Business-led environmental initiatives have become prominent in recent years. At the same time, governments have shown increasing interest in ‘voluntary’ programs for environmental protections. While one could argue that such corporate environmentalism is motivated either by cost reduction or as a marketing strategy to appeal to the ‘green’ consumer, Lyon and Maxwell explore a third and more complex possibility. Drawing heavily on their prior work in corporate environmentalism, they argue that corporate environmentalism is the result of firms attempting to anticipate public policy changes and influence the legislative process in their best interests. Presenting a general framework that illuminates the links between corporate environmentalism and pubic policy, they use the analytical tools of positive political economy and game theory to provide insights into both corporate strategy and the effects of corporate and government polices on overall social welfare. This integrated and comprehensive book will have wide policy and management appeal.