“…This has occurred for a variety of reasons, including to comply with regulations and to reduce the cost of future compliance (Dechant et al, 1994;Ghobadian et al, 1995;Porter and van der Linde, 1995;Shrivastava, 1995;Hart and Ahuja, 1996;Ghobadian et al, 1998;Dias-Sardinha and Reijnders, 2001;Rivera-Camino, 2001), to comply with industry environmental codes (Howard et al, 1999), particularly when sanctions for noncompliance are invoked (King and Lenox, 2000), to decrease operating costs (Shrivastava, 1995;Russo and Fouts, 1997;Esty and Porter, 1998;Reinhardt, 1999) and to improve stakeholder relations (Stafford, 1996;Berman et al, 1999;Cormier and Magnan, 1999;Henriques and Sadorsky, 1999;Reinhardt, 1999;Waddock and Graves, 2000;Rivera-Camino, 2001). Other incentives include the perceived environmental visibility of the firm (Bowen, 2000), a sense that such improvements will result in competitive advantage (Hart, 1995;Shrivastava, 1995;Reinhardt, 1999;Bansal and Roth, 2000), a sense that without active environmental management the firm's legitimacy is in question (Bansal and Roth, 2000;Sharma, 2000) and a sense of social responsibility and desire to adhere to societal norms (Hussain, 1999;Bansal and Roth, 2000;Cordano and Frieze, 2000;Flannery and May, 2000).…”