Is self regulation more or less effective then governmental regulatory agencies?

I believe that self regulation can be good for a business, because if it is done effectively than it shows that the company is responsible and accountable. A company will make a good name for itself and gain more trust from customers if it can set and maintain its own regulations. The federal regulations are the basic framework that can not be broken, and obeying them will be effective in the market. However, if the business creates their own guidelines within the federal regulations, I see that as being much more effective. Customers will appreciate companies that are not just meeting the standards of the government, but living up to their own as well. Also the regulations that a business sets up for itself can serve as protection too. If the regulations are within the federal regulations and the company is struggling to meet them, then at least if they end up breaking them they have not crossed the federal regulations. It may cause damage the companies image, but it would not put it in a tough spot with the government agencies. An image can always be repaired too; disobeying federal regulations would have  more of a legal effect and put the company in a position much worse.

Wouldn't a company feel more in control following it's own regulations, rather than the governments?