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Green by Choice? Cross-National Variation in Firms' Responses to EMS-Based Environmental Regimes
Abstract
Environmental Management Systems (EMSS) represent a new generation of voluntary “beyond compliance” environmental policies that neither set substantive goals nor specify final outcomes. As a result, many stakeholder groups are lukewarm toward them. Since 1993 two major supranational EMSs—ISO 14001 and the European Union's Environmental Management and Audit Scheme (EMAS)—have been introduced. Firms receive formal accreditation after their EMS has been certified by outside verifiers. This accreditation can potentially bestow monetary and nonmonetary benefits on these firms.
Firm-level EMS adoption patterns in the United Kingdom, Germany, and the United States vary, thereby suggesting that national contexts influence firms' responses to them. In Germany and the U.K. a significant number of sites have become either ISO 14001 or EMAS certified, while the take-up of ISO 14001 in the U.S. (EMAS is available only to European sites) has been less enthusiastic.
This article begins with the hypothesis that firms in countries with adversarial economies— where regulators and business are on less than friendly terms—are less likely to adopt EMS-based programs. This hypothesis explains why ISO 14001 take-up has been relatively high in the U.K. and relatively low in the U.S. However, it cannot explain (1) the high rate of take-up of both ISO 14001 and EMAS in Germany, where the stringency of environmental legislation has been a contentious issue between the government and industry and (2) why EMAS has been more popular in Germany than in the U.K. This article argues that the original hypothesis, while largely correct, is underspecified. To better explain the cross-national differences in EMS adoption, one must take into account the type of adversarial economy (adversarial legalism versus prescriptive interventionism) and the nature of the policy regime (procedural versus substantive).
... Regulators also know that firms can benefit from EMS membership by preventing potentially costly government command and control measures (Kollman & Prakash, 2001;Russo & Fouts, 1997), by enhancing the firm's image and profitability (Dangelico & Pontrandolfo, 2015;Murray & Montanari, 1986), by obtaining enhanced reputational benefits in the form of club goods (Clapp, 1998;Cormier & Magnan, 2015;Kollman & Prakash, 2001;Porter & van der Linde, 1995) and finally by improving environmental performance (Murray & Montanari, 1986;Kollman & Prakash, 2001). ...
... Regulators also know that firms can benefit from EMS membership by preventing potentially costly government command and control measures (Kollman & Prakash, 2001;Russo & Fouts, 1997), by enhancing the firm's image and profitability (Dangelico & Pontrandolfo, 2015;Murray & Montanari, 1986), by obtaining enhanced reputational benefits in the form of club goods (Clapp, 1998;Cormier & Magnan, 2015;Kollman & Prakash, 2001;Porter & van der Linde, 1995) and finally by improving environmental performance (Murray & Montanari, 1986;Kollman & Prakash, 2001). ...
... Regulators also know that firms can benefit from EMS membership by preventing potentially costly government command and control measures (Kollman & Prakash, 2001;Russo & Fouts, 1997), by enhancing the firm's image and profitability (Dangelico & Pontrandolfo, 2015;Murray & Montanari, 1986), by obtaining enhanced reputational benefits in the form of club goods (Clapp, 1998;Cormier & Magnan, 2015;Kollman & Prakash, 2001;Porter & van der Linde, 1995) and finally by improving environmental performance (Murray & Montanari, 1986;Kollman & Prakash, 2001). ...
Governments play an active role in promoting corporate social responsibility and specifically environmental management system (EMS) programs, but few studies have examined the impact of such support on the decision of businesses to adopt EMS programs. We ask two questions in this paper: how does government support for EMS programs affect adoption of such programs? Second, what effect does this government support have on the pace of adoption of such programs? The answer to the first question can reveal how effective government programs are in boosting membership in EMS programs. The answer to the second reveals to what extent businesses within EU member states are converging upon particular EMS standards. We examine these questions in the context of the European Union’s Eco‐Management and Audit Scheme (EMAS), 2010–2014. There is significant variation in government support of EMAS across the EU and at the same time, EMAS competes for business attention with the more established ISO 14001. Our quantitative and qualitative analyses therefore reveal the effectiveness of government programs in boosting adoption, but also to the extent to which such programs cause convergence upon EMAS in the face of a competing standard such as ISO 14001.
... At the same time, it also has a significant impact on companies in terms of building a positive corporate impression. It also increasing corporate prestige which causes the sales improvement, and boosted attractiveness to clients, creditors and officials (Green & Li 2011;Kollman & Prakash 2001;Zhou et al. 2013); this also increases firm value. Based on the above discussion, we propose the formal hypothesis as follows: ...
... Thus, the indication provided by the management is revealed in the assessment of the firm by the investor. At the same time, there is a significant impact for companies in terms of creating a positive corporate image and enhancing corporate prestige which causes the sales improvement, and boosted attractiveness to clients, creditors and officials (Green & Li 2011;Kollman & Prakash 2001;Zhou et al. 2013). ...
... Alternatively, those disadvantaged by changes to a private regulation may then opt to pursue their aims through public policy (Weimer, 2006). Such outcomes would be consistent with broader findings from scholarship on "corporate social responsibility" (CSR) initiatives, such as environmental management systems (EMS), industry codes of conduct, and third-party certification programs, which find that more costly requirements are less likely to be adopted (Delmas & Montiel, 2008;Kollman & Prakash, 2001;Lyon & Maxwell, 2008). Firms will only adopt costly requirements if there is a countervailing benefit of certification, whether an abstract "social license to operate" or a concrete benefit like market access or a price premium. ...
... Descriptive theory Bernstein and Cashore (2007) Pressure to "raise" or "lower" requirements "explains convergence/divergence" Descriptive theory Kollman and Prakash (2001), Potoski and Prakash (2005) "lax" or "processes-based" vs. "more stringent" "outcome-based" or "productbased" "types of regulations" ISO14001 classified as process-based, stringency assessed only for public regulations Prakash and Potoski (2007) "stringent" vs. "lenient" Costs, social externalities, and branding benefits Formal models of "stringency" or "quality" "sustainability quality level" (Poret, 2016), "stricter rules" (Schmitz, Baum, Huett, & Kabst, 2017), "stringency" (Fischer & Lyon, 2014) Costs vs. benefits to programs and firms Formal models of issue scope "issue-width" in an "issue space" (Heyes & Martin, 2017) Costs vs. benefits to programs and funders that these programs "all moved closer." Here, different measurement strategies led to different conclusions that then supported conflicting theories of policy change. ...
Due to inconsistent concepts of regulatory stringency, scholars offer conflicting accounts about whether competing private governance initiatives “race to the bottom,” “ratchet up,” “converge,” or “diverge.” To remedy this, we offer a framework for more systematic comparisons across programs and over time. We distinguish three often-conflated measures of stringency: regulatory scope, prescriptiveness, and performance levels. Applying this framework, we compare competing U.S. forestry certification programs, one founded by environmental activists and their allies, the other by the national industry association. We find ‘upwardly divergent’ policy prescriptiveness: both programs increased in prescriptiveness, but this increase was greater for the activist-backed program. Furthermore, requirements added by the activist-backed program were more likely to impose costs on firms than requirements added by the industry-backed program, many of which may even benefit firms. These results are consistent with the hypothesis that industry-backed programs emphasize less costly types of stringency than activist-backed programs. They also reveal patterns of change that previous scholarship failed to anticipate, illustrating how disentangling types of stringency can improve theory building and testing.
... The article suggests that though in many organizations, performance-improving Environmental Managing System (EMS) practices were adopted prior to the existence of ISO 14001, but these organizations were able to gain external social and economic rewards only after the adoption of ISO 14001 that provided a mechanism to communicate their environmentally friendly activities. Literature has also found cross-national variations in patterns of adoption of two EMS standards: European Union's Eco-Management and Audit Scheme (EMAS) and ISO 14001 (Kollman & Prakash, 2001). While a number of studies has been done on different regulatory systems but not much research has been conducted on the identification of factors that lead to their adoption. ...
... While a number of studies has been done on different regulatory systems but not much research has been conducted on the identification of factors that lead to their adoption. Kollman and Prakash (2001) has found the factors that lead to the adoption of these standard practices by examining EMAS and ISO 14001 in the United States, United Kingdom, and Germany and found that domestic (relation between business & government) and supranational institutions influence their adoption. ...
This book examines the Indian mandate for Corporate Social Responsibility (CSR) and its implementations in various individual organizations. Although the mandate is applicable only to certain large and stable companies, many believe that India is poised to become the birthplace of social, economic and environmental transformation, given the immense size of the Indian population and its challenging socio-economic index. The book explores the various facets of CSR investigation and places special emphasis on the Schedule VII of the Indian Companies Act of 2013, which defines specific areas of intervention for these companies. In addition, it provides a wealth of first-hand case studies that exemplify the ongoing developments and the fundamental challenges and opportunities of mandated CSR.
... Mattli 2011; Hale and Roger 2014;Kollman and Prakash 2001;Koppell 2010;Prakash and Potoski 2014;Roger, Hale, and Andonova 2015). In Andonova et al. (2014), the authors find robust evidence to suggest that participation in TCG will be greatest in countries with strong civil liberties, decentralized government, competent bureaucracies, and pro-environment policies. ...
... Research on why individual actors engage in transnational governance has emphasized transnational "diffusion" processes, such as advocacy pressures and commodity chains, through which social and material pressures are transmitted (Bartley 2010;Dauvergne and Lister 2010;García-Johnson 2000;Perkins and Neumayer 2010;Prakash and Potoski 2006;Vogel 1995Vogel , 2005Vogel , 2008Vogel , 2010). More recent research shows that national levels of openness and connectedness to the rest of the international system are dependent on or endogenous to domestic politics (Berliner and Prakash 2014;Büthe and Mattli 2011;Hale and Roger 2014;Keohane and Milner 1996;Kollman and Prakash 2001;Prakash and Potoski 2014;Roger et al. 2015). In other words, certain domestic contexts will favor participation in transnational governance and their effectiveness more than others. ...
This article focuses on the Global 500, which are the world?s largest companies by revenue, to examine the factors and dynamics internal to companies that motivate some corporations, but not others, to engage in transnational climate governance. Empirical results based on multilevel mixed-effects analyses, which separately identify the relative weight of firm and country-level factors, suggest that the likelihood that a firm participates in transnational climate governance (TCG) is higher when there exists a ?policy supporter? who champions sustainability policies and when a company adopts explicit sustainability practices, such as the incorporation of ESG (Environmental, Social and Governance) principles. Voluntary climate action and carbon disclosure are more likely to take place when a company has a large asset base and certifies with the ISO 14001 environmental management standard. Moreover, the level of civil liberties that corporations enjoy in their respective country of origin is associated with participation in TCG. A decomposition of the variance indicates that firm-level factors account for a majority of the variance in TCG participation. This study has implications for climate change governance and policies, which have increasingly focused on concrete climate solutions and innovations by nonstate and substate actors.
... Exceeding regulatory expectations also has the potential to enhance participants' environmental image and confer external legitimacy (Darnall, 2006). While often difficult to quantify, enhanced image and legitimacy could lead to such things as increased sales, improved ability to recruit talented employees, and enhanced relations with external stakeholders (Kollman and Prakash, 2001). ...
Increasing concern about global sustainability has ushered in a diverse set of regulatory policies that aim to encourage sustainable practices and outcomes. This chapter sheds light on how these regulatory policies affect multiple aspects of companies’ sustainable
supply chain practices. It begins by describing sustainable supply chain strategies more generally, focusing especially on firms’ efforts to reduce their environmental harms. It then discusses how different types of regulation are related to firms’ efforts to make their supply chains more sustainable. Three general regulatory policies are considered: (1) command-and-control regulation; (2) market-based policies; and (3) non-regulatory approaches, which include voluntary environmental programs and information-based environmental programs such as eco-labels and sustainable public procurement.
... However, Ozusaglam et al. (2018) describe the relationship between firm size and EMS adoption as an inverted U-shape, concluding that moderately large or medium-sized companies are those with a higher probability to voluntarily adopt standardized EMS. This can be explained by much higher implementation costs that large firms have in relation to extensive employee participation and documentation of the organization's processes (Kollman and Prakash 2001;Ozusaglam et al. 2018). Mueller et al. (2009);Ozusaglam et al. (2018) and Simpson et al. (2007) state that large firms prefer to develop their own yet not standardized or certified voluntary EMS. ...
Considering internationally accepted voluntary standards of an environmental management system (EMS) as tools that can help businesses meet the agenda for sustainable development and environmental wellbeing, this study aims to examine selected firm characteristics and financial performance that are potentially related to decisions of business entities in the matter of voluntary EMS implementation. We conduct empirical research based on logistic regression to study Slovak firms that are or are not certified according to ISO 14001 and EMAS standards. Our results suggest that there are several factors potentially determining the positive company choice to adopt voluntary EMS. We have confirmed the positive effect of firm size and research and development, however, we were not able to confirm the effects of foreign ownership and profitability effects. In the case of indebtedness, we have found a stronger negative effect of long-term debt. Our results also suggest a positive effect of owning a website, where companies can share information about their certificates. On the other side, especially younger companies tend to be interested in voluntary EMS.
... However, the green market has typical information asymmetry characteristics. According to the information asymmetry theory, most of the external investors, consumers and other stakeholders have defects in the cognition of green products and green behavior information, and generally speaking, they can only indirectly know the products from advertising and other means [37]. Thus, companies are the advantage of information which master a variety of internal and external information, while stakeholders are the disadvantage of information and the cognition of companies mainly comes from the information obtained and their own experience [38]. ...
With the increasing attention of the capital market to environmental, social and governance information, sustainability reporting has become an important carrier for stakeholders to gain insight into sustainability of companies. But the emerged "greenwashing" problem has also brought haze to the value creation of capital market. To study the consequences of the pseudo-social responsibility behavior of "greenwashing", this paper takes China's listed companies as the research sample to empirically examine the relationship between sustainability reporting "greenwashing" and "shared value" creation. It is found that the "greenwashing" behavior of corporate sustainability reporting significantly reduces the "shared value" creation, while the degree of sustainability information asymmetry and the quality of information disclosure play a partial mediation role between them. Further analysis shows that the more effective internal control of a company and the greater pressure of external media supervision, the more conducive to weaken the negative impact of "greenwashing" on "shared value" creation. This paper enriches the literature on the economic consequences of "greenwashing" in sustainability disclosure and the influencing factors of "shared value" creation, extends the research on information disclosure and "shared value" from financial information to non-financial information. The results call for the state to promote legislative work, formulate unified standards and compress the "greenwashing" gray space; Governments could implement mandatory disclosure, implement independent authentication and strengthen "greenwashing" social supervision; Companies should strengthen capacity building and improve the "greenwashing" governance mechanism with the help of digital empowerment.
... Those in industry are on the lookout for hidden dangers." Kollman and Prakash (2001) also point that companies that are tightly regulated have usually dealt with any inefficiency and therefore cost-savings are more difficult to achieve compared to companies that are under less legislative pressure. This is an additional disincentive for companies under strong legislative pressure to implement EMSS, an explanation in line with the results of this research. ...
This paper employs logistic regression analysis to test a model that predicts the implementation or not of Environmental Management Systems Standards (EMSS) by considering various factors as explanatory variables. The dependent variable is a dichotomous as either implementing or not EMSS by industrial firms. From past experience we identify 15 major variables contributing to implementation of EMSS. A sample of 259 respondents (84 implementing and 175 not) is used to estimate the parameters of the logistic regression model employing maximum likelihood. The results show an overall significant model with 4 of the 15 variables significant. The significance of management perception of environmental issues on their decision to implement EMSS was confirmed with regards to their perception on win-win possibilities. Pressure on companies to improve their environmental performance does not result in higher uptake of the standards. Company's image and size are important factors in its decision to implement EMSS.
... Differences in policies are not isolated instances but embedded in differences across configurations of different policies, constituting distinct policy environments. US businesses often adopt a more adversarial attitude towards government than their Western European counterparts, who are embedded in a more corporatist cooperative culture (on the cross-national variation of such relations in environmental policy see Kollman and Prakash 2001). US trade associations tend to service their members rather than coordinate them, whereas in Western Europe, the cooperative culture between business and government requires business to coordinate their action to fully exploit the bargaining potential that dialogue and agreements offer (Delmas and Terlaak 2002, p. 13f). ...
Purpose Environmental Product Declarations (EPDs) and Product Carbon Footprints (PCFs) have a significant potential for contributing to consumption-based approaches to climate change. This paper provides an important building block towards a theoretical model of the factors accounting for variations in the availability of life cycle data across countries. It does so by positing a mechanism linking industry associations’ institutional role within environmental policy processes to the availability of product life data and by empirically validating it. Methods Interviews, qualitative document analysis, web scraping, quantitative text analysis, set-theoretical causal reasoning, and process tracing. Results and discussion Environmental policies that stipulate industry-government deliberations and assign a coordinating or mediating role to industry peak associations can stimulate the exchange of environmental information among industrial sectors. The policy instruments of determination of ‘best available techniques’ (BAT) towards standard setting, negotiated collective agreements and carbon pricing all contribute towards the institutionalisation of organised information exchange within industry. This lowers transaction costs for the monitoring, reporting and verification of sectoral environmental data and can thus be conducive to the creation of sectoral life cycle assessment data, with positive knock-on effects on the availability of firm- and product-specific LCA labels. Conclusions Industry associations’ institutional role within environmental policy processes can partially explain cross-national variations in the availability of product life cycle inventories.
... Differences in policies are not isolated instances but embedded in differences across configurations of different policies, constituting distinct policy environments. US businesses often adopt a more adversarial attitude towards government than their Western European counterparts, who are embedded in a more corporatist cooperative culture (on the cross-national variation of such relations in environmental policy see Kollman and Prakash 2001). US trade associations tend to service their members rather than coordinate them, whereas in Western Europe, the cooperative culture between business and government requires business to coordinate their action to fully exploit the bargaining potential that dialogue and agreements offer (Delmas and Terlaak 2002, p. 13f). ...
Purpose
Environmental Product Declarations (EPDs) and Product Carbon Footprints (PCFs) have a significant potential for contributing to consumption-based approaches to climate change. This paper provides an important building block towards a theoretical model of the factors accounting for variations in the availability of life cycle data across countries. It does so by positing a mechanism linking industry associations’ institutional role within environmental policy processes to the availability of product life data and by empirically validating it.
Methods
Interviews, qualitative document analysis, web scraping, quantitative text analysis, set-theoretical causal reasoning, and process tracing.
Results and discussion
Environmental policies that stipulate industry-government deliberations and assign a coordinating or mediating role to industry peak associations can stimulate the exchange of environmental information among industrial sectors. The policy instruments of determination of ‘best available techniques’ (BAT) towards standard setting, negotiated collective agreements and carbon pricing all contribute towards the institutionalisation of organised information exchange within industry. This lowers transaction costs for the monitoring, reporting and verification of sectoral environmental data and can thus be conducive to the creation of sectoral life cycle assessment data, with positive knock-on effects on the availability of firm- and product-specific LCA labels.
Conclusions
Industry associations’ institutional role within environmental policy processes can partially explain cross-national variations in the availability of product life cycle inventories.
... Regarding question 1, on the degree of greening of Kenyan companies, we first inquire into green organizational change, understood as the rise of proactive green strategies. We use environmental management systems as a proxy, see also (Kollman and Prakash 2001;González-Benito and González-Benito 2006;Hertin et al. 2008;Nawrocka and Parker 2009). Second, we inquire into the degree and nature of the green innovations, using a simple maturity curve: We ask into respective end of pipe (EoP), resource efficiency, circular innovations (which is here reduced to recycling measures) and product innovation, representing a learning curve from reactive strategies towards more preventive and radical innovations. ...
African countries seek to intensify their industrialization while also increasingly pursuing green growth and, more recently, circular economy strategies. The competitive implications of this are, however, little researched empirically. We seek to investigate how African countries, examplified in this paper by Kenya, are experiencing a green and circular structural change of their economies. On the basis of early findings from a survey among 27 mixed manufacturing companies in Ruaraka industrial area in Nairobi, we highlight green and circular innovation trends, conditions and dynamics for different types of industries and firms (size). We apply a strong business perspective in framing the questions. We conclude that the companies are reaching a moderate stage of greening,although with a high degree of variability. Circular innovations are relatively widespread and ensuring resource supply seems to be a more important incentive than cutting costs. There seems overall to be quite strong business incentives to go circular among Kenyan companies, although these incentives are not necessarily realized by the companies, a factor that could be utilized in policymaking. We suggest a strong business-oriented survey methodology as a way forward to expand insights into the greening of industries in Africa and similar economies.
... Thus, VEP participation is not a uniquely valuable resource on its own. Further, VEPs have compliance and certification costs that can outweigh any advantages they create for some firms (Bansal & Hunter, 2003;Kollman & Prakash, 2001). ...
We meta-analyze research on why firms join voluntary environmental programs (VEP) to assess the impact of program stringency, or the extent to which they have rigorous, enforceable standards on these decisions. Stringency creates trade-offs for firms by impacting programs’ effectiveness, legitimacy, and adoption costs. Most research consider singular programs and lack cross program variation needed to analyze program stringency’s impact. Our meta-analysis addresses this by sampling 127 studies and 23 VEPs. We begin by identifying common institutional and resource-based drivers of participation in the literature, and then analyze how program stringency moderates their impacts. Our results suggest that strictly governed VEPs encourage participation among highly visible and profitable firms, and discourage it when informal institutional pressures are higher, and firms have prior experience with other VEPs or quality management standards. We demonstrate that VEP stringency has nuanced effects on firm participation based on the institutional and resource-based factors facing them.
... Regulations of different countries towards the adoption of ISO 14000 also affect the diffusion of this standard. European countries and some Asian countries, such as Japan (Bansal & Roth, 2000) and Singapore (Quazi, Khoo, Tan, & Wong, 2001), provide favourable legislative environment for firms to adopt EMS, while the U.S. comparatively provides less favourable legislative environment (Kollman & Prakash, 2001, 2002. The regulatory environment within a country affect the costs and perceived benefits of ISO 14000 adoption (Delmas, 2002). ...
Consumers and stakeholders have rising concerns over product quality and environmental issues, and therefore, quality and environmental management have become important topics for today's fashion products manufacturers. This chapter presents some empirical evidence of the adoption of quality management systems (QMS) and environmental management systems (EMS) and their impact on fashion and textiles related firms' supply chain efficiency. Although both management systems are commonly adopted in the manufacturing industries and becoming a passport to business, their actual impacts specifically on the fashion supply chain have not been explored. By investigating the adoption of ISO 9000 (a quality management system) and ISO 14000 (an environmental management system) in the U.S. fashion and textiles firms, we estimate their impact on manufacturers' supply chain performance. Based on 284 publicly listed fashion and textiles manufacturing firms in the U.S., we find that fashion and textiles firms operating cycle time had shortened by 15.12 days in a five-year period. In the cross-sectional analysis, the results show that early adopters of ISO 9000 and high-tech textiles related firms obtained more supply chain benefits. We only find mixed results of the impact of ISO 14000 on supply chain performance.
... Thus, VEP participation is not a uniquely valuable resource on its own. Further, VEPs have compliance and certification costs that can outweigh any advantages they create for some firms (Bansal & Hunter, 2003;Kollman & Prakash, 2001). ...
... For example, the natural resources sector is subject to substantial scrutiny, and its firms have particular need for support from social actors (see Henisz, Dorobantu, & Nartey, 2014). Future research may also consider other important stakeholders, such as firms' customers, stakeholders representing the natural environment, and the state (Kollman & Prakash, 2001;Ortiz-de-Mandojana, Aguilera-Caracuel, & Morales-Raya, 2014). Because the state shapes labor and capital institutions, it is important to examine whether firms' stakeholder engagement (e.g., attending to employee concerns in a context of strong capital institutions) engenders a reaction from the state. ...
RESEARCH SUMMARY
Research documents the performance effects of attending to shareholders and treating employees well but underplays national differences in the relative power of labor and capital. We advance a configurational perspective that acknowledges the fit between stakeholder engagement, context, firm attributes and performance. As a cornerstone of this perspective, we develop a typology of stakeholder engagement strategies expressing how firms navigate the tension between conforming with local expectations—by prioritizing shareholders or employees, according to context—and being distinctive—by diverging from their peers. Analyzing a cross‐national sample of firms from 2004 to 2011, we identify combinations of engagement strategies, firm attributes, and contexts linked to high performance. Our findings highlight the multiple context‐dependent paths which link stakeholder engagement to high firm performance.
MANAGERIAL SUMMARY
How do firms navigate pressures from shareholders and employees across different institutional environments? We develop a typology of stakeholder engagement strategies based on how firms in different countries strike a balance between conformity (i.e. prioritizing locally important stakeholders) and differentiation (i.e. prioritizing stakeholders that their local peers might neglect). Our findings show that the engagement strategies associated with high performance vary according to local institutional context and firm characteristics. In particular, by not merely prioritizing stakeholders who are already locally important, firms can use stakeholder engagement to differentiate themselves from their peers, and such engagement strategies are often linked to high performance.
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... Exceeding regulatory expectations also has the potential to enhance participants' environmental image and confer external legitimacy (Darnall, 2006). While often difficult to quantify, enhanced image and legitimacy could lead to such things as increased sales, improved ability to recruit talented employees, and enhanced relations with external stakeholders (Kollman and Prakash, 2001). ...
Increasing concern about global sustainability has ushered in a diverse set of regulatory policies that aim to encourage sustainable business practices and outcomes. This chapter sheds light on how these regulatory policies affect multiple aspects of companies’ sustainable supply chain practices. It begins by describing sustainable supply chain strategies more generally, focusing especially on firms’ efforts to reduce their environmental harms. It then discusses how different types of regulation are related to firms’ efforts to make their supply chains more sustainable. Three general regulatory policies are considered: (1) command-and-control regulation; (2) market-based policies; and (3) non-regulatory approaches.
... Pressure to engage in climate change governance, finally, can also emanate from peers who are concerned that -one rotten egg spoils the entire cake‖, i.e. the reputation of an industry sector (Hönke et al. 2008). Business associations and informal networks often act as transmitters of peer pressure (Kollman and Prakash, 2001). ...
... While both industry and cross-industry self-regulation have been extensively analysed (Cutler et al. 1999;Haufler 2001;Kollman and Prakash 2001), studies focusing on governance activities at firm level are still lacking. However, individual action is becoming increasingly important for MNCs and this can notably be seen through the example of insetting. ...
In the context of global climate governance, multinational corporations (MNCs) are increasingly seen as financial, technical and political partners. Looking at MNCs with core business activities linked to deforestation, this article analyses private governance activities focused on sustainability that occur at firm level. These activities include newly enacted, concrete policies and activities aimed at climate protection, such as the concept of carbon insetting. The current body of the literature on global governance focuses largely on collective action, with activities at firm level still under-researched and under-conceptualized. To better understand (a) what drives MNCs to undertake such activities and (b) why their performance differs both within and between industry sectors, three motives are proposed—preventing reputational damage, building resilience and assuming ethical responsibility—with the latter indicating a revival of the Honourable Merchant, an economic role model created in the early 16th century. The empirical analysis is, therefore, embedded in a theoretical framework that seeks to capture the complexity of corporate rationality.
... From the company's perspective, the labels are expected to legitimatize its business practices, protect it from public regulation and/or help it gain competitive advantages. From the consumer's point of view, the labeling will reduce uncertainty about the environmental performance of products and enable consumers to choose products that cause less damage to the environment [5][6][7]. In other words, there are many good reasons why companies should adopt environmental labeling schemes and why consumers should compensate such effort by purchasing environmental performance labeled products and services. ...
... Örneğin özel teşebbüs veya şirketlerin bile ISO ve EMS belgeleri alarak çevre konusunda gönüllü katkıları söz konusudur. Şirketlerin hükümet denetimi, gözlemi ve baskısı olmadan veya oldukça sınırlı baskısına rağmen bu çevre yönetişimi rejimine dâhil olması (Kollman ve Prakash, 2001: 400) bu kazanımın bir göstergesi olarak görülebilir. Bu kazanımlar sayesinde hükümetler, yerel yönetimler, uluslararası/yerel sivil toplum örgütlerinin de katılımı ile başarılı bir çevre yönetimi (Nakazawa, 2006: 70) sağlanabilir. ...
... In one study on cross-national variations in the adoption of EMSs by companies, the authors studied the response of firms in the United States, the United Kingdom, and Germany to EMAS and ISO 14001. 203 In the United States and Germany, the relationship between the environmental regulators and the industries is considered adversarial, due to their command-andcontrol policies as well as the presence of politically strong environmental movements. 204 In comparison, British environmental regulation is for the most part locally based rather than nationally based. ...
... The adoption of ISO 14001-type standards involves extensive employee participation and training as well as an extensive documentation of the organisation's processes. This can lead implementation costs to increase with firm size (Kollman and Prakash 2001). Our second result concerns firms that are part of a group. ...
Environmental management standards (EMS) are important voluntary management tools that aim at reducing the environmental impact of firms’ activities. From ethical motivations through increasingly high pressure from regulatory authorities to expected financial returns, reasons to adopt an EMS are manifold. While they all certainly matter, it is still unclear from the literature which firm-specific organisational capabilities and structural characteristics significantly drive adoption. Using Propensity Score Matching (PSM) on two samples of French firms, we identify firm-specific factors associated with the early or late adoption of ISO 14001-type EMS and we test whether adoption increases labour productivity. We find that adopters are moderately large manufacturing firms that rely on ISO 9001 standards or Total Quality Management. In addition, according to the first sample, early adopters tend to be more technologically complex firms that are active in the European market. These differences are attenuated in the second sample, which may be biased towards more innovative firms. Both samples however concur with the conclusion that, whether early or late, adoption is associated with a higher labour productivity compared to non-adoption. This result still holds when we use fully interacted linear models instead of PSM, and seems to be consistent over time. Thus, implementing EMS might provide win–win opportunities to adopters, without giving any premium to “early birds”.
... 16 ISO 14001 requires annual recertification audits. Firms may be more reluctant to conduct audits without attorney-client privilege protections (which only some states have granted) because regulators may punish self-disclosed violations (Kollman & Prakash, 2001;Pfaff & Sanchirico, 2000). corresponding EPA minimum criteria. ...
... Third-party assurance may not provide similar operational benefits to those derived from internal environmental audits; however, third-party assurance on environmental information enhances a firm's environmental image and reputation, which may lead to an increase in sales, and enhanced attractiveness to customers, lenders and regulators (Kollman and Prakash, 2001;Green and Li, 2012;Zhou et al., 2013). Environmental information disclosure, audited by an independent assurer, will help a company to escape the perception that such disclosures are just 'greenwash', which can indicate that a firm is behaving hypocritically in promoting itself as being environmentally responsible (Simnett et al., 2009;Lyon and Maxwell, 2011). ...
... Environmental management carried out by companies in order to reduce the environmental impact of their activities on the environment has become in recent years a competitive advantage for those companies wishing to operate in national and international markets [1]. A competitive advantage is derived both from the image transmitted by managing the company following environmental guidelines and standards and from improved internal efficiency of the organization resulting from this management [2]. This management is performed by implementing Environmental Management Systems (EMSs). ...
Abstract: The objective of this paper is to analyze the influence of the sources of motivation that lead companies to adopt a global standard of the Environmental Management System and the barriers found in the process, on the perceived benefits of the implementation and certification of the standard. To achieve the objectives proposed, primary data were collected using a survey questionnaire that was administered to a representative sample of companies certified as EMAS-Eco-Management and Audit Scheme of the Autonomous Community of Galicia (sample of 114 of the 255 companies). An extensive review of the academic literature published on ISO 14001 and EMAS about motivations, barriers and benefits was carried out in order to establish the working hypotheses that are analyzed using structural equation models as the statistical tool. The findings of this study show that the motivations positively affect the benefits derived from implementation, noting that the internal motivations (related to efficiency; improved performance, productivity and profitability) have a stronger influence on the benefits than the external motivations (related to stakeholders’ social pressure). In addition, the motivations also affect the perceived barriers, and these affect the benefits negatively, i.e., the higher the barriers encountered, the lower the perceived benefits. The results obtained allow us to identify important implications for managers, which will help them establish management strategies in the field of environmental management.
Keywords: environmental management; sustainability; EMAS III; motives; barriers; benefits; Spain
... The literature on EMS adoption and diffusion emphasizes the positive role of mimetic effects (Bansal, Clelland, 2004;Boiral, 2007) and mechanisms of normative isomorphism (Delmas, Toffel, 2008;Delmas, 2002) on EMS adoption. Kollman and Prakash (2001) explain that the differences in the adoption behaviors of US, British and German firms are related to the heterogeneity of the informal pressures exerted by the industry's institutions. ...
The aim of this article is to analyze the relationship between Environmental Management System (EMS) adoption and firms’ organizational changes. The objective is to study the organizational changes associated with EMS adoption, and to shed light on the process of change and adaptation within the firm’s internal organization, as well as between the firm and its external partners. We study organizational changes associated with EMS thanks to an unique nationwide database in France (Organizational Changes and Computerization survey of 2006). Results show that EMS adoption is associated with a tendency toward flatter hierarchies and the development of collective labor practices. They reveal a strong complementarity with the formalization of practices such as logistical arrangements and adoption of certification systems. It also involves informal modes of coordination with external partners rather than formal constraints.
... Among internal factors, scholars note the role of firm size, profitability, technical capacities, and foreign ownership (89,79). Among external factors, in addition to the role of activist pressure (90) and regulators (91), we have noted the role of pressures from upstream firms on their supply chain. ...
What is the social purpose of the firm? Is the sole or predominant purpose to make profits for the shareholders, as Milton Friedman famously noted, or should firms adopt policies that enhance social welfare, not necessarily increase profits? Should firms as legal "persons" act beyond their usual functions as agents of the shareholders? Should firms pursue political projects that might reduce profits, or should firms return profits back to shareholders and let shareholders decide what politics they wish to support? Do corporate social responsibility (CSR) policies represent agency conflicts whereby managers use shareholders' wealth to pursue their political and personal agendas, and, if so, should such managers face legal sanctions or at least be sanctioned by the stock market, an institution dedicated to enhancing shareholders' wealth?
The theoretical and normative aspects of the CSR debate are fascinating. While the commitment to pursuing CSR policies varies across firms, sectors, and countries, the salience of these policies is particularly striking in the realm of environmental management. While some firms have adopted CSR policies (or corporate environmentalism) unilaterally, others have sought to pursue CSR under the aegis of a formal program or club. Indeed, scholars are trying to examine conditions under which voluntary clubs might have a greater payoff for firms in relation to unilateral CSR actions.
To begin thinking about policy payoffs, one needs to examine how external stakeholders perceive CSR policies. What are their preferences? Do they have the capabilities to sanction or signal appreciation for CSR, thereby shaping firms' commitment to CSR? Scholars such as Michael Porter find win-win scenarios to be pervasive (specifically in the environmental arena) while others such as David Vogel are skeptical about the "market for virtue."
How do various institutions in which a firm is embedded influence its incentives to pursue CSR? One can argue that CSR is not likely to be viewed as managerial malfeasance: one seldom finds the United Sates Securities and Exchange Commission or shareholders suing firms for pursuing CSR. There is mixed evidence about the reaction of stock markets to CSR. The stock market seems to punish firms for not pursuing CSR in certain circumstances: research suggests that when the Toxics Release Inventory data were released, firms identified as major polluters saw declines in their share prices although their emissions were legal. There is no evidence, however, that the stock market will reward firms for pursuing CSR policies in every context. The message from the stock market seems to be: if CSR can avoid bad publicity for the firm, then it is acceptable; by itself, CSR does not constitute "good" news. And a similar story seems to hold for consumers' response to CSR. By and large, the market demand for socially responsive products has remained small. Furthermore, the current surge in the market for organics arguably reflects consumers' private interests in their own health, rather than their willingness to pay more to save the environment.
The debate about corporate social responsibility boils down to two questions: under what conditions will firms adopt CSR policies, and under what conditions will CSR policies enhance firms' social/environmental and financial performance? The debates on these issues have been particular intense in the context of corporate environmentalism—adoption of policies that are beyond firms' legal requirements with the explicit purpose of generating social externalities. For those favoring corporate environmentalism, the key challenge is to persuade firms to adopt such policies given that firms often cannot monetize and internalize the economic benefits of doing so, and have to incur non-trivial costs. Thus, while CSR might enhance firms' social/environmental performance and generate (non-tangible) goodwill benefits, these benefits might not be captured in the traditional measures of financial performance, at least not in the short run.
It is fair to say the assumption in the policy literature has been that firms will be reluctant to incur private costs to create positive social externalities, such as a cleaner environment. To persuade them to do so, coercion is required. Because governments are specialists in the production of coercion, they are perhaps in the best position to supply such policies. Thus emerged the rationale for the command and control approach to environmental governance. The idea is that...
... Imitation and peer-pressure may thus become important elements in understanding firms' responses to climate change. Furthermore, business associations, collective agreements, and informal networks often act as transmitters of peer pressure (Kollman and Prakash, 2001), further contributing to an increasingly homogeneous set of organisational responses in a process called mimetic isomorphism (DiMaggio and Powell, 1991). However, empirical work suggests that isomorphism is not the dominant trend in organisations' responses to climate change (Kolk and Pinkse, 2005), so a better understanding of how different institutional settings exert differential pressures on different kinds of organisations is required. ...
Climate change and related social and environmental changes present societies with increasingly urgent problems at multiple spatial scales. A diverse range of social actors is involved in contributing to climate change, and an even broader range is suffering and will suffer its manifold consequences. In this book we focus on business organisations because they are vital arenas of decision-making, in both mitigation and adaptation. In other words, they are important sources of greenhouse gas emissions (GHG), and they therefore need to help to mitigate these emissions. At the same time, these businesses also need to make significant changes to prepare for and adapt to increasingly severe climate change and the resulting socio-economic changes (Berkhout et al., 2006; Kolk and Pinkse, 2012).
Academics and policymakers frequently discuss global governance but they treat governance as a structure or process, rarely considering who actually does the governing. This volume focuses on the agents of global governance: 'global governors'. The global policy arena is filled with a wide variety of actors such as international organizations, corporations, professional associations, and advocacy groups, all seeking to 'govern' activity surrounding their issues of concern. Who Governs the Globe? lays out a theoretical framework for understanding and investigating governors in world politics. It then applies this framework to various governors and policy arenas, including arms control, human rights, economic development, and global education. Edited by three of the world's leading international relations scholars, this is an important contribution that will be useful for courses, as well as for researchers in international studies and international organizations.
Academics and policymakers frequently discuss global governance but they treat governance as a structure or process, rarely considering who actually does the governing. This volume focuses on the agents of global governance: 'global governors'. The global policy arena is filled with a wide variety of actors such as international organizations, corporations, professional associations, and advocacy groups, all seeking to 'govern' activity surrounding their issues of concern. Who Governs the Globe? lays out a theoretical framework for understanding and investigating governors in world politics. It then applies this framework to various governors and policy arenas, including arms control, human rights, economic development, and global education. Edited by three of the world's leading international relations scholars, this is an important contribution that will be useful for courses, as well as for researchers in international studies and international organizations.
Academics and policymakers frequently discuss global governance but they treat governance as a structure or process, rarely considering who actually does the governing. This volume focuses on the agents of global governance: 'global governors'. The global policy arena is filled with a wide variety of actors such as international organizations, corporations, professional associations, and advocacy groups, all seeking to 'govern' activity surrounding their issues of concern. Who Governs the Globe? lays out a theoretical framework for understanding and investigating governors in world politics. It then applies this framework to various governors and policy arenas, including arms control, human rights, economic development, and global education. Edited by three of the world's leading international relations scholars, this is an important contribution that will be useful for courses, as well as for researchers in international studies and international organizations.
Academics and policymakers frequently discuss global governance but they treat governance as a structure or process, rarely considering who actually does the governing. This volume focuses on the agents of global governance: 'global governors'. The global policy arena is filled with a wide variety of actors such as international organizations, corporations, professional associations, and advocacy groups, all seeking to 'govern' activity surrounding their issues of concern. Who Governs the Globe? lays out a theoretical framework for understanding and investigating governors in world politics. It then applies this framework to various governors and policy arenas, including arms control, human rights, economic development, and global education. Edited by three of the world's leading international relations scholars, this is an important contribution that will be useful for courses, as well as for researchers in international studies and international organizations.
RESUMO As políticas e práticas de comércio internacional têm migrado da administração do protecionismo para a defesa dos interesses dos consumidores principalmente em termos de qualidade e salubridade dos produtos. Se antes o que justificava a implementação de uma medida restritiva ao comércio era a defesa de um setor produtivo nacional, agora é o risco de a população ser exposta a contaminantes físicos, químicos, biológicos, a iminência de eventos climáticos extremos, a proteção da justiça nas relações trabalhistas, entre outros. Assim, a proliferação de medidas reflete a complexidade crescente das interações em escala global, mediadas pela tecnologia. As normas voluntárias de sustentabilidade fazem parte desse conjunto novo de restrições ao comércio e têm a peculiaridade de não terem de ser notificadas oficialmente a nenhum órgão de controle (pois são voluntárias e privadas), porém têm sido utilizadas com bastante frequência para coordenar redes de fornecimento, principalmente a varejista europeia, portanto criam requisitos que passam a ser de fato indispensáveis àqueles que pretendem exportar. Além disso, se bem exploradas, podem ser bem eficientes para a administração pública implementar os objetivos do desenvolvimento sustentável. Diante dessa realidade este texto busca indicar uma série de medidas de disseminação de conhecimento, articulação e harmonização de critérios que podem favorecer a adequação dos produtores nacionais aos critérios que estão surgindo e sendo cada vez mais exigidos pelos mercados importadores, ao mesmo tempo em que estrategicamente são usadas como reforço de políticas de sustentabilidade socioambiental e corporativa. Este trabalho corresponde à Etapa 3 de pesquisa realizada para a Comissão Econômica para a América Latina e o Caribe compreendendo o item "análise dos dados e resultados finais da pesquisa, reunindo dados que possam servir de base para uma análise econométrica dos efeitos dos NVS no comércio internacional e com isso sirva de ferramenta para orientar políticas públicas para fomentar o desenvolvimento socioambiental responsável". PALAVRAS CHAVE: Recomendação de política pública; Normas voluntárias de sustentabilidade; Comércio internacional; Certificações; Selos JEL: Q17; Q51; Q56.
The growth of pollution that crosses national borders represents a significant threat to human health and ecological sustainability. Various international agreements exist between countries to reduce risks to their populations, however there is often a mismatch between national territories of state responsibility and transboundary hazards. All too often, state priorities do not correspond to the priorities of the people affected by pollution, who often have little recourse against major polluters, particularly transnational corporations operating across national boundaries. Drawing on case studies, The New Accountability provides a fresh understanding of democratic accountability for transboundary and global harm and argues that environmental responsibility should be established in open public discussions about harm and risk. Most critically it makes the case that, regardless of nationality, affected parties should be able to demand that polluters and harm producers be held accountable for their actions and if necessary provide reparations.
In an attempt to overcome barriers to trade posed by numerous and: often contradictory national-level environmetral requirements, the international Organization Tor Standardization (ISO) has created a voluntary set of uniform envirnmental management system guidelines for firms, formally known as ISO 14001. Firms may decide 10 implement an ISO environmental management system (EMS) and become third-party certified in order to improve their environmental management and to increase their marketability. This study examines the relative costs, benefits, and motivations for ISO certification for China compared to other economically developing and developed countries. These comparisons allow to better understand the ways in which the unique economic and potilical conditions within China affect the incentives for Chinese firms to join in vuluntary self-regulatory measures. Survey results indicate that ISO 14001 cerlified firms in China are experiencing benefits equal to or greater than their peers in other countries. Benefits to environmental management appear to be significant and they generally outweigh (he costs of implementation and certification. However, as with most voluntary, the potential for abuse remains. Therefore regulators and policy makers are advised not to grant regulatory relief or inspections except on a case-by-case basis.
Consumers and stakeholders have rising concerns over product quality and environmental issues, and therefore, quality and environmental management have become important topics for today's fashion products manufacturers. This chapter presents some empirical evidence of the adoption of quality management systems (QMS) and environmental management systems (EMS) and their impact on fashion and textiles related firms' supply chain efficiency. Although both management systems are commonly adopted in the manufacturing industries and becoming a passport to business, their actual impacts specifically on the fashion supply chain have not been explored. By investigating the adoption of ISO 9000 (a quality management system) and ISO 14000 (an environmental management system) in the U.S. fashion and textiles firms, we estimate their impact on manufacturers' supply chain performance. Based on 284 publicly listed fashion and textiles manufacturing firms in the U.S., we find that fashion and textiles firms operating cycle time had shortened by 15.12 days in a five-year period. In the cross-sectional analysis, the results show that early adopters of ISO 9000 and high-tech textiles related firms obtained more supply chain benefits. We only find mixed results of the impact of ISO 14000 on supply chain performance.
Purpose
The purpose of this study is to assess the key determinants of green human resource management (GHRM) and investigate its impact on environmental performance (EP) and business performance (BP).
Design/methodology/approach
The research employed SmartPLS 3 and follows a cross-sectional research design. Data from 179 employees were collected using a convenience sampling technique from the firms that adopted GHRM practices.
Findings
The research found a significant relationship of GHRM with EP and also reported the significant relationship between EP and BP. Moreover, EP significantly mediates the relationship of GHRM with BP.
Research limitations/implications
A relatively small sample size of employees was used that may suggest the need for a diverse and more representative sample. The paper is based on data collected from the Malaysian manufacturing industry – other economic sectors and Asian countries may offer different results.
Practical implications
The paper identifies the need for incorporating GHRM practices and culture at the workplace to encourage positive green behavior in employees which will increase the EP and BP of the firm.
Originality/value
This paper reported the initial empirical findings after the March 7th incident on EP of businesses in Malaysia, where businesses have initiated the adoption of GHRM practices.
ISO 14001:2015 is an international standard that specifies the requirements of environmental management systems (EMS). This study assessed the influence of top management commitment, applications of compliance and other requirements, operational control, monitoring and measurements, resource management and improvements as critical factors on successful implementation and the operation of the ISO 14001:2015, by considering organizations in Sri Lanka as a case study. A data collection was conducted via questionnaires and structured interviews from stakeholders who are directly responsible for the EMS such as environmental managers, quality mangers and general managers of the organizations, who are certified with ISO 14001:2015, and comparisons were undertaken. The statistical analysis of the critical factors has shown a significant positive effect on both large‐scale organizations and export‐oriented organizations on EMS implementation. Furthermore, the results indicate that the EMS adoption has created significant positive impacts on efficient energy and resource consumption within organizations.
The interest of scientists and companies in understanding the business implications of environmental commitments is timely; however, a dilemma remains at the firm level: is environmental sustainability a strategic factor for business competitiveness? The author contributes to this international end interdisciplinary debate through a double analysis, theoretical and empirical. Starting from a systematic literature review, the main correlations between environmental commitments and business performance are identified in a scholar's perspective. Based on the results from an Italian survey, the main added values associated with certified environmental management system are verified with a manager's perspective. Finally, the findings obtained from theoretical and empirical points of view are compared, to discuss confirmations or contradictions and underline questions still open.
The niche of a narrow literature in the field inspires the core objective of this chapter which is to develop a coherent and eco-efficient outline for environmental audit in an integrated audit management system. The research paradigm is based on the stakeholder theory refined with Hart's vision of the entity based on natural resources in order to recognize the natural environment as the main stakeholder of any entity. The revision of the literature enables ascertaining the determining factors for an environmental audit integrated in the audit management system. The result is built on the management component of the continuous improvement and creates knowledge for a way of action to implement an environmental management system and environmental auditing and implicitly, to react to social corporate responsibility. Future researches regard the increase the auditor's role in integrating various areas of the sustainability reports.
Since recent past, a good number of organizations have voluntarily started accepting green practices to make contributions to the environmental well-being by reducing wastes, developing green products, constructing their buildings in the most efficient greener way, recycling their wastes into marketable products and many other ways to make themselves green. Consumers have started demanding for green products and companies are more than happy to satisfy their demand by producing environmentally friendly products. A quest to reduce cost had led to environmentally friendly innovation that has led to a “win-win situation” for all the stakeholders. By going green, companies are attracting more investors to fund them, which would have remained stagnant otherwise without any funds for expansion. In this article, we have examined the main drivers of Corporate Environmentalism (CE) on a global level such as market forces, government and civil regulations. The article discusses the relation between Corporate Environmentalism with stakeholder satisfaction and employee retention and found positive relations among them. Green firms also pressurize their suppliers and other stakeholders to engage in acts of corporate environmentalism to avoid the criticism of green wash. Corporate eco-efficiency brings the benefits of both economic prosperity and environmental protection and states that “A clean environment is actually good for business, for it connotes happy and healthy workers, profits for companies, developing conservation technologies, selling green product and efficiency in material usage”. The article also explains the environmentalism scenario in Indian subcontinent.
The article can be downloaded 50 times at: http://www.tandfonline.com/eprint/uPhbFxTuuziX7u33W2Gv/full
This paper aims to advance knowledge about corporate environmentalism by using new concepts and methods. We broaden the concept of the firm as “differentiated composite actor” by including not only managers but workers and unionists as actors. We descend into the “hidden abode of production” using Lefebvre’s concept of “everyday life” to explore the barriers environmental policies experience in this sphere. We base our explorations on life-history interviews to understand how the imaginaries of production are embedded in people’s self-conceptions. We identify seven barriers to the implementation of environmental practices: deficient regulations, collusion between controller and controlled, de-prioritisation, hierarchism, compartmentalisation, specialisation, and social unsustainability. A “necessity discourse,” legitimating the priority of efficiency and product quality over environmental sustainability, subjugates alternative sustainable practices. The paper concludes with a discussion of the results in the light of previous investigations, suggesting that the concept of the everyday could enrich future research.
The article can be downloaded 50 times at: http://www.tandfonline.com/eprint/uPhbFxTuuziX7u33W2Gv/full
Public sector actors express rising interest in multi-stakeholder initiatives as a means of expanding private sector contributions to address sustainable development goals. Private sector interests in participating in such initiatives have however received limited attention. This article examines business motives for associating with global multi-stakeholder initiatives by analyzing corporate engagement with the Energy Efficiency Accelerator Platform of the Sustainable Energy for All (SEforALL) initiative. The analysis of the characteristics of participating firms highlights that the platform has mainly attracted companies based in Europe and those with a broad geographical reach. The article identifies clear economic rationales for companies to participate. The analysis emphasizes that indirect gains to firms through activities designed to shape the market for the uptake of energy efficient technologies and direct gains related to connecting with potential customers through networking activities are key motives for business participation. This case indicates that multi-stakeholder initiatives can provide a platform for transforming markets by facilitating interactions between private sector actors and national and subnational governments.
How do SMEs exploit their environmental innovations on the market? This paper aims at exploring the factors affecting the choice of alternative green innovation strategies. It looks, in particular at the adoption of Environmental Management System (EMS) vs. green patents, and at the possible implementation of a bundle of the two, and investigates the role of sectoral characteristics in shaping firms’ strategic decisions. Relying upon a sample of 8797 European SMEs, we study the factors associated with the adoption of one or more strategies to capture value from green innovations. Results show that both firm characteristics – size and innovative activity – and sectoral specificities in terms of output tangibility, knowledge intensity and consumer vs. business orientation, matter in the adoption of different green innovation strategies.
Voluntary programs have become widespread tools for governments and nongovernmental actors looking to improve industry's environmental and regulatory performance. Voluntary programs can be conceptualized as club goods that provide nonrival but potentially excludable benefits to members. For firms, the value of joining a green club over taking the same actions unilaterally is to appropriate the club's positive brand reputation. Our analysis of about 3,700 U.S. facilities indicates that joining ISO 14001, an important nongovernmental voluntary program, improves facilities' compliance with government regulations. We conjecture that ISO 14001 is effective because its broad positive standing with external audiences provides a reputational benefit that helps induce facilities to take costly progressive environmental action they would not take unilaterally.
Although a substantial body of research has considered the role of non-state actors in establishing regulatory policies, relatively little research has focused on the influence of such actors at the implementation phase. To fill this gap in the literature, we extend the research on compliance motivations and institutional theory by exploring the role of trade associations in facilitating environmental compliance of small businesses, an area in which the problem of limited enforcement is particularly acute. Using data from dry-cleaning facilities, we investigate the ways in which a trade association contributes to improvements in environmental performance among its members. The results reveal that the trade association can promote compliance by helping its members to become familiar with regulatory requirements and to develop technical capacity to meet them. Based on the findings, we propose ways to increase the practical involvement of non-state actors to compensate for enforcement shortfalls. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
Zusammenfassung
Die Koexistenz mehrerer oder vieler Normenordnungen in staatlich organisierten Gesellschaften ist seit langem ein Forschungsthema der Rechtsanthropologie. Inzwischen sind neben den Rechtsbildungsprozessen unterhalb der staatlichen Ebene solche oberhalb der staatlichen Ebene getreten mit der Folge einer weiteren und dramatischen Zunahme normativer Ordnungen. Der Beitrag versucht einen kurzen Überblick geben (1) über die Koexistenz rechtlicher Normenordnungen oberhalb der staatlichen Ebene und (2) über die Entwicklung „hybrider“, also autonom verfasster aber staatlich anerkannter oder geförderter Normenordnungen. Unter (3) wird kurz auf die Vielfalt nicht-rechtlicher (sogenannter autonomer) Regulierungen, wie sie sich im Zuge der Globalisierungsprozesse laufend bilden, hingewiesen. Das Schwergewicht des Beitrags liegt dann (4) in einer Beschreibung und Diskussion der Rolle von sozialen Bewegungen bei der Schaffung von globalen (also grenzüberschreitenden) rechtspluralistischen Strukturen. Dabei wird abgewogen zwischen bloßer Lobbyarbeit in völkerrechtlichen Verfahren, eigenständiger Normproduktion und zivilgesellschaftlicher Inanspruchnahme globaler Rechtssetzungsprozesse.
Globalization is dramatically reshaping policy landscapes, thereby creating new opportunities and threats for governments and firms. The resultant restructuring of policy spaces requires an emphasis on the need to cope with globalization, since the distribution of its costs and benefits is asymmetrical across countries, sectors, firms and factors. Unlike previous books, Coping with Globalization concentrates firmly on conceptual issues, in order to consider in detail the coping strategies of both firms and governments.
The economic logic of the current international economy does not predict the 'eclipse of the state.' Economic globalization does restrict state power, but transnational capital needs capable states as much or more than does domestically oriented business. National success in the current global political economy has been associated not with minimal states but with states that are capable, active, and engaged. Pressure for eclipse flows from the conjunction between transnational economic forces and the political hegemony of an Anglo-American ideology that, in J. P. Nettl's words, 'simply leaves no room for any valid notion of the state.' Even this combination of economic and political pressure is unlikely to eclipse the state, but it is likely to put public institutions on the defensive, eclipsing any possibility of the 'embedded liberalism' described by John Ruggie. A 'leaner, meaner' state is the likely outcome. The possibility of a more progressive alternative outcome would depend in part on whether current zero-sum visions of the relation between the state and civil society can be replaced by a more synergistic view.
In this book James Rosenau explores the enormous changes which are currently transforming world affairs. He argues that the dynamics of economic globalization, new technologies, and evolving global norms are clashing with equally powerful localizing dynamics. The resulting encounters between diverse interests and actors are rendering the boundaries between domestic and foreign affairs ever more porous and creating a political space, designated as the 'Frontier,' wherein the quest for control in world politics is joined. The author contends that it is along the Frontier, and not in the international arena, that issues are contested and the course of events configured. The book examines a number of contexts and agents through which local, national, and international affairs are woven together. Rosenau's recurring theme is the challenge of achieving governance along the turbulent domestic-foreign Frontier.
Cambridge Core - International Trade Law - Global Business Regulation - by John Braithwaite
Plan of the Book. Introduction: Environmental Management.Part 1: BETWEEN REGULATION AND SELF-REGULATION.1. Business Perspectives on Regulation. 2. International Policy and Voluntary Initiatives. 3. Strategies and The Environment.Part 2: FROM THEORY TO PRACTICE.4. Environmental Management Systems and Standards. 5. Environmental Reporting. 6. Environmental Management Accounting. 7. Conclusions: Dilemmas of Environmental Management. Bibliography. Index.
The development of a systematic environmental policy began in Germany over 25 years ago. In the meantime environmental protection has become an established area of policymaking and is still expanding. Nevertheless, state environmental policy is once again subject to severe societal pressure. On the one hand, demands are being made with great vigour that the concept of sustainable development be translated into tangible policies, that the ecological modernisation of the industrial society be driven forward and that the global challenges to the environment be dealt with quickly and effectively. On the other hand, criticism from industry is becoming louder, with accusations that environmental measures are exaggerated and inefficient, and at the same time in the social area there are increasing conflicts of distribution due to the rise of other problems (such as unemployment and cuts in the social welfare system). Against this background it is interesting to review the most important phases in the development of state environmental policy and highlight the relevant factors which contributed to it. It is then possible to identify the factors which are particularly relevant in injecting more dynamism into environmental policy and raising its efficiency. This study is intended as the first step in this direction. The main characteristics and effects of German environmental policy are identified and discussed on the basis of criteria and insights generally acknowledged by environmental policy experts. -- Die Entwicklung einer systematischen Umweltpolitik fand in Deutschland vor rund 25 Jahren statt. Inzwischen ist Umweltschutz zu einem etablierten und (immer noch) expandierenden Politikfeld geworden. Gleichwohl steht die staatliche Umweltpolitik gegenwärtig (wieder einmal) unter starkem gesellschaftlichen Druck: Zum einen wird gefordert, sie solle mit größerem Elan das Konzept nachhaltige Entwicklung in konkrete Politiken umsetzen, die ökologische Modernisierung der Industriegesellschaft vorantreiben und zugleich rasch und wirksam den globalen Umweltherausforderungen begegnen, zum anderen nimmt die Kritik aus dem Wirtschaftsbereich an überzogenen und ineffizienten Umweltpolitikmaßnahmen kräftig zu, gleichzeitig zeichnen sich im sozialen Bereich zunehmend Verteilungskonflikte durch das Ansteigen anderer Probleme (etwa Arbeitslosigkeit, Reduzierung des sozialen Sicherungsnetzes) ab. Vor diesem Hintergrund ist es von Interesse, die wichtigsten Entwicklungsphasen der staatlichen Umweltpolitik und die hierfür relevanten Faktoren aufzuzeigen, um auf dieser Grundlage die Faktoren herauszufinden, die für eine Dynamisierung und Erhöhung der Effektivität von Umweltpolitik besonders relevant sind. Die vorliegende Studie versteht sich als ein erster Schritt in diese Richtung. In ihr werden die Hauptcharakteristika und Effekte der deutschen Umweltpolitik herausgearbeitet und auf der Basis allgemeiner umweltpolitologischer Kriterien und Erkenntnisse diskutiert.
At the July 1996 Ministerial Meeting on Sustainable Development, the environment ministers of the Asia Pacific Economic Corporation's (APEC's) 18 members agreed to promote ISO 14000, which involves voluntary action by industry to establish environmental management systems (EMSs) and to commit to ongoing improvements in environmental performance. This article analyzes the potential role of the ISO 14001 EMS and related standards in the context of the economies of APEC. It summarizes the genesis and content of the standards and then focuses on aspects that are particularly salient within the APEC context: performance, information generation, and market access. It concludes that ISO 14001 alone will not necessarily lead to improvement in environmental outcomes in the region. The final section explores some options for incorporating ISO 14001 as one element of a larger framework for environmental protection, international cooperation, and sustainable development in APEC.
Responsible Care is a voluntary code of conduct developed, enforced, and monitored by the Chemical Manufacturers Association. Voluntary codes could be designed and enforced by regulators, nonprofit groups, industry associations, and individual firms. They could vary in their scope, focusing on firms around the globe, in a given region, within a country, or in a given industry. This article focuses on Responsible Care’s self-regulatory services that pertain to establishing, monitoring, and enforcing industry-wide environmental, health, and safety standards. Employing insights from the club theory, stakeholder theory, institutionalist theory, and the corporate social performance perspective, it examines the demand and supply sides of voluntary codes. Finally, it discusses theoretical implications and the key challenges faced by Responsible Care in the future.
This paper examines why firms selectively adopt ‘beyond-compliance’ environmental policies. It argues that existing explanations based on factors external to firms are under-specified and a focus on internal dynamics is also required. It draws insights from institutional theory, corporate social performance perspective, and stakeholder theory and relates them to internal processes. Beyond-compliance policies are adopted, if at all, due to two types of intra-firm process: power based and leadership based. These processes arise under different conditions and lead to different types of outcome. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment
An important research programme has developed in economics that extends neo-classical economic theory in order to examine the effects of institutions on economic behaviour. The body of work emerging from this line of inquiry includes contributions from various branches of economic theory, such as the economics of property rights, the theory of the firm, cliometrics and law and economics. This book is a comprehensive survey of this research programme which the author terms 'neoinstitutional economics'. The author proposes a unified approach to this research, integrating the work of various contributors and emphasising the common principles of inquiry that tie the work together. The theoretical discussion is accompanied by empirical studies dealing with a range of institutions and economic systems. This book will serve as the primary resource for economists and students who want to learn about this important branch of economic theory.
Obra que reconstruye el origen y evolución de las actuales redes transnacionales que, con la utilización de las nuevas tecnologías informativas como recurso organizador y aglutinador, han logrado constituirse en movimientos más o menos presionadores en la defensa de los derechos humanos, de la protección ambiental y de una mayor equidad de género, entre otros.
Examines the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time. Institutions are separate from organizations, which are assemblages of people directed to strategically operating within institutional constraints. Institutions affect the economy by influencing, together with technology, transaction and production costs. They do this by reducing uncertainty in human interaction, albeit not always efficiently. Entrepreneurs accomplish incremental changes in institutions by perceiving opportunities to do better through altering the institutional framework of political and economic organizations. Importantly, the ability to perceive these opportunities depends on both the completeness of information and the mental constructs used to process that information. Thus, institutions and entrepreneurs stand in a symbiotic relationship where each gives feedback to the other. Neoclassical economics suggests that inefficient institutions ought to be rapidly replaced. This symbiotic relationship helps explain why this theoretical consequence is often not observed: while this relationship allows growth, it also allows inefficient institutions to persist. The author identifies changes in relative prices and prevailing ideas as the source of institutional alterations. Transaction costs, however, may keep relative price changes from being fully exploited. Transaction costs are influenced by institutions and institutional development is accordingly path-dependent. (CAR)
In Controlling Environmental Policy: The Limits of public law in Germany and the United States, Yale University Law Professor Susan Rose-Ackerman provides an informative description and critique of environmental policy-making in Germany, with frequent cross-references to the comparable attributes of the American system. As described by Rose-Ackerman, the German system shares many features of its American counterpart, particularly its reliance on engineering-based command-and-control regulatory strategies and a complex division of regulatory responsibility between national and state governments. Yet, these surface similarities mask important differences. According to the author, the German bureaucracy operates with less effective legislative and judicial supervision than its American counterpart, and Germany delegates more authority for both making and implementing environmental policymaking to the state governments.
Studies of policy convergence among advanced industrial states are often based on an overly deterministic logic, a static conception of convergence and an unclear specification of the aspects of policy that are supposed to be converging. This article reviews a body of recent comparative policy literature to identify a fourfold framework of processes through which convergence might arise: emulation, where state officials copy action taken elsewhere; elite networking, where convergence results from transnational policy communities; harmonization through international regimes; and penetration by external actors and interests. In drawing some conceptual, methodological and theoretical lessons about how to study this phenomenon in the future, the article concludes that policy convergence should not denote an absence of state autonomy. Rather, an application of state-centred theory suggests that, with the exception of penetration, the other processes may occur through the autonomous preferences of policy makers to fashion convergent policies.
Compared to other economically advanced democracies, the United States is uniquely prone to adversarial, legalistic modes of policy formulation and implementation, shaped by the prospect of judicial review. While adversarial legalism facilitates the expression of justice-claims and challenges to official dogma, its costs are often neglected or minimized. A survey of existing research, together with a case study of environmental regulation in the Port of Oakland, indicates the extent to which adversarial legalism causes (or threatens) enormous dispute-resolving costs and procedural delays, which in turn distort policy outcomes. Adversarial legalism, moreover, has increased in recent decades, as Americans have attempted to implement the ambitious, socially transformative policies of activist government through political structures, forms of legislation, and legal procedures that reflect deep suspicion of governmental authority.
The concept of embeddedness has general applicability in the study of economic life and can alter theoretical and empirical approaches to the study of economic behaviors. Argues that in modern industrial societies, most economic action is embedded in structures of social relations. The author challenges the traditional economic theories that have both under- and oversocialized views of the conception of economic action and decisions that merge in their conception of economic actors atomized (separated) from their social context. Social relations are assumed to play on frictional and disruptive, not central, roles in market processes. There is, hence, a place and need for sociology in the study of economic life. Productive analysis of human action requires avoiding the atomization in the extremes of the over- and undersocialized concepts. Economic actors are neither atoms outside a social context nor slavish adherents to social scripts. The markets and hierarchies problem of Oliver Williamson (with a focus on the question of trust and malfeasance) is used to illustrate the use of embeddedness in explicating the proximate causes of patterns of macro-level interest. Answers to the problem of how economic life is not riddled with mistrust and malfeasance are linked to over- and undersocialized conceptions of human nature. The embeddedness argument, on the contrary, stresses the role of concrete personal relations and networks (or structures) in generating trust and discouraging malfeasance in economic life. It finds a middle way between the oversocialized (generalized morality) and undersocialized (impersonal institutional arrangements) approaches. The embeddedness approach opens the way for analysis of the influence of social structures on market behavior, specifically showing how business relations are intertwined with social and personal relations and networks. The approach can easily explain what looks otherwise like irrational behavior. (TNM)
In 1992 governments negotiated a multilateral treaty regime to manage biological diversity. Unlike the United Kingdom, the United States rejected this treaty. Yet both nations were equally at risk from biodiversity loss and equally likely to benefit from its protection. This empirical puzzle is used to explore state choice in regulatory cooperation. Epistemic community analysis helps to explain the onset of negotiations and the contours of debates over regime norms and rules. But state choices, and the regime itself, primarily reflected the regulatory politics of biodiversity management. The international commitments on biodiversity, ostensibly alike for the U.K. and the U.S., had to be implemented through their domestic regulatory structures; the result was a distinct set of domestic ramifications. Electoral incentives and especially domestic institutions influenced both industry and governmental assessments by shaping expectations about the impact of the regime in operation. As states increasingly seek to regulate internationally, domestic institutions and anticipated implementation will play ever greater roles in explaining state choice and, because powerful states are equally influenced by these dynamics, in explaining international outcomes.
The most intractable and protracted transatlantic trade conflict of the last decade was over bananas, which grow neither on the European nor on the North American continent. Our explanation of the conflict emphasizes the determining role of the domestic politics of the EU and the United States. It was driven not only by the extreme divergence of preferences of Brussels' and Washington's domestic constituencies, rooted in the competitive position of competing banana industries, but also, and critically, by the institutional configuration of (agricultural) trade policymaking on either side of the Atlantic. The EU agricultural trade policy process is characterized by a division of labor that favors agricultural over wider trading interests, sectoral segmentation, and sector-specific issue-linkage. The U.S. trade policy process is characterized by the Congress's growing reassertion of its trade policy prerogatives, the growing institutionalization of firms' access to the trade policy bureaucracy, and the growing volume and role of corporate campaign donations. The combined effect of these different policy process traits has been to facilitate the capture of banana trade policy by highly organized, particularistic, and predominantly trading interests. Although neither the WTO nor the transatlantic trading relationship ultimately "slipped" over bananas, the conflict provides scant reason for optimism concerning the future of this relationship or indeed of the multilateral international trading system, at least in as far as the latter depends on good EU-U.S. relations.
Sumario: In industries such as petroleum and chemicals, which are already plagued with overcapacity, fierce competition, and declining margins, a company's ability to respond to environmental challenges in a cost-efficient manner may well determine its viability. The perceived conflict between environmental protection and economic competitiveness is, in fact, a false dichotomy. Managers might redesign a product so that it uses fewer environmentally harmful or resource-depleting raw materials. If successful, that effort could also result in significant cuts in direct manufacturing costs and inventory savings and appeal to consumers'growing desire for environmentally friendly products
Sumario: I. The wider setting -- Britain and Germany compared -- The story of acid rain in Germany and Britain -- Emerging issues and conclusions.
This article seeks to put the “public” back in public values research by theorizing about the potential of direct citizen participation to assist with identifying and understanding public values. Specifically, the article explores eight participatory design elements and offers nine propositions about how those elements are likely to affect the ability of administrators to identify and understand public values with regard to a policy conflict. The article concludes with a brief discussion about potential directions for future research.
Las instituciones sociales son lugares donde los individuos viven y trabajan en interrelación. Ser miembro de una comunidad o sociedad es vivir dentro de un conjunto de instituciones sociales. En esta obra, el autor trata de responder a las preguntas del porqué hay tantas instituciones o porqué éstas toman determinada forma en una sociedad y otra muy distinta en otro contexto, cómo se desarrollan o cuándo y porqué las instituciones cambian. El autor hace una crítica a una amplia gama de teorías acerca del cambio institucional y desarrolla una nueva teoría de dicho cambio, mediante la cual enfatiza las consecuencias de la distribución de las instituciones sociales.
In the early 1980s, many observers, argued that powerful organized economic interests and social democratic parties created successful mixed economies promoting economic growth, full employment, and a modicum of social equality. The present book assembles scholars with formidable expertise in the study of advanced capitalist politics and political economy to reexamine this account from the vantage point of the second half of the 1990s. The authors find that the conventional wisdom no longer adequately reflects the political and economic realities. Advanced democracies have responded in path-dependent fashion to such novel challenges as technological change, intensifying international competition, new social conflict, and the erosion of established patterns of political mobilization. The book rejects, however, the currently widespread expectation that 'internationalization' makes all democracies converge on similar political and economic institutions and power relations. Diversity among capitalist democracies persists, though in a different fashion than in the 'Golden Age' of rapid economic growth after World War II.
Domestic politics and international relations are often inextricably entangled, but existing theories (particularly “state-centric” theories) do not adequately account for these linkages. When national leaders must win ratification (formal or informal) from their constituents for an international agreement, their negotiating behavior reflects the simultaneous imperatives of both a domestic political game and an international game. Using illustrations from Western economic summitry, the Panama Canal and Versailles Treaty negotiations, IMF stabilization programs, the European Community, and many other diplomatic contexts, this article offers a theory of ratification. It addresses the role of domestic preferences and coalitions, domestic political institutions and practices, the strategies and tactics of negotiators, uncertainty, the domestic reverberation of international pressures, and the interests of the chief negotiator. This theory of “two-level games” may also be applicable to many other political phenomena, such as dependency, legislative committees, and multiparty coalitions.
The potential usex of public resources and powers to improve the economic stuius of economic groups (such as industries and occupations) are analyzed to provide a scheme of the demand for regulation. The characteristics of the political process which allow relatively small groups to obtain such regulation is then sketched lo provide elemenls of a theory of supply of regulation. A variety of empirical evidence and illustration is also presented. W The state—the machinery and power of the state—is a potential resource or threat to every industry in the society. With its power to prohibit or compel, to take or give money, the state can and does selectively help or hurt a vast number of industries. That political juggernaut, the petroleum industry, is an immense consumer of political benefits, and simultaneously the underwriters of marine insurance have their more modest repast. The central tasks of the theory of economic regulation are to explain who will receive the
Accepting a fixed trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress. Studies finding high environmental compliance costs have traditionally focused on static cost impacts, ignoring any offsetting productivity benefits from innovation. They typically overestimated compliance costs, neglected innovation offsets, and disregarded the affected industry's initial competitiveness. Rather than simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity. Shifting the debate from pollution control to pollution prevention was a step forward. It is now necessary to make the next step and focus on resource productivity. Copyright 1995 by American Economic Association.
Inside the Reinvention Machine: Appraising Governmental Reform
- Jr Diiulio
DiIulio, Jr., eds., Inside the Reinvention Machine: Appraising Governmental Reform (Washington, D.C.:
Brookings Institution Press, 1995).
21 Elinor Ostrom An Agenda for the Study of Institutions
- Guy B Peters
Guy B. Peters, Institutional Theory in Political Science (London: Pinter, 1999).
21 Elinor Ostrom, " An Agenda for the Study of Institutions, " Public Choice 48 (1986).
- Elinor Ostrom
Elinor Ostrom, Governing the Commons (Cambridge: Cambridge University Press, 1990).
WORLD POLITICS
When considered in relative terms, that is, as the number of certificates in relation to the size of the economy, these differences become even more pronounced (see Tables 1 and 2) 18 What explains these differences in the uptake of supranational EMS?
EMAS.) When considered in relative terms, that is, as the number of
certificates in relation to the size of the economy, these differences become even more pronounced (see Tables 1 and 2). 18 What explains
these differences in the uptake of supranational EMS?
gan Press, 1962);
Responsible Care Earns Discount on EIL Premium
For a review, see Jagdish Bhagwati and Robert E. Hudec, eds., Fair Trade and Harmonization
(Cambridge: MIT Press, 1996), vols. 1, 2.
48 "Responsible Care Earns Discount on EIL Premium," Chemical Week ( July 23, 1997), 11.
Towards a New Conception of Environment-Competitiveness Relationships
- Noah Walley
- Bradley Whitehead
Noah Walley and Bradley Whitehead, "It's Not Easy Being Green," Harvard Business Review
(May-June 1994). For an opposing view, see Michael E. Porter and C. van der Linde, "Towards a New
Conception of Environment-Competitiveness Relationships," Journal of Economic Perspectives 9, no. 4
(1995).