Showing papers in "Business Strategy and The Environment in 2014"
TL;DR: In this paper, the role of the board of directors in sustainability reporting quality (SRQ) in the Asia-pacific region has been examined based on a cross-sectional study of 113 companies from 12 countries in the region.
Abstract: Increased business complexities coupled with enhanced global transformation have propelled corporations to behave as responsible citizens to drive the sustainability agenda. Many corporations incorporate their affirmative commitment to sustainable business practices into their corporate identities and give evidence for this in their sustainability reports. This paper examines the role of the board of directors in sustainability reporting quality (SRQ) in the Asia-Pacific region. Based on a cross-sectional study of 113 companies from 12 countries in the region, we find that the SRQ in the region leaves much room for improvement. However, we find that the institutionalization of the concept of corporate social responsibility (CSR) in an organization provides a sound foundation for enhancing SRQ. We find that the value of CSR anchored in the vision and/ or mission statement and strategic alliances fostered with non-governmental organizations are positively associated with SRQ.
This study contributes to strengthening the understanding, promoting discussion on the state of sustainability reporting in the Asia-Pacific context and laying a solid foundation for more aggressive efforts to enhance SRQ. The study identifies the significant drivers currently associated with SRQ. The weak role of the board of directors in upholding the sustainable development agenda through the reporting process is highlighted. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
413 citations
TL;DR: In this article, the authors analyse the effect of industry concentration, together with other factors, in the development of integrated reporting, and find that the negative impact of such concentration on the quality of a more pluralist report, simultaneously taking into account stakeholders, sustainability and the long-term viewpoint, as well as questions of responsible investment, business ethics and transparency.
Abstract: The complexity of the business world has led to growing demands being made of companies regarding the information provided on their financial performance, corporate governance and contribution to developing sustainability. In response, some leading companies have begun to publish integrated reporting, in the form of a document providing a coherent summary of this information, thus facilitating stakeholder engagement.
This paper examines the validity of the hypotheses of the theories of agency and of signalling, and analyses the political costs and those borne by owners in voluntarily developing this new type of business document. More specifically, in order to determine their prevalence among the suggested reasons for these paradigms, we analyse the effect of industry concentration, together with other factors, in the development of integrated reporting.
The analysis of a non-balanced sample of 1590 international companies for the years 2008–2010, in which a logistic regression methodology is applied to panel data, reveals the negative impact of industry concentration on the development of a more pluralist report, simultaneously taking into account stakeholders, sustainability and the long-term viewpoint, as well as questions of responsible investment, business ethics and transparency. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
322 citations
TL;DR: In this article, a transdisciplinary approach is proposed to understand how sustainability issues in supply chains materialize as risks for focal firms and develop a conceptualization of sustainability risks which lays the basis for future investigations in this respective field.
Abstract: There is ample anecdotal evidence suggesting that firms can experience serious losses from social, ecological or ethical problems that exist in their supply chains. So far, however, research on supply chain risk management has largely neglected these sustainability issues. Most importantly, little is known about how sustainability issues manifest themselves as risks and how they create losses for focal firms. Without an in-depth understanding of this materialization process, conceptualizations of sustainability risks will remain vague and effective management frameworks cannot be developed. We address this important research gap by means of a transdisciplinary approach and provide a concise description of how sustainability issues in supply chains materialize as risks for focal firms. Building on this mechanism and drawing on stakeholder theory, we develop a conceptualization of sustainability risks which lays the basis for future investigations in this respective field. In addition, we devise a viable management concept for sustainability-related supply chain risks. The proposed concept can help firms to mitigate sustainability issues in global supply chains, thus making them less vulnerable to losses resulting from these risks. Its application will also foster sustainability standards within supply chains.
269 citations
TL;DR: In this article, the authors investigated environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs, and found that SMEs can create responsible innovations with very different resource combinations.
Abstract: What resources do small enterprises need to develop responsible innovations that enhance sustainable development? Does lack of resources prevent innovation toward sustainability in small and medium-sized enterprises (SMEs) or can innovations be created with scarce resources? This study investigates environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs. The findings indicate that SMEs can create responsible innovations with very different resource combinations. The most common resource combination comprises equity, research and development cooperation, networks, industry knowledge and reputation. Except for financial capital in the form of equity, which appears a necessary condition for responsible innovation from SMEs, resource needs vary between technological and business model innovations. Creating business model innovations appears to be possible with scarce resources, at the very least with equity and social capital. Environmental technology innovations call for more abundant resource combinations. In particular industry knowledge appears to be a key resource for such innovations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
226 citations
TL;DR: The authors showed that family ownership is negatively associated with community-related CSR performance and positively associated with diversity-, employee-, environment- and product-related aspects of CSR, while the largest positive effect of family ownership on CSR was found with regard to productrelated aspects.
Abstract: Previous research has shown that family firms differ from non-family firms with regard to aggregate measures of corporate social responsibility (CSR). We argue that CSR is a multidimensional concept that comprises several aspects, which range from employee relations to ecological concerns and product issues. Based on an organizational and family identity perspective, we argue that the effect of family ownership can differ across various CSR dimensions. Family firms can be responsible and irresponsible regarding CSR at the same time. We use a dataset of large US firms to test our hypotheses. Our Bayesian regressions show that family ownership is negatively associated with community-related CSR performance and positively associated with diversity-, employee-, environment- and product-related aspects of CSR. The largest positive effect of family ownership on CSR performance exists with regard to product-related aspects of CSR. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
195 citations
TL;DR: In this article, the authors address a fundamental problem in corporate sustainability: How can corporations transform trade-offs through win-win-oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, they employ an ordonomic perspective and proceed in four steps.
Abstract: This paper addresses a fundamental problem in corporate sustainability: How can corporations transform trade-offs through win–win-oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, we employ an ‘ordonomic’ perspective and proceed in four steps. First, we sketch how sustainability semantics has evolved historically from a societal searchlight to a heuristics for business practice. Second, we discuss how business firms can make strategic use of moral commitments as governance contributions by deploying individual or collective self-commitments as well as commitment services in their stakeholder relations. Third, we combine these four governance strategies with the three ESG (‘ecological, social and governance’) criteria of sustainability. We derive and illustrate with real-life examples a 12-box matrix as a tool for the strategic management of corporate sustainability. Fourth, we discuss the specific contribution of our ordonomic approach to the literature. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
152 citations
TL;DR: Li et al. as mentioned in this paper analyzed corporate ESG disclosure in China between 2005 and 2012 by analysing the members of the main indexes of the biggest Chinese stock exchanges and found that ownership status and membership of certain stock exchanges influence the frequency of ESG disclosures.
Abstract: What is the current state of environmental, social and governance (ESG) reporting and what is the relation between ESG reporting and the financial performance of Chinese companies? This study analyses corporate ESG disclosure in China between 2005 and 2012 by analysing the members of the main indexes of the biggest Chinese stock exchanges. After discussing theories that explain the ESG performance of firms such as institutional theory, accountability and stakeholder theory we present uni- and multivariate statistical analyses of ESG reporting and its relation to environmental and financial performance. Our results suggest that ownership status and membership of certain stock exchanges influence the frequency of ESG disclosure. In turn, ESG reporting influences both environmental and financial performance. We conclude that the main driver for ESG disclosure is accountability and that Chinese corporations are catching up with respect to the frequency of ESG reporting as well as with respect to the quality. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
145 citations
TL;DR: In this paper, a case study explores the experience of a company in a controversial industry sector and its efforts to act in a socially responsible manner when establishing a presence in a regional market.
Abstract: This case study explores the experience of a company in a controversial industry sector and its efforts to act in a socially responsible manner when establishing a presence in a regional market. We examine the management of stakeholder relationships and communication, and identify the challenges associated with implementing corporate social responsibility (CSR) initiatives. Our findings highlight the importance of ongoing and broad stakeholder identifi- cation, prioritization and management. This case study demonstrates the key role of commitment from senior management and front-line employees and the importance of a CSR champion. Commitment must be demonstrated at a local level to facilitate community engagement, feedback and monitoring. Finally, the findings highlight the externality of stakeholder networks and their non-centric relationship with the company. Thus, a company is not the centre of the stakeholder network; the network has a life of its own, regardless of a company’s involvement or non-involvement.
118 citations
TL;DR: In this article, the authors present the findings of a study on the relationship between greenhouse gas (GHG) emissions and the financial performance of Australian corporations using multiple regression models and data from a sample of 69 Australian public companies, finding a positive correlation between GHG emissions and corporate financial performance.
Abstract: Previous studies that have attempted to relate corporate environmental performance to financial performance have generated conflicting results. This paper presents the findings of a study on the relationship between greenhouse gas (GHG) emissions and the financial performance of Australian corporations. Using multiple regression models and data from a sample of 69 Australian public companies, this paper finds a positive correlation between GHG emissions and corporate financial performance. By testing the statistical significance of GHG emission factors in determining company Tobin's q, this study finds that a stronger Tobin's q often correlates with higher GHG emissions across all industry sectors. This finding is contrary to evidence found in previous studies conducted in other countries. The positive correlation found in this study could be explained with reference to the unique economic structure and development of Australia, particularly its dominant mining industry.
106 citations
TL;DR: A simple model of sustainable enterprise excellence and accompanying maturity assessment regimen are introduced and advanced as a means of merging these movements to drive an equity, ecology and economy triple top line strategy to produce triple bottom line people, planet and profit performance with innovation and organizational design playing pivotal roles in both the model and its assessment.
Abstract: The enterprise excellence and modern sustainability movements have developed along near parallel timelines. Skilled use of enterprise excellence systems has been documented to significantly boost performance across an array of key domains, including financial, human capital, operations and supply chain, and other areas. Notably absent are social and environmental performance, with their absence attributable to the inadequate emphasis on enterprise excellence of these domains. Similarly, although the triple bottom line is core to the sustainability movement, many adherents of sustainability approach its people and planet domains with ardor, yet virtually neglect its profit domain. A simple model of sustainable enterprise excellence and accompanying maturity assessment regimen are introduced and advanced as a means of merging these movements to drive an equity, ecology and economy triple top line strategy to produce triple bottom line people, planet and profit performance with innovation and organizational design playing pivotal roles in both the model and its assessment. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
95 citations
TL;DR: In this article, a case-based approach involving multiple field studies with face-to-face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices of transport and logistics companies in Austria.
Abstract: There is an increasing importance of sustainability in the development of companies' business strategies. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. The paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behaviour. A case-based approach involving multiple field studies with face-to-face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Due to various factors like a lack of end-user contact and high levels of competition, the transport and logistics sector does not show much environmentally friendly behaviour. We can confirm that the economic factor is crucial for companies' decisions on the implementation of environmental practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Because there is little evidence of tangible environmental practices in the sector of transport and logistics and their impact on the business performance, this study is both exploratory and explanatory in its nature. (authors' abstract)
TL;DR: In this paper, the effects of pollution prevention and service stewardship capabilities on firm differentiation advantage in the third-party logistics industry are analyzed, and the results show that environmental communication moderates the effect of pollution mitigation on differentiation advantage and can hence be considered a valuable complementary asset.
Abstract: A growing number of firms are considering the incorporation of environmental thinking into their business strategies, hoping to improve their competitiveness. In this paper, we analyze the effects of pollution prevention and service stewardship capabilities on firm differentiation advantage in the third-party logistics industry. Since prior research claims that complementary assets play an important role in fully understanding the environmental-management-competitiveness link, we furthermore examine the moderating role of environmental communication on the pollution-prevention-differentiation and the service-stewardship-differentiation linkages. We theoretically base our research in natural-resource-based thinking. Drawing on survey data, we apply multivariate regression and moderation analysis. The results highlight that pollution prevention and service stewardship capabilities can help third-party logistics providers to achieve a differentiation advantage. Also, the results show that environmental communication moderates the effect of pollution prevention on differentiation advantage and can hence be considered a valuable complementary asset. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors explored the relationship between the environmental and financial performance of businesses and found that in times of economic crisis, the synergy between environmental and economic performance is higher, meaning that companies must continue to invest in sustainable projects in order to enhance relations with their stakeholders.
Abstract: Over the past years there has been a debate on the relationship between the environmental and financial performance of businesses, but researchers have not reached any agreement. This research attempts to explore this relationship, especially as in recent years there has been controversy about how this relationship has been affected by the global economic crisis. Taking into account that successfully limiting global climate change to safe levels in the long term is likely to require connecting climate change policies to sustainable development strategies, this paper focuses on the performance of environmental policies. We used a sample of 855 international companies in sectors of intensive greenhouse gas/CO2 emissions. Specifically, we used data from the Forbes Global 2000 Index and Carbon Disclosure Project data from 2006 to 2009. The data analysis was performed using panel data methodology. The results obtained show that in times of economic crisis, the synergy between environmental and financial performance is higher, meaning that companies must continue to invest in sustainable projects in order to enhance relations with their stakeholders, leading to higher economic profits. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this paper, the authors used the 2009 European Manufacturing Survey for the Danish sub-sample including 335 manufacturing firms to study the interaction between product innovation and companies' activities aimed at improving the energy efficiency of production facilities.
Abstract: The interaction between product innovation and companies’ activities aimed at improving the energy efficiency of production facilities has been relatively little studied, but is of great relevance to society and companies given the strong focus of governments on grand challenges like climate change, green innovation technologies, and environmental problems in general. This paper utilizes the 2009 European Manufacturing Survey for the Danish sub-sample including 335 manufacturing firms. Through factor analysis, this paper confirms three main areas of focus of new product development: efficiency considerations, market attention, and greening of innovation. Logistic regression analysis demonstrates that while market attention is important for the development of new products, green aspects of innovation and efficiency considerations are important for production companies wanting to improve their energy efficiency. When these models are combined, the results highlight that energy efficiency moderates the effect of market attention to new product development. This paper therefore finds that aligning product innovation and energy efficiency is a complex and intertwined process – focusing on one may have indirect detrimental effects on the other. These results point to the conclusion that researchers and practitioners in innovation management have to consider more carefully the specificities and interactions of different types of products and process innovations and their environmental implications, and must formulate new, more sustainable managerial practices combining energy efficiency and product innovation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this paper, the authors adopted a content analysis approach and disaggregated firm-level environmental risk into types related to regulations, operations, and nature, and found that the level of risk and the likelihood of active risk management differ in the type considered.
Abstract: Environmental performance, environmental risk and risk management are of contemporary interest, but to date there is limited evidence on their relationships. This paper is the first to provide detailed insights by adopting a content analysis approach and disaggregating firm-level environmental risk into types related to regulations, operations and nature. For a sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk management differ in the type considered. Environmental performance, risk and the likelihood of risk management all differ across firms and industries. Multiple regressions reveal a negative association between environmental performance and environmental risk, the extent of which depends on the type of risk. Results hold when controlling for active risk management, which is not found to contribute significantly to environmental performance. Our findings have implications for public policy and suggest that linkages to environmental risk and risk management are worth exploring in more differential ways and beyond industry-level assessments in environmental studies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, the authors explore corporate environmental strategy over time, investigating the patterns of evolving environmental investment decisions, and point out that capabilities that are gradually developed in concomitance with environmental outcomes lead to an upgrading of environmental goals, thus triggering the feedback process.
Abstract: We explore corporate environmental strategy over time, investigating the patterns of evolving environmental investment decisions. Longitudinal case studies provide evidence that environmental strategy evolves through a feedback process, wherein outcomes of earlier decisions have an impact on subsequent decisions. Specifically, positive feedback from outcomes like innovation triggers higher goals, enhancing the undertaking of advanced investments, whereas negative feedback from outcomes, such as increased costs, decelerates the adoption of further investments. The study points to an emergent view of environmental strategy, where capabilities that are gradually developed in concomitance with environmental outcomes lead to an upgrading of environmental goals, thus triggering the feedback process. The process eventually culminates in higher levels of environmental conduct, being more and more integrated with business strategy and competitive advantage. Managers' values and environmental attitudes influence environmental decisions and actions, affecting the acceleration of the feedback process and the magnitude of responses. Managerial implications are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this paper, the impact of green innovation on labor productivity and determinants of environmental activities in 2010 was examined using a unique data set based on the Korea Innovation Survey (KIS).
Abstract: Due to worsening environmental conditions around the globe, firms have been investing a great deal of money in green technologies as a way of coping with the environmental crisis. This paper uses a unique data set based on the Korea Innovation Survey to examine the impact of green innovation on labor productivity, and the determinants of environmental activities in 2010. The empirical results show that green innovation intended for both firm and customer benefits has a positive effect on labor productivity. This finding means that firms need to implement firm-oriented green innovation as well as customer-oriented green innovation in order to increase their performance. Our findings also show that there are significant differences in aggregate green innovations depending on different firm sizes and industries. Specifically, large firms implement environmental activities more than small ones, and pollution-intensive industries tend to invest more in activities related to environmental technology. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector, and the hypotheses within the survey are related to strategies for developing an environmental supply chain.
Abstract: This research illuminates the debate on whether there are differences between the manufacturing and service sectors in the matter of developing a sustainable environmental supply chain. Over the past 5 years a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector. The hypotheses within the survey are related to strategies for developing an environmental supply chain. They were derived from a literature review and were tested by means of a chi-square test. The survey questionnaire enabled the respondents to give some viewpoints about the hypotheses. In this way, strategies for developing the supply chain such as ISO 14001, the Eco-Management and Audit Scheme (EMAS), Life Cycle Assessment (LCA), auditing, waste management systems, reverse logistics, environmental indicators, remanufacturing and reuse have been investigated. Results show interesting and unexpected differences between manufacturing and service sectors that can lead to further research, practical implications and even suggestions for the surveyed companies. For instance, the viewpoints of manufacturing and service industries differ over ISO 14001 and EMAS implementation in the supply chain. In addition, service industries approach the implementation of auditing, reverse logistics, reuse and remanufacturing in a way different from that of manufacturing. Other strategies are considered essential by both sectors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors analyze whether cross-sector partnerships enable companies to respond to specific conditions at the base of the pyramid (BOP) and develop three hypotheses in which they argue how cross-side partnerships support companies to face unfamiliar conditions in these markets.
Abstract: In this paper we analyze whether cross-sector partnerships enable companies to respond to the specific conditions at the base of the pyramid (BOP). We develop three hypotheses in which we argue how cross-sector partnerships support companies to face unfamiliar conditions in these markets. We test the developed hypotheses against the data of 103 companies operating in BOP-markets. The results show that companies rely on organizations from the civil society sector in order to meet customer needs. Partners from the business sector are supportive when responding to restrictive market conditions. Institutional partnerships should be considered when companies aim at responding to the regulatory environment. We outline theoretical and managerial implications and reflect some limitations of the study. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: This article explored the relevance of climate change to business using a sample of wine firms operating in Margaret River, Western Australia, one of the premier wine regions of the world, using a qualitative approach based on thematic analysis.
Abstract: This study explores the relevancy of climate change to business using a sample of wine firms operating in Margaret River, Western Australia, one of the premier wine regions of the world. Using a qualitative approach based on thematic analysis, the results challenge the extent to which climate change is a salient stakeholder, while demonstrating that the phenomenon may, in fact, be beneficial. Response actions towards climate change demonstrate both mitigative and adaptive actions, although differences in their level and rate of implementation appear to be attributable to a mix of normative and instrumental trade-offs. Implications of the findings are discussed, with a particular focus on location theory and economic barriers as a key driver of trade-offs between the choice of mitigative or adaptive response to climate change. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors examined the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business-to business context with the Taiwanese electronics manufacturing industry.
Abstract: This paper extends previous environmental management research by building and empirically testing a model of the contingency effects of green advertising on the relationships between environmental management practices in terms of environmentally conscious manufacturing and product stewardship, environmental reputation and financial performance. We examine the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business-to business context with the Taiwanese electronics manufacturing industry. The theoretical propositions are largely confirmed by structural path analyses of survey responses collected from 122 Taiwanese electronics manufacturers. Green advertising delivers financial benefits only for those manufacturers that do not have an established environmental reputation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this article, the authors analyse how a green outdoor product -a t-shirt -was constructed as green through the marketing practices of the Nordic Nature Shops and suggest that these t-shirts become green through a process of socio-material inscription.
Abstract: Green products are becoming part of contemporary consumer cultures and part of everyday life. But how are green products constructed? What kind of green products are constructed? And what happens as these green products are constructed? The aim of this paper is to contribute a socio-cultural and critical understanding of green marketing by exploring and illustrating how marketing practices work to construct green products as meaningful material-symbolic artefacts in practice. Departing from an understanding of marketing as practice I analyse how a green outdoor product - a t-shirt - was constructed as green through the marketing practices of the Nordic Nature Shops. Focusing on this retail corporation and examining the practices of trail making, attending and selling, it is suggested that these t-shirts become green through a process of socio-material inscription. Through marketing practices green moral is generated and linked to the t-shirts potentially making them desirable consumption objects to be used in the construction of consumers green identities. However, this process of green making is a difficult accomplishment with ambiguous outcomes. While the tendency to inscribe commercial products with morality can be interpreted as an indication of the development of a more ethically reflective consumer culture, it can also be argued to lead to the commercialization of morality (Less)
TL;DR: A survey conducted among Spanish and Italian companies in order to define the environmental management evolution within firms is presented in this paper, where a number of maturity stages were defined and validated, and the identification of the relevant factors for each of the maturity stages was made.
Abstract: This research is focused on a survey conducted among Spanish and Italian companies in order to define the environmental management evolution within firms. Through this survey, a number of maturity stages were defined and validated, and the identification of the relevant factors for each of the maturity stages was made. Survey results show that companies start with environmental management issues due to legislation requirements. Afterwards, firms go through a training phase, continuing with the systematization stage, then look for economic benefits through ecological improvements (ECO2 stage) and finish with the eco-innovation and leading green company stages. The survey has shown that the maturity stages have application in all types of industrial sector. These are useful for those firms that want to make progress in environmental matters, as it helps them to identify at which maturity stage they are and what are the factors that they need to take into account to move forward. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, the authors studied the annual reports and environmental reports of the six most prominent industry actors between 2008 and 2010 and analyzed their changing approaches to green management, finding that management's own initiatives drive companies' adoption of greener production technologies.
Abstract: Oil and gas producers play a pivotal role in the Russian economy. The industry itself is very energy consuming and capable of producing major environmental damage. For a long time, however, innovative ways of production were low on their priority list, leading to heavily outdated equipment and hardware. Recently, Russian oil- and gas producers have kicked off major programs to catch up with their western counterparts. Until now, however, insights into the importance of environmental management of oil and gas producers are very limited. We studied the annual reports and environmental reports of the six most prominent industry actors between 2008 and 2010 and analyze their changing approaches to green management. Most companies start in 2009 to address their environmental activities in the statement of the CEO and chairmen. In 2010, the environmental activities have made it up to the list of top priorities in the companies. On an industry-level, we find that management's own initiatives drive companies' adoption of greener production technologies and are much more influential than government regulation. In fact, we see that leading industry actors inform government regulation and thereby lift up the greening of production also in late followers. Green innovation either stems from international cooperation for industry leaders or out of in-house knowledge generated through own R&D institutes. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, a long-term study demonstrates that for car manufacturers in Germany these integration efforts are implemented in very different ways, and that some integration approaches are partially abandoned after a period of unsatisfactory implementation.
Abstract: The diversity of stakeholder requirements is currently a pivotal challenge for companies. Stakeholders expect companies to increasingly consider environmental and social aspects in their decisions. Thus, corporate goal systems are including not only qualitative and financial goals, but also environmental and social ones. Management systems for ensuring quality, environmental and occupational safety play an important role in achieving these objectives. Considering the interdependency between the different systems constitutes a central challenge. Much of the literature and the results from empirical studies suggest that the spatial application of integrated management systems is state of the art. Integrated management systems in particular are regarded as more effective and more efficient than separate and distinct management systems. However, the present long-term study demonstrates that for car manufacturers in Germany these integration efforts are implemented in very different ways, and that some integration approaches are partially abandoned after a period of unsatisfactory implementation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this article, the authors apply an event study methodology, and also consider the market model and conditional variance to find positive abnormal returns for financial institutions adopting the Equator Principles, which supports the reputational risk hypothesis.
Abstract: Recent trends in the project finance industry include an increasing volume and a growing awareness of sustainable development. This has raised the question of whether and a how voluntary code of conduct such as the Equator Principles (EP) could enhance its impact on the project finance industry. We apply an event study methodology, and also consider the market model and conditional variance. We find positive abnormal returns for financial institutions adopting the EP, which supports the reputational risk hypothesis. Furthermore, we document that adopters outperform the global project finance market, especially in terms of market share. However, we do not find evidence that non-adopters are excluded from lending syndicates. Results include practical recommendations for environmental policy. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this paper, a revision of the corporate social performance (CSP) model is proposed to address the challenges of sustainable development, and a knowledge creation dimension is added to the existing CSP model.
Abstract: The objective of this paper is to offer a revision of the corporate social performance (CSP) model. CSP exemplifies how corporate social responsibility translates into an organization's practice by focusing on three key features of performance: principles, processes and outcomes. However, the development of the model has not kept pace with the literature on social and environmental responsibility. This study builds on an argument that if corporate social responsibility in general – in which CSP plays an important role – is to respond to the challenges of sustainable development, the CSP of businesses could be more profoundly planned in order to design knowledge outcomes that contribute to meeting those challenges. The paper thus answers the recent call for the development of a CSP model by revising some of the key elements in the existing model and also by adding a knowledge creation dimension. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this article, a treatment effects regression model is proposed to account for the effects of non-random assignment for GL participants and non-participants, which can simultaneously estimate probit models that predict corporate participation in the GL program and linear models that test the extent to which this participation contributes to economic performance.
Abstract: Voluntary environmental programs (VEPs) are designed based on a win–win approach to environmental protection that reconciles environmental protection and economic performance. Despite the claims about VEPs, there has been an ongoing debate over their efficacy with regard to whether environmental goals are balanced by economic interests on both theoretical and empirical grounds. To resolve this controversy, this paper empirically investigates a public VEP by the US Environmental Protection Agency: Green Lights (GL). For this, the paper constructs a treatment effects regression model to account for the effects of non-random assignment for GL participants and non-participants. The proposed model can simultaneously estimate probit models that predict corporate participation in the GL program and linear models that test the extent to which this participation contributes to economic performance. The results indicate significant positive effects of corporate participation in the GL program on economic performance, providing support for the win–win perspective. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this article, the authors explored the value and impacts of corporate community investment (CCI) through community partnerships and found that the strategic fit for the community organisation of proposed investment and whether the corporate partner sought a relational as opposed to transactional approach to funding provision.
Abstract: This paper presents the findings of research exploring the value and impacts of corporate community investment (CCI) through community partnerships. The research considered the community partners' perceptions of the value and impact of CCI. We adopted an inquiry paradigm utilising constructivist ontology, interpretivist epistemology and a case study method. In dialogue with Wesfarmers Ltd's community partners, the ‘realities’ presented by these beneficiary stakeholders were interpreted and understood (verstehen).
While the CCI programmes with each of the not-for-profit organisations had different objectives, we were able to classify, under broad headings, the nature of the benefits to the community. One question highlighted is whether all corporate investing is the same? We found two aspects to this: the strategic fit for the community organisation of proposed investment and whether the corporate partner sought a relational as opposed to transactional approach to funding provision. Recommendations can be made for the funding structure deemed to be most effective from the community partners' perspectives. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
TL;DR: In this paper, the authors investigated the relationship between environmental orientation and economic performance of small Swedish firms and found a negative effect of environmental orientation on economic performance, and provided implicit support for the existence of a causal link from economic performance to environmental orientation.
Abstract: This paper investigates the relationship between the environmental orientation and economic performance of small firms. We conduct a quantitative analysis on a sample of 299 environmentally oriented and all other small (2-49 employees) Swedish firms. We estimate the effect of environmental orientation on profit margin to examine how environmentally oriented firms perform in relation to non-environmentally oriented firms. To do this, we employ a quasi-experimental design in which we create a control group of non-environmentally oriented firms that are very similar to their environmentally oriented counterparts. We use two measures of environmental orientation: 1) a third party classification, and 2) a self-assessment of environmental differentiation. The findings show a negative effect of environmental orientation on economic performance. Our contribution to the literature is in using a novel and more rigorous way to measure the relationship between environmental orientation and economic performance and providing implicit support for the existence of a causal link from economic performance to environmental orientation.