As the business environment changes, organizations are forced to make strategic changes in their operations to align with the changing business environment. Systems theory posits that organizations do not operate in a vacuum but they are constantly impacted by the international and external forces. It is the extent to which the business is prepared to adapt to the changing business environment that determines its long term survival influenced by the sustainability of its business model (Schaltegger, Lüdeke-Freund & Hansen, 2012). However, achieving a sustainable business model requires more than just a policy framework for the organization to collaboration with other stakeholders like the government because the business does not operate in isolation. In a fluid environment where every other stakeholder has an influence on the operations of a business, a lone-ranger strategy can no longer work for a business organization aiming at attaining long-term sustainability(Herndl, 2013). This essay will therefore discuss that it is evident that a sustainable business model is where a business will have working collaborative partnerships with other stakeholders like government regulators. In order to understand the role of government regulation in creating sustainable business models, this study will use the BHP Billiton Olympic Dam in Australia as a case study.