The New Managerial Challenge: Transforming Environmental and Health Issues to Competitive Advantages
AbstractThe major aim of the paper is to investigate how environmental (“green”) factors may influence on international business activities and the competitiveness of firms. The paper suggests that an environmental performance lower than the industry average would represent a risk for the firm, while a performance above the industry average could result in increased cost and/or increased competitiveness. Further, it is suggested that the average environmental performance in most industries will improve, due to a situation where most firms attempt to perform better than or equal to their industry’s average levels. The author present twelve specific recommendations for managers, aimed at improving firm competitiveness in international markets.
ABB (2008). Welcome to Sustainability at ABB. http://www.abb.com/cawp/abbzh258/235c6a4c193429f3c12569680050e09f.aspx (Accessed June 6, 2008)
BANSAL, P. (2005). Evolving sustainably: A longitudinal study of corporate sustainable development. Strategic Management Journal, 26(3), pp. 197-218.
BONIFANT, B. C., Matthew B. A., Frederick J. L. (1995), Gaining competitive advantage through environmental investments. Business Horizons, 38(4), pp. 37.
BRAMMER, S. J., Stephen P., Lynda A. P. (2006), Corporate social performance and geographical diversification. Journal of Business Research, 59(9), pp. 1025.
BUYSSE, K., Verbeke, A. (2003). Proactive environmental strategies: A stakeholder management perspective. Strategic Management Journal, 24(5), pp. 453-70.
CHRISTMANN, P. (2000). Effects of "best practices" of environmental management on cost advantage: The role of complementary assets. Academy of Management Journal, 43(4), pp. 663-80.
CLAVER, E., Lopez, M. D., Molina, J. F., Tari J.J. (2007), Environmental management and firm performance: A case study. Journal of Environmental Management, 84, pp. 606-19.
CLEMENS, B. (2006). Economic incentives and small firms: Does it pay to be green? Journal of Business Research, 59(4), pp. 492-500.
D'SOUZA, C., Taghian M., Lamb P., Peretiatkos R. (2006), Green products and corporate strategy: an empirical investigation. Society and Business Review, 1(2), pp. 144-57.
DN (2007). Disse menneskene kontrollerer verdier for 23.000.000.000.000 kr. Nå vil de forandre verden, generalforsamling for generalforsamling. Dagens Næringsliv 3./4. November 2007 (In Norwegian)
ERFLE, S., Fratantuono M.J. (1992), Interrelations Among Corporate Social Performance, Social Disclosure, and Financial Performance: An Empirical Investigation. Dickinson College.
FILBECK, G., Gorman, R.F. (2004). The Relationship between the Environmental and Financial Performance of Public Utilities. Environmental and Resource Economics, 29(2), pp. 137-57.
FORD (2008). Climate Change Report http://www.ford. com/about-ford/news-announcements/press-releases/ press-releases-detail/global-climate-change-456p. (Accessed June 6, 2007)
FORD (2008b). A Greener Way to Paint Vehicles http://www.ford.com/innovation/environmentally-friendly/ corporate-sustainability/greener-vehicle-paint/ environmentally-friendly-painting-381p. (Accessed June 6, 2007)
HAKANSSON, H., Waluszewski, A. (2002). Path dependence: restricting or facilitating technical development? Journal of Business Research, 55(7), pp. 561-70.
HAMILTON, J.T. (1995). Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data. Journal of Environmental Economics and Management, 28(1), pp. 98-113.
HART, S.L., Ahuja, G. (1996). Does it Pay to be Green? An Empirical Examination of the Relationship Between Emission Reduction and Firm Performance. Business Strategy and the Environment, 5(1), pp. 30-7.
HEWART PACKETT (2008). HP Eco Solutions. http://www.hp.com/hpinfo/globalcitizenship/environment/ (Accessed June 6, 2007)
HOFFMAN, A.J. (2000). Integrating environmental and social issues into corporate practice. Environment, 42(5), pp. 22-33.
INTERGOVERNMENTAL PANEL OF CLIMATE CHANGES (2007). Workgroup II Climate Change Impacts, adaption and vulnerability. http://www.ipcc-wg2.org/ (Accessed June 6, 2007)
JAFFE, A. B., Stavins, R. N. (1995). Dynamic Incentives of Environmental-Regulations - the Effects of Alternative Policy Instruments on Technology Diffusion. Journal of Environmental Economics and Management, 29(3), S43-S63.
KARPOFF, J.M., Lott, J.R., Wehrly, E.W. (2005). The reputational penalties for environmental violations: Empirical evidence. Journal of Law & Economics, 48(2), pp. 653-75.
KING, A., Lenox, M. (2002). Exploring the locus of profitable pollution reduction. Management Science, 48(2), pp. 289-99.
KONG, N., Salzmann, O., Steger, U., Ionescu-Somers, A. (2002). Moving business/industry towards sustainable consumption: The role of NGOs. European Management Journal, 20(2), pp. 109-27.
MAINIERI, T., Barnett, E.G. (1997). Green Buying: The influence of environmental concern on consumer behaviour. The Journal of Social Psychology, April, pp. 189-205.
MCGUIRE, J.B., Sundgren, A., Schneeweis, T. (1998). Corporate Social Responsibility and Firm Financial Performance. Academy of Management Journal, 31(4), pp. 854-72.
MULALLY, A., Ford, B. (2008). Ford Motor Company's 2006/2007 Sustainability Report: For a More Sustainably Future. Ford Motor Company, pp. 1-42.
PEATTIE, K. (2001). Towards Sustainability; The Third Age of Green Marketing. The Marketing Review, 2(2), pp. 129-46.
PORTER, M.E., van der Linde, C. (1995). Toward a New Conception of the environment-competitiveness relationship. The Journal of Economic Perspectives (1986-1998), 9(4), pp. 97.
PORTER, M. (1991). Towards a Dynamic Theory of Strategy. Strategic Management Journal, 12, pp. 95-117.
REINHARDT, F. (1999). Market Failure and the Environmental Policies of Firms: Economic Rationales for "Beyond Compliance" Behavior. Journal of Industrial Ecology, 3(1), pp. 9-21.
RUSSO, M.V., Fouts, P.A. (1997). A Resource-Based Perspective on Corporate Environmental Performance and Profitability. The Academy of Management Journal, 40(3), pp. 534-59.
SALZMANN, O., Ionescu-Somers, A., Steger, U. (2005). The Business Case for Corporate Sustainability:: Literature Review and Research Options. European Management Journal, 23(1), pp. 27.
SIEMENS (2008). Responsibility Performance. http://w1.siemens.com/responsibility/en/responsibility_performance/environmental_protection/index.htm (Accessed June 6, 2008)
TELLE, K. (2006). "It pays to be green" - A premature conclusion? Environmental & Resource Economics, 35(3), pp. 195-220.
UNGSON, G.R., James, C., Spicer, B.H. (1985). The Effects of Regulatory Agencies on Organizations in Wood Products and High Technology Electronics Industries. Academy of Management Journal, 28(2), pp. 426-45.
WAGNER, M. (2005). How to reconcile environmental and economic performance to improve corporate sustainability: corporate environmental strategies in the European paper industry. Journal of Environmental Management, 73, pp. 105-18.
WALL-MART WACH (2008). About Wall-Mart Watch. http://walmartwatch.com/about (Accessed June 6, 2007)
WHITE, M.A. (1991). Green Investing: The Recent Performance of Environmentally-Oriented Mutual Funds. McIntire School of Commerce, University of Virginia.
ZHU, Q., Sarkis, J., Geng, Y. (2005). Green supply chain management in China: pressures, practices and performance. International Journal of Operations & Production Management, 25(5), pp. 449-68.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).