Firms' Environmental Performance

While many company managers and academic researchers have argued that businesses that develop a sustainability focus also may improve their financial performance, little information is known about whether firms’ different types of sustainability activities are related to varying degrees of financial gain. This paper assesses the economic relationship between two types of sustainability activities – lower- and higher-order – derived from the sustainability value framework of Hart and Milstein (2003). Our analysis reveals that both types of sustainability activities are similarly associated with firms’ financial performance in terms of direction and trend. However, the average level of financial benefits related to firms’ higher-order sustainability activities (which develop new products and processes) is greater than the average level of financial benefits related to firms’ lower-order sustainability activities (which modify existing products and processes). These findings offer initial evidence that companies that reach further by developing higher-order sustainability activities may reap greater financial benefits, while improving the natural environment to a greater degree.

Currently, polymer modified asphalt mixture is a relatively costly mixture for paving roads. One way to reduce the cost of such constructions and rendering them more convenient is by using inexpensive polymers, i.e. waste polymers. The main purpose of this research is to determine the effect of incorporating waste plastic bottles (Polyethylene Terephthalate (PET)) on the engineering properties of stone mastic asphalt (SMA) mixture. The volumetric and mechanical properties of asphalt mixes that include various percentages of PET (0%, 2%, 4%, 6%, 8% and 10%) were calculated and assessed with laboratory tests. The appropriate amount of PET was found to be 6% by weight of bitumen. The outcomes were statistically analysed and the determination of the significance at certain confidence limits was performed with the two factor variance analysis (ANOVA). Moreover, some studies conducted on polyethylene modified asphalt mixture have also been taken into consideration in this paper. The results show that the addition of PET has a significant positive effect on the properties of SMA and it can promote the re-use of waste material in industry in an environmentally friendly and economical way.► The PET increased the stiffness level of the mixture improving its resistance level against permanent deformation. ► The effects of waste PET on Marshall Stability, air void and bulk specific gravity of the mixture are significant. ► The appropriate amount of PET was found to be 6% by weight of bitumen.

Recently, many companies have recognized the concepts of green supply chain management or supply chain environmental management. However, relatively little research attention has been devoted to the consideration of relations between greening the supply chain, green innovation, environmental performance and competitive advantage. Hence, this paper aims to bridge this gap by providing empirical evidence to encourage companies to implement green supply chain and green innovation in order to improve their environmental performance, and to enhance their competitive advantage in the global market. A model is constructed to link the aforementioned constructs. Data were collected through a questionnaire-based survey across 124 companies from eight industry sectors in Taiwan. The data are analyzed using Structural Equation Modeling and the results from the final measurement model are used to evaluate the structural model that verifies the significance of the proposed relationships. A prominent result of this study is that greening the supplier through green innovation contributes significant benefits to the environmental performance and competitive advantage of the firm.► Influence of greening the supplier and green innovation on firms’ performance is studied. ► Firms’ performance is measured by competitive advantage and their environmental performance. ► A questionnaire survey has been conducted in Taiwan; Structural Equation Modeling is used to analyze collected data. ► Deployment of the aforementioned practices contributes significant benefits to firms’ performance. ► Indirect effect between green innovation and greening the supplier leads to better competitive advantage.

Indonesia is perceived as the most poluted country in the world after Brazil, USA and China. Corporate environmental performance is a mandatory. Company is responsible in conduct its busineess activities, not only search profit. Companies argue that having good environmental performance do not financially benefit the company but is a loss due to the high investments. This research is aimed to analize the relationship between corporate environmental and future financial performance. The sample of this reseach are 79 public listed companies in Mining Industry and Basic and Chemical Industry in Indonesia. The reseach hypothesys was tested using quantitative approach. The financial data collected are secondary data from company published financial reports. Environmental perfromance measured using content analisyst from company sustainability reports, annual reports and company website. The analysis technique of research was developed with Structural Equation Modeling (SEM) and treated using statistic program SPSS 11.5 and AMOS 6.0. The results showed that in Indonesia, environmental performance has a non-significant relationship on future financial performance

Purpose of this article is resource based perspective that corporate social responsibility can provide firms with unique competences adding value to the firms. Russo and Fouts (1997) analyzed 257 companies over a period of two years using the Compustat database. By using environmental performance ratings from the Franklin Research and Development Corporation (FRDC), Russo & Fouts (1997) found evidence that “it pays to be green”. They predicted that environmentally proactive firms will acquire assets related to pollution prevention. Higher environmental performance is associated with higher financial performance, relationship is strengthened as industry growth rises and will enhanced firm profitability.

This study aimed to investigates the effect of greenhouse gas emissions
disclosure and environmental performance on firm value. The samples were
companies participating in the Performance Rating Assessment Programme on
Environment Management (PROPER/Program Penilaian Peringkat Kinerja
Perusahaan) of the Ministry of Environment Republic of Indonesia that are
listed in the Indonesia Stock Exchange (BEI) 2014-2017 period. The data used
were secondary data from annual reports and/or sustainability reports. This
study uses moderated regression analysis with panel data processed by using
EViews. The results of this research found that greenhouse gas emissions
disclosure and environmental performance have a positive effect on firm value.
Environmental performance can moderate the relationship between greenhouse
gas emissions disclosure and firm value. Debt to equity ratio and net operating
income as control variables have a positive effect on firm value, but firm size
has a negative effect on firm value.

Currently, polymer modified asphalt mixture is a relatively costly mixture for paving roads. One way to reduce the cost of such constructions and rendering them more convenient is by using inexpensive polymers, i.e. waste polymers. The main purpose of this research is to determine the effect of incorporating waste plastic bottles (Polyethylene Terephthalate (PET)) on the engineering properties of stone mastic asphalt (SMA) mixture. The volumetric and mechanical properties of asphalt mixes that include various percentages of PET (0%, 2%, 4%, 6%, 8% and 10%) were calculated and assessed with laboratory tests. The appropriate amount of PET was found to be 6% by weight of bitumen. The outcomes were statistically analysed and the determination of the significance at certain confidence limits was performed with the two factor variance analysis (ANOVA). Moreover, some studies conducted on polyethylene modified asphalt mixture have also been taken into consideration in this paper. The results show that the addition of PET has a significant positive effect on the properties of SMA and it can promote the re-use of waste material in industry in an environmentally friendly and economical way. © 2011 Elsevier Ltd.

http://www.sciencedirect.com/science/article/pii/S0261306911004225

Addressing climate change is among the most challenging ethical issues facing contemporary business and society. Unsustainable business activities are causing significant distributional and procedural injustices in areas such as public health and vulnerability to extreme weather events, primarily because of a distinction between primary emitters and those already experiencing the impacts of cli- mate change. Business, as a significant contributor to climate change and beneficiary of externalizing environmental costs, has an obligation to address its environmental impacts. In this paper, we explore the role of firms’ climate change tar- gets in shaping their emissions trends in the context of a large multi-country sample of companies. We contrast two intentions for setting emissions reductions targets: sym- bolic attempts to manage external stakeholder perceptions via “greenwashing” and substantive commitments to reduc- ing environmental impacts. We argue that the attributes of firms’ climate change targets (their extent, form, and time horizon) are diagnostic of firms’ underlying intentions. Consistent with our hypotheses, while we find no overall effect of setting climate change targets on emissions, we show that targets characterized by a commitment to more ambi- tious emissions reductions, a longer target time frame, and absolute reductions in emissions are associated with signifi- cant reductions in firms’ emissions. Our evidence suggests the need for vigilance among policy-makers and environ- mental campaigners regarding the underlying intentions that accompany environmental management practices and shows that these can to some extent be diagnosed analytically.

Previous research evaluating ISO 14001 certification has shown that it both increases environmental performance and has no effect. We hypothesize that the equivocal findings are due to two factors: institutional pressures arising from differences in regulatory settings across and within countries, and typical methodological approaches for addressing endogeneity. We examine these factors using facility-level data from the United States and Japan for two environmental impacts. After applying Altonji, Elder, and Taber’s (2005) method for dealing with the case where there are no potential instruments, we find evidence that the effectiveness of these environmental governance tools varies across countries and type of environmental impact being assessed.

The concept of eco-innovation has begun to be considered as a solution to preventing environmental damage, especially since the 1990s. Eco-innovation is expected to reduce amounts of waste, air pollution, and material resource usage. However, the effect of eco-innovation on environmental and financial performance has received limited attention. This paper seeks to fill this gap by studying the effect of eco-innovation on environmental and financial performance. In order to do so, data were obtained by collecting surveys completed by 219 manufacturing companies in Turkey. By using structural equation modeling, we found that eco-innovation has a direct effect on pollution prevention, resource saving and recycling; furthermore, it has an indirect positive effect on cost reduction and thus on economic performance. The findings suggest that decision-makers should adopt eco-innovation due to its cost advantage and pollution prevention potential.

After reviewing recent attempts to develop sustainability indicators, this article shows how the principles of productive efficiency can be used to elaborate such indicators at the firm level. The theory of productive efficiency is somewhat expanded to incorporate fundamental issues of sustainable development: environment, equity, and futurtty. Efficiency, in the expanded notion of productive efficiency, is viewed as a necessary condition for sustainability. Working with aggregate performance indicators, it is important not to lose track of the relevant basic information. Therefore, instead of elaborating one unique indicator; we propose to implement several kinds of indicators, each of which stresses one particular focus (e.g., environmental vs. social concems). The definition of sustainable development indicators is illustrated with reference to a small data set of U.S. fossil fuel-fired electric utilities. In a sustainabiltty perspective, two important aspects are stressed, namely, the use of nonmewable resources and the inclusion of employment as a variable to maximize rather than an input to minimize. The article ends with a discussion of the significance of, and limits to, the proposed indicators.

environmental performance. Finally, the experiences gained from using the JEll and TEPI are used to make recommendations for their improvement, and further development by research. Key-words. Integrated Pollution Control, IPC, Best Practicable Environmental Option, BPEO, Environmental Performance Indicators, EPI, Life Cycle Assessment, LCA, Impa.t Assessment, Integrated Environmental Index, IEI.

The main goal of article is to expose the contours of emerging regulatory orders, highlighting the move from self governance to multi-polar governance. Paper aims to explore the question of 'coordinating the regulators' and what were the processes that shaped the allocation and redistribution of normative power at the global level, considers two theoretical puzzles. The first historical forces of governance structure; dominant role of non-state forces and the relatively minor role of state regulation. The second involves a question: is the current normative structure, with its idiosyncratic distribution of normative powers, the most efficient one, in terms of achieving a more sustainable society? To anwer on this questions author describes legal perspective of the 'green finance' phenomenon, social process, and various instruments that constitute the new field of 'green finance', as well as distinguishes between financial regulation in project finance, ethical green investment, and environmental reporting and evolvement of new global centres of governance.

Whether and how women directors influence firms' engagement in socially responsible business practices and social reputation among diverse stakeholders is unclear due to conflicting empirical evidence, the lack of a coherent theory linking these variables, and inattention to the national contexts in which these relationships occurs. Results from our meta-analysis of 87 independent samples suggest that, while generally positive, the female board representation–social performance relationship is even more positive in national contexts when boards may be more motivated to draw on the resources that women directors bring to a board (i.e., among firms operating in countries with stronger shareholder protections) and in contexts where intra-board power distribution may be more balanced (i.e., in countries with higher gender parity). Future studies should more attentively examine how firms' institutional contexts enhance or mitigate the relationship between women's representation on boards and corporate social performance. Our findings also highlight the need for a comprehensive understanding of the social performance-related knowledge, perspectives, and values that men and women bring to boards. Our results suggest that, to enhance any benefits of diversity for corporate social performance, efforts be directed at holding boards more accountable toward diverse stakeholders and improving the status of women in society and in the workforce.

Purpose of this article is to answer on question “Which environment standards multinational enterprises (MNEs) need to adopt, global or local, and do changes in environmental standards cause changes in market value or visa versa?” Global corporate environmental standard represents MNEs recognize competitive asset or liability to enhances market value. In countries where environmental regulation is either lax or not enforced, it is cheaper to operate than in countries with strict environmental regulations. From another point, value-seeking investors investing in low-standard countries may view local environmental standards as counterproductive to long-term profit performance. Firms conforming to a higher global environmental standard may find that the strategy enhances value. This conclusion is similar to some other scholars (Cohen et al. 1995; Hart and Ahuja (1996; Russo and Fouts 1997 and Finally and Nehrt 1996), whose found that higher “quality” firms which adopt global environmental standards pollute less.

National Textile Policy 2000 and interventions in the Indian textile sector around the turn of this century were designed to introduce efficiency-enhancing policy reforms through gradual withdrawal of restrictions on the organized and of protection for the unorganized segments of the industry. Such changes are expected to have affected the relative performance of the organized and unorganized segments of the Indian garment industry by influencing their conducts differentially. Removal of capacity restrictions was expected to initiate optimal restructuring of production. Unorganized firms generally enjoying scope economies and advantage of small batches production are supposed to deal with its problem of market access through complementary linkage with larger units. In this context, the present paper seeks to compare the change in efficiency profile of the concerned segments of selected Indian states between 2001 and 2011. Output-oriented data envelopment analysis indicated that majority of both organized and unorganized firms in most of the states were technically inefficient even at the end of the study period. Use of sub-optimal input-mix turned out to be the important cause of inefficiency in the organized segment while operating on a less than optimal scale-possibly due to typically limited access to market-contributed to the inefficiency for greater part of unorganized garment units. A meta-frontier analysis indicated that the scale-enhancing policy measures possibly favoured the organized sector more than its unorganized counterpart in all the states under consideration. This draws our attention to the need for recognizing the different requirements of these two segments of firms and for adopting a segment-specific support strategy.

This research examines the impact of capital structure on firms’ financial performance in Pakistan of top 100 consecutive companies in Karachi Stock Exchange for a period of four years from 2006 to 2009. Exponential generalized least square regression is used to test the relationship between capital structure and firms’ financial performance. The results show that all the three variables of capital structure, Current Liabilities to Total Asset, Long Term Liabilities to Total Asset, Total Liabilities to Total Assets, negatively impacts the Earning before Interest and Taxes, Return on Assets, Earning per Share and Net Profit Margin whereas Price Earning ratio shows negative relationship with Current Liabilities to Total Asset and positive relationship is found with Long Term Liabilities to Total Asset where the relationship is insignificant with , Total Liabilities to Total Assets. The results also indicate that Return on Equity has an insignificant impact on Current Liabilities to To...

In this paper, we argue that environmental business performance indicators are substantially and qualitatively different to sustainable development indicators and thus require different approaches in terms of public consultation, scope of measurement, time scale and range of issues covered. It does so by first reviewing some developments within environmental performance indicators for industry and, after providing a definition of sustainable

This paper reviews the relationship between proactive environmental strategy and environmental performance from the resource-based perspective by providing the recent findings on this relationship. The benefits and meaning of proactive environmental strategy and environmental performance are discussed in this article. We find that the resource-based view theory is important to define the relationship between proactive environmental strategy and environmental performance. Index Terms-proactive environmental strategy, environmental strategy, environmental performance, resource-based view theory

The concept of eco-innovation has begun to be considered as a solution to preventing environmental damage, especially since the 1990s. Eco-innovation is expected to reduce amounts of waste, air pollution, and material resource usage. However, the effect of eco-innovation on environmental and financial performance has received limited attention. This paper seeks to fill this gap by studying the effect of eco-innovation on environmental and financial performance. In order to do so, data were obtained by collecting surveys completed by 219 manufacturing companies in Turkey. By using structural equation modeling, we found that eco-innovation has a direct effect on pollution prevention, resource saving and recycling; furthermore, it has an indirect positive effect on cost reduction and thus on economic performance. The findings suggest that decision-makers should adopt eco-innovation due to its cost advantage and pollution prevention potential.

The negative effect of people on the environment, which is the most important source of the economic system, is increasing day by day. Global warming, which is caused by unnatural human activities, and environmental destruction caused by it have begun to resonate around the world. When this negative effect is reduced or eliminated, great responsibilities fall into the businesses. Businesses see these practices as a costly element and avoid this responsibility. Eco innovation is considered as a solution to fulfil this responsibility, bringing economic advantage while reducing environmental impacts. The Porter hypothesis argues that eco-innovation practices give rise to cost advantages while offering the opportunity to reduce or eliminate environmental impacts.
Eco-innovation refers to the reduction or implementation of environmental impacts that are developed at a significant level or new products, processes, forms of doing business or marketing activities in comparison to traditional methods. The study was created out of environmental concerns and aimed at investigating the effect on eco-innovation in the financial and environmental performance and the five-year operating history of Turkey's First 500 Large Enterprises has been examined. The study also covered the dynamics of eco-innovation and its obstacles. Data were gathered from the top management of the enterprises, production, environment and managers in the research and development units by the questionnaire method. A total of 219 managers were interviewed with.
Covering the impact of eco innovation on financial and environmental performance together with dynamics and obstacles, the theoretical model was tested by structural equation modeling. Accordingly, it was determined that there was a fit between the model and the data, and the hypothesis tests were made.
Eco-innovation, one of the main research topics of the study, was determined to have a direct positive effect on both cost performance, which is a financial performance component, and pollution prevention and resource saving, which are environmental performance components and indirect positive effect on economic performance. In this sense, the Porter hypothesis is supported by these findings. So businesses can provide cost advantages while reducing the environmental impacts of their operations.
In the analysis of Baron and Kenny (1986) taking into account the three-stage mediated effect of eco-innovation, it has been found that eco-innovation barriers are an intermediary effect between eco-innovation dynamics and eco-innovation. Eco-innovation barriers significantly reduce the impact of eco-innovation dynamics on eco-innovation. The statistical significance of the mediator effect was also measured by the Sobel test. It has been understood from the analyses that eco innovation dynamics have a direct positive impact on the performance dimensions of recycling, resource saving and economic performance, while eco innovation barriers have a negative effect on performance dimensions, pollution prevention, resource saving and cost performance.
However, when environmental resource and development expenditures, capital, energy and technology intensity are controlled, there is a significant difference in the impact of eco innovation on financial performance. Capital intensity and environmental resource and development activities are significantly different in the impact of eco innovation on environmental performance.
This work was supported by Scientific Research Project Coordination Unit of Istanbul University. Project number:23327
Key words: Innovation, Eco Innovation, Eco Innovation Dynamics, Eco Innovation Barriers, Financial Performance, Environmental Performance, ISO 500, Industrial Operations, Structural Equation Modeling.

On the fast track to joining the EU, the Polish Government has embarked on large scale economic, legal and institutional reform aimed at moving more rapidly towards a market economy and trade liberalisation. There is growing pressure on the private sector to share not only in the direct costs of these reforms, but also an expectation that companies will play a more active role through investment programmes. Pressure to compete in European markets is already changing the Polish marketplace and this competition will increase still further. In this context, implementation of environmental management systems (EMSs) has come to be recognised by large companies as only a matter of time. But for Poland's 2.3 million small and medium-sized companies (SMEs) the situation is less clear. As yet the Polish Government has done little to motivate the private sector to take on a more active role in securing environmental improvements and applying EU standards. This paper examines to what extent ISO 14001 certification can help the private sector in Poland contribute more effectively to economic and environmental reforms, which seek to accelerate Poland's accession to EU membership.

Sera gazlarının neden olduğu küresel ısınma tüm canlıların yaşam koşullarını olumsuz olarak etkilemekte ve yeryüzünün dengesini temelden sarsmaktadır. Eko süreç inovasyonu mevcut süreçlerin iyileştirilmesi ya da yeni süreçlerin tasarlanmasıyla çevresel etkilerin düşürülmesini ifade etmektedir. Eko yaklaşım; süreçte verimliliği sağlayarak daha az kaynak kullanımını, geri dönüşümü ve kirliliğin azalmasını sağlar. Bu çalışmada; eko süreç inovasyon uygulamalarının sera gazı yayılımını azaltmada etkili olup olmadığı, ayrıca işletmelerin çevre temelli uygulamalarında önemli bir baskı unsuru olan çevresel düzenlemelerin eko süreç ve sera gazı azaltımı arasında moderatörlük etkisi araştırılmıştır. Çevresel kaygılardan yola çıkarak oluşturulan bu çalışmada eko süreç inovasyonu Türkiye’nin birinci 500 büyük işletmesinin geçmiş beş yıllık faaliyetlerine dayalı olarak temiz ve kirlilik kontrolü teknolojileri olmak üzere iki boyutlu olarak ele alınmıştır. Veriler işletmelerin üst yönetiminden, çevre ve AR&GE biriminde bulunan yöneticilerden anket yöntemiyle toplanmıştır. Toplamda 217 yönetici ile görüşme gerçekleştirilmiştir. Verilere değişkenler arasında ki ilişkileri belirleyebilmek için ilişki testleri uygulanmıştır. Yapılan analizler sonucunda eko süreç uygulamaları artıkça sera gazı yayılım miktarının azaldığı saptanmıştır. Çevresel düzenlemeler ise eko süreç ve sera gazı yayılımı arasındaki ilişkiyi olumlu olarak etkilemektedir.
Anahtar Kelimeler: eko süreç inovasyonu, kirlilik kontrol teknolojisi, temiz teknoloji, çevresel düzenlemeler, sera gazı.

Multiple of factors such as technological innovation, public policy and market landscape, the nature of competitions, firms (cost) structures, firms’ strategies, stock market performances managerial skills and other indigenous and exogenous factors have an explicit and implicit influence on a firm’s growth. A wealth of the literature shows that there is a divergence of thoughts on the direction and the extent of these various factors on firms’ growth. There is a divergence of views on whether we could identify the relative impacts of stocks on market performance on firms’ growth, and what are the best practices to capture such lines of thoughts?  And hence disentangling the impact of stock market performance on firms’ growth is open-ended and disputable.
With this context, the key purpose of this article is to examine the impact of stock market performance on the firm’s growth to address the pillar questions raised above by considering the South African stock market as a case study. The data used for this study includes quarterly observations ranging from 2001Q1 to 2015Q4. We applied time series methods with the purpose of empirically testing the impact of stock market performance on firms’ growth. The empirical testing process involves Johansen’s Co-integration technique we employed to establish the Co-integrating nature of the relationship between the two previously mentioned variables. In addition, we used a Vector Error Correction Model (VECM) to find out the long-run dynamics of the link between the two variables. The evidence obtained from the empirical testing for a sample of sixty observations suggests that performing stock markets have a significant long-run impact on firms’ growth.
The insightful results we obtained using the parsimonious methods reinforce and support the view that stock market performances have a substantial impact on firms’ growth in the long run.