Do Corporations Invest Enough in Environmental Responsibility?

Journal of Business Ethics 105 (1):115-129 (2012)
Abstract
Proponents of corporate environmental responsibility argue that corporations shortchange shareholders by investing too little in environmental responsibility. They claim that corporations can improve their financial performance by increasing their investment in environmental responsibility. Opponents of corporate social responsibility argue that corporations shortchange shareholders by investing too much in environmental responsibility. They claim that corporations can improve their financial performance by reducing their investment in environmental responsibility. Yet, others claim that corporations serve their shareholders well by investing just enough in social responsibility, not too little and not too much. If so, corporations increase their investment in environmental responsibility when an increase improves financial performance and reduce their investment in environmental responsibility when a decrease improves financial performance. Our evidence is consistent with this last claim. We find that the behavior of corporations is consistent with the claim that they act in the interest of shareholders, increasing or decreasing their investment in environmental responsibility as necessary to improve their financial performance.
Keywords Corporate environmental responsibility  Corporate financial performance  Causality  Corporate social responsibility
Categories (categorize this paper)
Options
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
 
Download options
PhilPapers Archive


Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 11,105
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA
Ivar Kolstad (2007). Why Firms Should Not Always Maximize Profits. Journal of Business Ethics 76 (2):137 - 145.
Citations of this work BETA
Similar books and articles
Napoleon M. Mabaquiao (2002). Corporations and the Cause of Environmental Protection. Eubios Journal of Asian and International Bioethics 12 (1):11-15.
Jeffery Smith (2011). A Political Account of Corporate Moral Responsibility. Ethical Theory and Moral Practice 14 (2):223 - 246.
Analytics

Monthly downloads

Added to index

2011-12-01

Total downloads

8 ( #170,847 of 1,101,679 )

Recent downloads (6 months)

4 ( #81,804 of 1,101,679 )

How can I increase my downloads?

My notes
Sign in to use this feature


Discussion
Start a new thread
Order:
There  are no threads in this forum
Nothing in this forum yet.