Environmental management has the potential to play a pivotal role in the financial performance of the firm. Many individuals suggest that profitability is hurt by the higher production costs of environmental management initiatives, while others cite anecdotal evidence of increased profitability. A theoretical model is proposed that links strong environmental management to improved perceived future financial performance, as measured by stock market performance. The linkage to firm performance is tested empirically using financial event methodology and archival data of firm-level environmental and financial performance. Significant positive returns were measured for strong environmental management as indicated by environmental performance awards, and significant negative returns were measured for weak environmental management as indicated by environmental crises. The implicit financial market valuation of these events also was estimated. Cross-sectional analysis of the environmental award events revealed differences for first-time awards and between industries. First-time award announcements were associated with greater increases in market valuation, although smaller increases were observed for firms in environmentally dirty industries, possibly indicative of market skepticism. This linkage between environmental management and financial performance can be used by both researchers and practitioners as one measure of the benefits experienced by industry leaders, and as one criterion against which to measure investment alternatives.financial performance, environmental awards, operations management, environmental performance

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Consideration is given to the convergence of supply chains and sustainability. In doing so, the focus on environmental management and operations is moved from local optimization of environmental factors to consideration of the entire supply chain during the production, consumption, customer service and post-disposal disposition of products. This is a critical and timely topic that captures increasing concerns over sustainability, whether driven by current legislation, public interest, or competitive opportunity. As such, sustainable development is a rich area for academic research that is still in its infancy and has the potential to affect future government policy, current production operations, and identify new business models. This paper provides a background to better understand current trends in this multidisciplinary field that intersect with operations management, and the research opportunities and challenges it presents. #

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T he limited capabilities and resources available within many small-and medium-sized enterprises frequently hamper an effective response to environmental pressures, which in turn hurts large buying firms (i.e., customers). Using a case study method with multiple suppliers of two large buying firms, we mapped factors that initiated and improved environmental capabilities in small-and medium-sized enterprises over time. Through several specific mechanisms, buyers' green supply chain management initiated and then enabled the improvement of suppliers' environmental capabilities. Independent of buyers, internal championing of environmental concerns also provided an impetus for small-and medium-sized enterprise suppliers to acquire resources outside the supply chain. Thus, synergistic linkages emerged in supportive buyer-supplier relationships, resource acquisition, and capability development. When these findings are combined with earlier research on larger suppliers, an integrative framework emerges that provides direction for suppliers, buyers, and public agencies seeking to improve environmental performance.

Purpose-This paper explores the integration of social issues in the management of supply chains from an operations management perspective. Further, this research develops a set of scales to measure multiple dimensions of supplier socially responsible practices. Finally, the paper examines the importance of three dimensions of supply chain structure, namely transparency, dependency and distance, for the adoption of these socially responsible practices. Methodology / approach-Drawing on literature from several theoretical streams, current bestpractice in leading firms and emerging international standards, four dimensions of supplier socially responsible practices were identified. Also, a multi-dimensional conceptualization of supply chain structure, including transparency, dependency and distance, was synthesized from earlier research. Using this conceptual development, a large-scale survey of plant managers in three industries in Canada provided an empirical basis for validating these constructs, and then assessing the relationships between structure and practices. Findings-Multi-item scales for each of the four dimensions of supplier socially responsible practices were validated empirically: supplier human rights; supplier labour practices; supplier codes of conduct; and supplier social audits. Increased transparency, as reflected in greater product visibility by the end-consumer was related to increased use of supplier human rights, which in turn can help to protect a firm's brands. Organizational distance, as measured by the total length of the supply chain (number of tiers in the supply chain), was related to increased use of multiple supplier socially responsible practices. Finally, as the plant was positioned further upstream in the supply chain, managers reported increased use of supplier codes of conduct. Research limitations / implications-This research focused on larger plants in three manufacturing industries in a single developed country. As social pressures can vary by the location of the end-consumer, it is possible that relationships might vary from developing to developed economies, as well as within different political settings. Practical implications-As senior managers extend, redesign or restructure their supply chains, the extent to which social issues must be monitored and managed changes. The four categories of supplier socially responsible practices identified help managers characterize their firm's approach to managing social issues. Furthermore, managers must more actively manage the development of supplier socially responsible practices in their firms when the supply chain has more firms; and when brands have stronger recognition in the marketplace.

Purpose -This research aims to extend the "collaborative paradigm" proposed by others in prior research beyond a supply chain's core operations. To date, this paradigm has generated relatively little empirical research on peripheral, non-core areas such the natural environment. Antecedents (both plant-level and supply chain characteristics) of green supply chain practices (GSCP) are examined. Among possible antecedents, prior research pointed to supply chain integration -both logistical (tactical level) and technological (strategic level) -as a potentially important determinant of green practices. Design/methodology/approach -Green practices are defined along the two dimensions of environmental collaboration and monitoring. The empirical analysis used data from 84 plants in North America surveyed in 2002. Validity and reliability of scales for new and existing constructs were assessed through factor analysis. Hierarchical linear regression was used to test the hypotheses for the antecedents of GSCP. Findings -Technological integration with primary suppliers and major customers was positively linked to environmental monitoring and collaboration. For logistical integration, a linkage was found only with environmental monitoring of suppliers. Finally, as the supply base was reduced, the extent of environmental collaboration with primary suppliers increased. Research limitations/implications -Greater supply chain integration can benefit environment management in operations, and the collaborative paradigm can be extended to this domain. A limitation is that the empirical analysis focused on one industry representing a single echelon. Originality/value -This is one of the few studies that conceptualize and empirically test GSCP, and consider both and separately upstream and downstream interactions in the supply chain.