41. Imposing1 heavy penalties on those who pollute or destroy the environment is one
way to preserve our environment. But it is not the only way; nor is it the best way.
Penalties may elicit2 grudging3 compliance4, but other approachesthose that instill a
sense of genuine commitmentare likely to be more effective in the long term.
Admittedly, motivating compliance with environmental regulations by way of
penalties will serve environmental goals up to a point. The deterrent5 effect of these
remedies cannot be denied. Yet it should not be overstated. Some businesses may
attempt to avoid punishment by concealing6 their activities, bribing7 legislators
to modify regulations, or moving operations to jurisdictions8 that allow their
environmentally harmful activities. Others might calculate the trade-off between
accepting punishment and polluting, budget in advance for anticipated penalties, then
openly violate the law. My intuition is that this practice is a standard operating mode
among some of our largest manufacturers.
A better way to ensure environmental protection is to inculcate a sense of genuine
commitment into our corporate9 culturethrough education and through shareholder10
involvement. When key corporate executives become committed to values, the
regulations associated with those values become a codification11 of conscience rather than
obstacles to circumvent12. The machinations and maneuverings described earlier will
thereby13 be supplanted14 by thoughtful concern about all the implications of one's 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 toxic15 effluents, businesses committed to environmental protection
may avoid harmful emissions16 altogether.
Instilling17 a genuine sense of commitment through education and shareholder
action is not just a better approach in theory, it is also less cosplaytly18 overall than a
compliance-driven approach. Regulatory systems inherently call for legislative19
committees, investigations20 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 bureaucratic21 regulation may thwart22 the purpose of the
regulations, since environmental problems can quickly become very grave.
In sum, penalties for violating environmental-protection laws are essentially23
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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