41.         Imposing¹ heavy penalties on those who pollute or destroy the environment is one
way to preserve our environment. But it is not the only way; nor is it the best way.
Penalties may elicit² grudging³ compliance⁴, but other approaches—those that instill a
sense of genuine commitment—are likely to be more effective in the long term.
      Admittedly, motivating compliance with environmental regulations by way of
penalties will serve environmental goals up to a point. The deterrent⁵ effect of these
remedies cannot be denied. Yet it should not be overstated. Some businesses may
attempt to avoid punishment by concealing⁶ their activities, bribing⁷ (lobbying) legislators
to modify regulations, or moving operations to jurisdictions⁸ that allow their
environmentally harmful activities. Others might calculate the trade-off between
accepting punishment and polluting, budget in advance for anticipated penalties, then
openly violate the law. My intuition is that this practice is a standard operating mode
among some of our largest manufacturers.
      A better way to ensure environmental protection is to inculcate a sense of genuine
commitment into our corporate⁹ culture—through education and through shareholder¹⁰
involvement. When key corporate executives become committed to values, the
regulations associated with those values become a codification¹¹ of conscience rather than
obstacles to circumvent¹². The machinations and maneuverings described earlier will
thereby¹³ be supplanted¹⁴ by thoughtful concern about all the implications of one's actions.
Moreover, commitment-driven actions are likely to benefit the environment over and
above what the law requires. For example, while a particular regulation might permit a
certain amount of toxic¹⁵ effluents, businesses committed to environmental protection
may avoid harmful emissions¹⁶ altogether.
      Instilling¹⁷ a genuine sense of commitment through education and shareholder
action is not just a better approach in theory, it is also less costly¹⁸ overall than a
compliance-driven approach. Regulatory systems inherently call for legislative¹⁹
committees, investigations²⁰ and enforcement agencies, all of which adds to the tax
burden of the citizens whom these regulations are designed to protect. Also, delays
typically associated with bureaucratic²¹ regulation may thwart²² the purpose of the
regulations, since environmental problems can quickly become very grave.
      In sum, penalties for violating environmental-protection laws are essentially²³
expensive band-aids. A commitment-based approach, involving education and
shareholder activism, can instill in corporate culture a sense an environmental
conscience, resulting in far more effective environmental protection.

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