Explain the significance of gatekeepers.
What will be an ideal response?
It is universally recognized that markets must function within the law; they must assume full information; and they must be free from fraud and deception. Some argue that only government regulation can ensure that these rules will be followed. Others argue that enforcement of these rules is the responsibility of important internal controls that exist within market-based economic systems. Several important business professions, for example, attorneys, auditors, accountants, and financial analysts, function in just this way.
These professions can be thought of as "gatekeepers" or "watchdogs" in that their role is to ensure that those who enter into the marketplace are playing by the rules and conforming to the very conditions that ensure the market functions as it is supposed to function. These professions can also be understood as intermediaries, acting between the various parties in the market, and they are bound to ethical duties in this role. All the participants in the market, especially investors, boards, management, and bankers, rely on gatekeepers.
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