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Compliance Strategies and Regulatory Effectiveness of Performance‐Based Regulation of Chemical Accident Risks
Author(s) -
Chinander Karen R.,
Kleindorfer Paul R.,
Kunreuther Howard C.
Publication year - 1998
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/j.1539-6924.1998.tb00925.x
Subject(s) - compliance (psychology) , risk analysis (engineering) , business , accident (philosophy) , environmental regulation , environmental planning , environmental science , psychology , social psychology , philosophy , epistemology
This paper investigates the role that performance‐based regulations can play in linking a firm's environmental, health, and safety concerns with their corporate strategy. The specific focus is on the performance standards required by the Clean Air Act Amendments (CAAA) which require firms that store or use certain chemicals to develop a Risk Management Plan (RMP) for reducing the likelihood and impact of accidents at their plants. Data from a series of case studies and interviews of executives in chemical firms reveal that proactive companies integrated many of the requirements of the CAAA into their management systems prior to the regulatory requirements. Most of these firms tend to be large ones. Small firms often lack the resources to implement these regulations and hence have tended to have a more difficult time with compliance.