In the 1990s, volunteers have environmental agreements (VAS) with regulatory authorities and industry, such as the promise of the future in environmental policy circles emerged. The cooperative mechanisms of VAs can facilitate the development of innovative solutions, supervisors or company would develop were hardly alone. From a business perspective, the participation in VAs can reduce the burden of regulation, facilitate communication of environmental improvements and allow companies … Read more »

In the 1990s, volunteers have environmental agreements (VAS) with regulatory authorities and industry, such as the promise of the future in environmental policy circles emerged. The cooperative mechanisms of VAs can facilitate the development of innovative solutions, supervisors or company would develop were hardly alone. From a business perspective, the participation in VAs can reduce the burden of regulation, facilitate communication of improvements to the environment and offer companies the possibility of competition for green products to be. However, the benefits of participating in VAs can be offset by high transaction and administrative costs, when VAs are not designed properly. This article describes when participating in a VA offers strategic opportunities and the accession of a VA could turn into a costly business.
«Hide

from
Magali A. Delmas,
Ann K. Terlaak
Source: California Management Review
21 pages.
Release date: 01 April, 2001. Prod #: CMR199-PDF-ENG
Framework for analyzing environmental voluntary agreements HBR case solution