Factors Influencing Corporate Environmental Performance in India

Abstract

Swept along by the winds of change, corporations are now moving towards environmentally friendly production processes partly to ensure compliance with rules and regulations, and partly to reduce potential liabilities, exploit opportunities in new and emerging markets, and to respond effectively to competitive pressures. Today companies tend to be ranked not only on the basis of their financial performance but also on the basis of their environmental track record. Thus, while a defi nite trend in the direction of greening of corporate activities is clearly apparent, the present study seeks to identify the organizational factors which infl uence and contribute to the environmental performance of companies. Environmental performance for this purpose was evaluated with respect to the company's track record vis-à-vis the following components: existence of a separate environmental policy, concrete environmental action plan in the areas of energy saving, air pollution control, effluent treatment before discharge, solid waste management, ongoing environmental education programs for employees, giving priority to environmental impact in the selection of new technology, conducting life cycle analysis study on products, disclosure of environmental information relating to its products and services, availability of emission and material usage data, practice of environmental accounting, green supply chain management, green procurement policy and involvement of the company in local community activities.