Corporate Environmental Policies Research Articles

Environmental readiness of industrial companies in the Republic of Sakha (Yakutia) and the impact of changing external conditions on corporate environmental policy.

Environmental readiness of industrial companies in the Republic of Sakha (Yakutia) and the impact of changing external conditions on corporate environmental policy.

Impact of green financing on CSR and environmental policies and procedures

Despite increasing global attention towards sustainable development, the empirical linkage between green financing and the enhancement of environmental and social governance (ESG) practices within industries remains underexplored. This study investigates the influence of green financing on Corporate Social Responsibility (CSR) and environmental policies and procedures in 40 Chinese industries from 2010 to 2020. By employing a baseline regression and a difference-in-differences methodology, this paper aims to quantify the extent to which green financing initiatives have impacted CSR activities and the adoption of rigorous environmental policies and procedures in the Chinese industrial sector. The results indicate that industries with access to green financing have shown significant improvements in their CSR engagements and the stringency of their environmental policies and procedures compared to those without such financial incentives. Specifically, the difference-in-differences analysis reveals a positive and statistically significant effect of green financing on the adoption of more stringent environmental policies and the enhancement of CSR practices. We identify the specific areas within CSR and environmental policies that are most influenced by green financing. We assess the effectiveness of green financing as a tool for promoting sustainable industrial practices. The analysis utilizes a comprehensive dataset, including industry-specific financing and ESG performance indicators, to conduct a longitudinal assessment over the decade in question. Based on these findings, the study concludes with a policy implication that emphasizes the critical role of green financing as a catalyst for improving CSR and environmental standards in industries. It suggests that policymakers and financial institutions should consider expanding green financing mechanisms to accelerate the transition towards more sustainable industrial practices.

The gender and culture effect on the CO2 emission empirical analysis.

In recent years, the world has been facing severe challenges from climate change and environmental issues, with carbon dioxide emissions being considered one of the main driving factors. Many studies have proven that activities in various industries and fields have a significant impact on carbon dioxide emissions. However, few studies have explored the impact of gender on carbon dioxide emissions. This study aims to explore the potential impact of gender diversity on carbon dioxide emissions in the boards of directors of developed and emerging market enterprises. In addition, we also analyzed how board cultural diversity affects carbon dioxide emissions. We searched two European indices provided by Morgan Stanley Capital International (MSCI) from the Bloomberg database and conducted empirical analysis. We selected the MSCI index and MSCI emerging market index from 2010 to 2019 as samples and thoroughly cleaned up the data by removing any observations containing missing information on any variables. Statistical methods such as t-test, ordinary least squares, panel data analysis, regression analysis, and robustness testing were used for statistical analysis. At the same time, differential testing was conducted on sensitive and non-sensitive sectors, and the average representation of female boards in sensitive industries was low. The research results show that the proportion of female members on a company's board of directors is negatively correlated with carbon dioxide emissions. This discovery is consistent with the legitimacy theory advocating for gender equality and environmental sustainability, emphasizing the importance of gender diversity in reducing greenhouse gas emissions. However, agency theory suggests that diversity may lead to internal conflicts within a company, leading to agency costs and information asymmetry. The research results show a negative correlation between board cultural diversity and carbon dioxide emissions, indicating the potential challenge of board cultural diversity. This study provides important insights for decision-makers and managers, not only inspiring corporate social responsibility and environmental policy formulation, but also of great significance for academic research in the field of climate change. Our research findings help deepen our understanding of the factors that affect carbon dioxide emissions in different sectors and countries, while also expanding the research field between gender diversity, cultural diversity, and environmental sustainability. Although this study still needs to be further expanded and deepened, it provides useful insights into the relationship between board gender and cultural diversity and carbon dioxide emissions.

Fostering pro‐environmental behavior at work: A self‐determination theory perspective

AbstractWith a growing corporate interest in pursuing public goods, numerous firms today endeavor to practice corporate social responsibility. Utilizing a multilevel structural equation modeling approach, we investigated the topic of employees' pro‐environmental behavior, contributing to the growing literature on “green” issues in the workplace. We incorporated self‐determination theory to examine how individuals' perceptions regarding their corporate environmental policies reflected in firm‐level green psychological climate influence their environment‐specific self‐regulation, and whether support of autonomy, relatedness, and competence psychological needs moderates this relationship. The relationship between environment‐specific self‐regulation and employees' engagement in pro‐environmental behavior was also further explained. Analysis of the data from 649 employees working in 37 major South Korean companies revealed that firm‐level green psychological climate is positively related to employees' environment‐specific self‐regulation and that environment‐specific self‐regulation is also positively related to their pro‐environmental behavior. Moreover, while we found that the positive association between firm‐level green psychological climate and employees' environment‐specific self‐regulation was stronger when they had a higher level of relatedness need satisfaction, interactions between firm‐level green psychological climate with autonomy and competence need satisfaction did not demonstrate any significant effects. Theoretical and practical contributions together with suggestions for related future research are discussed as well.

Fostering Public Health and Environmental Protection with "Carrots and Sticks": The Role of the Social Credit System in China

Abstract: This article examines China's social credit system (SCS), whose objective is to promote trustworthy and responsible behaviour, by focusing on its impact on corporate behaviour, law enforcement, public health and environmental policy. The authors delve into the mechanisms of the implementation of the system while assessing its effectiveness in achieving these objectives. The authors employ detailed case studies, such as curbing wild animal consumption and enforcing environmental regulations, to highlight the system's innovative credit repair mechanism. The SCS's emphasis on accountability and compliance emerges as a significant driver for public health and environmental protection. Based on the authors' interviews conducted for this article, the SCS's promotion of responsible conduct, which combines legal penalties with social credit measures, has notably fostered positive behavioural changes and societal benefits. This article underscores the potential contribution of the SCS to the public good by emphasising accountability and compliance. Overall, the article contributes to a better understanding of the SCS's implementation and its potential role in fostering a safer, healthier and more sustainable society when administered judiciously.

A Review of Literature Studies on Employee Green Behavior

In light of escalating environmental degradation and growing emphasis on sustainability from both governmental policies and consumer expectations, enterprises are increasingly adopting environmental protection measures and sustainable development strategies. Central to the effectiveness of these initiatives are the enterprise employees, whose green behaviors are pivotal in actualizing organizational environmental goals. This paper critically reviews existing literature to define the concept of employees' green behavior and explore the multi-level factors influencing it. By synthesizing research findings, the study aims to clarify the role of employee behavior in the success of corporate environmental policies and identifies gaps for future research. This review not only elucidates the conceptual framework of green behavior within the corporate context but also highlights the importance of fostering an environmentally conscious workforce as a key component of sustainable business practices.

Influence of green human resource management on employee green behavior: The sequential mediating effect of perceived behavioral control and attitude toward corporate environmental policy

AbstractThe current existential global threat brought about by excessive carbon emissions caused by employee activity in the workplace calls for actions of corporate environmental policy. Thus, this study investigated the sequential mediating effects of perceived behavioral control (PBC) and attitude between green human resource management (GHRM) and employee green behavior (EGB) on the basis of ability–motivation–opportunity (AMO) theory and the theory of planned behavior (TPB). Data were purposely collected using a quantitative approach from a cross‐sectional study of 425 lecturers in Malaysian public universities. Smart PLS‐SEM was utilized to investigate the relationship between variables. Findings confirmed the relationship between GHRM and PBC. Furthermore, results demonstrated a strong positive relationship between PBC and both attitude and EGB. In addition, the link between attitude and EGB was found to be significantly related. However, no significant relationship was found between GHRM and both employee attitude and EGB. For the mediating effect, findings showed that PBC significantly mediates the link between GHRM and EGB and the relationship between GHRM and attitude. Further, the sequential mediating effect of PBC and attitude between GHRM and EGB was supported. Results also shed some light on the importance of the underlying mechanism of employees' PBC and attitude between GHRM and EGB, thereby providing implications regarding the role of AMO theory on TPB. Future directions are also discussed.

A multi‐level analysis of individual green entrepreneurial orientation: Evidence from Taiwan's environmental protection sectors

AbstractGreen entrepreneurial orientation (GEO) plays a pivotal role in reconciling economic growth with environmental sustainability. This research focuses on the individual green entrepreneurial orientation (IGEO) of mid‐level managers. In particular, it aims to explore how individual, environmental, and organizational factors foster IGEO. The data were collected from a total of 102 small‐ and medium‐sized enterprises (SMEs), as well as 510 mid‐level managers operating within Taiwan's environmental protection sector. Subsequently, the gathered data were analyzed using hierarchical linear modeling (HLM) techniques. The study found that green opportunity identification and entrepreneurial motivation notably influence various aspects of IGEO. In addition, elements like a green institutional environment, corporate green resources, and corporate environmental policies significantly boost IGEO. However, no significant links were found between a green institutional environment and green innovativeness or between corporate environmental policies and green proactiveness. This study provides a valuable contribution to GEO research, specifically focusing on SMEs and environmentally sustainable initiatives within developing economies.

The positive effects of green technology investments on growth expectations

This study presents evidence that investments in green technology and corporate environmental policies, or in other words, a move towards cleaner production, increase investors' growth expectations, resulting in a rise in firms' stock market value. Additionally, the study statistically demonstrates that the positive correlation between cleaner production and growth expectations strengthened during the latter half of the 2010s. The author employs the reverse discounted cash flow method as a novel technique to define the response variable for cleaner production. The study's outcomes carry crucial policy implications since well-targeted measures can amplify the favorable financial effects of green technology investments on regional, industry, or national economy levels.

Assessment of Homogeneity and Convergence of Environmental Performance of Enterprises into One Holding

Taking into account the need for transition to sustainable development of the economy, it seems relevant to consider whether the holding is an effective structure to minimize the negative impact on the environment: is there a convergence of the environmental performance of the holding’s enterprises with a general increase in its responsibility?The purpose of the research is to assess the degree of homogeneity and convergence of the environmental performance of Russian enterprises within the same holding, as well as to determine the relationship between the current level of homogeneity of the holding and the rate of its convergence and overall environmental responsibility. The environmental performance of 11 Russian holdings and 105 constituent enterprises for 2017–2021 was examined.The methodology involved the calculation of entropy and descriptive statistics; the evaluation of the homogeneity of holdings and its convergence, phase transition periods, and the relationship between homogeneity and other characteristics using analysis of variance and regression.The results of the study showed that Russian holdings correspond to the ascending line of the entropic criterion of social development, but at present the phase transition from a heterogeneous to a homogeneous state is incomplete, and homogeneous holdings are unstable. The influence of the type of corporate environmental policy on the homogeneity of the holding, the degree of its convergence and environmental responsibility was revealed.The scientific novelty of the work lies in the consideration of homogeneity and convergence of environmental characteristics of systematically unstudied objects — t he enterprises of one holding; the inappropriateness of the perception of holdings as homogeneous objects is confirmed. Theoretical significance has shown the possibility of using the entropic criterion of the theory of social development and dialectical logic to study the homogeneity and convergence of the indicators of holdings, as well as the developed methodology of their assessment.Recommendations for the authorities and managers of companies, the implementation of which will increase the sustainability of the economy, are of practical value.

Role of Corporate Social Responsibility (CSR) in the relationship between Green Accounting and Firm Value: Evidence from Indian Companies

This empirical research looks into how different factors including Green accounting, capital structure, and CSR influence Firm value. The research is quantitative in nature, drawing on data from 31 consumer durables companies listed on BSE. The analysis uses multiple regression technique. Additionally, the study uses a CSR disclosure index based on the Key Performance Indicators of the Global Reporting Initiative. This study found that Green Accounting and Capital Structure have effect on Firm Value, and that CSR can significantly moderate this relationship. The study's results shed new light on the complex interplay Green Accounting, financial flexibility, and firm value. It provides empirical data on the links between green accounting, capital structure, CSR, and firm. These results are useful for policymakers and managers who want to know how corporate social responsibility and environmental policies affect an organization's bottom line and its overall efficiency. DOI: https://doi.org/10.52783/tjjpt.v44.i4.807

Analyst Coverage and Corporate Environmental Policies

Abstract Exploiting two quasi-natural experiments, we find that firms increase emissions of toxic pollution following decreases in analyst coverage. The effects are stronger for firms with low initial analyst coverage, poor corporate governance, and firms subject to less stringent monitoring by environmental regulators. Decreases in environmental-related questions raised in conference calls, an increased cost of monitoring to institutional shareholders, reductions in pollution abatement investment, and the weakening of internal governance related to environmental performance are channels through which reduced analyst coverage contributes to increases in firm pollution. Our study highlights the monitoring role analysts play in shaping corporate environmental policies.

Strategic HRM and environmental performance: the role of corporate environmental policies and employees' eco-initiatives

Healthcare organisations that 'embrace' environmental sustainability tend to gain significant performance improvements and decrease costs related to waste recycling and disposal. This study examined the relationship between strategic human resource management, hospitals' environmental policies, nurses' eco-initiatives and environmental performance. Data were collected from all registered nurses who worked at three public and general hospitals located in Islamabad, the capital of Pakistan, numbering around 800 nurses. A total of 450 questionnaires were distributed among nurses, and 263 were returned. The main results indicated that nurses' eco-initiatives fully mediated the effect of strategic human resource management on environmental performance, and that hospitals' environmental policies moderated the effect of strategic human resource management on nurses' eco-initiatives. By implementing appropriate HRM practices at the strategic level that can help nurses to repeatedly engage in eco-initiatives, environmental performance of hospitals can be enhanced.

The impact of environmental economic policies on firm development

Economic development and environmental protection are interdependent and interdependent. While vigorously developing the economy, environmental protection cannot be ignored. Enterprises are the main body to promote economic advancement. Consequently, it is extremely inevitable for policy makers to formulate scientific and reasonable sustainable development policies to drive the green development of enterprises. This paper studies the relationship between corporate green economic development and environmental policy by analyzing the impact of environmental policy on corporate competitiveness and innovation ability, using empirical analysis, data analysis and questionnaire methods. It is crucial to change the approach and improve the level of economic growth in the new economic advancement environment. The conventional approach of calculating economic gross and advancement foreground utilizing GDP and rate of economic growth is no longer appropriate given the present worldwide tendency that favors green and sustainable development. In order to achieve economic growth, it is required to develop accurate assessments of green economic efficiency indices that take into consideration how resource scarcity and environmental deterioration affect economic output. To contribute to China's coming green economic advancement and the execution of environmental legislation, it is thus imperative to thoroughly research the impacts of environmental legislation and green economic efficiency.

Industrial accidents: The mediating effect of corporate social responsibility and environmental policy measures

AbstractUsing a novel hand‐collected sample including 159 industrial events that occurred between 2000 and 2020, we document that corporate social performance (CSP) generally acts as a halo effect mitigating the stock market drop following these events. These findings, robust to many alternative specifications, provide novel evidence shedding light on how corporate social capital acts as a mitigating device against the consequences of tail events. To the best of our knowledge, this is one of the first studies investigating the mitigation role of CSP in the aftermath of an industrial accident by analyzing a large global sample of industrial incidents. The practical and theoretical implications of our findings are at the bottom of that form of a socially normative corporate force embedded in social trust, smoothing managers' and stakeholders' interests together.

How do female CEOs affect corporate environmental policies?

AbstractHow do female Chief Executive Officers (CEOs) affect corporate environmental policies? This study develops a theoretical argument by incorporating the role of gender into the context of corporate environmental policies. Specifically, we differentiate corporate environmental policies into sustainable and unsustainable environmental policies. We also hypothesize a positive relationship between female CEOs and corporate sustainable environmental policies because women possess communal qualities and tend to be more stakeholder‐oriented compared with men. Moreover, we also propose a negative relationship between female CEOs and corporate unsustainable environmental policies because of women's risk aversion. We further predict that female CEOs with in‐group members will enhance the behavioral preferences of female leaders. Thus, we propose that the presence of in‐group members strengthens the relationship between female CEOs and corporate environmental policies. Using a longitudinal data set of Chinese listed firms from 2008 to 2018, we found strong empirical support for our predictions. Implications for the literature on gender and corporate environmental policies are also discussed.

Significance of collaborative synergies in executing EIA and audits for environmental sustainability

The journey of environmental auditing began in the USA in the early 1970s. An environmental impact assessment is defined as an assessment of the impacts of planned activities on the environment, biodiversity, vegetation and ecology, water, and air. Research objective was to elucidate the significance of collaborative synergies in executing EIA and Audits for environmental sustainability. The researcher applied the descriptive design in carrying out the survey in Laikipia County where a comprehensive review of literature review was done from relevant journals, conference and workshop papers, review papers, theses, books, reports, informative flyers/booklets and information available on the internet published by individual researchers, NEMA, NETFUND, UNEP and questionnaires were administered to 400 sampled respondents were the main sources of data for this paper. Findings revealed that 30% NEMA officials carried out environmental impact assessments during the planning phase; 20% UNEP Officials provided information via conferences, workshop papers, review papers, theses, books, reports, informative flyers/booklets & responded to questionnaires on significance of collaborative synergies in executing EIA & Audits for environmental sustainability and 20% Laikipia county residents took part in Public participation on the significance of collaborative synergies in executing EIA and Audits for environmental sustainability & responded to questionnaires. 20% of NETFUND officials disseminated information on EIA & Audit Case Studies. The researcher recommended environmental safeguarding measures such as, introduction of corporate environmental policies and strategies, adequate human and institutional capacity; environmental impact assessments during the planning phase.

The Value of Employee Satisfaction in Disastrous Times: Evidence from COVID-19

Employee treatment is an important but challenging element of corporate environmental, social, and governance policies. Satisfying employee needs can increase corporate productivity, but is also costly to shareholders. Using unique data of Chinese publicly listed firms, we show that having satisfied employees is valuable to the firm. Specifically, firms with higher employee satisfaction scores withstand COVID-19 better, in terms of stock market performance. Such an effect is more pronounced for firms with more intangible assets and in knowledge-based industries. Moreover, higher employee satisfaction scores predict better operating performance. While not fully revealed in tranquil times, the effect of employee satisfaction is materialized when the firms experience negative shocks, such as COVID-19. Our findings suggest that firms can do well in crisis periods by doing good in normal times.

Environmental regulations and trade credit activities of corporate sector: A new panel data evidence

Trade credit activities include such business operations e.g., production, distribution, and consumption of industrial goods that have greater impact on environmental quality. Therefore, such business operations are directly affected from various environmental regulations and respond dynamically. Given that, this study articulates the impact of various environmental regulations on the trade credit activities of corporate firms. The empirical analysis is based upon annual data covering the span of 2007–2016 of non-financial sector firms founded in 11 Asian economies. We hypothesize that environmental regulations have a significant impact on trade credit activities and test this hypothesis by employing the two econometric techniques named panel PQR (Panel Quantile Regression) and system GMM (generalized method of moments) model. The statistical outputs corroborate the underlying logic of all alternative hypotheses, implying that the carbon tax rate has a negative while the other three environmental regulations including environmental tax, environmental policy stringency index, and green growth productivity have a positive and significant impact on accumulated trade-credit activities. The current empirical analysis particularly supports the notions of Porter's win-win hypothesis and suggests the various policy implications to both corporate managers and environmental policy officials.

Revealing the Effects of Corporate Governance on Green Investment and Innovation: Do Law and Policy Matter?

Green investment (GI) and innovation performance are key factors of sustainable green development. GI and innovation have become a trendy solution to minimize environmental issues in the previous few decades. We investigate the effects of corporate governance, environmental law, and environmental policy stringency on GI and environmental innovation (EI) using Chinese time-series data from 1998 to 2020. Short and long-run findings indicate that corporate governance has a positive and significant impact on GI and innovation in China. However, environmental law has positive and significant effects on GI and innovation in the short run and long run. Furthermore, environmental policy stringency has an insignificant impact on GI but stimulates green innovation both in the short and long run. The study also reveals that education has a significant positive impact on green innovation both in the short and long-run. The short and long-run results propose essential policy implications.