This issue is the last in a three-part series on teaching quality. The first examined the effectiveness of various approaches to recruiting, educating, and inducting teachers. This report discusses the school environment and role of teachers' working conditions in attracting and retaining good teachers, noting several disparate factors that collectively impact the working environment and the job of teaching. It uses current research, polls, and surveys to explore the relationship of these factors to teachers' working conditions. Research indicates that; improving parent involvement in schools can improve the working conditions of teachers and strengthen school communities); a good mix of teacher leadership and autonomy provides an atmosphere where teachers can focus on instruction and student achievement while participating in important school decisions; states' implementation of K-12 standards for students, along with new, standards-based assessment and accountability systems, has impacted teachers' daily work; ensuring school safety and eliminating violence contributes to overall school climate and working conditions; and class-size reduction is a popular reform, based on the assumption that lowering the teacher load gives teachers a better chance to succeed with their students. However, research suggests that student achievement may be served as well or better by addressing other teaching strategies. Selected research, readings, and Web sites are listed. (SM)