Whenever there is a conflict between business and community, the state is expected to intervene with a regulation to address the situation. Almost every piece of business law is a result of this underlying notion of the state's responsibility.
If businesses don't want to attract regulation, they have to voluntarily resolve the conflict guided by the principles of ethics, integrity and responsibility. Unfortunately, voluntary action by businesses is rare as there are so few visionary business leaders. So regulation is the only answer to protect the community (and the environment) from the greed and recklessness of businesses. Even in the enlightened Europe, a legislation is in the works to make sustainability reporting by large companies mandatory. A necessary but unpleasant move for which businesses can blame only themselves.
A high level discussion coming up next week. Looking forward to participate as a speaker.