Social licence and environmental protection: why businesses go beyond compliance

Traditionally, corporations which complied with the dictates of applicable legislation would have regarded not just their legal, but also their social obligations, as ending at that point. Socio-legal research suggests that corporations complied with law only for instrumental reasons (to avoid legal penalties) or, because "regulations are taken to be a measure of societal expectations, and [are] thus interpreted as a guide to an organisation's moral and social duties," (Wright, 1998: 14). From this traditional point of view, corporations could be expected to take actions which went 'beyond compliance' only where they saw some self-interest in doing so, such as increasing profit, usually over the short-term (Porter and Van der Linde, 1995)