A theoretical formalism designed to quantify linear optical and second-order nonlinear optical responses of achiral or chiral anisotropic materials in planar structure is presented. In particular, the theory includes linear optical activity that is governed by the gyrotropic components and second-harmonic generation optical rotatory dispersion, the magnitude of which depends on the ratio of chiral and achiral chi((2)) components. Examples are given which reproduce complex interference effects and other subtle optical effects that are encountered in layered structures. Detailed experimental second harmonic generation studies of quartz and dihydrogen phosphate that quantify linear and nonlinear optical activities of these materials are reported.