Environmental Performance, Customer Satisfaction, and Profitability: A Study among Large U.S. Companies

Abstract

The academic community has been advocating for companies to focus on improving their environmental performance. While companies are increasingly taking environmental action driven mainly by top management commitment, there is interest in understanding whether by contributing to the sustainability of the natural environment companies can gain the satisfaction of their other stakeholders and in a manner that facilitates their competitiveness. With the use of partial least squares structural equation modeling among a sample of large U.S. publicly traded companies, this study investigates the role of customer satisfaction in driving an effect of companies’ environmental performance on their long-term oriented profitability. The results show that customer satisfaction positively affects the long-term oriented profitability of companies. However, customers are generally not satisfied with companies’ environmental performance. An opportunity, therefore, exists for companies to adopt new approaches to their environmental performance that are particularly focused away from reducing the use of environmental resources. An opportunity also exists for guidance to companies on environmental performance measurement metrics that reflect their involvement in the promotion of the sustainability of the natural environment.

Nonprofits meet millennials: a hybrid approach of uses and gratifications and TAM to identify the drivers of monetary donation intention

“…In PLS-SEM, maximizing the dependent variables’ variance explained is the main objective (Hair et al , 2012a). Thus, studies using PLS-SEM frequently do not focus on model fit but on optimizing the prediction of endogenous variables (De Mendonca and Zhou, 2019).…”

User satisfaction with outsourced facility management (FM) services in multi-tenanted shopping malls in Ghana

“…The use of outsourcing as an FM strategy in SMs is not new. Outsourcing is increasingly becoming popular among SMs (Toe, 2015;Doamekpor, 2016;Amos and Gadzekpo, 2016;De Mendonca and Zhou, 2019). This approach to FM in SMs has been associated with various advantages such as cost saving (Tayauova, 2012;Amos and Gadzekpo, 2016); stronger competitive advantage for businesses using the buildings in their core activities (Amos and Gadzekpo, 2016;Ikediashi, 2014); flexibility to change services or service providers (Amos and Gadzekpo, 2016); and the potential to increase productivity and operational efficiencies of the organisation (Amos and Gadzekpo, 2016;Cotts et al, 2010;Gilley and Rashid, 2000).…”

CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy

“…Due to the growing concern of environmentalism, consumers are more interested in purchasing products and services that have little impact on the environment [11]. In addition, different studies have concluded that the environmental image of an organization can improve sales and competitiveness, while satisfying consumers [30,31]. Accordingly, the search for new information on various aspects of green banks has increased among consumers in the recent era, which indicates that consumers are concerned enough to monitor environmental practices of an organization [32].…”