Drivers Of Compliance Research Articles

One Size Does Not Fit All: A Field Experiment on the Drivers of Tax Compliance and Delivery Methods in Rwanda

Although field experiments in tax compliance represent a growing area of research, the literature has so far focussed exclusively on high and middle-income countries. This paper starts to fill this gap by reporting the results of a tax field experiment in Rwanda, while also highlighting some characteristics that may be common to other low-income countries. We evaluate an intervention carried out by the Rwanda Revenue Authority (RRA), which involved sending messages to taxpayers to nudge their declaration behaviour during the filing period of January-March 2016. Focussing particularly on business profits tax, our study is designed to address two interrelated questions. First, what are the key drivers of compliance in Rwanda? Second, what is the best delivery method to reach taxpayers with messages designed to improve compliance? Although other studies have explored delivery methods in the context of taxpayer communication, our study is the first one to interact these methods with different message contents. As a result, we evaluate a set of nine treatments that combine three message contents (deterrence, fiscal exchange, reminders) and three delivery methods (letters, SMS, emails) – as compared to a control group that received no message. We find that friendly approaches to taxpayers are generally more effective than deterrence. However, small taxpayers are still quite responsive to the possibility of being fined and prosecuted (deterrence). We also show that low-cost delivery methods like SMS and emails can be highly effective as compared to letters.

Why Do Foundations Follow the Law?: Evidence from Adoption of the Uniform Prudent Management of Institutional Funds Act

I examine the determinants of nonprofit corporate compliance with law using a large panel of over one million firm-years, and despite the absence of many formal deterrence mechanisms, find evidence consistent with widespread compliance. I exploit rolling state adoption of the Uniform Prudent Management of Institutional Funds Acts, which lifted some existing limits on firm spending, but which applied to some but not all firms within each state. This allows the use of triple-difference estimates that control for changes in local norms and economic conditions. Interacting the triple-difference factors with other predictors of compliance, I find no correlation between compliance and enforcement intensity, but some evidence that compliance is correlated with firm culture and reliance on accountants. I argue that my findings have important implications for the governance of charitable organizations, and may speak more generally to drivers of compliance among other organizational forms.

A New Approach to Identifying the Drivers of Regulation Compliance Using Multivariate Behavioural Models.

Non-compliance with fishing regulations can undermine management effectiveness. Previous bivariate approaches were unable to untangle the complex mix of factors that may influence fishers’ compliance decisions, including enforcement, moral norms, perceived legitimacy of regulations and the behaviour of others. We compared seven multivariate behavioural models of fisher compliance decisions using structural equation modeling. An online survey of over 300 recreational fishers tested the ability of each model to best predict their compliance with two fishing regulations (daily and size limits). The best fitting model for both regulations was composed solely of psycho-social factors, with social norms having the greatest influence on fishers’ compliance behaviour. Fishers’ attitude also directly affected compliance with size limit, but to a lesser extent. On the basis of these findings, we suggest behavioural interventions to target social norms instead of increasing enforcement for the focal regulations in the recreational blue cod fishery in the Marlborough Sounds, New Zealand. These interventions could include articles in local newspapers and fishing magazines highlighting the extent of regulation compliance as well as using respected local fishers to emphasize the benefits of compliance through public meetings or letters to the editor. Our methodological approach can be broadly applied by natural resource managers as an effective tool to identify drivers of compliance that can then guide the design of interventions to decrease illegal resource use.

Lack of recreational fishing compliance may compromise effectiveness of Rockfish Conservation Areas in British Columbia

Compliance with spatial fishing regulations (e.g., marine protected areas, fishing closures) is one of the most important, yet rarely measured, determinants of ecological recovery. We used aerial observations of recreational fishing events from creel surveys before, during, and after 77 Rockfish Conservation Areas (RCAs) were established in British Columbia, Canada. There was no evidence of a change in fishing effort in 83% of the RCAs, and effort in five RCAs increased after establishment. Fishing effort in open areas adjacent to the RCAs declined with time and was higher than effort in the RCAs in all 3 years. Next, we used compliance data for 105 RCAs around Vancouver Island to model the drivers of compliance. Compliance was related to the level of fishing effort around the RCA, the size and perimeter-to-area ratio of RCAs, proximity to fishing lodges, and the level of enforcement. Noncompliance in RCAs may be hampering their effectiveness and impeding rockfish recovery. Education and enforcement efforts to reduce fishing effort inside protected areas are critical to the recovery of depleted fish stocks.

Drivers of recreational fisher compliance in temperate marine conservation areas: A study of Rockfish Conservation Areas in British Columbia, Canada

Overfishing has impacted marine species over the last century, with many large-bodied and long-lived species declining to critical levels. Marine conservation areas are a popular management tool to protect and recover marine species and their habitats from intensive fishing pressure and human caused marine degradation. However, many marine conservation areas are thought to have low levels of compliance from diverse fishing populations. Little research exists that quantifies recreational fisher compliance and its drivers within marine conservation areas. We used the Rockfish Conservation Areas (RCAs) in British Columbia as a case study to investigate drivers of compliance. Our objectives were to (1) assess levels of recreational fisher RCA knowledge and compliance, (2) explore factors influencing fisher RCA knowledge and compliance, (3) quantitatively assess levels of fisher rockfish bycatch and release rates, (4) elicit fisher perceptions of RCAs, and (5) obtain fishers’ suggestions for improving rockfish conservation. We conducted 325 structured dockside interviews with recreational fishers in 16 locations. Intentional noncompliance was reported by seven percent of recreational fishers, and accidental noncompliance by 16%. The main reason for noncompliance was lack of knowledge. Recreational fishers were almost uniformly unknowledgeable of RCAs and their regulations across fishing experience levels. We found that 25.5% of recreational fishers had never heard of RCAs and ∼60% were unsure of RCA locations. However, 77% of fishers believed that rockfish conservation is necessary. The high recreational noncompliance rate in RCAs–primarily accidental fishing–is likely compromising the ability of these marine conservation areas to protect inshore rockfish. The ecological usefulness of marine conservation areas hinges upon users knowing about, and understanding, conservation area rules and regulations. We recommend managers implement a public outreach and education campaign to address the high levels of noncompliance.

Revisiting fear appeals: A structural re-inquiry of the protection motivation model

Replicating Johnston and Warkentin (2010), we demonstrate that social influence and self-efficacy are the main drivers of compliance with fear appeals. Contrary to the original study, we find that the acknowledgment of a severe threat encourages subjects to seize on the proposed recommendation, bolstering perceptions of efficacy. With this sole exception, the original results are fully replicated in a different research context employing a different population.

Risk management practices adopted by financial firms in Malta

Purpose– The purpose of this paper is to bring to light the risk management practices adopted by financial firms in the small island state of Malta. It seeks to: first, identify the risk management strategies and mechanisms that these firms adopt to manage risks, maximise opportunities, and maintain financial stability; second, determine whether these practices are perceived as contributing to principled performance; third, examine the extent to which risk management capabilities offer competitive advantage to firms, and fourth, investigate whether corporate social responsibility (CSR) is a key driver of risk management corporate strategies.Design/methodology/approach– A self-administered questionnaire purposely designed for the present study was distributed among the 156 credit institutions, investment firms and financial institutions registered with the Malta Financial Services Authority. Overall, 141 firms participated in the study (a response rate of 90.4 per cent) and the responses were subjected to statistical analysis in an attempt to answer four research questions.Findings– Maltese financial firms have sound risk management practices that link positively with added value and principled performance. Although competitive advantage has been given less weight by these firms, the implemented risk management mechanisms allow for a strong risk culture, defined risk management goals, accountability and continual improvement. CSR forms part of the firms’ risk management corporate strategies and is valued as part of these firms’ corporate culture, while financial/economic factors are viewed as key in driving effective risk management principles.Originality/value– The study provides empirical evidence that securing “best practice” in firms’ risk management corporate culture is seen as better predicated on maximising financial advantage (“the instrumental driver”) rather than simply reflecting externally imposed standards (“the compliance driver”).

Making Headway? Regulatory Compliance in the Shipping Industry

Globalisation has significantly changed the context of governance and regulation at both a national and international level. Such change has driven extensive debate on how to achieve more efficient regulation and better governance within new circumstances. A key concern at the level of the workplace, however, is how compliance with the standards required by regulations – whatever their form – is achieved in practice, and it is this that we are mainly concerned with here. In this article, we make use of a case study undertaken in the shipping industry in the course of which we carefully discussed the drivers of compliance with seafarers and with ship managers, charterers and related personnel. We suggest that a consideration of the perspective of workers and managers is vital in understanding drivers of compliance and therefore to informing debates on effective regulation.

Understanding recreational fishers' compliance with no-take zones in the Great Barrier Reef Marine Park

Understanding fishers' compliance is essential for the successful management of marine protected areas. We used the random response technique (RRT) to assess recreational fishers' compliance with no-take zones in the Great Barrier Reef Marine Park (GBRMP). The RRT allowed the asking of a sensitive question, i.e., Did you, knowingly, fish within in a Green Zone during the last 12 months? while protecting respondents' confidentiality. Application of the RRT through a survey of recreational fishers indicated that the majority of recreational fishers, 90%, comply with no-take zones. Likewise, most fishers, 92%, reported not personally knowing anyone who had intentionally fished in a no-take zone, indicating that fishers' perceive high levels of compliance among their peers. Fishers were motivated to comply with no-take zones primarily by their beliefs about penalties for noncompliance, followed by beliefs about the fishery benefits of no-take zones. Results suggest that compliance-related communication efforts by the managing authority have partially succeeded in maintaining appropriate compliance levels and that future efforts should accentuate normative compliance drivers that will encourage voluntary compliance. We conclude that compliance monitoring should be integrated into the adaptive management of the GBRMP and other protected areas; in this case social surveys using the RRT are effective tools.

Understanding Recreational Fishers’ Compliance with No-take Zones in the Great Barrier Reef Marine Park

Arias, A., and S. G. Sutton. 2013. Understanding recreational fishers’ compliance with no-take zones in the Great Barrier Reef Marine Park. Ecology and Society 18(4): 18. https://doi.org/10.5751/ES-05872-180418

The Impact of Cost Sharing Schemes on Drug Compliance: Evidence Based on Quantile Regression

In this work we investigate the causal impact of cost sharing schemes on drug compliance using a Difference-in-Differences approach within a quantile regression framework. We exploit a series of natural experiments occurred in Italy between 2000 and 2010, referring to the introduction of regional co-payment schemes. We find that co-payments have a negative impact on compliance, causing a reallocation of individuals from the upper to the lower tail of the compliance distribution, thus hurting the already narrow group of good compliers. The empirical evidence suggests also that gender, clinical history and geographic residence are important drivers of compliance, particularly within the group of poor compliers.

Process gatekeepers and compliance with enterprise processes

PurposeProcess gatekeepers, individuals responsible for strictly enforcing data completeness at critical points within a process, are often used to encourage compliance with processes associated with enterprise systems. The purpose of this paper is to explore the relationship between process gatekeepers and process compliance.Design/methodology/approachThrough a mixed‐method approach of both qualitative and quantitative analyses of one firm's sales processes, the paper identifies and measures four key drivers of compliance with the work process: ease of use, perceived value, urgency, and gatekeeper flexibility.FindingsThe paper finds that process context‐specific, gatekeeper‐related factors directly affect an individual's willingness to work within the bounds of prescribed processes. In particular, the paper finds evidence that gatekeeper flexibility appears to encourage process compliance.Research limitations/implicationsThese findings are limited in generalizability to a single organization, by potential instrument‐related biases, and by typical caveats associated with models derived from exploratory research.Practical implicationsImplications include the motivation of the need for overall process compliance in realizing the benefits of an enterprise information system, as well as the counterintuitive notion that gatekeeper flexibility may be positively related to process compliance.Originality/valueThis paper introduces the notion of process gatekeeper, devises a context‐specific measure of gatekeeper flexibility, and relates this notion to an overall model associated with process compliance in an enterprise system context.

A Novel Active Heads-Up Display for Driver Assistance

In this paper, we introduce a novel laser-based wide-area heads-up windshield display which is capable of actively interfacing with a human as part of a driver assistance system. The dynamic active display (DAD) is a unique prototype interface that presents safety-critical visual icons to the driver in a manner that minimizes the deviation of his or her gaze direction without adding to unnecessary visual clutter. As part of an automotive safety system, the DAD presents alerts in the field of view of the driver only if necessary, which is based upon the state and pose of the driver, vehicle, and environment. This paper examines the effectiveness of DAD through a comprehensive comparative experimental evaluation of a speed compliance driver assistance system, which is implemented on a vehicular test bed. Three different types of display protocols for assisting a driver to comply with speed limits are tested on actual roadways, and these are compared with a conventional dashboard display. Given the inclination, drivers who are given an overspeed warning alert reduced the time required to slow down to the speed limit by 38% (p < 0.01) as compared with the drivers not given the alert. Additionally, certain alerts decreased distraction levels by reducing the time spent looking away from the road by 63% (p < 0.01). Ultimately, these alerts demonstrate the utility and promise of the DAD system.

Problem solver [factory automation

In this article, Sujeet Chand, chief technology officer at Rockwell Automation guides us through the morass of future trends in factory automation. The five technology clusters that Rockwell monitors are control and diagnostics, communications, electronics, materials and software. When considering the problems facing manufacturing, Chand ponders before mentioning the integration of factories within business systems such as SAP, a move driven by supply chain integration and flexible manufacturing or customer demand. Within the factory itself, issues such as regulatory compliance drivers, safety and security, conformity and certainly cost and energy efficiency are top of his list.

Sectoral restructuring and environmental management in the EU iron and steel sector†

The EU iron and steel industry has undergone rapid transformation since the early 1980s. Privatization programmes, rationalization, increased international trade in raw materials and steel products and pressures for energy reduction and improved environmental protection have all led to significant structural changes. To remain competitive, EU firms have had to improve productivity, develop niche markets and foster client relationships. Alongside the restructuring, environmental regulations and market and stakeholder demands relating to the environment have brought new pressures to bear, increasing investment and operating costs. This article focuses on firm responses and two points are made. The first is that EU sectoral restructuring is a response to increased global competition and that steel sales are increasingly determined by price. As prices become more competitive and costs are pared, particularly labour, there has been an important relative increase in environmental expenditure for firms. Awareness of these costs, also the market and public relations issues relating to the environment, has led to firm responses that range from minimal compliance to proactive ‘first mover’ strategies. Scale of operation and process type are important factors in determining these environmental strategies. The second point is that, in the longer term, there will be a need for better regulator – firm coordination in order to move beyond the current drivers of compliance and public pressure. To promote cleaner production approaches and improved environmental performance evaluation across the sector will require greater flexibility and economic awareness from regulators, and a more innovative and integrated approach to environmental protection by firms. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.

Enhancing pollution prevention (P2) projects with economic and compliance drivers

AbstractApproval of Pollution Prevention (P2) projects for implementation requires that these projects have justification that can compete favorably with other productivity‐enhancing and mission‐focused projects. Many environmental projects never receive approval because they are not perceived to be cost‐effective, their impact on environmental compliance is often understated, or the data collected do not support the project favorably for implementation. For example, compliance with National Emission Standards for Hazardous Air Pollutants (NESHAPs) requirements and mandated Air Force P2 goals are closely related; cost savings and favorable implementation can be realized when the project studies and compliance solutions take both issues into account. In addition, economic feasibility analyses must include costs for continuing environmental compliance, as well as hidden costs for future regulatory pressures, liabilities, and public relations. This article will present an approach that elevates compliance and cost issues as a way to enhance P2 solutions. True environmental costs, combined P2 and compliance objectives, and focused data collection allow projects to succeed. The outcome is reduced cost (both compliance costs and implementation capital and operating costs), simplified compliance, and reduced data management needs.

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