Environmental Audits: A Shield, A Sword Or A Trojan Horse? (65d2db83-e4c5-4f5a-ae5e-971837a2d6d6)

As environmental laws and regulations become more complex and the economic cost of non-compliance becomes greater, periodic assessment of environmental compliance, identification of potential liability and implementation of any necessary remedial action should be a standard part of the operational methods of any successful business. The title of this paper "Environmental Audits, A Shield, A Sword or A Trojan Horse?" is intended to draw attention to the fact that environmental audits can be used positively to shield a business operations from actual or potential environmental liability; can be used proactively as a 'sword" in both a marketing context ("do business with us because we conduct our business safely and professionally?) and as a mechanism for developing positive relationships with environmental regulators; and, used negatively, as a "Trojan horse", by developing information which those same environmental regulators (or the public) use in an enforcement context against your business or that of your clients. This paper will discuss the concept of environmental audits in general; the pros and cons of conducting the same; and the role of the attorney, as part of the "audit" team, to insure, to the greatest extent possible, that the audit process is productive from both a managerial and legal perspective.