ABSTRACT
Business is subject to strong legal influence over its external relations with its stake-holders. These are particularly important in the environmental context because of the imposition of environmental law and regulations that implement the law. Systems of legal regulations provide mutual support for the behaviour of people in organisations and for the public administration of justice. Self-regulation is also seen as a way for industry associations to establish norms of behaviour or codes of conduct for their members. Enforcement of code requirements is often weak, standards set are low and punishment of members that do not comply often takes place behind closed doors. Environmental requirements are often less strict in developing countries because of the lack of capacity to encourage the implementation of higher standards. End-of-pipe command-and-control legislation is suggested not to encourage innovative responses from business to address environmental impact reduction.
