By Thomas P. Lyon
Drawing on previous paintings on company environmentalism, Thomas Lyon and John Maxwell argue that company environmentalism is the results of companies trying to expect public coverage alterations and impression the legislative approach of their top pursuits. offering a common framework that highlights the hyperlinks among company environmentalism and public coverage, they use analytical instruments of optimistic political economic system and video game idea to supply insights into company procedure and the consequences of company and govt regulations on total social welfare.
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Additional resources for Corporate Environmentalism and Public Policy
Becker argues that groups pressing for transfers that generate little deadweight loss have an inherent advantage in generating political pressure. 7 The beauty of the analysis is that it provides an integrative framework in which the economic theory of regulation and the normative ideal of social welfare maximization can be considered jointly. The result is reminiscent of Madison’s contention in The Federalist that pluralistic competition between “factions” (interest groups) in the political marketplace would result in efﬁcient outcomes, much like the outcome in the economic marketplace.
The company’s work was rewarded in 1995 when Canada created the Voluntary Challenge and Registry (VCR), which had attracted over 700 members by 1998. TransAlta believes the VCR program has several beneﬁts. First, it reduces the likelihood that the Canadian government will impose new regulations or taxes. Second, it increases the credibility of the company’s environmental policy with external stakeholder groups. 7 The possibility that voluntary corporate action can encourage regulators to create public voluntary programs is discussed in chapter 8.
In many cases, corporate initiatives aim to preempt emerging regulatory threats, to inﬂuence the future course of regulations that cannot be preempted, or to alter regulators’ incentives for monitoring and enforcement of existing laws. Our overview of the empirical literature showed that stakeholder pressures, mediated through regulatory and legal institutions, have a signiﬁcant impact on corporate strategy. In addition, there is considerable evidence that corporate environmental improvement is associated with improved ﬁnancial performance.
Corporate Environmentalism and Public Policy by Thomas P. Lyon