How Firms Respond to Mandatory Information Disclosure
Mandatory information disclosure regulations seek to create institutional pressure to spur performance improvement. By examining how organizational characteristics moderate establishments' responses to a prominent environmental information disclosure program, we provide among the first empirical evidence characterizing heterogeneous responses by those mandated to disclose information. We find particularly rapid improvement among establishments located close to their headquarters and among establishments with proximate siblings, especially when the proximate siblings are in the same industry. Large establishments improve more slowly than small establishments in sparse regions, but both groups improve similarly in dense regions, suggesting that density mitigates the power of large establishments to resist institutional pressures. Finally, privately held firms' establishments outperform those owned by public firms. We highlight implications for institutional theory, managers, and policymakers.
Keywords: information disclosure;
Governing Rules, Regulations, and Reforms;
Sustainable Operations Management: An Enduring Stream or a Passing Fancy?
Paul Kleindorfer was among the first to weigh in on and nurture the stream of Sustainable Operations Management. The thoughts laid out here are based on conversations we had with Paul relating to the drivers underlying sustainability as a management issue: population and per capita consumption growth, the limited nature of resources and sinks, and the responsibility and exposure of firms to ensuing ecological risks and costs. We then discuss how an operations management lens contributes to the issue and criteria to help the Sustainable Operations Management perspective endure. This article relates to a presentation delivered by Morris Cohen for Paul's Manufacturing and Service Operations Management Distinguished Fellows Award, given at Columbia University, June 18, 2012. We wrote this article at Paul's request.
Keywords: Sustainable Operations;
Engaging Supply Chains in Climate Change
Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated with suppliers being especially willing to share this information with buyers, focusing on attributes of the buyers seeking this information and of the suppliers being asked to provide it. We test our hypotheses using data from the Carbon Disclosure Project's Supply Chain Program, a collaboration of multinational corporations requesting such information from thousands of suppliers in 49 countries. We find evidence that suppliers are more likely to share this information when requests from buyers are more prevalent, when buyers appear committed to using the information, when suppliers belong to more profitable industries, and when suppliers are located in countries with greenhouse gas regulations. We find evidence that these factors also influence the comprehensiveness of the information suppliers share and their willingness to share the information publicly.
Keywords: Knowledge Sharing;
Motivation and Incentives;
Weather and Climate Change;
Supply Chain Management;
Jira, Chonnikarn Fern, and Michael W. Toffel. "Engaging Supply Chains in Climate Change
." Special Issue on the Environment. Manufacturing & Service Operations Management
15, no. 4 (Fall 2013): 559–577.
Historical Origins of Environmental Sustainability in the German Chemical Industry, 1950s-1980s
This working paper examines the growth of corporate environmentalism in the West German chemical industry between the 1950s and the 1980s. German business has been regarded as pioneering corporate environmentalism after World War II. In contrast, this study reveals major commonalities between the sustainability strategies of leading German and American firms until the 1970s. However during that decade the German firms diverged from their American counterparts in using public relations strategies not only to contain fallout from criticism of their pollution impact, but also to create opportunities for changes in corporate culture to encourage sustainability. While the U.S. chemical industry remained defensive and focused on legal compliance, there was a greater proactivity among the German firms. This paper stresses the importance of regional embeddedness of leading firms in the state of North Rhine-Westphalia, which made their reputations especially vulnerable to criticism. The research supports organizational sociology theory, which has identified the importance of visibility in corporate green strategies. The German chemical firms were pioneers in understanding that investing in environmental sustainability could provide an opportunity to create value for the firm by delivering both commercial and reputational benefits.
Leadership for a New Era: Getting Serious about Sustainability
ethical decision making;
Paine, Lynn S. "Leadership for a New Era: Getting Serious about Sustainability." In Idolism and Business Character Session. Yabuli China Entrepreneurs Forum Summer Summit, Hefei, China, August 24, 2013.
Global Responsibilities of Business
Paine, Lynn S., Wang Shi, and Steve Luckzo. "Global Responsibilities of Business." Yabuli China Entrepreneurs Forum Summer Summit, Hefei, China, August 24, 2013.
Beyond Platinum: Making the Case for Titanium Buildings
Buildings are the nation's greatest energy consumers. Forty percent of all our energy is used for heating, cooling, lighting, and powering machines and devices in buildings. And despite decades of investment in green construction technologies, residential and commercial buildings remain stubbornly energy inefficient. This book looks beyond the technological and material aspects of green construction to examine the cultural, social, and organizational shift that sustainable building requires, examining the fundamental challenge to centuries-long traditions in design and construction that green building represents. The contributors consider the changes associated with green building through a sociological and organizational lens. They discuss shifts in professional expertise created by new social concerns about green building, including evolving boundaries of professional jurisdictions; changing industry strategies and structures, including the roles of ownership, supply firms, and market niches; new operational, organizational, and cultural arrangements, including the mainstreaming of environmental concerns; narratives and frames that influence the perception of green building; and future directions for the theory and practice of sustainable construction. The essays offer uniquely multidisciplinary insights into the transformative potential of green building and the obstacles that must be overcome to make it the norm.
Keywords: Buildings and Facilities;
Green Technology Industry;
Debating the Responsibility of Capitalism in Historical and Global Perspective
This working paper examines the evolution of concepts of the responsibility of business in a historical and global perspective. It shows that from the nineteenth century American, European, Japanese, Indian and other business leaders discussed the responsibilities of business beyond making profits, although until recently such views have not been mainstream. There was also a wide variation concerning the nature of this responsibility. This paper argues that four factors drove such beliefs: spirituality; self-interest; fears of government intervention; and the belief that governments were incapable of addressing major social issues.
Keywords: Rachel Carson;
business and society;
corporate social responsibility;
corporate social responsibility and impact;
environmental and social sustainability;
Consumer Products Industry;
Beauty and Cosmetics Industry;
Food and Beverage Industry;
Forest Products Industry;
Green Technology Industry;
North and Central America;
Greening Is Not Enough: 4 Steps to Corporate Leadership on Climate Change
Environmental sustainability usually means greening operations and products, but that's not nearly enough to stop climate change. Corporate leadership on climate change also requires urging action by governments, trade associations, and suppliers — and marketing these efforts.
Weather and Climate Change;
From Green Users to Green Voters
We estimate the effect of the diffusion of photovoltaic (PV) systems on the fraction of votes obtained by the German Green Party. The logistic diffusion of PV systems offers a new identification strategy. We take first differences and instrument adoption rates (i.e. the first difference in the diffusion level) by lagged diffusion levels. The existing rationales for non-linearities in diffusion, and ubiquity of logistic curves ensure that our instrument is orthogonal to variables that directly affect voting patterns. We find that the diffusion of domestic PV systems caused 25 percent of the increment in green votes between 1998 and 2009.
Green Technology Industry;
Public Administration Industry;