Stenzel, Paulette L.

English

University of New Mexico

Volume 26 
Issue 4 U.S. - Mexico Transboundary Resource Issues 
Fall 1986 
Environmental Law and American Business: Dilemmas of 
Compliance, by Joseph F. DiMento 
Paulette L. Stenzel 
Recommended Citation 
Paulette L. Stenzel, Environmental Law and American Business: Dilemmas of Compliance, by Joseph F. 
DiMento, 26 Nat. Resources J. 906 (1986). 
Available at: https://digitalrepository.unm.edu/nrj/vol26/iss4/18 
This Book Review is brought to you for free and open access by the Law Journals at UNM Digital Repository. It has 
been accepted for inclusion in Natural Resources Journal by an authorized editor of UNM Digital Repository. For 
more information, please contact amywinter@unm.edu, lsloane@salud.unm.edu, sarahrk@unm.edu. 
ENVIRONMENTAL LAW AND AMERICAN BUSINESS:
DILEMMAS OF COMPLIANCE
By Joseph F. DiMento.
New York: Plenum Press. 1986.
Pp. 228. $ 29.50.
Over the past two decades we have adopted a myriad of statutes and
regulations designed to require clean up of pollution and prevent envi-
ronmental injury. In spite of the enforcement efforts of regulatory agencies
and environmental advocates, however, violations of environmental laws
by American businesses are numerous. On a daily basis the news media
convey stories of illegal disposal of toxic wastes, release of hazardous
substances into our drinking water, and similar violations of law. Non-
compliant behavior can be attributed to varying reasons ranging from
ignorance of regulations to knowing violations motivated by profit.
In his book Environmental Law and American Business, Professor
Joseph F. DiMento gives an overview of noncompliance by American
business and inventories various tools available for compelling compli-
ance. He examines the enforcement process, the importance of com-
municating the law, and the roles of the various parties involved in
environmental lawmaking and enforcement. After concluding that mul-
tiple strategies are needed in order to gain a higher degree of compliance
by American business, Professor DiMento presents a set of proposals for
reform. The crucial question addressed in the book is: "What system of
government-business interaction most effectively promotes compliance?"
(p. 65)
Professor DiMento presents a well rounded analysis of his topic by
drawing from several types of information sources. Existing literature on
firm responsiveness to regulatory law provides a framework for his anal-
ysis. The details of his analysis come from two sets of case studies. First,
he uses interviews with business people and with government enforcement
officers. Second, he draws from secondary data such as court decisions.
This multi-faceted approach adds perspective to the author's analysis and
enhances the credibility of his conclusions and proposals.
The author sets the stage for his discussion by presenting four varied
cases of noncompliance in detail. Then he presents an overview of the
noncompliance problem. Statistics illustrate the magnitude of the prob-
lem, and types of wrongs are discussed. The author explores reasons
which business cites to explain noncompliance.
Tools available to society for pursuing compliance are examined. Ex-
amples of and arguments for and against the use of criminal, civil, and
ENVIRONMENTAL LAW AND AMERICAN BUSINESS
administrative sanctions are given. The author explores the strengths and
weaknesses of less formal approaches such as conference, conciliation,
negotiation, and the use of economic incentives.
Next, a theoretical framework for the compliance system is presented.
A flow chart illustrates interactions between and among the three major
groups of actors who affect compliance with environmental law: busi-
nesses, government regulators (policy makers and enforcers), and support
groups (environmental organizations, employees of the regulated busi-
ness, etc.). Those actors and their interactions are examined in detail in
subsequent chapters.
The author emphasizes that strong enforcement techniques are neces-
sary but are not sufficient in and of themselves. He notes that criminal
sanctions may work as a deterrent to environmental crime, because white-
collar crimes are often committed based on calculated risk. Business,
however, prefers self-policing techniques and views criminal sanctions
as appropriate only for egregious, repeated violations. On occasions when
a firm calculates violations in cost-benefit terms, Professor DiMento as-
serts that effective enforcement depends on whether the government can
identify the point at which fines affect the competitive profile of the firm.
Also discussed are the importance of the fairness, legitimacy, and ra-
tionality of enforcement policy.
Effective communication of the law is a crucial corollary to enforce-
ment. Clarity, perceived rationality, and effective articulation of the law
are important. Professor DiMento discusses organizational obstacles to
consistent policy within the regulatory system. He examines valid and
invalid reasons which industry asserts in arguing that environmental law
is irrational. Scientific uncertainty in assessing risks to health is discussed,
and how that uncertainty provides regulatees with fodder for charges of
irrationality is explained.
Professor DiMento concludes his survey of the compliance system by
describing the actors involved in the regulatory process. Regulatory agen-
cies and factors which affect their operation and effectiveness in promoting
compliance are examined. Support groups and their roles in generating
and transferring information to regulators and the regulated are analyzed.
Finally, the author discusses characteristics of individual business firms
which help explain why a firm does or does not comply with environ-
mental law.
In the concluding chapter, the author proposes reforms aimed at achiev-
ing compliance with environmental law. Professor DiMento sets a modest
goal: to eliminate flagrant, willful violations of law. His recommendations
are divided into three groups. First, the author explains how environ-
mental law can be more effectively communicated. Second, he suggests
Fall 1986]
908 NATURAL RESOURCES JOURNAL [Vol. 26
means for improving enforcement. Third, specific proposals are made for
locating critical support groups and strengthening their influence.
Overall, Professor DiMento presents a well-rounded view of American
businesses' failures to comply with environmental law. His survey of
reasons for noncompliance and of the dynamics of interactions between
and among the actors who affect or are involved in enforcement is com-
prehensive, yet concise in style. Avoiding the grandiose, Professor DiMento
presents practical suggestions for obtaining the reasonable goal of elim-
inating egregious, willful violations of environmental law. Environmental
Law and American Business provides informative, worthwhile back-
ground for any lawyer or legal educator who is interested in environmental
law.
Paulette L. Stenzel
Assistant Professor of Business Law
Michigan State University


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