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Making Self-Regulation More than Merely Symbolic: The Critical Role of the Legal Environment


Jodi L. Short


University of California Hastings College of the Law

Michael W. Toffel


Harvard Business School (HBS) - Technology & Operations Management Unit

January 19, 2011

Administrative Science Quarterly, Vol. 55, pp. 361-396, 2010
Georgetown Public Law Research Paper No. 11-14

Abstract:     
Using data from a sample of U.S. industrial facilities subject to the federal Clean Air Act from 1993 to 2003, this article theorizes and tests the conditions under which organizations’ symbolic commitments to self-regulate are particularly likely to result in improved compliance practices and outcomes. We argue that the legal environment, particularly as it is constructed by the enforcement activities of regulators, significantly influences the likelihood that organizations will effectively implement the self-regulatory commitments they symbolically adopt. We investigate how different enforcement tools can foster or undermine organizations’ normative motivations to self-regulate. We find that organizations are more likely to follow through on their commitments to self-regulate when they (and their competitors) are subject to heavy regulatory surveillance and when they adopt self-regulation in the absence of an explicit threat of sanctions.

We also find that historically poor compliers are significantly less likely to follow through on their commitments to self-regulate, suggesting a substantial limitation on the use of self-regulation as a strategy for reforming struggling organizations. Taken together, these findings suggest that self-regulation can be a useful tool for leveraging the normative motivations of regulated organizations but that it cannot replace traditional deterrence-based enforcement.

Number of Pages in PDF File: 37

Keywords: environmental law, administrative law, self-regulation

JEL Classification: K00, K20, K23

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Date posted: January 19, 2011  

Suggested Citation

Short, Jodi L. and Toffel, Michael W., Making Self-Regulation More than Merely Symbolic: The Critical Role of the Legal Environment (January 19, 2011). Administrative Science Quarterly, Vol. 55, pp. 361-396, 2010; Georgetown Public Law Research Paper No. 11-14. Available at SSRN: http://ssrn.com/abstract=1743549

Contact Information

Jodi L. Short (Contact Author)
University of California Hastings College of the Law ( email )
200 McAllister Street
San Francisco, CA 94102
United States

Michael W. Toffel
Harvard Business School (HBS) - Technology & Operations Management Unit ( email )
Boston, MA 02163
United States
617.384.8043 (Phone)
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