Corporate Ownership and Environmental Proactivity

Abstract

The present paper advances knowledge of the drivers of firms’ proactive environmental behavior on the part of firmsstrategies. In particular, it explores the relationship between different corporate ownership structures and firms’ green proactivity, in order to see whether some types of shareholders act as a stimulating driver for firms’ proactive environmental strategiesbehaviors. The study examines the explanatory power of corporate governance issues, such as a firm’s ownership structure, as potential determinants of companies’ environmental proactivity. Attention is focused on the European firms that answered to the Carbon Disclosure Project questionnaire 2012.\ud The results show that ownership structure matters in firms’ environmental proactivity. In particular, firms with a higher percentage of state ownership present superior green proactivity, while ownership concentration appears negatively related to PES.\ud The paper offers theoretical and practical implications. It focuses attention on a still underdeveloped research area, namely organizations and their relationship with the natural environment, including corporate ownership as a driver of a company’s proactive environmental strategy

Mindfulness, socioemotional wealth, and environmental strategy of family businesses

“…It's in our hands” campaign (https://www.thebodyshop.com/commitment/manifesto). Both scientific and anecdotal evidence corroborates the notion that one of the ways to help firms gain a stronger position and competitive advantage is through a proactive environmental strategy (Calza et al, ). Moreover, an environmental strategy such as developing sustainable products and processes could bring positive implications for the environment while perpetuating business longevity and responsible public perceptions.…”

“…The mediation analysis discloses new insights in the debate over whether family firms are more environmentally active and socially responsible. Prior research (e.g., Berrone et al, ; Calza et al, ; Doluca et al, ; Uhlaner, Berent‐Braun, Jeurissen, & de Wit, ) has only examined the relationship by linking ownership forms with environmental and corporate social responsibility performance. Our findings show that a mediator such as firm's capabilities could bring inconsistencies to their results.…”

“…While a family firm possesses distinctive resources from the preservation of SEW, firm‐level capabilities manage and deploy these resources to realize competitive advantage through effective strategy (Sirmon et al, ). Developing sustainable products and processes is an important strategy that helps to achieve competitive advantage (Calza et al, ; Dechant & Altman, ; Epstein, Buhovac, & Yuthas, ; Sharma & Vredenburg, ). The ability to assemble, integrate, and deploy the specific endowment generated from MSEW dimensions is of high importance.…”

Board gender diversity and corporate environmental performance: The moderating role of family and dual‐class majority ownership structures

“…Within this stream, several recent studies have focused on internal corporate governance mechanisms as drivers of corporate environmental performance and proactivity (Cordeiro & Sarkis, ; Calza, Profumo, & Tutore, ; Earnhart & Lizal, ; Kock, Santal, & Diestre, ; Lu & Herremans, ; Ortiz‐de‐Mandojana & Aragon‐Correa, ; Ortiz‐de‐Mandojana, Aragon‐Correa, Delgado‐Ceballos, & Ferron‐Vilchez, ; Walls et al, ).…”

Corporate governance and environmental social governance disclosure: A meta‐analytical review

“…As shown by Ortiz-de-Mandojana, Aguilera-Caracuel, and Morales-Raya (2016), recent studies have explored how corporate governance may encourage the adoption of proactive environmental strategies (i.e., Calza, Profumo, & Tutore, 2016). As a result, the environmental report became a certain standard among large corporations (Fifka, 2013).…”