Are conglomerates less environmentally responsible? An empirical examination of diversification strategy and subsidiary pollution in the U.s. Chemical industry

Journal of Business Ethics 21 (1):1 - 14 (1999)
Abstract
This study examines the relationship between corporate diversification strategy and the pollution activity of subsidiaries within the U.S. chemical industry using TRI data (EPA's Toxic Release Inventory). The subsidiaries of conglomerates were found to exhibit higher pollution levels for direct emissions than those of firms pursuing more related diversification strategies. Additionally, the subsidiaries of conglomerates exhibited more variance in overall pollution emissions compared to related diversified firms.
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