A framework for analysing compliance with regulations

This paper presents a conceptual framework for analysing regulatory compliance. To offer a more complete explanation of compliance behaviour the framework developed integrates economic motivations with theories from psychology and sociology to account for both tangible and intangible motivations influencing individuals’ decisions whether to comply with a given set of regulations. Specifically the framework accounts for morality, legitimacy and social influence in addition to the conventional cost and revenues associated with rule breaking behaviour.