Compliance refers to the goal of businesses that their operations and personnel comply with all relevant laws and regulations. Complying with environmental laws and regulations is the minimum that any firm should be doing. Green businesses seek to go beyond regulatory compliance to protect the environment.

Regulations are mandatory requirements that can apply to individuals, businesses, state or local governments, nonprofit institutions, or others. Governments may require that certain technologies be used in factories, for example, to reduce pollution. They may specify production processes to be used or pollution controls to be put in place. Another approach is to set standards for emissions and products coming from a factory, and to allow businesses to meet these standards however they like. A related approach is to set ...