ABSTRACT
The main conclusion drawn in Chapter 6 was that although direct state regulation has been successful in achieving quick results in pollution control, it has largely failed to influence the growing levels of resource consumption, to date. There may be much scope for improved direct regulation on resource productivity, but there is also a need to enhance the role of indirect, elegant, sometimes voluntary, not so intrusive and yet effective, instruments – most of which are called ‘economic instruments’. This chapter begins by summarizing some voluntary commitments, environmental auditing and environmental management systems. Responding mostly to public feelings, in some cases also to dissuade the state from adopting binding rules, private firms since the early 1970s have developed an impressive array of voluntary commitments for good environmental stewardship and socially proactive conduct. Such commitments commonly run under the name of corporate social responsibility, or CSR. 1 It is not surprising that firms that have faced public criticism over a range of issues, such as Shell, Nike, McDonald's or Wal-Mart, are now among the most visible proponents of CSR and environmental sustainability, as shown in the Sector Studies in Part I. Some say this is to divert attention from dirty business activities, 2 but if such efforts lead to measurable changes, the motive question becomes less important.
