Monday, October 26, 2020

When Regulations are Helpful and Unhelpful?

Regulations are a necessary part of modern life. Let people do what they want and the last thing they think about is the impact on the environment community. We also need our industries working toward the health and strength of their nation and people. Regulations are an important part of nudging industries forward and protecting the greater good. However, regulations can be harmful and/or helpful and we need to keep both in mind when making a decision. 

If we have no regulations we have problems and if we have too many regulations then we have different kinds of problems. Regulation should be used when there is no way to get industry to self-regulate. Government provides the goals but industry determines the best way to reach those goals; unless they shirk their greater responsibility. 

Much of the choices at the senior leadership positions are based in making choices to follow or not follow regulations. Sometimes it can be seen as a cost factor that makes no difference beyond the cost of the regulation (i.e. violations as a business cost). 

As much as we can we should conduct a situation analysis to determine which regulations make sense and which one's don't. Some will create net positive value and some may be well meaning but don't really make much of a difference. Law makers should think about removing those restrictions and regulations that make no real difference and implement those that are more protective toward society. 

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