Clearly there needs to be room for both things to occur. You should absolutely begin with passing laws, but to think that the laws on the books can cover every situation is naive. When companies skirt the law and cause harm, there needs to be a remedy.
Bribery is illegal. What hope do you have for due process and the rule of law when it is being carried out as it is now? You can't use an extraordinary case to justify your belief about the ordinary case.
Also, we don't live in a world adjudicated by machines, there will always be discretion and the potential for special favors. No matter how much you tie the hands of regulators there will be some actor who will have the power to extort. Not to mention that regulation is not opposed to due process and the rule of law, but is the most important component of both.
Imagining a world without discretion is imagining a world where corporations can do as much irreparable harm as they want as long as there isn't a law against it.
I don't agree. The benefits of a business environment governed by due process and the rule of law far outweigh the benefits of individual government actors having arbitrary discretion to fill the gaps. As we've seen clearly on the federal level this past year, once you create that discretion, the common way for corporate executives to "prove" that they're nice and generous and deserve favorable treatment is not good behavior but open bribery of public officials.