Business and the genesis of the European Community carbon tax proposal

The purpose of this paper is to examine the role of business in the regulatory process associated with the carbon tax proposal. The first part of the paper describes the Community's climate change policy, noting first the essential features of Community environment policy-making, the role of consultation with industry and the significance of the ‘subsidiarity’ principle. This part of the paper moves on to examine the carbon tax proposal and its evolution since 1990. The second part of the paper addresses the specific role which business played in influencing the development of the carbon tax proposal. The general strategy of business was to block the proposal entirely. The paper identifies the potential impacts of the tax on business, implications for corporate strategies and the specific channels through which business influenced the tax proposal, by participating in public debates, through representations to different directorates of the European Commission or by making a case to national authorities. The final part of the paper attempts to draw some lessons about: the business position in relation to large scale environmental problems such as climate change; business responses to economic instruments such as the carbon/energy tax; and the wider relationship between public authorities and business in regulatory processes. The question of whether this relationship has entered a new phase or whether there is still ‘business as usual’ is addressed.     

Environmental accounting: an essential component of business strategy

Environmental accounting is on an expansion path. With increasing social focus on the environment, accounting fills an expectation role, to measure environmental performance. The status of environmental awareness provides a dynamic for business reporting its environmental performance. Examining the integration of environmental policy with business policy is the focus of this research. The business firm's strategy includes responding to capital and operating costs of pollution control equipment. This is caused by increasing public concerns over environmental issues, and by a recent government‐led trend to incentive‐based regulation. This paper describes the environmental component of the business strategy, producing the required performance reports and recognizing the multiple skills required to measure, compile and analyze the requisite data. Special emphasis of the research is on generation of reports and their standards, for the range of business and regulatory purposes. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Issues in the implementation of proactive environmental strategies

Management consultants, environmental groups, and industry trade associations have all recently offered guidelines for companies to improve environmental performance.¹ The guidelines suggest ways that companies can implement strategic change to move beyond compliance with regulation, assume responsibility for the environmental impacts of their products, and gain public credibility. Much of the advice offered can be useful to managers who are responding to rapidly changing environmental pressures. Nevertheless, implementation of some of the general guidelines could impose undue costs or introduce untoward organisational consequences for certain companies. While mentioned as an issue in the management literature, companies need more systematic advice on how best to tailor these broad guidelines for environmental strategic change to the specific needs and capabilities of their companies. In addition, as many companies are comprised of diverse business units that are sometimes linked together only through financial controls, managers must adapt environmental management programs to unique ‘substructures’ within the firm. These substructures can differ dramatically in their environmental performance and their management capabilities. Elsewhere we have offered a framework for analysing environmental strategies and management programs.² In this paper, we identify some of the implementation issues that confront companies when they introduce environmental strategic change. We argue that environmental strategies are most effectively implemented when they are consistent with the organisational characteristics and operating context of the company involved. We use Volvo's experience with environmental strategic change to highlight many of the difficulties that companies may encounter when altering their approach to environmental performance. The case illustrates how a company can modify its own strategy and management programs for more effective change. It is an interesting case to study because of the proactive and comprehensive nature of Volvo's environmental strategy and management programs.     

Small and Medium‐Sized Enterprises and Sustainability: Managers' Values and Engagement with Environmental and Climate Change Issues

This article reports on an in‐depth, qualitative study into the pro‐environmental engagement of small businesses in the east of England, with respect to climate change in particular. Managers of environmentally pro‐active small businesses were asked about the pro‐environmental measures they had implemented in their firms, their motivations for doing so, and their understanding of climate change. The managers in this study had a relatively good understanding of environmental issues in general and climate change in particular, and had implemented a range of pro‐environmental measures in their firms. Their understanding of climate change was a holistic one, which sat within their overall understanding of environmental and social issues. While economic arguments and external pressure played a role in their pro‐environmental engagement, perhaps the most notable motivation for managers in this study to engage with environmental and climate change issues was personal values and beliefs. Environmentally engaged managers exhibited an internal locus of control. Some of these findings contrast with the views of key informants in local government and business advice organisations, who tend to emphasise the business case and cost arguments when trying to encourage small businesses towards greater environmental engagement. These findings suggest that public policy and business advice in this area should perhaps focus more strongly on personal values and a sense of being able to contribute to environmental protection in their engagement with small businesses. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Corporate greening and changing regulatory regimes: the UK water industry

This article looks at the relationship between economic regulation, environmental regulation, company strategy and the environment in the UK water and sewerage industry. The regulatory field in this industry, following privatization in 1989, is highly complex and interdependent. The paper presents three case studies of company interpretation of and response to changes in this regulatory field, focusing particularly on the third review by the economic regulator, in 1999, which involved a reduction of the prices companies were allowed to charge their customers. This had significant but complex repercussions for environmental strategy and management in the companies, with different impacts on mandatory and non‐mandatory activities. It also showed in relief the opportunities for building coalitions between companies and the environmental regulator, both in general terms and revolving around specific, local environmental issues and schemes. Companies' strategic direction was also found to have an impact on their response to the regulatory review. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Defining Eco‐efficiency: A Case Study on the Finnish Forest Industry

Environmental reporting is a tool of corporate environmental management that can also be used as research material. The aim of this paper is to produce a comprehensive definition of eco‐efficiency based on the literature and then compare it with definitions identified in the environmental reports published by selected companies. In addition, this paper presents a conceptual framework of the relationship between environmental and economic performance in the companies. Three Finnish companies in the forest industry are selected as case companies. This analysis reviews environmental reports published by the companies from 1998 to 2007. In short, eco‐efficiency can be seen either as an indicator of environmental performance, or as a business strategy for sustainable development. The case companies very seldom give an exact definition of eco‐efficiency in their environmental reports. However, different aspects of eco‐efficiency are often referred to. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability in the Transport and Logistics Sector: Lacking Environmental Measures

Sustainability as part of the development of companies' business strategies is gaining in importance. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. This paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behavior. A case‐based approach involving multiple field studies with face‐to‐face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance and draw general conclusions regarding the transport and logistics sector. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Cybercrime and cloud computing. A game theoretic network model

In this paper, a network model is developed in which three players—a profit‐maximizing provider of cloud computing services, its consumers, and a hacker—sequentially choose their strategies. Several scenarios with different levels of data security and public prosecution of the hacker are analyzed. Especially for the case when no security measurements are available, a firm's strategy to limit the network size in order to render hacking unattractive is discussed in detail. Finally, policy implications are given implying better international cooperation of the law enforcement authorities.     

Business strategy and firm efforts on environmental protection: Evidence from China

Although business strategy plays a fundamental role in firm operations, whether and how business strategy affects firms' environmental protection behaviors remain unclear. On the basis of a typical emerging market, we show that firms following prospector strategies take more environmental protection actions than do those following defender strategies. Our findings are robust to endogeneity checks and alternative measures of business strategy. We further find that prospectors engage in more environmental activities than do defenders when the degree of financial constraint or earning management is high. Our results are particularly pronounced in state‐owned enterprises, heavy‐polluting industries, and firms located in regions with strict environmental regulations. Overall, this study provides clear policy implications for regulators concerned with environmental protection.     

Business strategy for sustainable development: Impact of life cycle inventory and life cycle impact assessment steps in supply chain design and planning

Sustainability reporting has become a central instrument in displaying a company's strategy and engagement with a more sustainable society. Life cycle assessment (LCA) is an important tool in this context as it is aimed to analyze the entire life cycle of the product/service, instead of focusing on one focal firm. However, the lack of standardized guidelines in its application raises questions regarding the usefulness and validity of results. This study contributes to the improvement of sustainability reporting through the identification of the uncertainty sources in life cycle methodologies that have the biggest impact in the definition of business and environmental strategies, exploring a supply chain‐oriented analysis. The focus is on life cycle inventory (LCI) and life cycle impact assessment (LCIA). A multiobjective optimization‐based methodology is applied to a supply chain case study in the pulp and paper industry. Environmental and economic objectives are considered. Results show that different LCIA methods and different normalization data sets result in significantly different business and environmental strategies. However, different system models and cultural perspectives at the LCI step and variations in the characterization factors tend to lead to the same decisions. Important insights are gained regarding the impact of nonstandardized analysis of the application of LCA in supply chain design and planning decisions and consequently on business strategy definition and sustainability reporting. Furthermore, the importance of operations research methods to improve LCA‐based studies and of bridging the gap between LCA and supply chain management bodies of knowledge is highlighted in this work.     

Sustainable Development of Maritime Operations in Ports

Globalisation has heralded burgeoning ship movements and maritime operations in ports alongside increased international concerns regarding potential environmental impacts. In particular, smaller ports require accessible tools to manage them. A framework to facilitate environmental management applies business process principles to identify relevant inputs, processes and outputs. A case study of Falmouth Harbour Commissioners compares functional units and flows that define input–output processes for anchoring and bunkering operations. Strategic‐level processes affect present and future operations while tactical service processes guarantee service level and quality through their integrity. Operational processes occur at the output level. An accessible generic framework supports planning of more sustainable maritime operations, facilitates mitigation of potential risks and encourages authorities to engage with sustainability agendas and manage development proposals proactively. Ongoing interlocution with business strategists will refocus port managers on educational and commercial missions and increase stakeholder engagement. Simplification and optimisation phases of business process re‐engineering remain untapped by business strategists. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication

The purpose of our study is to explore how companies operating in the Nordic wood products value chains currently use environmental performance measures in their environmental policy and communication with stakeholders. Apart from the regularly‐used environmental management certificates, the ability of wood material to store carbon and the use of sustainable forest management certificates open up interesting strategic options for firms in the implementation of their environmental policy. The primary was collected through thematic managerial interviews in 2011 from 37 companies in Finland, Sweden and Norway, of varying size, roles in the value chain, conditions for green business practices and exports. Forest certification and environmental management systems were frequently used, but managers did not always perceive them to be useful, particularly for raising environmental awareness at the final consumer level. Nevertheless, the general attitude towards using environmental performance measures was seen as positive. Companies with a business‐to‐business orientation were the most proactive in terms of environmental communication, whereas companies in consumer markets were more reactive. The key stakeholders targeted for environmental communication were value chain partners and the authorities, and only to a lesser degree employees and environmental non‐governmental organisations. The key strategic role of environmental management and communication appeared to be securing the firms against negative environmental claims. The Nordic wood industry could improve their communication if the strategic orientation is shifted from the forest certification to the use of generic eco‐labels, and most of all, to the adoption of quantitative measures like carbon footprints and environmental product declarations. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment.     

Victim or Victimizer: Firm Responses to Government Corruption

What is the relationship between government corruption and firm performance? To address this question, I conduct a review of articles published in the leading management journals on government‐business interactions pertaining to rent‐seeking activities and integrate findings from the fields of international business, social issues in management, public organization, institutional change, and corporate political activity. I find that while much empirical work corroborates the earlier findings suggesting a corrosive impact of government corruption on firm performance in general, management research also points to the heterogeneous impact of government corruption on individual firm performance, driven by the strategic activities conducted by firms in response to corruption. I propose an integrative model of firm strategy vis‐à‐vis corruption that predicts the activity choice of the firm as predicated by its organizational structure, political resources, industry regulation, and surrounding political and social institutions.     

Business,trust and environmental information: Perceptions from consumers and retailers

This paper explores how business sees its role as a provider of information to the public about products marketed with environmental claims. This revolves around issues of depersonalised advice to customers, education of the wider public and, most crucially, justification of company activities. The author demonstrates how people criticise this information because of the way that they perceive the motives of business to colour it, rather than because of the facts it conveys. People distrust aspects of business, especially its environmental information, for these reasons but the perceived expertise of business in comparison with the lack of expertise of the public means that they have little choice but to trust the more general system of information provision. The balance of trust to doubt is precarious and an overall loss of public trust has implications for the regulation of business because self-regulation will no longer be seen as accountable and pressure may build for increasing government intervention, e.g. in eco-labelling. These issues are addressed through the use of qualitative data from in-depth interviews with green consumers and retailers.     

Environmental Policies and Firm Value

Many organizations are currently becoming more environmentally friendly. Eco‐efficiency maximizes the effectiveness of a business operation while reducing its impact on the environment; with the necessary skills, organizations can create more value while using less input. Prior empirical studies have suggested that firms engaging in eco‐efficient activities are better valued than those without such activities. Therefore, this will enhance business efficiency and excellence. This study investigates the link between eco‐efficiency, as environmental policy, and firm value in the United Kingdom (UK) for the period 1999 to 2008. We generate new insights into environmental–financial performance by using different definitions of the term ‘eco‐efficiency’. In the UK context our results support that eco‐efficient firms have higher market values than those lacking environmental strategies. Hence, we recommend that firms become involved in environmental polices since the adoption of these polices will have a positive impact on firm value. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach

Based on the business environmental literature and system dynamics, this paper develops a simulation model for managing the business risks derived from climate change. In particular, the purpose of this paper is to transform the valuable findings from the literature regarding climate change and corporate implications into an effective business management model with a broad applicability, regardless of the size of the business or the sector in which it operates. A methodology consistent with the basic principles of the system dynamic modeling process is developed, and a case study is designed to determine the level of completeness of the simulation model and its ability to address different aspects of business performance. To do so, three different scenarios have been simulated to analyze the reactive, proactive and inactive stance of managers against climate change risks. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The economic consequences of environmental regulation in China: From a perspective of the environmental protection admonishing talk policy

Environmental regulation may lead to undesired economic consequences. China has tightened its environmental policies to deal with severe environmental pollution in recent years, but existing studies pay little attention to the economic consequences of China's environmental policies. Using the panel data of 211 prefecture‐level and above cities in China from 2003 to 2016, we for the first time estimate the economic impact of the environmental protection admonishing talk (EPAT) policy, a newly implemented environmental regulation policy in China. We use the difference‐in‐differences strategy to identify the economic effects of the EPAT policy combined with the propensity score matching method to control a potential selection problem. The results show that a relative decline occurs in gross domestic product per capita in target cities after the implementation of the EPAT, and the negative impact is exerted on the secondary industry rather than the tertiary industry. Furthermore, we find that target cities respond to the environmental protection requirements of higher authorities through a one‐size‐fits‐all approach of limiting the production activities of industrial enterprises. Meanwhile, the EPAT policy does not improve environmental efficiency. Such findings are instructive for policymakers who need to trade off economic welfare and environmental quality when formulating and implementing new environmental policies.     

Development and results of research on environmental management in Germany

This paper aims to outline three main dimensions of environmental management research in Germany as an exemplary case of the growing importance and development of ecologically oriented management in Western societies in general: (1) to describe the development and the main features of this research; (2) to summarize the results obtained so far (1992–1993); and (3) to assess both its development and results from the point of view of its broader social context. This should allow the reader to draw his/her own conclusions on the position and perspective of environmental management (research) in his/her own country. In this paper, environmental management refers to environmentally oriented management of and in (business) organizations in general, and not just to specific substantive environmental practices.     

Integrating Behavioural and Branding Perspectives to Maximize Green Brand Equity: A Holistic Approach

The aim of this study is to expand the existing understanding of green consumers' behaviour by proposing and testing an integrated conceptual model that explores the influence of consumers' personal concerns for the environment and general attitudes towards green products on brand‐related knowledge structures (image and associations) and relationship preferences (trust and brand equity) for green brands. A questionnaire‐based survey method was used to collect data using convenience sampling. One hundred and ninety‐nine usable responses were obtained. A structural equation modelling procedure was used to test the proposed hypotheses. The results confirmed that a positive relationship exists between consumer concern for environmental values and general attitudes towards green products. Both these constructs influence consumers' knowledge structure of a green brand (image and associations). Furthermore, a strong relationship exists between consumers' knowledge structure (image and associations) and their relational preference (trust and brand equity) with green brands. These findings are important for business strategy formulation by providing empirical support for the idea that a firm should invest its resources not only to project its environmentally friendly brands but also to build consumers' concern for environmental values and their attitude towards green products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance

In this paper, we seek to enhance the understanding of the link between environmental management and firm performance, so contributing to the debate of being “green and competitive”. Relying on the resource‐based view, we study the effect of different environmental management capabilities on a firm's market and image performance. In particular, we analyze the capabilities to implement product and process‐related environmental actions with different types of environmental focus (materials, energy, pollution) and the capabilities to develop environmental collaborations with different types of actors (both business actors and non‐business actors). To this aim we conducted a survey on 122 Italian companies. Results show that market performance and image performance have partially different antecedents. Specifically, a firm's market performance is positively affected by the capabilities to implement environmental actions with a focus on energy and pollution and to develop environmental collaborations both with business and with non‐business actors. On the other hand, a firm's image performance is positively affected by the capabilities to implement environmental actions with a focus on materials and to develop environmental collaborations with non‐business actors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment