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Towards sustainable development: Environmental innovation, cleaner production performance, and reputation
Author(s) -
QuintanaGarcía Cristina,
MarchanteLara Macarena,
BenavidesChicón Carlos G.
Publication year - 2022
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.2272
Subject(s) - reputation , business , sustainability , stakeholder , cleaner production , legitimacy , production (economics) , stakeholder engagement , stakeholder theory , industrial organization , marketing , environmental economics , public relations , economics , management , engineering , ecology , social science , macroeconomics , municipal solid waste , sociology , politics , political science , law , biology , waste management
The growing concerns regarding sustainability and a firm's effects on the environment explain the important role that environmental management may play in corporate reputation. Following the premises of the stakeholder approach and dynamic capability theory, we explore how a comprehensive environmental management (environmental innovation [EI] and cleaner production [CP]) impacts a firm's reputation. By analyzing a panel data of European manufacturing firms, we show that EIs benefit corporate reputation. Results also confirm that the higher effectiveness of CP initiatives, the higher a firm's reputation. Both dynamic capabilities improve the firm's legitimacy and stakeholders' perceptions concerning the firm's commitment to environmental sustainability. We offer relevant insights for the academic community as to how EI and CP represent proactive strategies that enhance reputation and provide practical implications for managers in order to respond to stakeholders' demands.