Pay for Environmental Performance: The Effect of Incentive Provision on Carbon Emissions

Ioannou, Ioannis; Li, Shelley Xin; Serafeim, George

doi:10.2139/ssrn.2133004

Cited by 11 publications

(18 citation statements)

References 22 publications

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“…Psychological incentives as compared to financial incentives were rated by counselors as a motivating factor in doing their work. This is consistent with the investigation of Eccles et al (2012) projecting psychological incentives as more effective than monetary incentives with regard to employee"s compliance at work. This expresses a dire need to improve financial incentives for counselors in order to enable them satisfactorily achieve their professional assignments.…”

Section: Discussionsupporting

confidence: 89%

Effects of Financial and Psychological Incentives on Performance of Resident Counselors in North West Region of Cameroon

Nota¹,

Mbebeb²

2018

JPBS

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The role of resident counselors in school institutions cannot be undermined and in a bid to facilitate performance, incentives are designed and implemented. Despite incentive provisions in Cameroon, performance of counselors are often surrounded by skepticism, thereby questioning the effectiveness of existing motivation packages. This study investigated the influence of financial and psychological incentives on the performance of counselors. A sample of 124 resident counselors (29.8% Males; 70.2% Females) was surveyed in the North West Region of country. A scale with an aggregate alpha of .75 was deployed for data gathering, and descriptive and inferential statistics used for analysis .Results revealed that financial incentives failed to predict variation in performance of resident counselors (β =.06; P> 0.05). Furthermore, it was reported that psychological incentives gave enough support to variation in counselor"s performance (β =.54, P<0.01). From the analysis, financial incentives have to be improved and dormant provisions activated as predictors of performance, while the re-engineering of psychological packages is imperative. Policy and practice implications of the results have been discussed within the context of current incentive provisions, and areas for future research have been identified.

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Section: Discussionsupporting

confidence: 89%

Effects of Financial and Psychological Incentives on Performance of Resident Counselors in North West Region of Cameroon

Nota¹,

Mbebeb²

2018

JPBS

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“…Consequently, CSR incentives could have a similar perverse impact. Managers could be less motivated to engage in CSR activities if they are paid for to do it, rather than being intrinsically committed to do good (Eccles et al, 2012).…”

Section: Direct Effect Of Managers Csr Incentives On Corporate Social Performancementioning

confidence: 99%

“…Soft targets seem to merely serve as symbols to raise awareness of sustainability issues. Eccles et al (2012) show that, due to the crowding out effect, monetary incentives have a significant negative effect on carbon emissions reduction.…”

Section: Direct Effect Of Managers Csr Incentives On Corporate Social Performancementioning

confidence: 99%

How do firms achieve corporate social performance? An integrated perspective

Ben‐Amar

Francœur

Marsat

et al. 2021

Corp Soc Responsibility Env

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This study provides an integrated view of the combined direct and indirect effects of the main drivers of CSR performance, at country, firm and CEO levels respectively.We extend prior literature by showing that the institutional context, firm CSR governance practices, and CSR-related compensation incentives have impacts of different magnitudes on CSR performance, as well as significant combined effects. Using an international sample of 1272 observations over 20 countries, we document significant indirect cascading effects of the institutional setting and firm-specific governance practices on CSR performance. From a managerial perspective, we find that firms operating in countries that are less oriented towards satisfying the needs of the stakeholders still have the ability to counterbalance this institutional impact and achieve relatively high CSR performance by implementing sound firm-level CSR governance practices and incentives.

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“…Ioannou et al (2016) find that firms adopting more challenging targets achieve a higher percentage of those targets. Financial incentives have also been studied, with conflicting results, having no impact on carbon performance (Tang and Luo, 2014) or a negative impact on motivating environmental performance (Eccles et al, 2012).…”

Section: Carbon Emissions Management and Management Control Systemsmentioning

confidence: 99%

Carbon emissions management control systems: Field study evidence

Bui

Villiers

2017

Journal of Cleaner Production

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The paper examines the types and role of carbon management control systems by analysing in-depth interviews undertaken with 38 individuals from 30 organizations that use carbon management control systems. The paper identifies the different types of carbon controls, and the internal and external uses and objectives of controls. Carbon controls can be used to achieve compliance or improve performance, and organizations can focus on different objectives at different times. The findings suggest that emissions reductions do not occur without absolute (as opposed to intensity) reduction targets, management support, and resource allocation for carbon management. The findings further suggest that firms that want to improve performance or manage compliance costs effectively will require the integration of carbon controls into operational and strategic processes. A framework is developed that managers and researchers can use as an implementation guide or a research framework. The framework highlights three elements that were found to be critical to ensure control effectiveness, namely managerial communication, quality of information, and employee perceptions. The evidence suggests that communication of carbon information through appropriate channels and language, as well as high quality of carbon information are essential to ensure positive employee perceptions and buy-in, which will contribute to effective carbon reduction. KEY WORDS Management control systems; Carbon emissions; Carbon controls; Carbon management control systems Low High Operational integration Low High Strategic integration Group A Low integration Group B Low Medium Group C High Medium Group D Medium High Group E Full integration 55 min Capacity analyst Key: G1: public sector organization no. 1; C4: private sector company no. 4 *Many local councils and government agencies oversee ETS regulated activities, such as forestry, waste management, heating, and transport.

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Pay for Environmental Performance: The Effect of Incentive Provision on Carbon Emissions

Cited by 11 publications

References 22 publications

Effects of Financial and Psychological Incentives on Performance of Resident Counselors in North West Region of Cameroon

Effects of Financial and Psychological Incentives on Performance of Resident Counselors in North West Region of Cameroon

How do firms achieve corporate social performance? An integrated perspective

Carbon emissions management control systems: Field study evidence

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