The question of why corporations are subject to different regulatory approaches remains open. In this paper we analyze this problem using Ashbein and Ajzen's theory of planned behavior. We study how management's perception of public environmental policies influences how the corporation acts and the ways in which this environmental approach contributes to environmental performance. This research differentiates among five policy approaches, some of which are focused on mandatory regulation and some on positive and voluntary adjustments made by corporations. An empirical analysis is conducted based on data for 1151 Spanish corporations from 2002 to 2005. We conclude that self-regulation produces the greatest environmental gains, particularly when coupled with a cooperative regulatory approach. These results call into question the public preference for environmental policies based on mandatory standards and technologies (based on either coercion or conciliation) and support recommendations for policies to support self-regulation rather than legal coercion.
Get full access to this article
View all access options for this article.
References
1.
AjzenI, 1985, “From intentions to actions: A theory of planned behavior”, in Action Control: From Cognition to Behavior Eds KuhlJBeckmannJ, (Springer, New York) pp 11–39.
2.
AjzenI, 1991, “The theory of planned behavior”Organizational Behavioral Human Decision Process50179–211.
3.
AjzenIFishbeinM, 1980Understanding Attitudes and Predicting Social Behavior (Prentice-Hall, Englewood Cliffs, NJ).
4.
ÁlvarezM JDe BurgosJCéspedesJ, 2001, “Un análisis exploratorio de las estrategias medioambientales y el contexto organizativo de los hoteles españoles”Cuadernos de Economía y Dirección de la Empresa85–32.
5.
AntónWRQDeltasGKhannaM, 2004, “Incentives for environmental self-regulation and implications for environmental performance”Journal of Environmental Economics and Management48632–654.
6.
Aragón-CorreaJ, 1998, “Strategic proactivity and firm approach to the natural environment”Academy of Management Journal4556–567.
7.
AroraSCasonT, 1994, “A voluntary approach to environmental regulation: The 33/50 program”Resources166–10.
8.
AshbyEAndersonM, 1981The Politics of Clean Air (Clarendon Press, Oxford).
9.
AshfordNHeatonG, 1983, “Regulation and technological innovation in the chemical industry”Law and Contemporary Problems46109–157.
10.
AshfordNAyersCStoneR, 1985, “Using regulations to change the market for innovation”Harvard Environmental Law Review9419–466.
11.
BaggottR, 1986, “By voluntary agreement: The politics of instrument selection”Public Administration6451–67.
12.
BaileyI, 2007, “Market environmentalism, new environmental policy instruments, and climate policy in the United Kingdom and Germany”Annals of the Association of American Geographers97530–550.
13.
BanerjeeS BIyerE SKashyapR K, 2003, “Corporate environmentalism: Antecedents and influence of industry type”Journal of Marketing67106–122.
14.
BeedellJDCRehmanT, 1999, “Explaining farmers' conservation behaviour? Why do farmers behave they way they do?”Journal of Environmental Management57165–176.
15.
BowenF E, 2000, “Environmental visibility: A trigger of green organizational response?”Business Strategy and the Environment992–107.
CabugueiraMFM, 2004, “Portuguese experience of voluntary approaches in environmental policy”Management of Environmental Quality15174–185.
18.
CamisónC, 2004, “Shared, competitive, and comparative advantages: A competence-based view of industrial-district competitiveness”Environment and Planning A362227–2256.
19.
CamisónC, 2006, “Strategic alliances for environmental adaptation: The support of virtual networks”, in Utilizing Information Technology in Developing Strategic Alliances Among Organizations Eds Martínez-FeirroSMedina-GarridoJ ARuiz-NavarroJ, (Idea Group Publishing, Hershey, PA) pp 242–280.
20.
CamisónC, 2008, “Learning for environmental adaptation and knowledge-intensive services: The role of public networks for SMEs”The Service Industries Journal28827–844.
21.
ClarkK, 1995, “Can environmental objectives be achieved more willingly and at less cost by avoiding regulations?”, Canadian Institute for Environmental Law and Policy Newsletter101.
22.
ClemensBDouglasT J, 2006, “Does coercion drive firms to adopt ‘voluntary’ green initiatives? Relationships among coercion, superior firm resources, and voluntary green initiatives”Journal of Business Research59483–491.
23.
CordanoMFriezeI H, 2000, “Pollution reduction preferences of US environmental managers: Applying Ajzen's theory of planned behavior”The Academy of Management Journal43627–641.
24.
del BrioJ AFernándezEJunqueraB, 2002, “The role of the public administrations in the promotion of the environmental activity in Spanish industrial companies”Ecological Economics40279–294.
25.
DowlingJPfefferJ, 1975, “Organizational legitimacy: Social values and organizational behavior”Pacific Sociological Review18122–136.
26.
FinemanS, 2000, “Being a regulator”, in The Business of Greening Ed. FinemanS, (Routledge, London) pp 97–113.
27.
FishbeinMAjzenI, 1975Belief Attitudes, Intention, and Behavior: An Introduction to Theory and Research (Addison-Wesley, Reading, MA).
28.
FoulonJPaulLLaplanteB, 2002, “Incentives for pollution control: Regulation or information?”Journal of Environmental Economics and Management44169–187.
29.
GlachantM, 1994Voluntary Agreements in Environmental Policy (OECD, Paris).
30.
GonzalezJGonzalezO, 2005, “A study of motivations for the environmental transformation of companies”Industrial Marketing Management34462–475.
31.
GoodinR, 1986, “The principle of voluntary agreement”Public Administration64435–444.
32.
GouldsonA, 2004, “Cooperation and the capacity for control: Regulatory styles and the evolving influence of environmental regulations in the UK”Environment and Planning C: Government and Policy22583–603.
33.
GouldsonA, 2005, “Voluntary environmental regulation and the imperatives, incentives and capacities for technological change: The case of the EU Eco-Audit Regulation (EMAS) in the UK”, in Industrial Transformation: Environmental Policy Innovation in the Unites States and Europe Eds Norbert-BohmVde BruijnT, (MIT Press, Cambridge, MA) pp 229–252.
34.
GouldsonA, 2008, “Understanding business decision making on the environment”Energy Policy364618–4620.
35.
GouldsonAMurphyJ, 1998Regulatory Realities: The Implementation and Impact of Industrial Environmental Regulation (James and James, London).
36.
GrasmickHAppletonL, 1977, “Legal punishment and social stigma: A comparison of the two deterrence models”Social Science Quarterly5815–29.
GuptaA KLadL J, 1983, “Industry self-regulation: An economic, organisational, and political analysis”Academy of Management Review8416–425.
39.
HahnR W, 1989, “Economic prescriptions for environmental problems: How the patient followed the doctor's order”Journal of Economic Perspectives395–114.
40.
HenriquesISadorskyP, 1999, “The relationship between environmental commitment and managerial perceptions of stakeholder importance”Academy of Management Journal4287–99.
41.
HitchensD M, 1999, “The implications for competitiveness of environmental regulations for peripherical regions in the EU”Omega27101–114.
42.
HoffmanA J, 2001, “Linking organizational and field-level analyses”Organization and Environment14133–152.
43.
HontouVDiakoulakiDPapagiannakisL, 2007, “A multicriterion classification approach for assessing the impact of environmental policies on the competitiveness of firms”Corporate Social Responsibility and Environmental Management1428–41.
44.
HutterB, 1997Compliance: Regulation and the Environment (Clarendon Press, Oxford).
45.
JaffeA BPetersonS RPortneyP RStavinsS N, 1995, “Environmental regulation and the competitiveness of US manufacturing: What does the evidence tell us?”Journal of Economic Literature33132–163.
46.
KaganR A, 1991, “Adversary legalism and American government”Journal of Policy Analysis and Management10369–406.
47.
KaiserF GWölfingSFuhrerU, 1999, “Environmental attitude and ecological behavior”Journal of Environmental Psychology191–19.
48.
KingALenoxM J, 2000, “Industry self-regulation without sanctions: The chemical industry's Responsible Care Program”Academy of Management Journal43698–716.
49.
KollmusAAgyemanJ, 2002, “Mind the gap: Why do people act environmentally and what are the barriers to pro-environmental behavior?”Environmental Education Research8239–260.
50.
KvakkestadVVatnA, 2008, “Regulating the release of GMOs: Contrasts between the European Union and Norway”Environment and Planning C: Government and Policy26968–981.
51.
LabattS, 1997, “External influences on environmental decision making: A case study of packaging waste reduction”The Professional Geographer49105–116.
52.
LabattSMaclarenV W, 1998, “Voluntary corporate environmental initiatives: A typology and preliminary investigation”Environment and Planning C: Government and Policy16191–209.
53.
LadL, 1991, “Industry self-regulation as interfirm and multisector collaboration: The case of the direct selling industry”, in Research and Corporate Social Performance and Policy. Volume 12 Ed. PostJ, (JAI Press, Greenwich, CT) pp 155–178.
54.
LincolnJ R, 1995, “Book review: The new institutionalism in organizational analysis”Social Forces731147–1148.
55.
LöfstedtRVogelD, 2001, “The changing character of regulation: A comparison of Europe and the United States”Risk Analysis21399–405.
56.
López-GameroM DClaver-CortésEMolina-AzorínJ F, 2008, “Evaluating environmental regulation in Spain using process control and preventive techniques”European Journal of Operational Research195497–518.
57.
LynneG DCaseyC FHodgesARahmaniU, 1995, “Conservation technology adoption decisions and the theory of planned behavior”Journal of Economic Psychology16581–598.
58.
MaitlandI, 1985, “The limits of business self-regulation”California Management Review27132–147.
59.
MajoneG, 1996Regulating Europe (Routledge, London).
60.
MajumdarS KMarcusA A, 2001, “Rules versus discretion: The productivity consequences of flexible regulation”Academy of Management Journal44150–179.
61.
MoffetJBreghaF, 1996Responsible Care: A Case Study of a Voluntary Environmental Initiative (Resources for the Future International, Ottawa, ON).
62.
MüllerMSiebenhünerB, 2007, “Policy instruments for sustainability-oriented organizational learning”Business Strategy and the Environment16232–245.
63.
MurilloJGarcésCRiveraP, 2004, “Estrategia empresarial y medio ambiente: Opinión de un grupo de expertos”Universia Business Review452–63.
64.
MurilloJGarcésCRiveraP, 2008, “Why do patterns of environmental response differ? A stakeholders' pressure approach”Strategic Management Journal291225–1240.
65.
MurphyJGouldsonA, 2000, “Environmental policy and industrial innovation: Integrating environment and economy through ecological modernisation”Geoforum3133–44.
66.
NijkampPRodenburgCVerhoefE, 1999, “The adoption and diffusion of environmentally friendly technologies among firms”International Journal of Technology Management17421–437.
67.
OECD, 1994Managing the Environment: The Role of Economic Instruments (OECD, Paris).
OlsonM, 1965The Logic of Collective Action (Harvard University Press, Cambridge, MA).
70.
PorterM, 1991, “America's green strategy”Scientific America24168–179.
71.
PorterMVan Der LindeC, 1995, “Green and competitive: Ending the stalemate”Harvard Business Review7312–134.
72.
PotoskiMPrakashA, 2004, “The regulation dilemma and US environmental governance”Public Administration Review6137–148.
73.
PotoskiMPrakashA, 2005a, “Green clubs and voluntary governance: ISO 14001 and firms' regulatory compliance”American Journal of Political Science49235–248.
74.
PotoskiMPrakashA, 2005b, “Covenants with weak swords: ISO 14001 and facilities' environmental performance”Journal of Policy Analysis and Management24745–769.
75.
PrakashAPotoskiM, 2006The Voluntary Environmentalists: Green Clubs, ISO 14001, and Voluntary Environmental Regulations (Cambridge University Press, Cambridge).
76.
RichardsK R, 2000, “Framing environmental policy instrument choice Duke”Environmental Law and Policy Forum10221–285.
Rodríguez-PoseAStorperM, 2006, “Better rules of stronger communities? On the social foundations of institutional change and its economic effects”Economic Geography821–25.
79.
SarkarR, 2010, “Public policy and corporate environmental behaviour: A broader view”Corporate Social Responsibility and Environmental Management15281–297.
SchwenkGMöserG, 2009, “Intention and behavior: A Bayesian meta-analysis with focus on the Ajzen – Fishbein model in the field of environmental behavior”Quality and Quantity43743–755.
82.
SeoMCreedWED, 2002, “Institutional contradictions, praxis, and institutional change”Academy of Management Review27222–247.
83.
SethiP, 1979, “A conceptual framework for environmental analysis of social issues and evaluation of business response patterns”Academy of Management Review463–74.
84.
SharmaS, 2000, “Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy”Academy of Management Journal43681–697.
85.
SharmaSVrendenburgH, 1998, “Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities”Strategic Management Journal19729–753.
86.
SinclairD, 1997, “Self-regulation versus command and control? Beyond false dichotomies”Law and Policy19529–559.
87.
SkeaJSmithA, 1998, “Integrating pollution control: European directives, British practice”, in British Environmental Policy and Europe: Politics and Policy in Transition Eds LowePWardS, (Routledge, London) pp 265–282.
88.
StegerU, 2000, “Environmental management systems: Empirical evidence and further perspectives”European Management Journal1823–37.
89.
SternP C, 2000, “Toward a coherent theory of environmentally significant behavior”Journal of Social Issues56407–424.
90.
TelleKLarssonJ, 2007, “Do environmental regulations hamper productivity growth? How accounting for improvements of plants' environmental performance can change the conclusion”Ecological Economics61438–445.
91.
ThatcherM, 2002, “Analysing regulatory reform in Europe”Journal of European Public Policy9859–872.
92.
TriantisKOtisP, 2004, “Dominance-based measurement of productive and environmental performance for manufacturing”European Journal of Operational Research154447–464.
93.
VerbekeARugmanA M, 1998, “Corporate strategies and environmental regulations: An organizing framework”Strategic Management Journal19363–375.
94.
VogelD, 1983, “Co-operative regulation: Environmental protection in Great Britain”The Public Interest7288–106.
95.
VogelD, 1986National Styles of Regulation: Environmental Policy in Great Britain and the United States (Cornell University Press, Ithaca, NY).
96.
WagnerMSchalteggerS, 2004, “The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance: An empirical study of EU manufacturing”European Management Journal22557–572.
97.
WagnerMVan PhuNAzomahouTWehrmeyerW, 2002, “The relationship between the environmental and economic performance of firms: An empirical analysis of the European paper industry”Corporate Social Responsibility and Environmental Management9133–146.
