We meta-analyze 103 studies of 23 voluntary environmental programs (VEPs) to assess how their governance quality, or the rigor of their internal institutional mechanisms, drives their ability to improve their participants corporate environmental and financial performance. The goal of VEPs is to incentivize firms to reduce firms’ environmental impacts by bolstering their reputations and helping them learn practices that improve their financial performance. Research on VEP effectiveness, however, is inconclusive, in part, because most studies sampled individual programs, and were unable (...) to analyze how difference in program characteristics drive their effectiveness. We draw on institutional theory to argue that VEP governance quality determines whether they improve participants’ environmental performance, and the natural resource-based view to argue that they improve their financial performance. Results confirm our predictions, and in doing so, help to establish a business case for VEPs with high-quality governance. (shrink)

Relations between non-governmental organizations (NGOs) and companies have been the subject of a sharply increasing amount of publications in recent years within academic business journals. In this article, we critically assess this fast-developing body of literature, which we treat as forming a ‘business and society discourse’ on NGO–business relations. Drawing on discourse theory, we examine 199 academic articles in 11 business and society, international business, and management journals. Focusing on the dominant articulations on the NGO–business relationship and key signifiers they (...) rely on, we analyze the problem-settings of articles in order to reveal the statements that are acceptable and appropriate within this field. Our threefold aim is to (1) identify dominant articulations of NGO–business relations in business and society discourse, (2) expose those articulations that are silenced or suppressed by these dominant articulations, and (3) critically assess possible power effects of these discursive dynamics in the field of discursivity. While business and society discourse on NGO–business relations overall remains open to many different articulations, we also find that those articulations that focus on NGO–business partnerships and governance initiatives tend to privilege collaborative and deliberative ways of engaging and marginalize more adversarial subject positions. We call for more recognition of the potentially constructive role that can be played by conflict. (shrink)

This paper analyzes the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems such as those set out in ISO 14001 and the European Management and Auditing Scheme. Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of (...) proactive environmental practices, the influence of stakeholders can either support the integration of these practices or encourage their superficial adoption. For example, while pressure from suppliers and shareholders contribute to corporate greening, pressure from customers and industrial associations tend to encourage greenwashing. Product quality-oriented strategies also positively influence EMS internalization. The paper sheds light on the institutional complexity underlying the substantial versus symbolic implementation of environmental practices, and questions the dominant isomorphic view of EMS adoption. The paper also bridges the gap between complementary approaches on corporate greening, notably neo-institutional and stakeholder theories. (shrink)

This paper analyses the role of external pressures, internal motivations and their interplay, with the intention of identifying whether they drive substantive or instead symbolic implementation of ISO 14001. The context is one of economic crisis. We focus on Greece, where the economic crisis has weakened the country’s institutional environment, and analyse qualitatively new interview data from 45 ISO 14001 certified firms. Our findings show that weak external pressures can lead to a symbolic implementation of ISO 14001, as firms can (...) defend their legitimacy without incurring the costs of internalization in the local market; weak external pressures can lead to substantive implementation of ISO 14001 when firms have strong internal motivations seeking to strategically differentiate from competitors in international markets. Firms internalize ISO 14001 so as to restore their legitimacy and reputation in foreign markets and stimulate their competitiveness; and strong internal motivations pave the way for companies to stimulate their competitiveness by enhancing their efficiency, as some companies might strengthen their position in the local market by implementing ISO 14001 substantively. The contribution of this paper to the literature on ISO 14001 internalization lies in refining existing theory on the importance of internal motivations for the substantive implementation of ISO 14001 in the context of economic crisis. In addition, this paper extends current theory by challenging studies that dismiss the importance of external pressures. We argue that the intensity of external pressures influences the internalization of ISO 14001, but propose that this relationship might not be linear. (shrink)

Voluntary management standards for social and environmental performance ideally help to define and improve firms’ related capabilities. These standards, however, have largely failed to improve such performance as intended. Over-emphasis on institutional factors leading to adoption of these standards has neglected the role of firms’ existing capabilities. External pressures can drive firms to adopt standards more than their technical capacity to employ them. This can lead to problems of “fit” between institutional requirements and a firm’s existing capabilities . We describe (...) a conceptual model that considers the impact of an interaction between a firm’s institutional requirements and its existing capabilities on standards failure. We suggest solutions that align institutional requirements to appropriate governance forms as a means to improve standards success. We contribute to theory by describing the role of firms’ internal capabilities to the success of voluntary management standards and the reliability of self-regulation generally. (shrink)

This paper examines the adoption of ISO 14001, which is known as the most famous voluntary environmental program. The data of this paper pertain to Korean [Throughout this paper, Korea refers to the Republic of Korea ] firms in manufacturing industries from 1996 to 2011. Event-history modeling to examine firms’ adoption of ISO 14001 finds that both resource-based factors and institutional factors have influenced the diffusion of ISO 14001 in Korea. By exploring time-related effects, I also find that while resource-based (...) factors are important in the early periods of the diffusion, institutional factors become important in the later periods of the diffusion. This confirms the findings of previous studies that a firm’s motivation to adopt organizational policies varies according to different diffusion periods. The paper concludes with a brief discussion of what this study tells us about the institutional context of ISO 14001 in Korea and Asia more broadly. (shrink)

The aim of this research is to ascertain whether a firm’s environmental motivations may help to predict how complete or incomplete its environmental management will be, understanding incomplete management to be that which neglects one or more of the three keys aspects of such management, namely, monitoring, action and results. We specifically posit that while motivations based on the search for legitimation lead to more incomplete styles of environmental management, competitive motivations entail a more complete management. The analyses conducted with (...) a sample of 1,902 plants provide empirical evidence in favour of such reasoning. The contribution this research makes, therefore, is not restricted solely to showing the effect motivations have on the environmental performance of organisations, as it also introduces a new dimension of environmental management—the degree of completeness, which needs to be considered when understanding and evaluating this effect. (shrink)