Abstract: Industry self-regulation, the voluntary association of firms to control their collective action, has been proposed as a complement to government regulation. Proponents argue that the establishment of such structures may institutionalize environmental improvement, while critics suggest that without explicit sanctions such structures will fall victim to opportunistic behavior.

Professor King will discuss research underway at the Stern School of Business that investigates these two contradictory perspectives. Findings highlight the potential for opportunism to overcome the isomorphic pressures of powerful self-regulatory institutions and suggest that effective industry self-regulation is difficult to maintain without explicit sanctions.

King will focus on his study of the Chemical Manufacturer Association's Responsible Care program, and will discuss how this research is being extended to develop formal models of theories of self-regulation, and to investigate other examples of industry self-regulation.
Research on stockholder interpretation of these regulations will also be discussed.