of the problems associated with self-regulation is
A) the lack of a written code of ethics by firms in the industry.
B) the intrusive enforcement by the FTC.
C) the opportunity corporate for espionage by competitors.
D) the absence of an industry association with the power to use moral suasion.
E) noncompliance by members.

Question

Quizplus · Accepted Answer

Noncompliance by members is a significant problem with self-regulation because it reduces the effectiveness of the self-regulatory system. When some members do not comply with industry standards, it can lead to a lack of trust in the industry as a whole, which can diminish the benefits of self-regulation.

Of the Problems Associated with Self-Regulation Is