Ineffective industry self-regulation

Industry self-regulation is the introduction and adaptation of business practices to meet ethical, professional, social and environmental criteria, with self-imposed standards, guidelines, targets and monitoring systems -- possibly enforced by endorsed codes of practice, membership of professional and trade associations, and non-regulatory agreements, the latter being sets of principles for action intended to influence the conduct of business (typically based on exhortation with no compliance requirements, and intended to influence both external regulation and self-regulation of the industry). Self-regulation usually originates is large international companies providing leadership to the industry as a whole. The benefits and experience they achieve can be passed on, through trade and professional associations and codes of practice, to smaller companies who might otherwise escape the regulatory net.

In 1992, only 5 of the 35 tourist companies which even responded to an industry questionnaire, stated that they had specifically implemented codes of practice or guidelines promoted by a specific group (such as the Himalayan Tourist Code).