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The widening rift at the macro level between the proponents of economic growth and those of environmental protection may have triggered forces acting in the opposite direction at the micro‐level where competitive performance is increasingly becoming a function of the ability of firms to respond to environmentally‐defined strategic advantages. We cite examples of current corporate behavior which suggest a stages model of responses to environmental threats and opportunities. The model portrays an evolutionary process in which competitiveness and environmental goals may converge to become complementary forces driving pro‐active firms toward a strategy of competitive environmentalism.

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