Corporate Environmentalism And Public Policy

This page intentionally left blank Corporate Environmentalism and Public Policy This is the first book to provide a hard-headed economic view of the voluntary approaches to environmental issues, especially toxic chemicals, waste disposal, and global warming, that have become prominent since the mid-1990s. Corporate environmental initiatives are seen as a tool for influencing the behavior of environmental activists, legislators, and regulators, though they may have ancillary benefits such as attracting “green” consumers or reducing costs. Equally, government voluntary programs are seen as a way to achieve modest environmental results when political resistance to mandatory policies is high. Rigorous analysis is illustrated with numerous case studies drawn from the USA, Europe, and Japan, while technical details are relegated to appendices, and each chapter highlights implications for corporate strategy and public policy. Although rooted in economic theory, this book will appeal to business strategists and policy practitioners, as well as scholars and researchers. t h o m a s p . l y o n holds the Chair of Sustainable Science, Technology and Commerce of the University of Michigan Business School, Ann Arbor. He is the editor of the forthcoming volume Regulation (2004). His primary research interest is the interplay between corporate strategy and public policy and he has served as a consultant to business and to government in these areas. j o h n w . m a x w e l l is Associate Professor at the Kelley School of Business, Indiana University. His primary research focus is the political economy of environmental regulation and the impact of corporate behavior on the development and enforcement of environmental regulations. Corporate Environmentalism and Public Policy thomas p. lyon and john w. maxwell CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521819473 © Cambridge University Press 2004 This publication is in copyright. Subject to statutory exception and to the provision of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published in print format 2004 ISBN-13 ISBN-10 978-0-511-26443-6 eBook (EBL) 0-511-26443-7 eBook (EBL) ISBN-13 ISBN-10 978-0-521-81947-3 hardback 0-521-81947-4 hardback ISBN-13 ISBN-10 978-0-521-60376-8 paperback 0-521-60376-5 paperback Cambridge University Press has no responsibility for the persistence or accuracy of urls for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. We dedicate this book to our families for their love and support. Contents Preface Part I The interaction of strategy and policy page xi 1 1 1 2 3 4 5 6 A framework for analysis Introduction Elements of the analyt