Motivations and Barriers to Corporate Environmental Management. (24th September 2012)

• Record Type: Journal Article
• Authors: Ervin, David; Wu, JunJie; Khanna, Madhu; Jones, Cody; Wirkkala, Teresa
• Is Part Of: Business strategy and the environment. Volume 22:Number 6(2013)
• Page Start: 390
• Page End: 409
• Publication Date: 2012-09-24
• Subjects: environmental practices -- pollution prevention -- management attitudes -- economic factors -- institutional forces -- stakeholder pressures -- environmental policy; Industrial management -- Environmental aspects -- Periodicals; Industries -- Environmental aspects -- Periodicals; 658.4083
• DOI: 10.1002/bse.1752
• Languages: English
• ISSNs: 0964-4733

Abstract

ABSTRACT: This paper integrates two conceptual frameworks, utility maximization and institutional theory, to analyze voluntary corporate environmental management. The utility maximization or economic approach centers on motivations to decrease cost, increase revenue and improve manager utility. Institutional theory emphasizes how external pressures from market and non‐market constituents shape the firm's environmental efforts. We view the two frameworks as complementary and postulate a model that includes both types of influences. Survey data from six major industries consisting of a diverse set of facilities are used to estimate the effects of economic and institutional factors on a facility's use of environmental practices and pollution‐prevention activities. Our results support the hypothesized model, and show that cost barriers, management attitudes toward environmental stewardship, company ownership and external institutional forces, including competitiveness, investor and regulatory pressures, all affect a facility's environmental practices and pollution prevention activities. Findings suggest that a multifaceted policy strategy is needed to advance corporate environmental management across diverse firms. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment