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When is industry self-regulation (ISR) a legitimate form of governance? In principle, ISR can serve the interests of participating companies, regulators and other stakeholders. However, in practice, empirical evidence shows that ISR schemes often under-perform, leading to criticism that such schemes are tantamount to firms marking their own homework. In response, this paper explains how current management theory on ISR has failed to separate the pragmatic legitimacy of ISR based on self-interested calculations, from moral legitimacy based on normative approval. The (...) |
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A growing body of work suggests that the presence of women and of independent directors on boards of directors is associated with higher corporate environmental performance. However, the mechanisms linking board composition to corporate environmental performance are not well understood. This study proposes and empirically tests the mediating role of sustainability-themed alliances in the relationship between board composition and corporate environmental performance. Using the population of public oil and gas firms in the United States as the sample, the study relies (...) |
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Drawing on the natural-resource-based view, we propose that employee stakeholder integration is linked to environmental performance through firms’ proactive environmental strategies, and that this link is contingent on shared vision. We tested our model with a cross-country and multi-industry sample. In support of our theory, results revealed that firms’ proactive environmental strategies translated employee stakeholder integration into environmental performance. This relationship was pronounced for high levels of shared vision. Our findings demonstrate that shared vision represents a key condition for advancing (...) |
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The study empirically investigates the relationship between corporate governance and the triple bottom line sustainability performance through the lens of agency theory and stakeholder theory. We claim, in fact, that no single theory fully accounts for all the hypothesised relationships. We measure sustainability performance through manual content analysis on sustainability reports of the US-based companies. The study extends the existing literature by investigating the impact of selected corporate governance mechanisms on each dimension of sustainability performance, as defined by the GRI (...) |
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Despite increasing pressure to deal with climate change, firms have been slow to respond with effective action. This article presents a multi-level framework for a better understanding of why many firms are failing to reduce their absolute greenhouse gas emissions, which contribute to climate change. The concepts of short-termism and uncertainty avoidance from research in psychology, sociology, and organization theory can explain the phenomenon of organizational inaction on climate change. Antecedents related to short-termism and uncertainty avoidance reinforce one another at (...) |
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To deal with potential conflicts between the triple-bottom-line expectations of investors and the performance of executives, firms can use incentives by integrating corporate social performance targets into executive compensation. No evidence yet exists that CSP targets in executive compensation actually lead to an improvement of CSP results. Using a panel data set of 400 firms for the years 2008–2012 leading to 1846 firm-year observations, the relationships between CSP targets and CSP results and CSP improvements are analyzed. The results show that (...) |
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The ability of managers to identify and interpret challenges in the external environment is one of the micro-foundations of dynamic capabilities. The underlying literature on strategic issue interpretation suggests that interpreting environmental challenges as opportunities rather than threats is more likely to lead to proactive and innovative responses, but there are also potentially positive effects of threat interpretation, for instance high levels of commitment and risk-seeking behaviour. In this paper, I use the context of climate change to explore the link (...) |
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Using firm-level data from the U.S. manufacturing industry, this paper examines the relationship among inventory leanness, structural strategies for supply chains, and the carbon intensities of a firm and its suppliers. We formulate hypotheses on and empirically test whether this internal characteristic and these two structural strategies can influence the intensities of firm-level and supply chain environmental impacts. We examine inventory leanness because it not only reflects a manufacturer’s operational efficiency but also markedly influences manufacturers’ financial performance. We also focus (...) |
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Despite a strong plea for integrating sustainability goals into traditional corporate bonus schemes, a comprehensive implementation of these systems has been lacking until recently. This article explores four illustrative cases from the Netherlands, where several multinationals started to pioneer with sustainable bonuses in the past few years. The article examines the setups and the different elements of bonus programmes used, in terms of performance criteria (focusing in particular on external vs. internal benchmarking), their link to specific stakeholders, type and size (...) |
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Businesses promote their environmental awareness through green buildings, eco-labels, sustainability reports, industry pledges and clean technologies. When are these symbols wasteful corporate spin, and when do they signal authentic environmental improvements? Based on twenty years of research, three rich case studies, a strong theoretical model and a range of practical applications, this book provides the first systematic analysis of the drivers and consequences of symbolic corporate environmentalism. It addresses the indirect cost of companies' symbolic actions and develops a new concept (...) |
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If an organization cares for nature, this paper contends, it will act so as not to harm the ecosystems it affects, or when it cannot so act at the moment it will commit itself to such action over time. For an organization's commitment to ecologically beneficent performance to be credible, one requires an action plan with specified targets determining the best ecologically beneficent pollution abatement and ecosystem improvement approaches in a situation. To this end the 4 Direct Environmental Performance Measures (...) |
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If an organization cares for nature, this paper contends, it will act so as not to harm the ecosystems it affects, or when it cannot so act at the moment it will commit itself to such action over time. For an organization's commitment to ecologically beneficent performance to be credible, one requires an action plan with specified targets determining the best ecologically beneficent pollution abatement and ecosystem improvement approaches in a situation. To this end the 4 Direct Environmental Performance Measures (...) |
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The public debate on climate change is filled with moral claims. However, scientific knowledge about the role that morality, ethics, and values play in this issue is still scarce. Starting from this research gap, we focus on corporations as central decision makers in modern society and analyze how they respond to societal demands to take responsibility for climate change. While relevant literature on business ethics and climate change either places a high premium on morality or presents a strong skeptical bias, (...) |
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