Stakeholders and Environmental Management Practices: An Institutional Framework
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ABSTRACT:
Despite burgeoning research on
companies’ environmental strategies and
environmental management practices, it
remains unclear why some firms adopt
environmental management practices
beyond regulatory compliance. This
paper leverages institutional theory by
proposing that stakeholders – including
governments, regulators, customers,
competitors, community and
environmental interest groups, and
industry associations – impose coercive
and normative pressures on firms.
However, the way in which managers
perceive and act upon these pressures
at the plant level depends upon
plant- and parent-company-specific
factors, including their track record
of environmental performance, the
competitive position of the parent
company and the organizational structure of the plant. Beyond providing a
framework of how institutional pressures
influence plants’ environmental
management practices, various measures
are proposed to quantify institutional
pressures, key plant-level and parentcompany-
level characteristics and plantlevel
environmental management
practices.
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STATISTICS
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