AbstractPartenerships among business, government and environmental organizations show considerable promise for improving both the environment and the economic health of American business and industry. There is nothing more potent than a coalition of diverse interests. The author presents case studies based on his participation in partnerships involving General Motors (GM) and two environmental organizations. While environmental partnerships promise significant rewards, there are a number of challenges to be addressed, including entrenched adversarial attitudes and a regulatory paradigm that encourages business managers and government regulators alike to focus on paper “compliance” rather than real‐world performance. Overcoming these challenges will require that “win/lose” and “yes/no” be replaced by “win/win” and “how to.” It will require a new, market‐driven paradigm that fully integrates environmental considerations into the business planning process and that relies on economic incentives to encourage business managers and government regulators to seek out real sol