The Factors Affecting the Environmental Practices of Companies: The Case of Serbia

Abstract

Environmental practices are often considered external to the business, and the impacts of self-regulation and other CSR company practices on environmental practices are important but not fully understood-especially in transitional and developing countries. The aim of this paper is to explore factors that influence the environmental practices of companies operating in Serbia. We observed four types of self-regulations (core values, codes of conduct, ISO 9001, and ISO 14001); the level of CSR practices in relationships with employees, customers, the local community, and society, and related to business transparency; as well as company features related to types of operations (manufacturing vs. service), size, and internationalization (multinational ownership and export activities). Based on the SEM analysis of data collected from 178 companies operating in Serbia, the findings showed that smaller, manufacturing companies that applied the observed types of self-regulations, which have a higher level of employee relations and are more social and community involved, are more likely to have higher levels of environmental practice. Among the observed self-regulation types, only ISO 14001 certification proved to have an individual effect on company environmental practices. However, our results also showed that the influence of core values, applied codes of conduct, and ISO 9001 certification cannot be neglected.Sustainability 2019, 11, 5960 2 of 17 the decoupling phenomenon, the discrepancy between policies and practice, or the formal adoption of self-regulation by a company that does not become incorporated into the day-to-day routine [16] has its roots in the company's intention to communicate more than achieve [11]. The public disclosure of self-regulations related to environmental activities in order to present a proactive environmental image by providing greenwashing [3] raises concerns related to the effectiveness of such self-regulations.

Agro-Environmental Practices and Business Performance in the Wine Sector

“…They do not raise the question of the need and importance of environmental disclosure, but analyze its impacts and effects. This topic has been researched in Serbia on the example of the textile industry [9], banking sector [121], multinational companies and service company [122]. This study should fill the research gap and explain the relationship between business performance and the disclosure of environmental information on the example of wineries.…”

Corporate Social Responsibility and Environmental Management Linkage: An Empirical Analysis of the Slovak Republic

“…This study proves that environmental practices such as ISO 14001 EMS significantly influence a business's economic performance [78]. The impacts of self-regulation and other CSR company practices on environmental practices are important but not fully understood-especially in transitional and developing countries [79]. In developing countries, "companies increasingly use management certification to overcome reputation problems and enter international markets" [80].…”

“…Many presented studies declare that implementation of management tools, such as CSR and EMS significantly influence companies' economic behavior [3,78,79,94]. According to Hypothesis 2, we assumed that companies with both CSR and EMS will have higher profits than those that have only one of them.…”

The Relationships among Social, Environmental, Economic CSR Practices and Digitalization in Polish Energy Companies

“…Mijatovic et al [60] suggest that environmental practices aim to minimize environmental damage and promote environmental sustainability efforts across corporate boundaries. Similarly, environmental practices are defined by Gadenne et al [57] assuming that these activities are undertaken by enterprises in order to reduce the impact of their activities on the environment.…”

“…The impact of environmental practices on improving business results is also shown by Graham and Potter [67], although the results of Chen and Ho [68] suggest that pro-environmental practices do not always increase sales, as it depends on the attitude of customers. Mijatovic et al [60] suggest linking environmental practices with competitive advantage and reputation benefits.…”