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The impact of symbolic and substantive actions on environmental legitimacy

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Author Info
Berrone, Pascual () (IESE Business School)
Gelabert, Liliana (Universidad Carlos III)
Fosfuri, Andrea (Universidad Carlos III)

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Abstract

Drawing on institutional theory and insights from stakeholder theory and impression management, we empirically analyze the impact of both environmental symbolic polices (participation in voluntary environmental programs, green trademarks, environmental-dedicated board committees, environmental pay policies and community communication) and substantive actions (environmental patents and pollution prevention practices) on environmental legitimacy. We show that 1) symbolic actions have a weaker positive effect on legitimacy than substantive actions; 2) that the impact of symbolic actions is greater when they are combined with substantive actions, and 3) that this impact is only short-term while substantive actions have both short- and long-term effects.

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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/778.

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Length: 30 pages
Date of creation: 05 Jan 2009
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Handle: RePEc:ebg:iesewp:d-0778

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
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Related research
Keywords: environmental management; institutional theory; legitimacy; stakeholder management; symbolic management;

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  1. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January. [Downloadable!] (restricted)
  2. Nicole Darnall & Joann Carmin, 2005. "Greener and cleaner? The signaling accuracy of U.S. voluntary environmental programs," Policy Sciences, Springer, vol. 38(2), pages 71-90, September. [Downloadable!] (restricted)
  3. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
  4. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea & Gomez-Mejia, Luis R., 2007. "Can institutional forces create competitive advantage? An empirical examination of environmental innovation," IESE Research Papers D/723, IESE Business School. [Downloadable!]
  5. Alvarez-Gil, M Jose & Berrone, Pascual & Husillos, F. Javier & Lado, Nora, 2007. "Reverse logistics, stakeholders' influence, organizational slack, and managers' posture," Journal of Business Research, Elsevier, vol. 60(5), pages 463-473, May. [Downloadable!] (restricted)
  6. Magali Delmas & Arturo Keller, 2005. "Free riding in voluntary environmental programs: The case of the U.S. EPA WasteWise program," Policy Sciences, Springer, vol. 38(2), pages 91-106, September. [Downloadable!] (restricted)
  7. Patten, Dennis M., 1992. "Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory," Accounting, Organizations and Society, Elsevier, vol. 17(5), pages 471-475, July. [Downloadable!] (restricted)
  8. Nameroff, T. J. & Garant, R. J. & Albert, M. B., 2004. "Adoption of green chemistry: an analysis based on US patents," Research Policy, Elsevier, vol. 33(6-7), pages 959-974, September. [Downloadable!] (restricted)
  9. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law & Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
  10. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May. [Downloadable!] (restricted)
  11. Sarkis, Joseph & Cordeiro, James J., 2001. "An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice," European Journal of Operational Research, Elsevier, vol. 135(1), pages 102-113, November. [Downloadable!] (restricted)
  12. Jean O. Lanjouw & Mark Schankerman, 1999. "The Quality of Ideas: Measuring Innovation with Multiple Indicators," NBER Working Papers 7345, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January. [Downloadable!] (restricted)
  14. Pascual Berrone & Jordi Surroca & Josep Tribó, 2007. "Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction," Journal of Business Ethics, Springer, vol. 76(1), pages 35-53, November. [Downloadable!] (restricted)
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