ABSTRACT
This paper examines why firms selectively adopt 'beyond-compliance' environmental policies - those more stringent
than the requirements of extant laws.1 It argues that the existing explanations based on factors external to firms are under-specified (not wrong) to answer this question. We also need to focus on dynamics internal to firms. Though factors external to firms create incentives and expectations for managers, intrafirm politics influences how managers perceive and interpret external pressures and act upon them.
