Does better environmental performance lead to improved bottom lines? A theoretical framework

Hamoudah, Manal and Sulaiman, Maliah and Mohd Alwi, Norhayati and Abideen, Adewale Abideen (2013) Does better environmental performance lead to improved bottom lines? A theoretical framework. In: EMAN-EU 2013 Conference on Material Flow Cost Accounting, 20th-22nd March, 2013, Technische Universitat, Dresden, Germany.

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Abstract

Over 40 years of study, researchers have not been able to identify a clear cut relationship between a company’s environmental performance (FP) and its financial performance (EP). For that reason, this paper provides the theoretical framework on the relationship between the two. This framework considers a dual perspective from traditional economic research and strategic management field in an attempt to justify the paradoxical results. Specifically the study posits whether companies do well financially under shareholder theory or do good environmentally under resource-based-view (RBV). Further, in attempt to address the methodological shortcomings, especially as it relates to the lack of a robust measure of EP, the current paper proposes four indicators from two broad dimensions. The indicators based on strategic dimension include: top management commitment (TMC) and EMS-ISO14001 certifications, while the operational dimension indicators are both environmental strategy (ES) and programs to reduce environmental impact (PREI).

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	7709/59162
Uncontrolled Keywords:	Environmental Performance (EP), Financial Performance (FP), Shareholder theory, Resource-based View (RBV), Strategic Environmental Performance (SEP), Operational Environmental Performance
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Norhayati Mohd Alwi
Date Deposited:	09 Nov 2017 16:24
Last Modified:	09 Nov 2017 16:24
URI:	http://irep.iium.edu.my/id/eprint/59162

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