Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams

Abstract

This paper examines the link between a firm's organization environmental management capability, represented by the development of green teams made up of employees, and its performance. In particular, two categories of firm performance will be analysed: environmental performance and environmental reputation.This link has been investigated in a sample made of the largest publicly traded US companies. Data about green teams have been collected through the content analysis of firm environmental/sustainability/corporate social responsibility reports and/or their websites, whereas data about environmental performance and reputation are those reported in the US 500 Newsweek's 2010 Green Ranking.Regression analysis results show that the creation of employee green teams positively affects both environmental performance and environmental reputation.

Green product development and performance of Brazilian firms: measuring the role of human and technical aspects

“…Among the human/organizational aspects relevant to environmental management, the following were used in this study: environmental training, to provide the capacity to address environmental management situations (Jabbour, 2013); green empowerment, providing employees with the autonomy to make environmental decisions (Daily et al, 2012;Ramus, 1997); environmental performance evaluation, which measures employee contributions to the advancement of environmental performance (Jackson et al, in press); reward systems for environmental performance, which value employees who contribute the most to environmental sustainability (Renwick et al, 2013); support from top management for environmental initiatives (Daily and Huang, 2001); and inter/cross-functional integration of environmental management favoring the formation of green teams (Dangelico, 2014;Jabbour et al, 2013). Each of these items was measured using a 5-point Likert scale ranging between 1 (no adoption) and 5 (total adoption).…”

Understanding variation in the relationship between environmental management practices and firm performance across studies: A meta‐analytic review

“…This style allows subordinates more opportunities to “think outside of the box” instead of relying on traditional methods of solving problems. Prior research demonstrates that employees can contribute creative ideas for implementing environmental management and enhancing green innovation (Dangelico, ; Wolf, ). Given this, low power distance cultures may benefit more from the effect of EMPs on firm performance.…”

“…In contrast, firms in countries with high power distance cultures tend to adopt autocratic leadership characterized by subordinates' strong dependence on their superiors (Hofstede, ). Pursuing green innovation for these firms is more challenging and usually requires a change to their existing operational systems (Huang & Li, ; Zhang & Zhu, ), which calls for greater cross‐functional integration to implement EMPs effectively (Aragón‐Correa & Sharma, ; Dangelico, ; Melander, ). Considerable time is needed to integrate different functional perspectives, and conflicts are often unavoidable due to differences in the perspectives of those responsible for various functions (Song & Xie, ; Tsai & Hsu, ).…”

Employees' Collaborative Use of Green Information Systems

“…Unless an organization finds most of its members ready, it may be hesitant to implement GIS despite the potential to improve environmental performance and green image [3] [16]. Thus, there is likely a partial mediation between GIS strategy and GIS effort through GIS belief.…”