A better way to ensure environmental protection is to inculcate a sense of genuine commitment into our corporate culturethrough education and through shareholder involvement. When key corporate executives become committed to values, the regulations associated with those values become a codification of conscience rather than obstacles to circumvent. The machinations and maneuverings described earlier will thereby be supplanted by thoughtful concern about all the implications of ones actions. Moreover, commitment-driven actions are likely to benefit the environment over and above what the law requires. For example, while a particular regulation might permit a certain amount of toxic effluents, businesses committed to environmental protection may avoid harmful emissions altogether.
Instilling a genuine sense of commitment through education and shareholder action is not just a better approach in theory, it is also less costly overall than a compliance-driven approach. Regulatory systems inherently call for legislative committees, investigations and enforcement agencies, all of which adds to the tax burden of the citizens whom these regulations are designed to protect. Also, delays typically associated with bureaucratic regulation may thwart the purpose of the regulations, since environmental problems can quickly become very grave.
In sum, penalties for violating environmental-protection laws are essentially expensive band-aids . A commitment-based approach, involving education and shareholder activism, can instill in corporate culture a sense an environmental conscience, resulting in far more effective environmental protection.
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