Corporate Environmental Strategies in Emerging Economies

Dietrich H. Earnhart · Madhu Khanna · Thomas Peyton Lyon

89 citations0/0 files storedReview of Environmental Economics and Policy

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Environmental Sustainability in Business Corporate Social Responsibility Reporting Regulation and Compliance Studies

Abstract

Many companies are adopting environmentally friendly management practices in developed countries. However, the benefits of a corporate environmental strategy are less clear in emerging (developing and transition) economies, where environmental regulations may be poorly enforced and social pressures to comply are weak. Thus it is important for business leaders, policymakers, and environmental activists to understand the causes and consequences of corporate environmental strategy in these economies so that they are able to implement effective strategies, develop useful policies, and promote meaningful activities, respectively. Drawing on both the theoretical and empirical literature, this article examines a broad array of drivers behind corporate environmental strategies including internal characteristics of firms, market pressures, and pressures from government and civil society. The empirical findings for developing economies (i.e., those whose physical and human resources, along with institutions, are still developing) suggest that government and civil society provide weak incentives for corporate environmental compliance, foreign ownership and foreign customer pressure improve environmental management practices, and information disclosure programs offer some promise for improving corporate environmental performance. The empirical findings for transition economies (i.e., those transitioning from reliance on the government’s allocation of resources to market-based allocations) also suggest a positive, albeit weaker, role for foreign ownership and foreign customer pressure in improving firms’ environmental performance. However, the findings also indicate that government policies, such as stricter enforcement, granting of permits, and higher rates for emission charges, are more effective in transition economies than in developing economies. (JEL: D21, D22, K32, M14, O13, P28, P31, Q53, Q56)

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 89 citations exist upstream.

References

1991Firm Resources and Sustained Competitive Advantage 1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004Firm resources and sustained competitive advantage 1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1984A resource‐based view of the firm 1995Toward a New Conception of the Environment-Competitiveness Relationship 2006The Core Competence of the Corporation

Cited by

2020Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa 2017Ownership influences on corporate social responsibility in the Indian context 2023SDGs in corporate responsibility reporting: a longitudinal investigation of institutional determinants and financial performance 2018Zombie firms, external support and corporate environmental responsibility: Evidence from China 2019The impact of environmental regulation on firm exports: evidence from environmental information disclosure policy in China

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.