Showing papers in "Business Strategy and The Environment in 2011"
TL;DR: In this paper, the authors propose a framework to position sustainable entrepreneurship in relation to sustainability innovation, which is based on a typology of sustainable entrepreneurship, including social and institutional entrepreneurship.
Abstract: The purpose of this paper is to propose a framework to position sustainable entrepreneurship in relation to sustainability innovation. The framework builds on a typology of sustainable entrepreneurship, develops it by including social and institutional entrepreneurship, i.e. the application of the entrepreneurial approach towards meeting societal goals and towards changing market contexts, and relates it to sustainability innovation. The framework provides a reference for managers to introduce sustainability innovation and to pursue sustainable entrepreneurship. Methodologically, the paper develops an approach of qualitative measurement of sustainable entrepreneurship and how to assess the position of a company in a classification matrix. The degree of environmental or social responsibility orientation in the company is assessed on the basis of environmental and social goals and policies, the organization of environmental and social management in the company and the communication of environmental and social issues. The market impact of the company is measured on the basis of market share, sales growth and reactions of competitors. The paper finds conditions under which sustainable entrepreneurship and sustainability innovation emerge spontaneously. The research has implications for theory and practitioners in that it clarifies which firms are most likely under specific conditions to make moves towards sustainability innovation. The paper makes a contribution in showing that extant research needs to be expanded with regard to motivations for innovation and that earlier models of sustainable entrepreneurship need to be refined. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
1,129 citations
TL;DR: In this article, the authors investigated what encourages consumers to adopt a green electricity tariff and found that consumers sympathetic to environmental issues do not necessarily adopt green electricity, due to lack of strong social norms and personal relevance, inconvenience of switching, uncertainty about the quality of green electricity and lack of accurate information.
Abstract: This paper investigates what encourages consumers to adopt a green electricity tariff. When people decide to adopt an innovation, such as green electricity, they consider not only functionality, usability, costs and intended outcomes, but also what the innovation means to them, for example, the way it reflects their identity, image, memberships, values and norms. The study reviews the theoretical frameworks of innovation adoption and consumption, and cognitive and normative behaviour, relevant to consumer adoption of pro-environmental innovations, and develops a research framework. Through focus group discussions, a questionnaire survey with 103 respondents and an interview with 10 people, the study finds that consumers sympathetic to environmental issues do not necessarily adopt green electricity. This is due to lack of strong social norms and personal relevance, inconvenience of switching, uncertainty about the quality of green electricity and lack of accurate information. The implications of these findings for strategy, policy and future research are explored. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.
373 citations
TL;DR: In this paper, the authors investigated consumer adoption and non-adoption of a high involvement eco-innovation (the alternative fuel vehicle, AFV) and found that adopters differ on norms, attitudes, novelty seeking and on how innovation attributes are perceived.
Abstract: For business and environmental reasons, increased understanding of green consumer behavior is essential. This paper addresses consumer adoption and non-adoption of a high involvement eco-innovation (the alternative fuel vehicle, AFV). The purpose is to integrate two research streams to explore factors driving and hindering adoption. The factors are rooted in environmental psychology research and the diffusion of innovation literature. Survey results on Swedish car owners are reported. The results indicate that adopters and non-adopters differ on norms, attitudes, novelty seeking and on how innovation attributes are perceived. Furthermore, the results show that the groups rank car attributes such as fuel consumption and carbon dioxide emissions differently. The main contribution of the paper is the integration of norms and attitudes together with consumer adoption factors in analyzing green consumer behavior in relation to a high involvement product. The implications for business and marketing strategy and for environmental policy are discussed. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
272 citations
TL;DR: In this article, the role of suppliers in enhancing the manufacturer's ability to successfully carry out green innovation in product development is explored and understand the role that suppliers play in green innovation.
Abstract: Green innovation has been recognized as one of the key factors to achieve environmental and economic success in markets. Understanding green product innovation development as a result of suppliers' involvement has become a strategic priority for academics and practitioners. This paper aims to explore and understand the role of suppliers in enhancing the manufacturer's ability to successfully carry out green innovation in product development. As a research methodology, a case study approach is employed. Primary data were collected through site visits and extensive interviews with corporate and plant management in Korea. Based on the Korean study, the paper presents following outcomes. First, there is a strong linkage between environmental compliance and green new product developments. Second, there is a strategically close relationship of environmental collaboration between suppliers and the buying company through technological integration. Finally, involving key suppliers in green new product development for environmentally demanding customers and markets can bring both environmental and commercial success. This research provides new insights on supplier involvement and green product innovation development in supply chain management. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
257 citations
TL;DR: In this paper, a survey of sustainable procurement practices in 44 English-based UK Housing Associations (HAs), who are responsible for the provision of social housing, confirms prior research of other sectors that suggests a failure to overcome inertia in relation to sustainable procurement; and in the few examples where practices have been established, only the environmental element of the TBL is considered.
Abstract: Procurement has a key role in sustainability as policies and practices need to extend beyond organisations' boundaries incorporating their whole supply chains. Guidelines on sustainability encourage procurement to make decisions that encompass the environmental, economic and social elements of the Triple Bottom Line (TBL). Taking a supply chain perspective, procurement also need to analyse how decisions impact on the TBL in respect of suppliers. The results of a survey of sustainable procurement practices in 44 English-based UK Housing Associations (HAs), who are responsible for the provision of social housing, confirms prior research of other sectors that suggests 1) a failure to overcome inertia in relation to sustainable procurement; and 2) in the few examples where practices have been established, only the environmental element of the TBL is considered. The organisations surveyed have sustainability-related issues in their missions and external and internal pressures to embed sustainability, yet this has not translated into widespread establishment of sustainable procurement. Recommendations to neutralise inertia are: firstly, take the experiences from other areas, e.g. innovation management, which stress the importance of inter-organisational relationships; secondly, develop a small number of sustainable development indicators for procurement and, to take advantage of the relatively more-advanced environmental practices to show how these elements have socio-economic impacts; and finally, rather than focus on just the pressures and drivers of sustainability (as suggested in strategic models of sustainability), emphasise the triggers that overcome inertia and lead to changes in behaviour amongst procurement staff i.e. the establishment of ethical pricing models. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
247 citations
TL;DR: In this paper, the authors identify eight organizationally relevant dimensions of climate impacts: severity, temporal scale, spatial scale, predictability, mode, immediacy, state change potential and accelerating trend potential.
Abstract: Physical impacts from climate change already pose major challenges for organizations, and the trend is rising. Organization theorists, however, have barely begun to systematically consider the organizational impacts of more and increasingly intense storms, floods, droughts, fires, sea level rise or changing growing seasons as part of their domain of study. Eight organizationally relevant dimensions of climate impacts are identified: severity, temporal scale, spatial scale, predictability, mode, immediacy, state change potential and accelerating trend potential. Combined, their scale, scope and systemic uncertainty suggest future conditions of systemic hyperturbulence in organizational environments, defined here as 'massive discontinuous change' (MDC). To build a conceptual foundation for organizations to respond and adapt to MDC, the paper examines contributions from literatures on the management of sustainability, crisis, risk, resilience and adaptive organizational change. It highlights gaps for addressing both business challenges and opportunities from MDC, and suggests avenues for future research.
243 citations
TL;DR: In this paper, an interview with the local preparer before the data is triangulated to determine the significant possible determinants was conducted, and the interview findings were interpreted through institutional theory for possible identification of determinants.
Abstract: Current development in social accounting presents an interesting phenomenon. Companies are increasingly engaging in sustainability initiatives and reporting their activities in annual reports, company websites and other media of communication. Unlike previous studies, which have mainly used ex post content analysis of annual reports or other published data to study the relationship between disclosure and possible determinants, this study starts with an interview with the local preparer before the data is triangulated to determine the significant possible determinants. The interview findings are interpreted through institutional theory for possible identification of determinants. Initially, the interview findings indicate that all three mechanisms of isomorphism, the coercive, the normative and the mimetic, contribute to Malaysian company sustainability reporting. However, the regression results prove that only a government linked company in the plantation industry, which is large in size, has a significant amount of sustainability reporting. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
229 citations
TL;DR: In this article, case-based research is used to address the competing views of the ISO 14001 standard to show that ISO registration can be leveraged across the supply chain into a competitive advantage.
Abstract: Formally adopted in 1996 by the International Organization of Standardization, ISO 14001 represents a voluntary international environmental standard, which will likely be adopted by a vast majority of corporations. Its major focus is on the structure, implementation and maintenance of a formal environmental management system. Despite its international acceptance, ISO 14001 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of ISO 14001, which is viewed as a variant of total quality environmental management or a paper-driven process of limited value. In this study, case-based research is used to address the competing views of the standard to show that ISO 14001 registration can be leveraged across the supply chain into a competitive advantage. By looking at ISO 14001 registered firms, we compare different amounts of integration and sustainability in the supply chain. We then posit several research propositions to provide an empirical framework for the impacts of ISO 14001 on supply chain design and how it will evolve in the future. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
201 citations
TL;DR: In this paper, a theoretical framework based on a critical analysis of financial and ISO auditing practices is proposed to shed light on the misconceptions, paradoxes and rational myths underlying the institutionalization of auditing in the area of corporate sustainability.
Abstract: This paper investigates the extent to which certification auditing can contribute to the realization of organizational accountability for sustainable development. A theoretical framework based on a critical analysis of financial and ISO auditing practices is proposed to shed light on the misconceptions, paradoxes and rational myths underlying the institutionalization of auditing practices in the area of corporate sustainability. As such, this paper casts doubt on the imagery of impartiality, rigor and accountability projected by organizations through discourses of certification. It also illustrates the pertinence of studying the auditing function from a cross-disciplinary viewpoint, and of paying attention to the processes by which auditing travels from one discipline to another. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
195 citations
TL;DR: In this article, the authors present a theory for sustainable supply chain management for sustainable products based on their own research spanning about 10 years and using multiple research methods, including case studies, action research, Delphi study, survey research, and literature reviews based on content analysis.
Abstract: The significant growth in the academic literature on sustainable supply chain management (SSCM) can best be seen by the fact that three review papers have been published since 2007. In line with this, the question emerged – what distinguishes sustainable supply chain management from ‘conventional’ supply chain management? Here, the strategy of supply chain management for sustainable products proposed by Seuring and Muller (2008a) will be discussed.
Against this background, this paper aims to develop a theory for sustainable supply chain management. While other contributions are taken into account, this will be primarily based on our own research spanning about 10 years and using multiple research methods. The empirical methods employed include: (1) case studies, (2) action research, (3) Delphi study, (4) survey research, and (5) literature reviews based on content analysis.
The paper will provide insights into what was learned from the different research projects and how this has helped to gain a better and wider understanding of the field. This is discussed further by presenting hypotheses which should help to further advance the theory of supply chain management for sustainable products. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
165 citations
TL;DR: Based on the theoretical framework provided by social network analysis and economic geography and the empirical data collected through qualitative methods, based on the approach of Grounded Theory, this paper propose a modelling framework to analyse the main mechanisms in the building of trust and embeddedness and identify different phases in cooperation leading to effective industrial symbiosis exchanges.
Abstract: Industrial symbiosis (IS) has emerged as a body of exchange structures to progress to a more eco-efficient industrial system, by establishing a collaborative web of knowledge, material and energy exchanges among different organizational units. However, even given the potential economic and environmental benefits derived from IS networks, the process of emergence and development of these networks seems far from straightforward. The effective operation of such networks relies heavily on aspects such as trust and general reciprocity, aspects insufficiently covered in the IS literature. Based on the theoretical framework provided by social network analysis and economic geography and the empirical data collected through qualitative methods, based on the approach of Grounded Theory, the authors propose a modelling framework to analyse the main mechanisms in the building of trust and embeddedness and identify different phases in cooperation leading to effective IS exchanges. Copyright (C) 2010 John Wiley &. Sons, Ltd and ERP Environment.
TL;DR: In this article, the authors describe how a nuclear power corporation integrates sustainability into corporate strategies and practices and describe the corporate capture of sustainable development in its strategic efforts to promote a growth strategy.
Abstract: This paper describes how a nuclear power corporation integrates sustainability into corporate strategies and practices. The case study focuses on one of the world's largest nuclear power generators and describes the corporate capture of sustainable development in its strategic efforts to promote a growth strategy. The paper shows how corporate strategies to address sustainability concerns involve managing different stakeholders, enabling the corporation to sustain its economic growth strategy. Three types of stakeholder management strategy are identified: reinforcement strategies for supportive stakeholders, containment strategies for obstructive stakeholders and stabilization strategies for passive stakeholders. The paper argues that, despite claims of sustainable development in the nuclear industry, there is no significant shift in the ‘business as usual’ approach and that sustainable development is merely reframed as sustainable growth.
TL;DR: In this paper, potential adopters of green electricity tariffs are measured in terms of respondents' willingness to pay a premium for green energy in a national survey of the UK population, based on cognitive behavioural literature on green consumerism and green energy markets.
Abstract: Green electricity tariffs are one means by which green consumers can contribute to a more sustainable future. This paper profiles potential adopters of green electricity tariffs. Potential adoption is measured in terms of respondents’ willingness to pay a premium for green energy in a national survey of the UK population. Hypotheses based principally on the cognitive behavioural literature on green consumerism and green energy markets are developed. These are tested using a broad range of variables which are grouped into three categories (demographic, attitudinal and behavioural). Consistent with past research, the empirical analyses find that attitudinal variables best characterise potential adopters. Further, potential adopters are found to have higher income, are better informed with respect to energy matters, show concern for the environment and believe individual actions can make a difference to environmental decay. The implications of these findings for marketing and environmental policy are explored.
TL;DR: In this article, the authors examined how sustainable intellectual capital helps to overcome the shortcomings of conventional approaches to environmental management systems by extending the concept of relational capital to the three pillars of intellectual capital: human, structural and relational intellectual capital.
Abstract: Sustainable intellectual capital is a promising starting-point for the incorporation of environmental aspects into the general management system of a firm. This paper examines how sustainable intellectual capital helps to overcome the shortcomings of conventional approaches to environmental management systems. It does this by extending the concept of sustainability from relational capital to the three pillars of intellectual capital: human, structural and relational intellectual capital. A multiple case study was carried out with Spanish firms characterized by their high level of environmental leadership. The findings indicated that sustainable human intellectual capital, environmental training, information and awareness sessions help in the accumulation and utilization of knowledge. As for sustainable structural intellectual capital, the environmental technology portfolio is improved and new environmental departments are created. Regarding sustainable relational intellectual capital, the firm–environment link is very important. In the primary and secondary sectors suppliers become involved to a greater extent in the environmental management process, whereas in the service sector it is the customer who becomes more involved. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: Rodriguez-Melo et al. as discussed by the authors defined strategic advantage for sustainable construction and defined stakeholder engagement to define strategic advantage in sustainable construction, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/bse.715/abstract
Abstract: This is the accepted version of the following article: Rodriguez-Melo, A. and Mansouri, S. A. (2011), Stakeholder Engagement: Defining Strategic Advantage for Sustainable Construction. Bus. Strat. Env., 20: 539–552, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/bse.715/abstract.
TL;DR: A review of 94 early ecopreneurial examples and their status two decades on from the original publication can be found in this article, where the authors explore the definitions of environmental and social enterprise, and consider the longitudinal survival of these companies and the emerging trends in consolidation and failure of the sampled companies.
Abstract: In 1991 Steven Bennett published one of the first major publications on the concept of ecopreneurship, business opportunities resulting from the emerging environmental agenda of the late 1980s and early 1990s (Ecopreneuring: the Complete Guide to Small Business Opportunities From the Environmental Revolution. Wiley: New York). Since then a body of literature has developed that explores the idea of the intersection of entrepreneurship with environmentally and socially responsible behaviour. Many of the business cases presented by Bennett represent early adopters of green products, services and emerging eco-markets. Given the current emphasis on the transformation of business practices towards a more sustainable paradigm it is timely to review these 94 early ecopreneurial examples and consider their status two decades on from the original publication. This paper explores the definitions of environmental and social enterprise, and considers the longitudinal survival of these companies and the emerging trends in consolidation and failure of the sampled companies. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, industrial ecology is defined as the study of material and energy flows through industrial systems and as such may focus on a geographic area, resource and/or industry sector.
Abstract: Industrial ecology is defined as the study of material and energy flows through industrial systems and as such may focus on a geographic area, resource and/or industry sector. In these types of set ...
TL;DR: Wiley et al. as discussed by the authors reported on the level of awareness of sustainable manufacturing, the sustainability practices that Caribbean manufacturers are currently engaged in, and the barriers that prevent the adoption of sustainability practices.
Abstract: Centre for Production Systems, The University of Trinidad and Tobago, O'Meara Campus, 78‐94O'Meara Industrial Park, Arima, Trinidad, West IndiesABSTRACTThe Caribbean region is awakening to the reality that environmental sustainability is fastbecoming a major business performance dimension that is shaping the competitivelandscape for manufacturers. This research attempts to gain a picture of the current level ofemphasis on environmental sustainability among manufacturers in five Caribbean countries.Thispaperreportsonthelevelofawarenessoftheconceptofsustainablemanufacturing,thesustainability practices Caribbean manufacturers are currently engaged in, and the barrierspreventingtheadoptionofsustainabilitypractices.Thefindingsfromoursurveyshowthatthemajority of Caribbean manufacturers have little knowledge of the concept of sustainablemanufacturingandtheadoptionofsustainabilitypracticesislow.Inlightofthesefindings,thepaperdiscussespotentialrolesforCaribbeangovernments,manufacturingassociations,andeducational institutions in addressing the need for greater emphasis on sustainablemanufacturingintheregion.Copyright©2011JohnWiley&Sons,LtdandERPEnvironment.
TL;DR: In this article, the theoretical underpinnings of collaboration and ecosystem management are explored in order to identify the relationships and processes involved in implementing ecosystem management programs through cross-sector collaboration.
Abstract: This paper explores the theoretical underpinnings of collaboration and ecosystem management in order to identify the relationships and processes involved in implementing ecosystem management programs through cross-sector collaboration. Ecosystem management requires a highly adaptive and resilient social–ecological governance approach, which addresses spatiality and temporality issues. In order to explore possible implementation issues with ecosystem management, propositions are developed dealing with adaptive governance, institutional isomorphism and collective action. The paper concludes with a discussion of the theoretic underpinnings involved in implementing ecosystem management through cross-sector collaborations. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, a conceptual model of the role of companies in managing urban interactions with the climate system is presented, and empirical findings illustrate how one company partners with the city of Rotterdam to test electric vehicles as a pilot project for urban climate adaptation and mitigation.
Abstract: Cities are key drivers of global climate change, with the majority of greenhouse gas (GHG) emissions being tied to urban life. Local actions to mitigate and adapt to climate change are essential for stabilization of the global climate and can also help to address other urban ecological problems such as pollution, decreasing biodiversity, etc. Companies are important urban actors in the development of low-carbon cities because they provide a multitude of goods and services to city populations and directly influence urban carbon dioxide (CO2) emissions. This is a new area of research. While studies on corporate sustainability are numerous, there is little, if any, existing research that examines the role of companies in climate change adaptation and mitigation within specific urban areas. Urban ecologists also have not examined how corporate activity affects urban systems. Taking a multi-disciplinary systems approach, we present a conceptual model of the role of companies in managing urban interactions with the climate system. We also present empirical findings illustrating how one company ‘partners’ with the city of Rotterdam to test electric vehicles as a pilot project for urban climate adaptation and mitigation.
TL;DR: This paper found that symbiotic solutions, when made visible, are often preferable, especially on an island, and that company managers who fail to consider symbiosis solutions for resource issues risk overlooking the most effective strategic options.
Abstract: Are companies better off acting collectively in sharing resources, such that one company's waste becomes another company's feedstock, or is it strategically preferable to act individually to minimize resource flows? Eleven enterprises on Oahu, HI, were found to be exchanging nine different materials, constituting previously undocumented industrial symbiosis collaboration, anchored by a coal-fired power plant in the Campbell Industrial Park. The environmental and economic performance of eight companies exchanging six of these materials is assessed based on price and quantity data collected during interviews with the participants. The largest environmental benefits were found to be reduced landfilling and conservation of primary materials, including 40 million gallons of fresh water and approximately 17 800 tons of coal annually. The research finds that symbiotic solutions, when made visible, are often preferable, especially on an island. Indeed, company managers who fail to consider symbiotic solutions for resource issues risk overlooking the most effective strategic options. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, the authors investigate in its natural and complex environment a real-world sustainable development conflict, whether to expand energy development in Wyoming, and use contingent valuation methods to capture the social impact ascribed by the stakeholders.
Abstract: Sustainable development is an issue of increasing importance, in which organizations must engage multiple stakeholders and consider their objectives when deciding on organizational actions, but research provides little guidance regarding how managers can measure stakeholder reactions and use information to facilitate decision-making. The broad objective of this study is to provide insights useful for decision-making. In this study, we investigate in its natural and complex environment a real-world sustainable development conflict – whether to expand energy development in Wyoming. The primary issue is the impact that expanding energy development will have on wildlife and the environment. We collect data from both the local community and a broader national population for use in a quantitative analysis. We use contingent valuation methods to capture the social impact ascribed by the stakeholders. We conclude with a discussion of how this information can be used ex ante to inform decision-making for sustainable development. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, the authors explored the relationship between alliance legitimacy and strategic bridging ability through the case of the Turtle VillageTrust in Trinidad and Tobago and found that bridging success occurs when organizational legitimacy peaks; that new alliance partners temporarily weaken legitimacy; and bridging with every new targeted stakeholder requires continued acquisition oflegitimacy based on their respective values.
Abstract: Center for Environmental Studies and Applied Life Sciences, The University of Trinidad and Tobago,Arima, Trinidad and Tobago, West IndiesABSTRACTAlliances with environmental non‐governmental organizations may benefit multinationalcorporations (MNCs) operating in developing countries where uncertain socio‐cultural andinstitutional conditions present higher investment risks. Such ‘green alliances’ can providestrategic bridging services by interceding between MNCs and distant, yet important,stakeholders. From an institutional perspective, strategic bridging success may depend onstakeholder perceptions of alliance legitimacy. In this study the relationship between alliancelegitimacy and strategic bridging ability is explored through the case of the Turtle VillageTrust in Trinidad and Tobago. Findings suggest that bridging success occurs whenorganizational legitimacy peaks; that new alliance partners temporarily weaken legitimacy;and bridging with every new targeted stakeholder requires continued acquisition oflegitimacy based on their respective values. MNC decisions to form alliances that bridgetargeted stakeholders on their behalf should therefore consider the potential of the allianceto acquire and accumulate organizational legitimacy without which strategic bridging effortsmay be futile. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, a case on the island of Puerto Rico, where several firms in a predominantly pharmaceutical manufacturing cluster participated in symbiosis initiatives for several decades, was investigated, where early stage symbiotic activities, specifically a shared utility, met technical performance and community expectations for improved environmental quality.
Abstract: Firms collaborate on environmental management issues for number of reasons, including cost reduction, risk sharing and managing competition. Industrial symbiosis represents a voluntary collaborative approach among firms in geographic proximity. Companies participating in industrial symbiosis have been found to improve their individual economic and environmental performance, while the regions where they are located are thought to benefit through enhanced environmental quality. However, too few studies have actually investigated whether this is always the case. This paper considers a single case on the island of Puerto Rico, where several firms in a predominantly pharmaceutical manufacturing cluster participated in symbiosis initiatives for several decades. It examines whether early stage symbiotic activities, specifically a shared utility, met technical performance and community expectations for improved environmental quality. Results suggest that collaboration does not necessarily lead to expected environmental performance goals. The paper details the circumstances that led to under-performance of the initiative and the lessons for symbiosis projects in general. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: The authors used an event study method to assess how the stocks of publicly traded companies responded before and after announcing their partnership with the United States Environmental Protection Agency (USEPA) Climate Leaders program.
Abstract: This research utilized an event study method to assess how the stocks of publicly traded companies responded before and after announcing their partnership with the United States Environmental Protection Agency (USEPA) Climate Leaders program. Although the stocks exhibited an average non-significant positive abnormal return of 0.56% on the day of the announcement, the cumulative abnormal returns for the stock prices of the firms for two of the three event windows showed statistically significant negative returns. These results suggest that these firms' public announcements of joining the USEPA Climate Leaders partnership did not have a positive impact on stock performance. While no immediate financial benefit was found in this research, the practices implemented by these firms to reduce their greenhouse gas emissions may still bode well for long-term corporate earnings and attractiveness to investors. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, the authors assess the comprehensiveness and the value of currently reported quantitative environmental disclosures of 97 listed companies from the automotive, banking, pharmaceutical and electronic hardware sectors, and propose a stepwise procedure to verify and improve the quality and completeness of reporting using life cycle approaches.
Abstract: As the focus of environmental policy and management shifts from cleaner production at the process level towards greener products as a whole, stakeholders ask for transparency throughout the entire value chain. This article assesses the comprehensiveness and the value of currently reported quantitative environmental disclosures of 97 listed companies from the automotive, banking, pharmaceutical and electronic hardware sectors. Findings indicate that quantitative environmental disclosures have many limitations, including incompleteness and inconsistency regarding corporate activities and sites, and limited internal data coherence. For many sectors, corporate disclosures only cover a very small share of the total environmental burden of products. A stepwise procedure is proposed to verify and improve the quality and completeness of reporting using life cycle approaches. We present simple data quality tests, and we introduce the concept of the environmental influence matrix, which provides a solid basis for the identification and prioritization of key performance indicators and areas of action. Copyright (C) 2009 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors investigated the legal performance of UK small and medium-sized enterprises (SMEs) with producer responsibility legislation and found low levels of letter of the law compliance, enforcement activity and surveillance of SME compliance was generally low; there has not been any formal enforcement action taken under the WEEE Regulations or the RoHS Regulations and enforcement under the PER Regulations is extremely low.
Abstract: This study investigated the legal performance of UK small and medium-sized enterprises (SMEs) with producer responsibility legislation. The research incorporated legislation controlling packaging and packaging waste, waste electrical and electronic equipment and the restriction of the use of certain hazardous substances in electrical and electronic equipment. Compliance audits and interviews were conducted with SMEs, regulators, government officials and SME support organisations. A total of 44 SMEs from the north-west of England were audited between April and September 2008. The study's findings suggest: low levels of ‘letter of the law’ and ‘spirit of the law’ compliance; enforcement activity and surveillance of SME compliance was generally low; there has not been any formal enforcement action taken under the WEEE Regulations or the RoHS Regulations and enforcement under the PER Regulations is extremely low. Recommendations on how to improve SME compliance control systems are provided.
TL;DR: In this article, the authors present an argument for introducing the real options approach, a new method for valuing options of future strategic action by companies in a setting that exhibits climate change impacts.
Abstract: Climate change has in recent years gathered traction on the business, political and social agenda. From the business perspective, research has shown that climate change impacts on company value are uncertain, significant and strategically important. The challenge therefore is for the business community to apply financial valuation models that support the incorporation of the climate change impacts in strategic planning. However, the commonly used discounted cash flow techniques in capital budgeting are seen as failing to address the high levels of uncertainties inherent in climate change impacts. Real options thinking has been touted as having the potential to enhance understanding of these impacts via its direct handling of uncertainty, although not much research has been done to demonstrate this. Using an illustrative case study, this research presents an argument for introducing the real options approach, a new method for valuing options of future strategic action by companies in a setting that exhibits climate change impacts. The objective of this research is to contribute to the literature on strategic tools for addressing climate change and ultimately offer some management insights that can narrow the gap between finance theory and business practice. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors analyzed the financial and ecological impacts of the EU-Emissions Trading Scheme (ETS) for the Lufthansa Group using a simulation model built on the now-fixed system design.
Abstract: Commencing in 2012, emissions from flights departing from or arriving at airports within the Euro-pean Union (EU) will be covered under the EU-Emissions Trading Scheme (ETS). This research analyzes the financial and ecological impacts of the ETS for the Lufthansa Group using a simulation model built on the now-fixed system design. The results show that while ecological impacts are modest in the first years after introduction, the ETS will result in much higher emission reductions in the mid- and long-term. These ecological benefits come at the expense of increased financial im-pacts. The paper argues that the ETS will have a variety of managerial implications at the company level in fields such as environmental monitoring, financial risk management and marketing.