Public and Private Sector Regulatory Requirements

Public and Private Sector Regulatory Requirements

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Public and Private Sector Regulatory Requirements

The regulations and requirements for public and private sector vary in areas of emphasis. For the most part, the public sector is allowed to self-regulate. However, in sensitive matters such as money, they too are not beyond scrutiny. Therefore, these control mechanisms and standards are often overseen by a body operating independently of the government.

Public Sector

Record keeping – It requires business to have transparent financial reporting of fiscal activities that will facilitate auditing requirements. This is meant to promote accountability in the use of allocated resources. However, record keeping is not limited to financial dealings.

Ethics requirements – these are meant to optimize and ensure adherence to the codes of conduct during social and professional interactions.

Human resource – the employees have to meet the set educational requirements. This is aimed to regulate the preferential employment of unqualified personnel.

Private Sector

Certification – It is confirmation that the said organization’s credentials are valid. For a private business to become operational, it has to meet licensing requirements. After this, it will be able to control the proliferation of counterfeit goods into the market. It also ensures that the business is accredited to operate in the specified field of expertise.

Consumer protection – It is the onus of the government to protect consumers from exploitation by organization aiming to maximize profit. The consumers can enjoy their right to fair trade (Pongsiri, 2002). This is made possible by promoting competition in the market. Similarly, the products have to contain detailed information to enable consumers to make informed choices. The importance of this regulation is heightened in areas where the wrong information can cause a health risk.

Insurance requirements – these are meant to protect the investors of a business when the company becomes financially insolvent. The insurance requirement helps to ensure that the company can honor its debts to suppliers as well.

Safety requirements – these control mechanisms are meant to ensure that both the employee and the people around the workplace face minimal hazards enabling them to perform optimally.

Reference

Pongsiri, N. (2002). Regulation and public-private partnerships. International Journal of Public Sector Management, 15(6), 487-495.