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Measuring Corporate Environmental Performance – Stakeholder Engagement Evaluation
Author(s) -
Bhattacharyya Asit,
Cummings Lorne
Publication year - 2015
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.1819
Subject(s) - confirmatory factor analysis , stakeholder , stakeholder engagement , reliability (semiconductor) , process management , business , construct (python library) , sustainable development , organizational performance , construct validity , computer science , knowledge management , marketing , management , economics , political science , public relations , power (physics) , quantum mechanics , law , patient satisfaction , programming language , service (business) , physics
As environmental protection has become a critical factor in achieving sustainable development, organizational stakeholders are becoming increasingly interested in corporate environmental performance (CEP). Many organizations evaluate their CEP but few academic studies have sought to evaluate it. This study undertakes CEP evaluation using an environmental performance measurement (EPM) model consisting of four managerial performance indicators (MPIs: organizational system, stakeholder relations, operational countermeasures and environmental tracking) and two operational performance indicators (OPIs: inputs and outputs). Principal component analysis (PCA) and confirmatory factor analysis (CFA) are used to test model reliability and construct validity. The relationship between MPIs and OPIs has also been analysed using correlation coefficients among the six indicators. Results indicate that there were multiple dimensions to measure under an organizational system as opposed to ideally a single factor. No single model can be effectively used due to different geographical locations and differences between companies from various industry sectors. EPM is more dependent on its organizational system and stakeholder relations than operational countermeasures and environmental tracking. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.