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Environmental purchasing and firm performance: an empirical investigation

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Author Info

  • Carter, Craig R.
  • Kale, Rahul
  • Grimm, Curtis M.

Abstract

Much debate has occurred in the extant literature as to whether socially responsible actions undertaken by firms result in improved financial performance. One key dimension of social responsibility is environmental initiatives and programs. While the purchasing function can create value and significantly affect the environmental actions of a firm and its upstream supply chain, no research to date has explored the effect of environmental purchasing on firm performance. Our research provides an initial examination of this relationship. We combine survey and archival data to show that environmental purchasing is significantly related to both net income and cost of goods sold, after controlling for firm size, leverage, and primary earnings per share.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

Volume (Year): 36 (2000)
Issue (Month): 3 (September)
Pages: 219-228

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Handle: RePEc:eee:transe:v:36:y:2000:i:3:p:219-228

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Related research

Keywords: Corporate social responsibility Environmental issues Purchasing Supply chain management;

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Cited by:
  1. Zhu, Qinghua & Sarkis, Joseph & Cordeiro, James J. & Lai, Kee-Hung, 2008. "Firm-level correlates of emergent green supply chain management practices in the Chinese context," Omega, Elsevier, vol. 36(4), pages 577-591, August.
  2. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, Elsevier, vol. 111(2), pages 299-315, February.
  3. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2008. "Confirmation of a measurement model for green supply chain management practices implementation," International Journal of Production Economics, Elsevier, Elsevier, vol. 111(2), pages 261-273, February.
  4. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, Elsevier, vol. 130(1), pages 1-15, March.
  5. Alireza AZIMI, 2013. "Identification of External Critical Success Factors in Microbial Biotechnology Firms," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 21-26.
  6. Maria Björklund, 2010. "Linking strategic logistics change to labor rights," Social Responsibility Journal, Emerald Group Publishing, Emerald Group Publishing, vol. 6(4), pages 580-592, November.
  7. Michael Maloni & Michael Brown, 2006. "Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry," Journal of Business Ethics, Springer, Springer, vol. 68(1), pages 35-52, September.
  8. Matthias Ehrgott & Felix Reimann & Lutz Kaufmann & Craig Carter, 2011. "Social Sustainability in Selecting Emerging Economy Suppliers," Journal of Business Ethics, Springer, Springer, vol. 98(1), pages 99-119, January.
  9. Nissinen, A. & Parikka-Alhola, K. & Rita, H., 2009. "Environmental criteria in the public purchases above the EU threshold values by three Nordic countries: 2003 and 2005," Ecological Economics, Elsevier, vol. 68(6), pages 1838-1849, April.
  10. Baskaran, Venkatesan & Nachiappan, Subramanian & Rahman, Shams, 2012. "Indian textile suppliers' sustainability evaluation using the grey approach," International Journal of Production Economics, Elsevier, Elsevier, vol. 135(2), pages 647-658.
  11. Huriye SABANCI ÖZER, 2012. "A Review of the Literature on Process Innovation in Remanufacturing," International Review of Management and Marketing, Econjournals, Econjournals, vol. 2(3), pages 139-155.
  12. Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(1), pages 283-294.
  13. Zailani, Suhaiza & Jeyaraman, K. & Vengadasan, G. & Premkumar, R., 2012. "Sustainable supply chain management (SSCM) in Malaysia: A survey," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(1), pages 330-340.
  14. Ageron, Blandine & Gunasekaran, Angappa & Spalanzani, Alain, 2012. "Sustainable supply management: An empirical study," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(1), pages 168-182.
  15. Goebel, Philipp & Reuter, Carsten & Pibernik, Richard & Sichtmann, Christina, 2012. "The influence of ethical culture on supplier selection in the context of sustainable sourcing," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(1), pages 7-17.
  16. Bourlakis, Michael & Maglaras, George & Aktas, Emel & Gallear, David & Fotopoulos, Christos, 2014. "Firm size and sustainable performance in food supply chains: Insights from Greek SMEs," International Journal of Production Economics, Elsevier, Elsevier, vol. 152(C), pages 112-130.
  17. Yen, Yu-Xiang & Yen, Shang-Yung, 2012. "Top-management's role in adopting green purchasing standards in high-tech industrial firms," Journal of Business Research, Elsevier, vol. 65(7), pages 951-959.
  18. Lai, Kee-hung & Wong, Christina W.Y., 2012. "Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters," Omega, Elsevier, vol. 40(3), pages 267-282.
  19. Ciliberti, Francesco & Pontrandolfo, Pierpaolo & Scozzi, Barbara, 2008. "Logistics social responsibility: Standard adoption and practices in Italian companies," International Journal of Production Economics, Elsevier, Elsevier, vol. 113(1), pages 88-106, May.
  20. José Allouche & Patrice Laroche, 2005. "A Meta-analytical investigation of the relationship between corporate social and financial performance," Post-Print hal-00923906, HAL.

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