Skip to main content
SpringerLink
Log in

Practical Aspects of Environmental Strategy

  • Chapter
  • First Online:
Corporate Environmental Strategy

Part of the book series: SpringerBriefs in Applied Sciences and Technology ((BRIEFSAPPLSCIENCES))

Abstract

The implementation of an environmental management system (EMS) is part of a proactive environmental strategy whose goal is to create organisational capabilities leading to differentiation, better reputation, customer loyalty, and innovation. An EMS is a systematic process adopted by the organisation to apply its environmental policies, objectives and goals, as well as to provide a verification path for external auditors. It includes detailed documentation for a series of activities, responsibilities, procedures, processes, and internal resources. There are several reasons for the adoption of an EMS: the reduction of environmental impacts, better process efficiency, the boosting of employees’ motivation, and improved legal compliance. The assimilation of an EMS is a process of organisational change, and each firm may choose its specific goals in response to a wide range of internal and external factors. Environmental management systems create capabilities that strengthen the green orientation of the firm. For this purpose, environmental training is a critical tool that allows employees to adopt new perspectives, skills, and attitudes. Thereby, the implementation of an EMS demands the set-up of a management accounting system to be used by decision-makers in their assessment of corporate environmental performance. Management accounting data and procedures are relevant for multiple goals and processes such as the assessment of environmental costs or expenditure, full-cost accounting, fair product pricing, compliance with regulatory demands, and budgeting for liabilities and risks. Environmental innovation is the reformulation and improvement of products, services, production processes, and business methods. Innovative solutions are the crucial factor for achieving material and energy savings, pollution control and prevention, waste management, recycling, eco-design, and lower environmental risk. The overarching objective is to gain and preserve corporate legitimacy. Companies have a legal right to function, but they must earn their moral right to be part of society. Positive effects can extend to gaining competitive advantage, addressing supply chain concerns, improving corporate image, promoting better customer relations, addressing stakeholder pressures, and receiving subsidies or tax benefits from regulatory agencies. The major players in environmentally sensitive industries seek to strengthen their legitimacy by adopting innovative solutions to complex problems. Corporate disclosures about the company’s outputs, methods, and environmental policies are the primary device to maintain company legitimacy.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. F. Brulhart, S. Gherra, B.V. Quelin, Do stakeholder orientation and environmental proactivity impact firm profitability? J. Bus. Ethics 1 (2017)

    Google Scholar 

  2. V.D. Dragomir, Eco-management and the paradigm of self-regulation. Environ. Eng. Manag. J. 7, 427 (2008)

    Article  Google Scholar 

  3. I. Heras-Saizarbitoria, O. Boiral, E. Allur, Three decades of dissemination of ISO 9001 and two of ISO 14001: looking back and ahead. in ISO 9001, ISO 14001, and New Management Standards. Measuring Operations Performance, ed by I. Heras-Saizarbitoria (Springer International Publishing, 2018), pp. 1–15

    Google Scholar 

  4. T.N. Phan, K. Baird, The comprehensiveness of environmental management systems: the influence of institutional pressures and the impact on environmental performance. J. Environ. Manage. 160, 45 (2015)

    Article  Google Scholar 

  5. S. Kitazawa, J. Sarkis, The relationship between ISO 14001 and continuous source reduction programs. Int. J. Oper. Prod. Manag. 20, 225 (2000)

    Article  Google Scholar 

  6. K. Whitelaw, ISO 14001 Environmental Systems Handbook, 2nd edn. (Elsevier Butterworth-Heinemann, Oxford, UK, 2004)

    Google Scholar 

  7. S.I. Haider, Environmental Management System ISO 14001:2004 (CRC Press, Boca Raton, FL, 2011)

    Google Scholar 

  8. DNV GL, ISO 14001: 2015 Environmental management systems—Requirements (2015)

    Google Scholar 

  9. N. Mokhtar, R. Jusoh, N. Zulkifli, Corporate characteristics and environmental management accounting (EMA) implementation: evidence from Malaysian public listed companies (PLCs). J. Clean. Prod. 136, 111 (2016)

    Article  Google Scholar 

  10. D.Y. Golhar, C.L. Stamm, The just-in-time philosophy: a literature review. Int. J. Prod. Res. 29, 657 (1991)

    Article  Google Scholar 

  11. BSI, ISO 14001:2015. Your Implementation Guide (2016)

    Google Scholar 

  12. M. Sambasivan, N.Y. Fei, Evaluation of critical success factors of implementation of ISO 14001 using analytic hierarchy process (AHP): a case study from Malaysia. J. Clean. Prod. 16, 1424 (2008)

    Article  Google Scholar 

  13. D. Rondinelli, G. Vastag, Panacea, common sense, or just a label?: The value of ISO 14001 environmental management systems. Eur. Manag. J. 18, 499 (2000)

    Article  Google Scholar 

  14. S.X. Zeng, C.M. Tam, V.W.Y. Tam, Z.M. Deng, Towards implementation of ISO 14001 environmental management systems in selected industries in China. J. Clean. Prod. 13, 645 (2005)

    Article  Google Scholar 

  15. J. Benitez-Amado, R.M. Walczuch, Information technology, the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis. Eur. J. Inf. Syst. 21, 664 (2012)

    Article  Google Scholar 

  16. J. Amores-Salvadó, G. Martín-de Castro, J.E. Navas-López, The importance of the complementarity between environmental management systems and environmental innovation capabilities: a firm level approach to environmental and business performance benefits. Technol. Forecast. Soc. Change 96, 288 (2015)

    Article  Google Scholar 

  17. P. Tourais, N. Videira, Why, how and what do organizations achieve with the implementation of environmental management systems?-Lessons from a comprehensive review on the eco-management and audit scheme. Sustain. 8, 283 (2016)

    Article  Google Scholar 

  18. T. Zobel, ISO 14001 adoption and environmental performance: the case of manufacturing in Sweden, in ISO 9001, ISO 14001, and New Management Standards. Measuring Operations Performance, ed. by I. Heras-Saizarbitoria (Springer International Publishing, 2018), pp. 39–57

    Google Scholar 

  19. E. Perotto, R. Canziani, R. Marchesi, P. Butelli, Environmental performance, indicators and measurement uncertainty in EMS context: a case study. J. Clean. Prod. 16, 517 (2008)

    Article  Google Scholar 

  20. G. Lannelongue, J. González-Benito, Ó. González-Benito, C. Gonzalez-Zapatero, Time compression diseconomies in environmental management: The effect of assimilation on environmental performance. J. Environ. Manage. 147, 203 (2015)

    Article  Google Scholar 

  21. M. Watson, A.R.T. Emery, Environmental management and auditing systems: the reality of environmental self-regulation. Manag. Audit. J. 19, 916 (2004)

    Article  Google Scholar 

  22. I. Heras-Saizarbitoria, J.F. Molina-Azorín, G.P.M. Dick, ISO 14001 certification and financial performance: selection-effect versus treatment-effect. J. Clean. Prod. 19, 1 (2011)

    Article  Google Scholar 

  23. N. Johnstone, J. Labonne, Why do manufacturing facilities introduce environmental management systems? Improving and/or signaling performance. Ecol. Econ. 68, 719 (2009)

    Article  Google Scholar 

  24. G. Martín-de Castro, J. Amores-Salvadó, J.E. Navas-López, Environmental management systems and firm performance: improving firm environmental policy through stakeholder engagement. Corp. Soc. Responsib. Environ. Manag. 23, 243 (2016)

    Article  Google Scholar 

  25. United Nations Division for Sustainable Development, Environmental Management Accounting: Procedures and Principles (2001)

    Google Scholar 

  26. J.S. Toms, Firm resources, quality signals and the determinants of corporate environmental reputation: some UK evidence. Br. Account. Rev. 34, 257 (2002)

    Article  Google Scholar 

  27. H. Latan, C.J. Chiappetta Jabbour, A.B. Lopes de Sousa Jabbour, S.F. Wamba, M. Shahbaz, Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: the role of environmental management accounting. J. Clean. Prod. 180, 297 (2018)

    Article  Google Scholar 

  28. K.L. Christ, R.L. Burritt, Environmental management accounting: the significance of contingent variables for adoption. J. Clean. Prod. 41, 163 (2013)

    Article  Google Scholar 

  29. R.L. Burritt, T. Hahn, S.T. Schaltegger, Towards a comprehensive framework for environmental management accounting—links between business actors and environmental management accounting tools. Aust. Account. Rev. 12, 39 (2002)

    Article  Google Scholar 

  30. C. Jasch, D.E. Savage, The IFAC international guidance document on environmental management accounting, in Environmental Management Accounting for Cleaner Production, ed. by S. Schaltegger, M. Bennett, R.L. Burritt, C. Jasch (Springer, Dordrecht, 2008), pp. 321–336

    Chapter  Google Scholar 

  31. M. Bennett, S. Schaltegger, D. Zvezdov, Environmental management accounting, in Review of Management Accounting Research, ed. by M.G. Abdel-Kader (Palgrave Macmillan UK, London, 2011), pp. 53–84

    Chapter  Google Scholar 

  32. R. Rieckhof, A. Bergmann, Interrelating material flow cost accounting with management control systems to introduce resource efficiency into strategy. J. Clean. Prod. 108, 1262 (2015)

    Article  Google Scholar 

  33. The International Financial Reporting Standards Foundation, IAS 37 Provisions, Contingent Liabilities and Contingent Assets (2005)

    Google Scholar 

  34. S. Wang, H. Wang, J. Wang, Exploring the effects of institutional pressures on the implementation of environmental management accounting: do top management support and perceived benefit work? Bus. Strateg. Environ. 28, 233 (2018)

    Article  Google Scholar 

  35. C. Chang, The influence of corporate environmental ethics on competitive advantage: the mediation role of green innovation. J. Bus. Ethics 104, 361 (2011)

    Article  Google Scholar 

  36. G. Cainelli, V. De Marchi, R. Grandinetti, Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms. J. Clean. Prod. 94, 211 (2015)

    Article  Google Scholar 

  37. T. Altenburg, A. Pegels, Sustainability-oriented innovation systems—managing the green transformation. Innov. Dev. 2, 5 (2012)

    Article  Google Scholar 

  38. M.E. Porter, C. van der Linde, Toward a new conception of the environment—competitiveness relationship. J. Econ. Perspect. 9, 97 (1995)

    Article  Google Scholar 

  39. J. Doran, G. Ryan, The importance of the diverse drivers and types of environmental innovation for firm performance. Bus. Strateg. Environ. 25, 102 (2016)

    Article  Google Scholar 

  40. J. Horbach, Determinants of environmental innovation—new evidence from German panel data sources. Res. Policy 37, 163 (2008)

    Article  Google Scholar 

  41. A. Galeazzo, A. Furlan, A. Vinelli, Lean and green in action: interdependencies and performance of pollution prevention projects. J. Clean. Prod. 85, 191 (2014)

    Article  Google Scholar 

  42. M. Kurdve, M. Zackrisson, M. Wiktorsson, U. Harlin, Lean and green integration into production system models—experiences from Swedish industry. J. Clean. Prod. 85, 180 (2014)

    Article  Google Scholar 

  43. S. Rothenberg, F.K. Pil, J. Maxwell, Lean, green, and the quest for superior environmental performance. Prod. Oper. Manag. 10, 228 (2001)

    Article  Google Scholar 

  44. A.A. King, M.J. Lenox, Lean and green? An empirical examination of the relationship between lean production and environmental performance. Prod. Oper. Manag. 10, 244 (2001)

    Article  Google Scholar 

  45. R. Florida, Lean and green: the move to environmentally conscious manufacturing. Calif. Manage. Rev. 39, 80 (1996)

    Article  Google Scholar 

  46. A.M. Deif, A system model for green manufacturing. J. Clean. Prod. 19, 1553 (2011)

    Article  Google Scholar 

  47. C.J.C. Jabbour, A.A. Teixeira, J.H.C. de Oliveira, D.F. Soubihia, Managing environmental training in organizations: Theoretical review and proposal of a model. Manag. Environ. Qual. An Int. J. 21, 830 (2010)

    Article  Google Scholar 

  48. G.M. Perron, R.P. Côté, J.F. Duffy, Improving environmental awareness training in business. J. Clean. Prod. 14, 551 (2006)

    Article  Google Scholar 

  49. M.D. Vidal-Salazar, E. Cordón-Pozo, V. Ferrón-Vilchez, Human resource management and developing proactive environmental strategies: the influence of environmental training and organizational learning. Hum. Resour. Manage. 51, 905 (2012)

    Article  Google Scholar 

  50. B.F. Daily, J.W. Bishop, J.A. Massoud, The role of training and empowerment in environmental performance: a study of the Mexican maquiladora industry. Int. J. Oper. Prod. Manag. 32, 631 (2012)

    Article  Google Scholar 

  51. C.J.C. Jabbour, Environmental training in organisations: from a literature review to a framework for future research. Resour. Conserv. Recycl. 74, 144 (2013)

    Article  Google Scholar 

  52. J. Sarkis, P. Gonzalez-Torre, B. Adenso-Diaz, Stakeholder pressure and the adoption of environmental practices: the mediating effect of training. J. Oper. Manag. 28, 163 (2010)

    Article  Google Scholar 

  53. A.A. Teixeira, C.J.C. Jabbour, A.B.L.D.S. Jabbour, Relationship between green management and environmental training in companies located in Brazil: a theoretical framework and case studies. Int. J. Prod. Econ. 140, 318 (2012)

    Article  Google Scholar 

  54. K. Sammalisto, T. Brorson, Training and communication in the implementation of environmental management systems (ISO 14001): a case study at the University of Gävle. Sweden. J. Clean. Prod. 16, 299 (2008)

    Article  Google Scholar 

  55. S. Gold, S. Seuring, P. Beske, Sustainable supply chain management and inter-organizational resources: a literature review. Corp. Soc. Responsib. Environ. Manag. 17, 230 (2010)

    Google Scholar 

  56. H. Chen, P.J. Daugherty, T.D. Landry, Supply chain process integration: a theoretical framework. J. Bus. Logist. 30, 27 (2009)

    Article  Google Scholar 

  57. S. Vachon, R.D. Klassen, Environmental management and manufacturing performance: the role of collaboration in the supply chain. Int. J. Prod. Econ. 111, 299 (2008)

    Article  Google Scholar 

  58. J. Dai, D.E. Cantor, F.L. Montabon, Examining corporate environmental proactivity and operational performance: a strategy-structure-capabilities-performance perspective within a green context. Int. J. Prod. Econ. 193, 272 (2017)

    Article  Google Scholar 

  59. C. Gimenez, V. Sierra, Sustainable supply chains: governance mechanisms to greening suppliers. J. Bus. Ethics 116, 189 (2013)

    Article  Google Scholar 

  60. V. De Marchi, R. Grandinetti, Knowledge strategies for environmental innovations: the case of Italian manufacturing firms. J. Knowl. Manag. 17, 569 (2013)

    Article  Google Scholar 

  61. J.H. Thun, A. Müller, An empirical analysis of green supply chain management in the german automotive industry. Bus. Strateg. Environ. 19, 119 (2010)

    Google Scholar 

  62. J. Sarkis, Q. Zhu, K.H. Lai, An organizational theoretic review of green supply chain management literature. Int. J. Prod. Econ. 130, 1 (2011)

    Article  Google Scholar 

  63. J.J. Cronin, J.S. Smith, M.R. Gleim, E. Ramirez, J.D. Martinez, Green marketing strategies: An examination of stakeholders and the opportunities they present. J. Acad. Mark. Sci. 39, 158 (2011)

    Article  Google Scholar 

  64. L.Y.Y. Lu, C.H. Wu, T.-C. Kuo, Environmental principles applicable to green supplier evaluation by using multi-objective decision analysis. Int. J. Prod. Res. 45, 4317 (2007)

    Article  Google Scholar 

  65. T. Wu, Y.-C. Jim Wu, Y.J. Chen, M. Goh, Aligning supply chain strategy with corporate environmental strategy: a contingency approach. Int. J. Prod. Econ. 147, 220 (2014)

    Article  Google Scholar 

  66. C. Blome, A. Paulraj, K. Schuetz, Supply chain collaboration and sustainability: a profile deviation analysis. Int. J. Oper. Prod. Manag. 34, 639 (2014)

    Article  Google Scholar 

  67. P. Beske, A. Land, S. Seuring, Sustainable supply chain management practices and dynamic capabilities in the food industry: a critical analysis of the literature. Int. J. Prod. Econ. 152, 131 (2014)

    Article  Google Scholar 

  68. M.A. Ateş, J. Bloemhof, E.M. Van Raaij, F. Wynstra, Proactive environmental strategy in a supply chain context: the mediating role of investments. Int. J. Prod. Res. 50, 1079 (2012)

    Article  Google Scholar 

  69. T.D. Wilmshurst, G.R. Frost, Corporate environmental reporting: a test of legitimacy theory. Account. Audit. Account. J. 13, 10 (2000)

    Article  Google Scholar 

  70. V. Magness, Strategic posture, financial performance and environmental disclosure: an empirical test of legitimacy theory. Account., Audit. Account. J. 19, 540 (2006)

    Article  Google Scholar 

  71. R. Langer, Legitimacy gap theory, in The International Encyclopedia of Communication, 1st ed. (Wiley Ltd, Chichester, UK, 2008)

    Google Scholar 

  72. M.J. Milne, D.M. Patten, Securing organizational legitimacy: an experimental decision case examining the impact of environmental disclosures. Account. Audit. Account. J. 15, 372 (2002)

    Article  Google Scholar 

  73. G. O’Donovan, Environmental disclosures in the annual report: extending the applicability and predictive power of legitimacy theory. Account. Audit. Account. J. 15, 344 (2002)

    Article  Google Scholar 

  74. C.H. Cho, D.M. Patten, The role of environmental disclosures as tools of legitimacy: a research note. Account. Organ. Soc. 32, 639 (2007)

    Article  Google Scholar 

  75. C.H. Cho, R.W. Roberts, D.M. Patten, The language of US corporate environmental disclosure. Account. Organ. Soc. 35, 431 (2010)

    Article  Google Scholar 

  76. C. Deegan, M. Rankin, and J. Tobin, An examination of the corporate social and environmental disclosures of BHP from 1983–1997. Account. Audit. Account. J. 15, 312 (2002)

    Article  Google Scholar 

  77. W. Aerts, D. Cormier, Media legitimacy and corporate environmental communication. Account. Organ. Soc. 34, 1 (2009)

    Article  Google Scholar 

  78. C.L. Huang, F.H. Kung, Drivers of environmental disclosure and stakeholder expectation: evidence from Taiwan. J. Bus. Ethics 96, 435 (2010)

    Article  Google Scholar 

  79. M.V. López, A. Garcia, L. Rodriguez, Sustainable development and corporate performance: a study based on the Dow Jones sustainability index. J. Bus. Ethics 75, 285 (2007)

    Article  Google Scholar 

  80. D. Cormier, M. Magnan, The economic relevance of environmental disclosure and its impact on corporate legitimacy: An empirical investigation. Bus. Strateg. Environ. 24, 431 (2015)

    Article  Google Scholar 

  81. P.M. Clarkson, M.B. Overell, L. Chapple, Environmental reporting and its relation to corporate environmental performance. Abacus 47, 27 (2011)

    Article  Google Scholar 

  82. C.H. Cho, R.W. Roberts, Environmental reporting on the internet by America’s Toxic 100: legitimacy and self-presentation. Int. J. Account. Inf. Syst. 11, 1 (2010)

    Article  Google Scholar 

  83. J.A. Aragón-Correa, N. Hurtado-Torres, S. Sharma, V.J. García-Morales, Environmental strategy and performance in small firms: a resource-based perspective. J. Environ. Manage. 86, 88 (2008)

    Article  Google Scholar 

  84. S. Benito-Hernández, M. Platero-Jaime, P. Esteban-Sánchez, The influence of cooperative relations of small businesses on environmental protection intensity. Bus. Ethics A Eur. Rev. 25, 416 (2016)

    Article  Google Scholar 

  85. S. Brammer, S. Hoejmose, K. Marchant, Environmental management in SMEs in the UK: Practices, pressures and perceived benefits. Bus. Strateg. Environ. 21, 423 (2012)

    Article  Google Scholar 

  86. M. Ilomäki, M. Melanen, Waste minimization in small and medium-sized enterprises—do environmental management systems help? J. Clean. Prod. 9, 209 (2001)

    Article  Google Scholar 

  87. J.F. Reyes-Rodríguez, J.P. Ulhøi, H. Madsen, Corporate environmental sustainability in Danish SMEs: a longitudinal study of motivators, initiatives, and strategic effects. Corp. Soc. Responsib. Environ. Manag. 23, 193 (2016)

    Article  Google Scholar 

  88. J.Á. Del Brío, B. Junquera, A review of the literature on environmental innovation management in SMEs: Implications for public policies. Technovation 23, 939 (2003)

    Article  Google Scholar 

  89. I. Buil-Carrasco, E. Fraj-Andrés, J. Matute-Vallejo, Corporate environmentalism strategy in the Spanish consumer product sector: a typology of firms. Bus. Strateg. Environ. 17, 350 (2008)

    Article  Google Scholar 

  90. E. Masurel, Why SMEs invest in environmental measures: Sustainability evidence from small and medium-sized printing firms. Bus. Strateg. Environ. 16, 190 (2007)

    Article  Google Scholar 

  91. A. Zorpas, Environmental management systems as sustainable tools in the way of life for the SMEs and VSMEs. Bioresour. Technol. 101, 1544 (2010)

    Article  Google Scholar 

  92. É. Lefebvre, L.A. Lefebvre, S. Talbot, Determinants and impacts of environmental performance in SMEs. R D Manag. 33, 263 (2003)

    Article  Google Scholar 

  93. D. Kiritsis, A. Bufardi, P. Xirouchakis, Research issues on product lifecycle management and information tracking using smart embedded systems. Adv. Eng. Inf. 17, 189 (2003)

    Article  Google Scholar 

  94. L.M. Uhlaner, M.M. Berent-Braun, R.J.M. Jeurissen, G. de Wit, Beyond size: predicting engagement in environmental management practices of Dutch SMEs. J. Bus. Ethics 109, 411 (2012)

    Article  Google Scholar 

  95. A. Triguero, L. Moreno-Mondéjar, M.A. Davia, Drivers of different types of eco-innovation in European SMEs. Ecol. Econ. 92, 25 (2013)

    Article  Google Scholar 

  96. D. Williamson, G. Lynch-Wood, J. Ramsay, Drivers of environmental behaviour in manufacturing SMEs and the implications for CSR. J. Bus. Ethics 67, 317 (2006)

    Article  Google Scholar 

  97. J.W. Lee, Y.M. Kim, Y.E. Kim, Antecedents of adopting corporate environmental responsibility and green practices. J. Bus. Ethics 148, 397 (2018)

    Article  Google Scholar 

  98. N. Darnall, I. Henriques, P. Sadorsky, Adopting proactive environmental strategy: the influence of stakeholders and firm size. J. Manag. Stud. 47, 1072 (2010)

    Article  Google Scholar 

  99. P. Shrivastava, The role of corporations in achieving ecological sustainability. Acad. Manag. Rev. 20, 936 (1995)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Accounting and Auditing, The Bucharest University of Economic Studies, Bucharest, Romania

    Voicu D. Dragomir

Authors
  1. Voicu D. Dragomir
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Voicu D. Dragomir .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Dragomir, V.D. (2020). Practical Aspects of Environmental Strategy. In: Corporate Environmental Strategy. SpringerBriefs in Applied Sciences and Technology. Springer, Cham. https://doi.org/10.1007/978-3-030-29548-6_2

Download citation

Publish with us

Policies and ethics

Search

Navigation