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Firms face social pressure to behave well. We provide the first formal model in which social penalties for wrong-doing emerge endogenously and are jointly produced between a state regulator and an NGO. Armed with the instruments of coercion the regulator plays the primary role in information provision while through attitude-leadership the NGO manipulates the social atmosphere into which information about misbehavior of firms emerges. The strategies of the regulator and the NGO are classified in a taxonomy of regulatory settings that vary in; (a) the weight that the NGO places on environmental versus business outcomes and (b) community alertness to NGO messaging. In the strategic setting that results an NGO funder will typically want to delegate his bidding to an NGO chief who has values different to his own.
