This study examined corporate social responsibility and the most effective ways to incentivize environmentally proactive behavior among federal production contractors. The goal was to isolate factors which have the greatest potential for encouraging corporate environmental responsibility and to use the knowledge gained to construct incentives which can be incorporated into federal contracts. Relying on the concepts developed in organizational theory, four theories were presented to provide support that organizational behavior can be influenced. Previous incentive techniques used by the government were also investigated. From the initial research, a model was developed to describe the relationship between incentives and environmental responsibility. Personal interviews with individuals involved in the acquisition process and review of various contract documents were conducted. An informal interview guide was used to interview government contracting officers, environmental engineers, and contractors associated with two System Project Offices. Interviews with high level policy makers were also conducted. Analysis of the data suggest that incentives do work; however, based on the theories of Transaction Cost Economics, policy incentives appear to be more effective than contract incentives at producing the kind of organizational environmental awareness the government is looking for from its contractors
