Abstract
This paper examines the extent to which there are differential incentives that motivate the adoption of environmental management practices (EMPs) and pollution prevention (P2) methods. We analyze the role of internal drivers such as managerial attitudes towards the environment and external pressures using both observed characteristics of facilities and perceived pressures. We estimate a structural equation model using survey data from facilities in Oregon that involves simultaneous estimation of the latent dependent and explanatory variables and the two regression equations explaining adoption behavior of EMPs and P2. We find that perceived regulatory pressures and managerial attitudes have a statistically significant impact on the adoption of both EMPs and P2 practices, while market pressures were significant in influencing the adoption of EMPs but not P2 methods. Furthermore; we find that both external regulatory pressures and internal managerial attitudes had a larger impact in motivating adoption by facilities that did not view environmental issues as being a significant concern as compared to facilities that did.
Highlights
The corporate approach to environmental protection has been evolving from a regulation-driven reactive mode to a more proactive approach involving an internally motivated organizational change in corporate culture and management practices towards environmental self-regulation
Our empirical analysis sheds some light on the factors that can explain the different levels of the greening of firms, as measured by their adoption of environmental management practices (EMPs) and/or P2 practices
Ervin et al [16], we find that perceived regulatory pressures have a statistically significant impact on the adoption of both EMPs and P2 practices
Summary
The corporate approach to environmental protection has been evolving from a regulation-driven reactive mode to a more proactive approach involving an internally motivated organizational change in corporate culture and management practices towards environmental self-regulation. A growing number of firms are taking a strategic view towards environmental management and adopting environmental management practices (EMPs) that establish formal procedures and organizational routines that can help to achieve environmental goals. Many firms are taking a holistic view of pollution control and treating it as synonymous with minimizing waste streams associated with the design, manufacture, use and disposal of products and materials and preventing pollution at source rather than at the ―end of the pipe,‖ that is, they are adopting what we refer to as Pollution Prevention (P2) practices. Firms have considerable flexibility in the EMPs and/or P2 activities they adopt and the degree to which each is implemented within the organization. Both the adoption of EMPs and P2 activities are forms of environmental management that can be expected to be synergistic with each other. P2 activities require changes in production methods and pollution control technologies, whereas EMPs require changes in procedures and policies
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