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Do industry associations influence corporate environmentalism in developing countries? Evidence from Trinidad and Tobago

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  • Kalim Shah
  • Jorge Rivera

Abstract

As environmental regulations increase, industry associations play a growing role in representing their respective members. This role has been documented in many industrialized countries but less so in emerging economies. In this study, we investigate the level of corporate environmentalism exhibited by member firms of two industry associations operating in Trinidad and Tobago. Using a two-stage Heckman regression that corrects for the endogeneity introduced by self-selection bias in the evaluation of voluntary choices, our findings indicate that firms that are members of the foreign-originated American Chamber of Commerce of Trinidad and Tobago appear to show stronger corporate environmentalism than those belonging to the locally formed Chamber of Commerce. Enhanced institutional pressures from these respective industry associations, peers and competitors within associations, access and exposure to best practices, networking opportunities and service bundling may explain these differences. These results suggest that environmental policy makers in emerging economies may be able to leverage foreign-originated industry associations to promote stronger corporate environmentalism. Policy makers may need to consider how to encourage local chambers to emulate the some of the institutional conditions of foreign-originated ones. Copyright Springer Science+Business Media, LLC. 2013

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  • Kalim Shah & Jorge Rivera, 2013. "Do industry associations influence corporate environmentalism in developing countries? Evidence from Trinidad and Tobago," Policy Sciences, Springer;Society of Policy Sciences, vol. 46(1), pages 39-62, March.
    • Handle: RePEc:kap:policy:v:46:y:2013:i:1:p:39-62
    DOI: 10.1007/s11077-012-9162-x
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    4. Kalim U. Shah & Surendra Arjoon, 2015. "Through Thick and Thin? How Self‐determination Drives the Corporate Sustainability Initiatives of Multinational Subsidiaries," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 565-582, September.
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    7. Shah, Kalim U. & Niles, Keron, 2016. "Energy policy in the Caribbean green economy context and the Institutional Analysis and Design (IAD) framework as a proposed tool for its development," Energy Policy, Elsevier, vol. 98(C), pages 768-777.

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