Does it really pay to be green? Determinants and consequences of proactive environmental strategies

Clarkson, Peter; Li, Yue; Richardson, Gordon D.; Vasvari, Florin P.

doi:10.1016/j.jaccpubpol.2010.09.013

Cited by 761 publications

(657 citation statements)

References 41 publications

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“…Drawing from the management literature, particularly the resource-based view of the firm (RBV) theory, scholars have argued that firms possessing unique human resources like superior managerial capabilities, as well as superior organizational strategies such as proactive environmental strategies, are able to develop competitive advantages in CSR, which in turn enable such firms to achieve superior environmental and economic performance (Al-Tuwaijri et al 2004;Clarkson et al 2011;Hart 1995;Porter and van der Linde 1995;Russo and Fouts 1997). A significant limitation of this literature is that while managerial capability and superior environmental strategies are assumed to be the main factors driving superior environmental performance, these variables are neither directly measured, nor explicitly incorporated in the research design leading to conceptually incomplete analysis (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…A significant limitation of this literature is that while managerial capability and superior environmental strategies are assumed to be the main factors driving superior environmental performance, these variables are neither directly measured, nor explicitly incorporated in the research design leading to conceptually incomplete analysis (e.g. Al-Tuwaijri et al 2004;Clarkson et al 2011;Russo and Fouts 1997). This paper conceptually and methodologically advances this stream of literature by explicitly measuring and incorporating in the research design variables that measure a firm's board level CSR orientation and its board CSR strategy, linking these with the firm's environmental and social performance.…”

Section: Introductionmentioning

confidence: 99%

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Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Qiu²,

2015

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In this paper we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm's corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach.We find that the greater the CSR orientation of the board (as measured by the board's independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm's CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation.This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR.Therefore the question arises as to how 'leaders' are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm's CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Qiu²,

2015

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“…From formal rules to informal norms, the set of environmental drivers offers guidelines for the adoption of environmental practices. However, environmental drivers are not perceived homogeneously by firms in different contexts and this variance is also reflected in the levels of their responsiveness (Christmann, 2004;Clarkson et al, 2011). This issue is even more relevant considering that the symbolic adoption of environmental practices may be disconnected from its actual implementation (King, Lenox, & Terlaak, 2005).…”

Section: Resultsmentioning

confidence: 99%

“…Among the important drivers, governmental entities, competitors, customers, local communities and employees exert influence on management decisions (Bansal & Roth, 2000;Christmann, 2004;Clarkson, Li, Richardson, & Vasvari, 2011). In response to these demands, firms are supposed to adopt environmental measures and reduce environmental impacts.…”

Section: Introductionmentioning

confidence: 99%

“…This implies that firms can superficially address environmental demands in search for legitimacy and not effectively change their practices (Aravind & Christmann, 2011). While there is a substantial body of literature concerning competitiveness of environmental policies, implementation of environmental practices is frequently taken for granted (Clarkson et al, 2011;Dowell, Hart, & Yeung, 2000;Jabbour, Silva, Paiva, & Almada Santos, 2012).…”

Section: Introductionmentioning

confidence: 99%

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Drivers of environmental management in the Brazilian context

Berardi

Brito²

2015

BAR, Braz. Adm. Rev.

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The demand for improved environmental practices inside firms has increased around the world. However, in the process of implementation of environmental management, policy may be decoupled from practice, generating doubts about its effectiveness. This study investigates an overlooked middle step in the environmental management process, analyzing the strength of the main environmental drivers in improving environmental practices inside firms. We developed a set of hypotheses about the influence regulation, voluntary norms and stakeholder pressure have upon environmental management practices, considering the institutional context and different enforcement of these drivers. We use a cross-sectional survey of 150 Brazilian firms to gather information about environmental management and test our hypotheses in a Structural Equation Model. The findings confirm the importance of command and control instruments as well as stakeholder pressure in promoting better environmental practices inside firms. Yet, the results demonstrate that voluntary norms did not influence management practices even though they were perceived as a market opportunity.

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Gaining momentum: Towards integrated reporting practices in Gulf Cooperation Council countries

et al. 2020

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The study focuses on all nonfinancial companies representing four Gulf countries namely: Saudi Arabia, Kuwait, UAE and Qatar. It provides a comparative analysis of the extent of Integrated Reporting practices amongst 217 listed companies in 2013 and 2014. Design/methodology/approach: The sample comprises all nonfinancial companies listed on the respective stock markets. An integrated reporting index comprising 43 items was developed based on a review of the extant literature and the IIRC framework. A descriptive analysis follows which explores the extent of integrated reporting amongst the sample companies.Findings: The results indicate that the Integrated Reporting is still in an embryonic stage with companies listed on the UAE and Saudi Arabia stock exchanges taking the lead. The results show great variation amongst the surveyed companies which could reflect the voluntary nature of IR practices and the absence of a universallyrecognised framework that guides such practices, resulting in companies having discretion in terms of the nature and extent of their IR practices.Practical Implications: This paper provides evidence from the Gulf region with respect to the extent of integrated reporting practiced there, as the majority of prior studies focus on countries with developed capital markets. The results presented in this paper should therefore be of interest to regulators and standard-setters charged with developing accounting standards related to integrated reporting.Originality/value: To the best of the authors' knowledge this is the first study to investigate IR practices in the Middle East and North Africa region, so it could be regarded as an important step in understanding how this area of research is moving forward in developing countries context and should provide a springboard for future research in this area.

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Does it really pay to be green? Determinants and consequences of proactive environmental strategies

Cited by 761 publications

References 41 publications

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Drivers of environmental management in the Brazilian context

Gaining momentum: Towards integrated reporting practices in Gulf Cooperation Council countries

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