Traditiional approaches to regulating behavior have not,and cannot, produce socially reponsible corporations. Although many of the problems with these approaches were identified twenty-five ago. An model of regulation is needed that is flexible enough to accommodate the variety of contexts in which corporations operate, but also makes corporations responsive to the ever-changing societal expectations of proper corporate behavior. To accomplish these goals,a reflexive law regulatory system is needed to engage in corporate social accounting,auditing, and reporting (SAAR). The development of SAAR standards informed by reflexive law theory will create a regulatory system that is consistent with the latest thinking in business ethics,inculding stakeholder theory and Integrative Social Contracts Theory.
