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Rewarding good governance

A balance between regulatory 'sticks' and 'carrots' or incentives can encourage firms to practise good governance

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Malaysia's Green Lane Policy and the WKSI programme in the US have something in common - they focus on the positives instead of on the negatives.

IS there scope here to reward firms that practise good governance?

In other markets, regulators have recognised that the traditional approach of deterrence through penalties represents only one side of the coin and is perhaps overly focused on the negatives without regard for positives.

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