Legal rules are in force to protect shareholders, employees, and consumers from risk. Many of the most notorious corporate accidents and failures have resulted from noncompliance with these rules. Consider the examples of the BP Deepwater Horizon oil spill, Wells Fargo’s account scandal, and even Chipotle’s foodborne illness outbreaks. Each of these cases originated with some sort of rule violation.
Why Some Rules Are More Likely to Be Broken
And how to write regulations that people actually follow.
October 07, 2019
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Summary.
Which rules are most likely to be broken? Research based on 1,011 hygiene inspections of 289 restaurants in California suggest that how rules are designed can create significant challenges for otherwise well-intentioned organizations. Researchers found that not only were more complex rules more likely to be broken, but they were able to determine what type of complexity led to more repeat violations. The findings have implications for how regulators and managers design and enforce rules.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Plan Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to create a winning business plan.