annually on their business activity. The changes to the Federal Sentencing Guidelines for Organizations created a strong incentive for organisations to develop and implement voluntarily safeguards against unethical and criminal conduct. In the hybrid model, the State takes responsibility for constructing a reporting framework: outlining the form; providing guidance as to the substance; defining the nature of accountability and locus of responsibility, and establishing penalties or sanctions for abdication or failure to discharge that responsibility.
