Compliance and Regulatory Dilemma

Abstract

The self-protecting theory is more of a sociological theory because the main concern that was identified, unfair pressure, is found more in social theory literature, and the classical grounded theory methodology adopted for the research underpinning this book has its root in sociology (Glaser & Strauss 1965). Interestingly, however, the outcome is similar in some respect to economic theory of regulation. In this regard, the work of Becker (1974) and Scholz (1984) will be reviewed to show the link between the self-protecting theory and the economic theory of regulation. Most importantly, however, the theory also explains compliance from the perspective of social theory. The social theory of Tyler (2006) on legitimacy will also be reviewed to show the linkage. The chapter will also look at the combination of social and economic theories in resolving the dichotomy between the two schools of thought.