Stage models of corporate ‘greening’: a critical evaluation

Corporate ‘greening’, i.e. the process by which companies can become more environmentally responsible in their operations, has attracted considerable interest lately. Largely born out of hands-on consultancy experience, various models have been proposed which describe a series of ‘stages’ by which companies become progressively more environmentally conscious and reduce their impact on the natural environment. The present article critically analyses some of these ‘stage’ models of corporate ‘greening’ from both an empirical and a management theoretical point of view. The empirical analysis is based on four case studies of the ‘greening’ efforts of companies in the UK water and electricity industries. Environmental strategy and management in these companies is found to fit poorly into the stage models of corporate ‘greening’. The article concludes that more comprehensive and interpretative explanations of organizational ‘greening’ are needed, including contextual and process oriented analysis. © 1998 John Wiley & Sons, Ltd and ERP Environment.     

Human Resources in the People's Republic of China: the ‘Three Systems’ Reforms

This article discusses the human resources implications of the comprehensive ‘three-systems’ reforms in state-owned enterprises introduced in the early 1990s in Northeast China in terms of labour contracts, rewards systems and social insurance. It critically examines current developments in industrial relations vis-a-vis each of these categories. the upshot of these changes is a move away from the old ‘iron-rice-bowl’ employment system towards a labour-market ‘with Chinese characteristics’. Such a strategy is not without its political risks, particularly if it leads to greater joblessness without a nationwide welfare ‘safety-net’ being fully put in place. If the ‘three systems’ reforms were first piloted in 1992, it was not until 1995 that they began to be extended nationally. Such changes may be of considerable potential importance to HRM managers in multinational companies interested in forming strategic alliances and joint ventures with Chinese state-owned enterprises.     

A TEST OF PERFORMANCE SIMILARITY AMONG STRATEGIC GROUP MEMBERS IN CONFORMING AND NON-CONFORMING INDUSTRY STRUCTURES

Empirical tests have produced mixed support for a membership-performance link in strategic groups, perhaps due to incomplete treatment of industry forces. We argue that strategic group concept is more useful for explaining performance differences among firms in some industries (where conditions favour conformity in firm conduct) than others. Using three industry structure constructs as criteria, 47 four-digit SIC industries are classified into ‘conforming’ or ‘non-conforming’ industry samples. Firms are then clustered into strategic groups in a separate treatment for each sample. Performance differences among groups are tested under conforming and non-conforming industry conditions. Tests confirm membership effects on ROA and ROE are significantly stronger in ‘conforming’ industries, where stronger regression relationships between conduct variables and performance also obtain.     

Post‐privatisation industrial relations in the UK rail and electricity industries

Commercial firms in industries once under public ownership generally have well‐organised trade unions with significant disruptive capacity, yet overt confict is often low despite major change. This paper examines the experience of two major rail and energy companies after privatisation. The results demonstrate the importance of sectoral characteristics, and the form of privatisation itself, in shaping industrial relations. The exercise of strategic choice at firm level also undermines any general industrial relations ‘theory of privatisation’.     

Human resource management and organizational strategies in German- and US-owned companies

The development of the international economy over the past twenty years has bred considerable diversity in the form and substance of employment relations (labour-management relations, human resource management practices) throughout the world. Cases of ‘social partnership’ are today found in the ‘free market’ United States economy; some companies operating in Germany's ‘social’ market economy are rejecting traditional forms of social partnership in the name of more unilateral strategies.

This paper examines (a) the extent to which ‘strategic diversity’ – variation in human resource strategies and policies – is possible within the heavily institutionalized, co-operative and codeterminative German economy, and (b) how managers perceive the effects of different kinds of HR approaches on organizational change and industrial adjustment. It is based on empirical evidence drawn from seven large chemicals companies operating in Germany – three of them US-owned firms and four German-owned.

The main conclusions are that considerable strategic diversity is possible within the German context, and that managers perceive distinct costs and benefits to specific aspects of the typically American ‘unilateral’ style and the more German ‘negotiated’ approach to structuring the relationship with human resources. The paper concludes with a discussion of the implications of these trade-offs for the transferability of HR strategies across international borders, giving special attention to policies to avoid some of these potential costs.     

The adoption of international best practices in a Western culture: East meets West

Contemporary organizations facing changing economic and strategic realities have considered many models of organizational performance, in particular those based on ‘actices’odels of best practice have emanated from the USA, some European countries and Japan; however, the question remains –ternational best practices be transferred to Australia or elsewhere? Since companies in Japan, in particular, have been seen as harbingers of these best practices, we compare the level of adoption in Japanese and non-Japanese companies in three Australian industries. Differences between Japanese and non-Japanese companies were more apparent in the automotive industry with only a few differences found for the information and tourism industries. The main differences between the two ownership categories were in areas of unionization and management–elations, that is, areas that may be influenced more by institutional arrangements than by cultural differences. Perhaps the most interesting finding from the comparative research was that there were relatively few differences between the Japanese and non-Japanese companies. These characteristics include: organizational structure, labour turnover, teams as part of the organizational structure, levels of training, use of ringi-style decision making, security of employment, employee welfare schemes, the use of and success with performance appraisal and performance-related pay, and a wide range of quality systems. The key pillars of Japanese management are not being transferred, and we cannot expect to see identical arrangements regarding other management practices. But the differences between Japan and western countries such as Australia are very gradually declining.     

PURCHASING AND ENVIRONMENTAL MANAGEMENT: INTERACTIONS,POLICIES AND OPPORTUNITIES

The mechanisms are examined by which environmentally informed business practices and technologies may diffuse through industry as a result of the ‘greening’ of purchasing and supply. The efforts of official bodies in the UK to raise environmental awareness among industrial purchasers are reviewed. It is then argued that the supply chain model is an important way of interpreting the industrial landscape from a green perspective and that it is in some ways a more hopeful and positive starting point for achieving industrial transformation. The results of an analysis of some UK companies practices in using their purchasing policies to ‘green’ their supply chains are presented and opportunities for further research indicated.     

Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor

Climate change, extreme weather phenomena, droughts, fires etc. are just few examples of man-induced impact, jeopardizing the future of mankind. Businesses are increasingly held responsible for and try to manage their environmental impact. Environmentalism and lately sustainability (manifesting an equal pursuit of environmental, social, and economic goals) guide strategic orientation. Whereas large corporations anchor environmentalism in their mission statements and strategic positioning, the strategic reflection of sustainability and especially environmentalism in the business models of small enterprises is less researched. Their entrepreneurship builds on exploiting environmental opportunities and is deemed characteristic for small enterprises, but a lower penetration of strategic instruments paired with a predominant opportunistic behaviour seem to characterize SME´s strategic environmentalism. In order to examine the entrepreneurial environmentalism and the strategic value for SMEs an empiric study leaned on population ecology. An online survey with 291 small enterprises explored environmentalism, strategic profiling, and performance impact in an agricultural and entrepreneurial industry. Study results manifest a positive performance impact of sustainability-oriented and thereby ecologic environmentalism. Ecologic environmental consciousness has been identified for all generic strategic groupings but it separates into two distinctive clusters, one with a process and one driven by market focus. Foremost, eco-centric strategic measures were identified as core levers to increase product quality – a promising finding that secures further strategic ecological environmentalism.

     

EXPERIENCES WITH IMPLEMENTING INTEGRATED CHAIN MANAGEMENT IN DUTCH INDUSTRY

Integrated chain management (also called ‘life cycle management’) has become a central concept in environmental policy in the Netherlands. Integrated chain management requires two essential changes in the existing pattern of production and consumption. It calls for a reduction in the use of fossil energy sources (natural gas, oil and coal) and a switch to the utilization of sustainable energy sources based on solar and wind energy. Integrated chain management further involves preventing the diffuse spread of pollution, finding substitutes for environmentally hazardous substances and retaining substances in the substance cycle for as long as possible. The insights gained in the Netherlands into how the concept of integrated chain management can be translated into day to day corporate practice are summarized. It is argued, firstly, that industry needs to conduct integrated chain analyses to identify possible options for environmental improvements extending to the whole production chain; secondly, that the results of such chain analyses will only be implemented if the concept of integrated chain management is incorporated by companies in their strategic planning; and, finally, that the implementation of environmental improvements will often require forms of strategic co-operation with external parties. It is concluded that most efforts have focused on elaborating a methodology for integrated chain analysis. The actual implementation of the specific improvement options — integrated chain management — still occurs to only a limited extent in Dutch industry.     

Ecology and competitiveness in Swiss industries

This article investigates ecological problems and their influence on competitiveness in two selected Swiss industries: food and transportation. Ecological problems defined at a bio-physical level and the ecological stakes defined at a socio-economic level will be analysed. The ‘matrix of ecological problems’ and the ‘matrix of ecological stakes’ are useful and powerful instruments for analysing these two levels. It will be shown that ecological problems and ecological stakes vary from industry to industry. Ecological problems lead to ecological stakes. The ecological stakes lead to ecological changes within the two industries. The central forces of competition are influenced due to ecological issues. In order to be prepared for these changes, companies have to develop strategies which meet both economic and ecological requirements. Examples for such strategies are given in the text.     

Collectivism and the Management of Industrial Relations In Greenfield Sites

Patrick Gunnigle examines management approaches to industrial relations in newly established (‘greenfield’) companies in the Republic of Ireland. He focuses particularly on recent empirical findings on trade union density and recognition and on the role of employer organisations. the evidence presented points to newly emergent patterns of industrial relations management which diverge from the pluralist model. However, in only a minority of cases could these be classified as ‘soft’ human resource management. Indeed a number of organisations studied adopted industrial relations styles which more closely approximated to ‘hard’ HRM. It would appear that the emerging pattern is one of higher individualism and constrained collectivism. the findings also point to the emergence of a vibrant non-union sector among greenfield companies. It is argued that this trend is likely to be accentuated by the increasing number of companies successfully pursuing the non-union route. Equally, the current national industrial policy focus on high technology industries and internationally traded services is also likely to reinforce growth in the non-union sector. A number of factors which may help to arrest this trend are identified, particularly the corporatist structures characteristic of Irish industrial relations and the traditional acceptance of trade unions as legitimate bargaining partners.     

Environmentally driven mode of business development: a management control perspective

A prerequisite for successful business development is that the control system is designed and used in such a way that strategically important areas can be planned and followed up. Thus, it must be possible to relate results on the quality front, for example, to the company's strategy, which is why quality systems are often integrated with the overall system of control. Environmental management systems, on the other hand, often tend to lead a life of their own, quite disconnected from the overall control system with its routines for strategic planning and follow-up. This can perhaps explain why environmental work has not become a natural part of corporate business development, despite the market for environmentally friendly products. In this article, we therefore focus particularly on control systems and their role in the promotion of an environmentally driven mode of business development. It appears that the integration of environmental management systems with other control systems has been found to be important. The tentative model presented here indicates the conditions under which such integration is possible. It also shows how a company's approach to environmentally driven business development can fall into various phases. The model includes three dimensions: (1) strategy, (2) control systems, and (3) attitude to environmental work. A number of hypotheses are formulated regarding the importance of these dimensions for the successful promotion of an environmentally driven mode of business development in large companies. The article concludes with some suggestions as to how the model can be used in further research.     

Creating sustainable corporations

Corporate industrial activities of the past are environmentally unsustainable. Many of today's environmental crises are rooted in an unsustainable pattern of industrialization. Sustainable economic development can be ushered in only if corporations, the main economic engines of the future, are made environmentally sound. This can be facilitated through ‘total environmental management,’ and ‘sustainable organizational design’. Although many companies have embraced the practice of environmental management, few have seriously engaged the idea of sustainability. Those that do might reap competitive and financial benefits.     

Microfoundations of companies' dynamic capabilities for environmentally sustainable innovation: Case study insights from high‐tech innovation in science‐based companies

To achieve sustainable development, companies are increasingly putting an emphasis on the creation and the promotion of environmentally sustainable innovations. Environmentally sustainable innovation often involves a significant shift in a new strategic direction. This paper studies this shift from a dynamic capabilities perspective and aims to identify the microfoundations of science‐based companies' dynamic capabilities for high‐tech environmentally sustainable innovations. It investigates the development of high‐tech environmentally sustainable innovations in two distinctive science‐based companies. To scholars, this study provides an in‐depth process analysis, over time, of how and why microfoundations of dynamic capabilities influence the development of a science‐based company's high‐tech environmentally sustainable innovations. To practitioners in science‐based firms, this process study can function as a frame of reference, enabling the tailoring of a strategy for high‐tech environmentally sustainable innovation.     

Corporate Carbon Strategies in Responding to Climate Change

With climate change emerging as one of the most important issues affecting the business circle, companies have begun considering the carbon issue in their overall strategic positioning. However, few studies have examined the corporate carbon strategies in developing and advanced developing countries, where climate change regulation is extensive and market uncertainty is relatively high. In addition, there has been growing interest among researchers and practitioners concerning the relationship between the carbon strategy and firm performance. This paper presents a framework for identifying the corporate carbon strategy. The cluster analysis of 241 Korean companies indicates six types of corporate carbon strategy: ‘wait‐and‐see observer’, ‘cautious reducer’, ‘product enhancer’, ‘all‐round enhancer’, ‘emergent explorer’ and ‘all‐round explorer’. This study empirically examines whether there are differences between these carbon strategy types in terms of the sector, firm size and firm performance. The results indicate a significant relationship between a firm's carbon strategy and its sector and size but a significant relationship between the carbon strategy and firm performance is not confirmed. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

From ‘start-up’ to ‘re-boot’: Product lifecycle strategies and competitive advantage in the computer industry

The PC sector, following the packaging and car manufacturing industries, will increasingly be forced to acknowledge and account for its product base throughout the commodity's life, and beyond. The environmental problems being posed by electronic waste have been recognized and both the EU and the individual Member States are discussing solutions which may or may not include legislative action. In anticipation, product take-back programmes are beginning to emerge within the industry and the economics and logistics of re-use and recycling are at the forefront of this debate. The issues in store for this sector are examined and specific initiatives by organizations considered. It is asked whether a ‘closing of the product loop’ will generate a competitive advantage for these companies and what impact an industry-led ‘consortia’ initiative may have.     

政策调控下房地产经纪企业的应对策略

持续加压的调控政策使我国房地产经纪企业危机重重、甚至破产。研究调控政策对我国房地产经纪企业的规律性影响,并积极进行战略调整应对其带来的风险是一个亟待解决的问题。构建调控政策对房地产经纪企业的影响机理模型,分析调控政策冲击下我国房地产经纪企业现状和战略机会,根据房地产经纪企业的发展逻辑构建基于核心能力的应对调控风险的发展战略框架、战略内容和具体措施。本研究的意义在于进一步丰富了关于房地产调控政策的理论内涵,可为我国房地产经纪企业应对调控风险、实施战略调整提供理论依据。     

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.     

An analysis of Dow 30 global core indicator disclosures and environmental,social, and governance‐related ratings

We examine the extent to which US Dow 30 companies disclose the Global Core Indicators (GCIs), which are measures to assess companies’ contribution toward the United Nation’s 2030 Agenda for Sustainable Development. We find that the Dow 30 are generally compliant with disclosing GCIs that align with US capital market reporting expectations, high‐profile current events, and issues that are financially relevant. We also find the Dow 30 are more likely to disclose institutional and economic issues, rather than environmental and social issues, and note disclosure variation across industries in which the Dow 30 operate. Supplemental analyses indicate that GCI disclosure levels are generally higher when those GCIs are associated with financially relevant ESG issues, suggesting companies are more amenable to addressing sustainability when doing so aligns with their mandate to shareholders. Correlation analyses reveal that the GCI indices moderately or strongly correlate with two of three MSCI sustainability ratings, highlighting companies’ focus on financially relevant areas, and weakly correlate with companies’ CDP climate change ratings, highlighting the limited scope of the GCIs in capturing detailed environmentally focused sustainability efforts. We also show that the MSCI sustainability ratings of the Dow 30 have generally trended higher over time, with increases driven by companies in the manufacturing, financial, and retail industries. Our findings help fill a void in sustainability literature on US company reporting of the GCIs and may be informative to the United Nations Conference on Trade and Development as it reviews the GCIs in support of the 2030 Agenda.     

International pharmaceutical supply prices: Definitions — problems — policy implications

In cases where the buyer and the seller of goods and services are companies belonging to the same group the prices charged for goods and services are called ‘international delivery prices’ or ‘international transfer prices’. The peculiarities of research-based companies are such that attempts to ascertain in practice what constitutes an ‘appropriate’ international delivery price are beset by a number of problems. Any scheme that is devised to solve the problems of international transfer prices should feature general ‘rules’ on how the various countries ought to share in central costs. As international transfer prices are a prerequisite for an efficient world economy based on the division of labour an agreement should be reached on the design and content of suitable delivery price systems for a research-intensive industry.