Legislating for Responsible Capitalism
Legislating for Responsible Capitalism: What it means in practice
The financial crisis has exposed some fundamental flaws in the modern market economy. In Britain, and elsewhere a consensus has emerged around the need for a more resilient and stable capitalist system. The primary task for the centre-left is to map out a new political economy that helps foster better business practices and tackles unfairness while still producing long-term growth.
In this paper, Stephen Hockman proposes a series of legal amendments which can be made to improve the monitoring, transparency and accountability of corporate power. Central to his argument is a focus on the reform of the ownership and structure of limited companies, corporate governance and executive remuneration; as well as a proposal for a more pro-active role for government in public procurement, fiscal policy and criminal justice policy. A “Standing Commission on Responsible Capitalism” is proposed which could carry forward such proposals.
These measures, he argues, will help prevent the worst excesses of unrestrained capitalism, while also encouraging greater competitiveness, and thus a more productive economy for all.
About the author:
Stephen Hockman QC
is a senior lawyer specialising in regulatory law.