Applying GRI reports for the investigation of environmental management practices and company performance in Sweden, China and India
2015 (English)In: Journal of Cleaner Production, ISSN 0959-6526, Vol. 98, 36-46 p.Article in journal (Refereed) Published
The relationship between environmental management practices (EMPs) and company performance hasrecently been debated in literature and is of interest for both industrial managers and political decisionmakers.This paper investigates the relationship between EMPs and firm performance in manufacturingcompanies in Sweden, China and India. With the content analysis of Global Reporting Initiative (GRI)reports and financial reports of sample companies, the levels of EMPs and the companies’ financialperformances were coded. Further statistical assessment was conducted in order to identify patterns andcorrelations. The results indicate that only selected EMPs have been employed differently in threedifferent countries. Most EMPs clearly do not have a positive correlation with the financial performance;i.e. employing EMPs does not necessarily improve the economic consequence of companies. Nevertheless,a number of EMPs do have a strong correlation with improving innovation performance in variouscompanies. It is also interesting to note that a negative correlation exists between the Environmentalstandard for suppliers and Sales growth. This is possibly due to increasing operational costs and a delay inmarket acceptance. This research illustrates the possibility of using standard environmental data fromGRI reports as a resource for future studies of EMPs. In order to improve long-term financial performance,this study also suggests that innovation should gain a substantial amount of attention when EMPsare employed.
Place, publisher, year, edition, pages
Elsevier, 2015. Vol. 98, 36-46 p.
Environmental management practices; Company performance; Global reporting initiative ; Manufacturing industry; Empirical research
Environmental Management Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-113755DOI: 10.1016/j.jclepro.2014.02.001ISI: 000356194300005OAI: oai:DiVA.org:liu-113755DiVA: diva2:784549