The Benchmark Solution

Abstract

How far is an “ideal” response to the Act possible? Most legislation recognizes that corporate behavior is liable to stray from the ideal, or is at best flawed. The assumption of corporate governance is that we need to be vigilant in managing our activities so that they conform to a social ideal and operate within acceptable limits. What these limits are is often a point of considerable debate, one that is not generally resolved. Overall, such legislation is subject, like socio-political attempts at behavioral reform, to interests within society operating through pressure groups which attempt to sway legislation in one direction or another. Having recognized the pragmatic nature of regulation, the Act does however imply an ideal, as we have observed. It appears to assume a perfect organization, however impractical that concept might be. Attempts to comply must somehow be measurable against such an ideal.