Advantages and disadvantages of self regulatory organization
Solution:
Advantages of self regulatory organisation:
1. A self regulatory organisation can easily maintain control over the standards to which they are adhering.
2. Self regulatory organisation may ease compliance.
3. These organisations have widely considered experts in their fields and know a great deal about the markets they work in.
Disadvantages of Self regulatory organisation:
1. Conflict of interest may arise in self regulatory organisations.
2. There may be problem in enforcement of various laws because there is no statutory backing.
3. All businesses will not voluntarily meet best practice standards which leads to the possibility of exploitation.
Advantages of self regulatory organisation:
1. A self regulatory organisation can easily maintain control over the standards to which they are adhering.
2. Self regulatory organisation may ease compliance.
3. These organisations have widely considered experts in their fields and know a great deal about the markets they work in.
Disadvantages of Self regulatory organisation:
1. Conflict of interest may arise in self regulatory organisations.
2. There may be problem in enforcement of various laws because there is no statutory backing.
3. All businesses will not voluntarily meet best practice standards which leads to the possibility of exploitation.