Roadmap for Building Sustainable Strategy Options

Traditionally, the command and control approach has dominated the realm of environmental regulations. In a nutshell, the government is supposed to set a standard by obtaining objective scientific information and conducting a rational assessment of risks and benefits, and to enforce it by conventional stick and carrot mechanisms such as monitoring and penalty. In reality, however, this model has turned out to be not as effective as it was supposed to be. First of all, the cost of monitoring all regulated activities turns out to be too large for the public to pay for. While there have been efforts to improve monitoring devices, only a few who tries to make a large sum of short-term profit by evading regulations can do an enormous harm to the environment. Secondly, the command and control approach encouraged distrust among stakeholders. Supervising agencies and environmental groups are always being skeptical about what the industry does. Meanwhile, the industry becomes frustrated with the regulatory pressures and tried to manipulate through lobbing. In the end, rule-making processes become acrimonious, and the main goal of protecting the public through regulation is forgotten in the battle.