Environmental compliance in manufacturing: interpreting industry perceptions that we do but they don’t

The environmental laws have placed manufacturing concerns in a quandary regarding compliance with the complex and far‐reaching web of regulations which affect practically every aspect of production operations. Although variations from the mandates imposed may result in rather substantial consequences for offenders, many companies do not achieve full compliance for various reasons. If full compliance is possible, reasons for noncompliance must be examined. The relationship between compliance and quality of the manufacturing process or finished product must be explored to determine whether companies might sacrifice compliance for a more efficient process or higher quality product. Moreover, intentional noncompliance for economic benefit may provide companies with an advantage over competitors that spend vast resources to satisfy environmental obligations. This paper addresses the results of a survey completed by over 200 manufacturing firms located primarily in Tennessee to determine effects of compliance with environmental regulations on manufacturing operations.