Skip to main content
SpringerLink
Log in

Corporate Transparency and Green Management

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

How can firms support their customers’ collaborative, social responsibility initiatives – and especially pro-environmental, firm–customer collaborations? Does corporate transparency affect customers’ willingness to undertake pro-environmental collaborative programs? This study addresses these questions in relation to the US residential electricity market. It focuses on the impact of customers’ perceptions of the utility’s degree of transparency and on the willingness to engage in pro-environmental behavior (PEB) related to electricity consumption. The responses of 1257 interviewees from US households to questions related to their electricity suppliers are analyzed through structural equation models (SEMs) using latent variables. Results show that customers’ perceptions of an electricity utility’s transparency affect their willingness to collaborate in environmental programs, and that the degree of perceived transparency of the utility is related to customers’ environmental awareness.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aerts, W., Carmier, D., Magnan, M.: 2008, ‘Corporate Environmental Disclosure, financial markets and the media: An international perspective’, Ecological Economics, 64, 643-659.

    Article  Google Scholar 

  • Alvarez Gil, M.J., Jiménez, J.B., Céspedes Lorente, J.: 2001, ‘An analysis of environmental management, organizational context and performance of Spanish hotels’, Omega 29(6), 457-471.

    Article  Google Scholar 

  • Aragón-Correa, J. A. and E. A. Rubio: 2007, ‘Proactive Corporate Environmental Strategies: Myths and Misunderstandings’, Long Range Planning 40(3), 357–381.

    Article  Google Scholar 

  • Armstrong, J.S., Overton, T.S.: 1977, ‘Estimating nonresponse bias in mail surveys’, Journal of Marketing Research 14(3), 396-402.

    Article  Google Scholar 

  • Ashforth, B.E., Gibbs, B.W.: 1990. ‘The double-edge of organizational legitimation, Organization Science 1(2), 177-194.

    Article  Google Scholar 

  • Bansal, P. Kistruck, G.: 2006, ‘Seeing Is (Not) Believing: Managing the Impressions of the Firm’s Commitment to the Natural Environment’, Journal of Business Ethics 67,165–180.

    Article  Google Scholar 

  • Basu, K., Palazzo, G.: 2008, ‘Corporate Social Responsibility: a Process Model of Sensemaking’, Academy of Management Review 33(1), 122–136.

    Google Scholar 

  • Bechtel, R. B., Verdugo, V. C., Pinheiro, J.: 1999, ‘Environmental belief systems: United States, Brazil, and Mexico’, Journal of Cross-Cultural Psychology 30, 122-128.

    Article  Google Scholar 

  • Berry M.S., Rondinelli, D.A.: 1998, ‘Proactive Corporate Environmental Management: A New Industrial Revolution’, Academy of Management Executive 12(2), 38-50.

    Google Scholar 

  • Bollen, K.A.: 1989, ‘Structural equations with latent variables’, New York: Wiley.

    Google Scholar 

  • Bollino, C.A.: 2009, ‘The Willingness to Pay for Renewable Energy Sources: The case of Italy with Socio- demographic determinants’, Energy Journal 30(2), 81-96.

    Google Scholar 

  • Buysse, K., Verbeke, A.: 2003, ‘Proactive Environmental Strategies: A Stakeholder Management Perspective’, Strategic Management Journal 24, 453–470.

    Article  Google Scholar 

  • Christman, P., and Taylor, G.: 2002, ‘Globalization and the environment: strategies for international voluntary initiatives’, Academy of Management Executive 16(3), 121-135.

    Google Scholar 

  • Churchill, G.: 1979, ‘A paradigm for developing better measures of marketing constructs’, Journal of Marketing Research 16(1), 63-72.

    Article  Google Scholar 

  • Clark, C.F., Kotchen, M.J., Moore, M.R.: 2003, ‘Internal and external influences on pro-environmental behavior: participation in a green electricity program’, Journal of Environmental Psychology 23 (3), 237-246.

    Article  Google Scholar 

  • Dunlap, R. E., & Van Liere, K. D.: 1978, ‘The ‘new environmental paradigm’: A proposed measuring instrument and preliminary results’, Journal of Environmental Education, 9, 10-19.

    Google Scholar 

  • Dunlap, R.E., Van Liere, K.D., Mertig, A.G., Emmet Jones, R.: 2000, ‘New Trends in Measuring Environmental Attitudes: Measuring Endorsement of the New Ecological Paradigm: A Revised NEP Scale’, Journal of Social Issues 56(3), 425-442.

    Article  Google Scholar 

  • Eggert, A., Helm, S.: 2003, ‘Exploring the impact of Relationship Transparency on Business Relationship. A cross Sectional Study among purchasing managers in Germany’, Industrial Marketing and Management 32(2), 101-108.

    Article  Google Scholar 

  • Elia, A.: 2009, ‘Transparency rights, technology, and trust’, Ethics and Information Technology 11(2), 145-153.

    Article  Google Scholar 

  • Enderle, G., Tavis, L.: 1998, ‘A Balanced Concept of the Firm and the Measurement of Its Long-Term Planning and Performance’, Journal of Business Ethics 17, 1129–1144.

    Article  Google Scholar 

  • Esty, D., Winston, A. 2009. ‘Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage’. (Yale University Press).

    Google Scholar 

  • Felleman J.: 1997, ‘Deep Information: The role of Information Policy in Environmental Sustainability’ (Greenwood Publishing Group).

    Google Scholar 

  • Fowler, F.J.: 2002, ‘Survey Research Method’. (Inc. Thousand Oaks, California: Sage Publications).

    Google Scholar 

  • Fraj-Andrés, E., Martinez-Salinas, E. Matute-Vallejo, J.: 2009. ‘A Multidimensional Approach to the Influence of Environmental Marketing and Orientation on the Firm’s Organizational Performance’, Journal of Business Ethics 88(2), 263–286.

    Article  Google Scholar 

  • Fung, A., M. Graham and D. Weil: 2003, The Political Economy of Transparency: What Makes Disclosure Policies Sustainable. Ash Institute for Democratic Governance and Innovation, Kennedy School of Government, Harvard University, OPS-02-03.

  • Fung, A., Graham, M., Weil, D.: 2007, ‘Full Disclosure: The Perils and Promise of Transparency’ (Cambridge University Press).

    Book  Google Scholar 

  • Gilmore, J.H., Pine B.J.: 2007. ‘Authenticity: What consumers really want’ (Boston: Harvard Business School Press).

    Google Scholar 

  • Guy, S., Marvin, S.: 1996, ‘Transforming urban infrastructure provision – The emerging logic of demand side management’, Policy Studies 17(2), 137-147.

    Article  Google Scholar 

  • Handfield, R.B., Walton, S.V., Seegers, L.K., Melnyk, S.A. 1997. ‘Green’ value chain practices in the furniture industry, Journal of Operation Management 15(4), 293-315.

    Article  Google Scholar 

  • Hart, S.L. and Sharma, L.: 2004. ‘Engaging fringe stakeholders for competitive imagination’, Academy of Management Executive 18, 7–18.

    Google Scholar 

  • Hartman, C.L., Hofman, P.S. Stafford, E.R.: 1999 ‘Partnership: A Path to Sustainability’, Business Strategy and the Environment 8(5), 255-266.

    Article  Google Scholar 

  • Hartmann, P, Ibáñez, V.A.: 2007, ‘Managing Customer Loyalty in Liberalized Residential Energy Markets: The impact of Energy Branding, Energy Policy 35, 2661–2672.

    Article  Google Scholar 

  • Hebb, T.: 2006, ‘The Economic Inefficiency of Secrecy: Pension Fund Investors’ Corporate Transparency Concerns, Journal of Business Ethics 63, 385–405.

    Article  Google Scholar 

  • Hendry, J.R.: 2006. ‘Taking Aim at Business: What Factors Lead Environmental Non-Governmental Organizations to Target Particular Firms?’, Business & Society, 45(1): 47-86.

    Article  Google Scholar 

  • Hess, D.: 2007, ‘Social Reporting and New Governance Regulation: The Prospects of Achieving Corporate Accountability Through Transparency’, Business Ethics Quarterly 17(3): 453-476.

    Google Scholar 

  • Hess, D.: 2008, ‘The Three Pillars of Corporate Social Reporting as New Governance Regulation: Disclosure, Dialogue and Development, Business Ethics Quarterly, 18(4), 447–482.

    Google Scholar 

  • Hood, C., Heald, D. 2006. ‘Transparency: The Key to Better Governance?’ (Oxford:Oxford University Press).

    Google Scholar 

  • Kline, R.B.: 1998, ‘Principle and Practice of Structural Equation Modeling’ (New York: Guilford Press).

    Google Scholar 

  • Menges, R., Schroeder, C., Traub, S.: 2005, ‘Altruism, warm glow and the willingness-to-donate for green electricity: an artefactual field experiment’, Environmental and Resource Economics 31, 431-458.

    Article  Google Scholar 

  • Milne, M.J., Patten, D.M. 2002. ‘Securing Organizational Legitimacy’, Accounting, Auditing and Accountability Journal 15(3), 372-405.

    Article  Google Scholar 

  • Nakarado, G.: 1996, ‘A Marketing Orientation is the key to a sustainable energy future’, Energy Policy 24(2), 187-193.

    Article  Google Scholar 

  • Nunnally, J.C.: 1978, ‘Psychometric Theory’ (New York: McGraw-Hill).

    Google Scholar 

  • Oppenheim, A.N.: 1966, ‘Questionnaire Design, Interviewing and Attitude Measurement’ (London: Pinter Publishers).

    Google Scholar 

  • Ottman, J.: 1993, ‘Consumer Attitude Shifts Provide Grist for New Products’, Marketing News, January 4, 16.

  • Pagano, B. 2004. ‘The Transparency Edge’ (New York: McGraw-Hill).

    Google Scholar 

  • Paiva Dias, G. and M. J. Moreira: 2008, Transparency, Corruption and ICT. In A. Vaccaro, P. Madsen, H. Horta (eds.), Transparency and Information and Communication Technologies: Social Responsibility and Accountability in Business and Education (Philosophy Documentation Center, Charlottesville, USA), pp. 151–162.

    Google Scholar 

  • Palazzo, G., Richter, U. 2005, ‘CSR as usual? The case of the Tobacco Industry’. Journal of Business Ethics 61(4), 387-401.

    Article  Google Scholar 

  • Payne, D.M. Raiborn, C.A.: 2001, ‘Sustainable Development: The Ethics support the Economics’, Journal of Business Ethics 32(1), 157–168.

    Article  Google Scholar 

  • Peng, J., Lin, S. 2008. Local Responsiveness Pressure, Subsidiary Resources, Green Management Adoption and Subsidiary’s Performance: Evidence from Taiwanese Manufactures, Journal of Business Ethics, 79, 199–212.

    Article  Google Scholar 

  • Peterson R.: 2000, ‘Constructing Effective Questionnaires’, Sage Publications, Inc. Thousand Oaks, California.

    Google Scholar 

  • Podsakoff, P.M., MacKenzie, S.B., Jeong-Yeon, L., Podsakoff, N.P.: 2003, ‘Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies’, Journal of Applied Psychology 88(5), 879-903.

    Article  Google Scholar 

  • Podsakoff, P.M.,Organ, D.W. : 1986, ‘Self-reports in organizational research: Problems and prospects’, Journal of Management 12(4), 531-544.

    Article  Google Scholar 

  • Ramkumar, V., Petkova, E.: 2007, Transparency and Environmental Governance. In A. Florini (Ed.), The Right to Know: Transparency for an Open World. Columbia University Press, New York, pp. 279–308

    Google Scholar 

  • Reed, A.M., Reed, D.: 2009, ‘Partnerships for Development: Four Models of Business Involvement’, Journal of Business Ethics 90, 3–37.

    Article  Google Scholar 

  • Reiner, D.M.; Curry, T.E.; De Figuereido, M.A.; Herzog, H.J.; Ansolabehere, S.D.; Itaoka, K.; Johnson, F.; Odenberger, M.: 2006. ‘American Exceptionalism? Similarities and Differences in National Attitudes Toward Energy Policy and Global Warming’. Environmental Science & Technology 40 (7), 2093-2098.

    Article  Google Scholar 

  • Reynolds, M.A., Yuthas, K.: 2008, ‘Moral Discourse and Corporate Social Responsibility Reporting, Journal of Business Ethics 78, 47–64.

    Article  Google Scholar 

  • Robert, J.A. 1996. ‘Green Consumers in the 1990s: Profile and Implications for Advertising’, Journal of Business Research 36, 217-231.

    Article  Google Scholar 

  • Santana, A. and Wood, D.: 2009, ‘Information vs. Knowledge: Transparency and Social Responsibility Issues for Wikipedia’, Ethics and Information Technology 11(2), 133-144.

    Article  Google Scholar 

  • Schuman, H., Presser, S.: 1981, ‘Questions and Answers in Attitude Surveys’ (Academic Press, New York).

    Google Scholar 

  • Schwartz, J.: 2007, ‘Transparency Lost in the Fog’, The New York Times, the http://www.nytimes.com/2007/04/08/business/yourmoney/08fog.html?ex=1333684800&en=4bb6b8922af61b02&ei=5088&partner=rssnyt&emc=rss. Last visit 27 Dec 2007.

  • Seel, B., Paterson, M., Doherty, B.: 2000, ‘Direct Action in British Environmentalism (New York: Routledge).

    Book  Google Scholar 

  • Slimak, M.W., Dietz, T.: 2006, ‘Personal Values, Beliefs, and Ecological Risk Perception’, Risk Analysis 26 (6), 1689-1705.

    Article  Google Scholar 

  • Stoll, M. L.: 2005, ‘Corporate Rights to Free Speech?’, Journal of Business Ethics, 58: 261–269.

    Article  Google Scholar 

  • Sugiyama, T. Michaelowa, A.: 2000, ‘What Must and Can COP6 Decide? Extended Flexibility Backed by Transparency and Responsibility’, Energy Policy 28, 571-574.

    Google Scholar 

  • Tanriverdi, H.: 2005, ‘Information Technology Relatedness, knowledge management capability, and performance in Multibusiness firms’, MIS quarterly 29(2), 311- 344.

    Google Scholar 

  • Tanriverdi, H.: 2006, ‘Performance Effects of Information technology Synergies in Multibusiness Firms’, MIS Quarterly, 30(1), 57-77.

    Google Scholar 

  • Tapscott, D. Ticoll, D.: 2003, ‘The Naked Corporation’ (New York, Free Press).

    Google Scholar 

  • Teas, R.K. 1993. Expectations, Performance Evaluations and Consumers’ Perceptions of Quality’ Journal of Marketing, 57(October), 18-34.

    Article  Google Scholar 

  • Turilli, M., Floridi, L.: 2009, ‘The Ethics of Information Transparency’, Ethics and Information Technology 11(2), 105-112.

    Article  Google Scholar 

  • Vaccaro A., Madsen P.: 2009a. ‘Dynamic Transparency: The new ICT-Driven Ethics?’, Ethics and Information Technology 11(2), 113-122.

    Article  Google Scholar 

  • Vaccaro, A., Madsen, P.: 2009b, ‘ICT and NGOs: Difficulties in Attempting to be Extremely Transparent’, Ethics and Information Technology 11(3), 221-231.

    Article  Google Scholar 

  • Van Marrewijk, M.: 2003, ‘Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion’, Journal of Business Ethics 44, 95–105.

    Article  Google Scholar 

  • Vandermerwe, S. Oliff, M.: 1990, ‘Customers drive corporations green’, Long Range Planning 23(6), 10-16.

    Article  Google Scholar 

  • Viso, A.: 2009, ‘Black and White Transparency: Contradictions to a Moral Metaphor’, Ethics and Information Technology 11(2), 155- 162.

    Article  Google Scholar 

  • Waddock, S. 2004. Creating Corporate Accountability: Foundational Principles to Make Corporate Citizenship Real, Journal of Business Ethics 50, 313–327.

    Article  Google Scholar 

  • Weil, D., Fung, A., Graham, M., & Fagotto, E.: 2006, ‘The effectiveness of regulatory disclosure policies’, Journal of Policy Analysis and Management 25(1), 155–181.

    Article  Google Scholar 

  • Wüstenhagen, R, Bilharz, M.: 2006, ‘Green energy market development in Germany: effective public policy and emerging customer demand’, Energy Policy 34 (13), 1681-1696.

    Article  Google Scholar 

  • Zelezny, L.C.; Chua, P.; Aldrich, C.: 2000, ‘Elaborating on Gender Differences in Environmentalism’, Journal of Social Issues 56(3), 443-457.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Catholic University of Portugal, FCCE, Lisbon, Portugal

    Antonino Vaccaro & Dalia Patiño Echeverri

Authors
  1. Antonino Vaccaro
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dalia Patiño Echeverri
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Antonino Vaccaro.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Vaccaro, A., Patiño Echeverri, D. Corporate Transparency and Green Management. J Bus Ethics 95, 487–506 (2010). https://doi.org/10.1007/s10551-010-0435-z

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-010-0435-z

Keywords

Search

Navigation