Corporate Environmentalism and Public Policy

Drawing on prior work on corporate environmentalism, Thomas Lyon and John Maxwell argue that corporate environmentalism is the result of firms attempting to anticipate public policy changes and influence the legislative process in their best interests. Presenting a general framework that highlights the links between corporate environmentalism and public policy, they use analytical tools of positive political economy and game theory to provide insights into corporate strategy and the effects of corporate and government policies on overall social welfare.

Lyon and Maxwell present an accessible theory of corporate environmentalism.

Thomas P. Lyon is Professor at the Kelley School of Business, Indiana University, Bloomington. 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.

John W. Maxwell 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 behaviour on the development and enforcement of environmental regulations.