ABSTRACT
Civil regulations in the main involve collective processes, albeit often through loose forms of social organisation. They are the manifestations of essentially political acts that can affect business performance through their influence on market conditions. The most visible driver that translates social and environmental 'goods' into positive market signals and related financial gains is civil regulation. Corporations are increasingly under pressure from non-governmental organisations and other organisations to drive enhanced social and environmental performance standards through the business process. Milton Friedman famously stated that the sole responsibility of business was to maximise financial returns to shareholders. The thinking behind civil regulation is that the reputation of companies can be damaged by civil action to a degree that will affect their business performance. Destructive drugs, child prostitution, laundering funds stolen by politicians, and weapons of war designed to maim or kill civilians all come to mind as relatively uncontentious cases in point.
