Government Regulation, Business Leaders' Motivation, and Environmental Impacts *

Besides competition in innovation and NGOs and media pressure, intrinsic motivations towards CSR may also be affected by government regulations. Previous literature did not test how governmental regulation affects CSR motivation. Empirical evidence of motivation crowding by government regulations is therefore still lacking. Chapter 15 fills this research gap and shows that government regulation enhances EP directly but harms it indirectly by crowding out the intrinsic and extrinsic motivations of business leaders. Only if business leaders have low intrinsic CSR motivation, government regulation stimulates the EP because crowding-out effects are absent in that case.