Empirical research on the characteristics of environmentally responsive companies has focussed on US and Japanese companies. For Europe, which is commonly considered as the greenest of the three major markets, similar research is lacking. This paper seeks to fill this gap by empirically investigating business and financial characteristics, stakeholder pressures and public policies to distinguish companies that have implemented the European Eco-Management and Audit System (EMAS) from a unique firm-level dataset of European publicly quoted companies. We find that the EMAS participation decision is positively influenced by the solvency ratio, the share of non-current liabilities, the average labour cost and the absolute company size as well as the relative size of a company compared to its sector average. The profit margin exerts a negative influence. We further find that companies whose headquarters is located in a country that actively encourages EMAS have a higher probability of participation. Finally, this paper suggests that rather than attracting other kinds of companies, a favourable institutional context succeeds in convincing more of the same kind of companies to participate.The authors thank anonymous referees for providing helpful comments and suggestions on earlier drafts of this paper.
In the middle of the 1990s two international environmental management standards became available for European companies: the European Eco-Management and Audit Scheme (EMAS) and the International Organization for Standardization's ISO 14001. Companies that wanted to implement a standardized environmental management system were confronted with the choice between their national standard, the European standard, or the international one. In the past decennium, the national standards have been abolished and the number of ISO 14001 certified companies has outnumbered the number of EMAS-registered organizations. The speed at which and the extent to which ISO 14001 has outnumbered EMAS differs, however, between countries in the EU-15. We argue that a country classification based on the degree of statism of the collective agency on the one hand, and the degree of corporatism of society's organization on the other, offers a valuable perspective for analyzing the evolution of the uptake of both standards in a country. We present the cases of Germany, the UK, France, and Sweden, and conclude that in countries characterized by a more societal organization of authority, private alternatives for national regulations like ISO 14001 are welcomed and adopted with enthusiasm. In countries characterized by a rather statist organization, such alternatives are looked upon with more suspicion resulting in delayed uptake. Whereas ISO 14001 is a purely private initiative, voluntary registration to the EMAS regulation creates a link between the company and the authorities. In contrast to corporatist settings, this frightens off business participation in associational countries.
Abstract. Empirical research on the characteristics of environmentally responsive companies has focussed on US and Japanese firms. For Europe, which is commonly considered as the greenest of the three major markets, similar research is lacking. This paper seeks to fill this gap by empirically investigating business and financial characteristics, stakeholder pressures and public policies to distinguish companies that have implemented the European Eco-Management and Audit System (EMAS) from a unique firm-level dataset of European publicly quoted companies. We find that the EMAS participation decision is positively influenced by the solvency ratio, the share of noncurrent liabilities, the average labour cost and the absolute company size as well as the relative size of a company compared to its sector average. The profit margin exerts a negative influence. We further find that companies whose headquarters is located in a country that actively encourages EMAS have a higher probability of participation.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.