Featured Research

from universities, journals, and other organizations

Green Practices: When Do Corporations Respond To Stakeholders' Pressure?

Date:
October 23, 2008
Source:
Wiley-Blackwell
Summary:
Researchers explain when external stakeholders can influence organizations to adopt greener management practices.

In a new study published in Strategic Management Journal, researchers explain when external stakeholders can effectively influence organizations to adopt greener management practices. In an effort to appease the demands of external stakeholders, supervisors of facilities appear to adopt management practices that are favorable to their professional network.

As a result, competing firms may adopt very different environmental management practices according not only to the level of pressure exerted by external stakeholders but also to the internal structure of the organization.

Magali A. Delmas and Michael W. Toffel, authors of “Organizational Reponses to Environmental Demands: Opening the Black Box”, include customers, regulators, local communities, and environmental activist organizations in their definition of external stakeholders.

The study used data from an original mail survey and publicly available databases. The survey gathered information about perceptions of institutional pressures, relative influence of various corporate functional departments, and the management practices adopted by each facility. Existing databases provided additional measures of institutional pressures.

The authors argue that differences in the organizational structure of the firm are key to explain such differences. Pressures from external stakeholders are channeled to different organizational functions, which influence how they are received by facility managers. These differences in receptivity are critical because they, in turn, influence organizations’ responses in terms of adopting management practices. In other words, some organizations will allow pressures from stakeholders to permeate the organization.

The authors find that firms with powerful marketing departments were more responsive to pressures from customers and competitors, and were especially likely to adopt the ISO 14001 Environmental Management System standard.

In contrast, they find that firms with powerful legal departments were more responsive to pressures from regulators and environmental NGOs, and were especially likely to adopt government-initiated voluntary programs. However, these firms were less likely to adopt the ISO 14001 standard, which requires substantial documentation which could pose concerns about legal liability.

So powerful departments can also help firms resist to the pressures exerted by external stakeholders.

This study has important policy implications. External stakeholders including regulators and environmental activists need to get a better understanding of the organizational structure of corporations in order to effectively stimulate change.


Story Source:

The above story is based on materials provided by Wiley-Blackwell. Note: Materials may be edited for content and length.


Cite This Page:

Wiley-Blackwell. "Green Practices: When Do Corporations Respond To Stakeholders' Pressure?." ScienceDaily. ScienceDaily, 23 October 2008. <www.sciencedaily.com/releases/2008/10/081023100802.htm>.
Wiley-Blackwell. (2008, October 23). Green Practices: When Do Corporations Respond To Stakeholders' Pressure?. ScienceDaily. Retrieved April 19, 2014 from www.sciencedaily.com/releases/2008/10/081023100802.htm
Wiley-Blackwell. "Green Practices: When Do Corporations Respond To Stakeholders' Pressure?." ScienceDaily. www.sciencedaily.com/releases/2008/10/081023100802.htm (accessed April 19, 2014).

Share This



More Earth & Climate News

Saturday, April 19, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Drought Concerns May Hurt Lake Tourism

Drought Concerns May Hurt Lake Tourism

AP (Apr. 18, 2014) Operators of recreational businesses on western reservoirs worry that ongoing drought concerns will keep boaters and other visitors from flocking to the popular summer attractions. (April 18) Video provided by AP
Powered by NewsLook.com
Man Claims He Found Loch Ness Monster With... Apple Maps?

Man Claims He Found Loch Ness Monster With... Apple Maps?

Newsy (Apr. 18, 2014) Andy Dixon showed the Daily Mail a screenshot of what he believes to be the mythical beast swimming just below the lake's surface. Video provided by Newsy
Powered by NewsLook.com
First Ever 'Female Penis' Discovered In Animal Kingdom

First Ever 'Female Penis' Discovered In Animal Kingdom

Newsy (Apr. 18, 2014) Not only are these newly discovered bugs' sex organs reversed, but they also mate for up to 70 hours. Video provided by Newsy
Powered by NewsLook.com
Ark. Man Finds 6-Carat Diamond At State Park

Ark. Man Finds 6-Carat Diamond At State Park

Newsy (Apr. 18, 2014) An Arkansas man has found a nearly 6.2-carat diamond, which he dubbed "The Limitless Diamond," at the Crater of Diamonds State Park. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins