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Legitimacy and Regulatory Compliance

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Financial Compliance

Abstract

A number of highly-publicised corporate unethical behaviours, such as those associated with the 2008 financial crisis, have led to new regulations and the strengthening of existing regulations. However, as criminologists have shown, the question of securing compliance is complex, and that rule-breaking is a constant risk in all human organisations. Yet, they also show a number of mechanisms that help to understand and to explain why people sometimes comply with rules in particular situations. The purpose of this chapter is to explore the role of legitimacy as a mechanism for compliance. Legitimacy, the discussion shows, is best viewed as a continuous dialogue, and that building and sustaining legitimacy requires the lawful, fair, and effective use of authority in everyday decisions. A review of research evidence shows that legitimacy matters for encouraging compliance with laws and regulations.

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Authors and Affiliations

  1. Institute of Criminology, University of Cambridge, Cambridge, UK

    Justice Tankebe

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  1. Justice Tankebe
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Correspondence to Justice Tankebe .

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  1. Faculty of Management and Economics, Cyprus University of Technology, Limassol, Cyprus

    Maria Krambia-Kapardis

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Tankebe, J. (2019). Legitimacy and Regulatory Compliance. In: Krambia-Kapardis, M. (eds) Financial Compliance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14511-8_2

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  • DOI: https://doi.org/10.1007/978-3-030-14511-8_2

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-14510-1

  • Online ISBN: 978-3-030-14511-8

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