The Influence of Environmental Strategy, Environmental Reporting and Environmental Management Control System on Environmental and Economic Performance

Renáta Pakšiová,Petr Petera,Jaroslav Wagner

doi:10.3390/en14154637

Abstract

The importance of corporate social responsibility, especially in the environmental domain, continues to grow in an era of mounting climate urgency. This study is based on original, empirical, survey-based research in two post-communist European countries and seeks to add a geographical viewpoint and to investigate the influence of innovative constructs (environmental reporting, environmental strategy, environmental management control system) on environmental and economic performance. Data are analysed through partial least squares structural equation modelling, which enables the use of a complex model with several links between constructs. Findings reveal that environmental strategy has a positive impact on the use of an environmental management control system and an indirect positive impact on environmental performance. The environmental management control system has been shown to have a positive influence on environmental performance and, ultimately, on economic performance.

Highlights

Environmental responsibility has become a crucial aspect of corporate social responsibility [1,2] in the effort to mitigate harm to the environment
Our research answers the call of Latan et al [28], who noted that this study only considered environmental management accounting without examining Environmental Management Control System (EMCS) and stressed the need for an investigation of EMCS
The central topic of this article is the effect of various factors on environmental performance and, on economic performance

Summary

Introduction

Environmental responsibility has become a crucial aspect of corporate social responsibility [1,2] in the effort to mitigate harm to the environment. Recent research [6,7,8,9] repeatedly confirms both the increased interest of stakeholders in sustainability and its impact on the internal management of sustainabilityrelated issues by corporations. In reaction to these pressures, the environmental discourse has become increasingly important for corporations and is, to various degrees, incorporated into the strategy of these subjects [10,11]. Whether the formalised implementation of environmental issues into an organisational strategy and business models [12,13] leads to the integration of sustainability performance into business [14] and stimulates the implementation of environmental management control system (hereinafter abbreviated EMCS) while positively influencing environmental and economic performance is a key question

Methods

Results

Discussion

Conclusion