The important effects of national culture on the environmental proactivity of firms

Abstract

Purpose The purpose of this paper is to verify if and how national culture affects firms’ environmental proactivity, by using a specific index: the Carbon Disclosure Score (CDS). Design/methodology/approach The study, an analysis of two linear regression models, examines how cultural values, measured by the Global Leadership and Organizational Behavior Effectiveness Research “should be” scores, affect companies’ environmental proactivity measured by CDS. Data about CDS derive from the Carbon Disclosure Project, which monitors Global 500 companies each year. Findings The analysis reveals that the values of in-group collectivism, performance orientation, assertiveness and uncertainty avoidance negatively affect firms’ environmental proactivity, while future orientation and gender egalitarianism have a positive impact. Research limitations/implications In spite of the limitations inherent in the indicator and the limited sample, the paper has some interesting implications. On a theoretical level, this study extends prior research in the field of organizations and natural environment, by examining the specific role exerted by national cultural dimensions on firms’ environmental proactivity. Practical implications From a practical standpoint, the study suggests that corporations and policy regulators should be sensitive toward national idiosyncrasies and formulate the environmental strategies according to the cultural values and contextual environment of the relevant region. Creating policies based on cultural values and adapting policies to a country’s culture can improve the effectiveness of environmental policies and raise individual and corporation awareness on the topic. Originality/value Most contributions consider environmental strategy at the national level. This study, instead, focusses on the effects of national culture on the environmental proactivity of firms.