Do firms benefit from electing a voluntary approach to environmental compliance?

Abstract

How will the earth's resources support the rapid population growth and the economic demands of the future, given each of their growth rates? There is a serious concern for sustainability. Consequently, governments have been approaching business to decrease their demands on the environment, and some businesses are responding by taking the initiative to adopt voluntary environmental performance improvement activities. However, it would not be accurate to suggest that participation is based on a genuine concern for the environment alone. Altruistic rationale cannot explain the degree of participation, or provide justification for the financial ramifications of participation. Firms are choosing voluntary compliance because there exists a good solid business case for doing so.