Environmental Legitimacy, Green Innovation, and Corporate Carbon Disclosure: Evidence from CDP China 100

Journal of Business Ethics

Volumn 150, Issue 4, 2018, Pages 1089-1104

  Li, Dayuan ^a   Huang, Min ^a   Ren, Shenggang ^a   Chen, Xiaohong ^a,b   Ning, Lutao ^c  

^a CENTRAL SOUTH UNIVERSITY   (China)

^b HUNAN UNIVERSITY OF COMMERCE   (China)

^c QUEEN MARY UNIVERSITY OF LONDON   (United Kingdom)

Author keywords

Carbon Disclosure Project; China; Corporate carbon disclosure; Emerging economies; Environmental legitimacy; Green process innovation; Green product innovation

Indexed keywords

EID: 84965082096     PISSN: 01674544     EISSN: 15730697     Source Type: Journal    
DOI: 10.1007/s10551-016-3187-6     Document Type: Article

References (74)

1. Aerts, W., & Cormier, D. (2009). Media legitimacy and corporate environmental communication. Accounting, Organizations and Society, 34(1), 1–27
2. Alakent, E., & Ozer, M. (2014). Can companies buy legitimacy? Using corporate political strategies to offset negative corporate social responsibility records. Journal of Strategy and Management, 7(4), 318–336
3. Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society, 29(5), 447–471
4. Amores-Salvadó, J., Martín-de Castro, G., & Navas-López, J. E. (2014). Green corporate image: Moderating the connection between environmental product innovation and firm performance. Journal of Cleaner Production, 83, 356–365
5. Anderson, D., Sweeney, D., Williams, T., Camm, J., & Cochran, J. (2013). Statistics for business & economics. Boston: Cengage Learning
6. Apergis, N., Eleftheriou, S., & Payne, J. E. (2013). The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: Evidence from European manufacturing firms. Ecological Economics, 88, 57–66
7. Ashforth, B. E., & Gibbs, B. W. (1990). The double-edge of organizational legitimation. Organization Science, 1(2), 177–194
8. Bansal, P., & Clelland, I. (2004). Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment. Academy of Management Journal, 47(1), 93–103
9. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120
10. Beelitz, A., & Merkl-Davies, D. M. (2012). Using discourse to restore organisational legitimacy: ‘CEO-speak’ after an incident in a German nuclear power plant. Journal of Business Ethics, 108(1), 101–120
11. Belkaoui, A. (1976). The impact of the disclosure of the environmental effects of organizational behavior on the market. Financial Management, 5, 26–31
12. Ben-Amar, W., Chang, M., & McIlkenny, P. (2015). Board gender diversity and corporate response to sustainability initiatives: Evidence from the Carbon Disclosure Project. Journal of Business Ethics. doi:10.1007/s10551-015-2759-1
13. Berrone, P., Fosfuri, A., Gelabert, L., & Gomez-Mejia, L. R. (2013). Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891–909
14. Brunnermeier, S. B., & Cohen, M. A. (2003). Determinants of environmental innovation in US manufacturing industries. Journal of Environmental Economics and Management, 45(2), 278–293
15. Caruana, R., & Chatzidakis, A. (2014). Consumer social responsibility (CnSR): Toward a multi-level, multi-agent conceptualization of the “other CSR”. Journal of Business Ethics, 121(4), 577–592
16. Cerbioni, F., & Parbonetti, A. (2007). Exploring the effects of corporate governance on intellectual capital disclosure: An analysis of European biotechnology companies. European Accounting Review, 16(4), 791–826
17. Chan, R. Y. (2005). Does the natural-resource-based view of the firm apply in an emerging economy? A survey of foreign invested enterprises in China. Journal of Management Studies, 42(3), 625–672
18. Chang, C. H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104(3), 361–370
19. Chen, Y. S. (2008). The driver of green innovation and green image–green core competence. Journal of Business Ethics, 81(3), 531–543
20. Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339
21. Cheng, C. C., & Shiu, E. C. (2012). Validation of a proposed instrument for measuring eco-innovation: An implementation perspective. Technovation, 32(6), 329–344
22. Cho, C. H., Patten, D. M., & Roberts, R. W. (2014). Environmental disclosures and impression management. In R. P. Hart (Ed.), Communication and language analysis in the corporate world (p. 217). IGI-Global: Hershey, PA
23. Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2011). Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and Public Policy, 30(2), 122–144
24. Cormier, D., & Magnan, M. (2015). The economic relevance of environmental disclosure and its impact on corporate legitimacy: An empirical investigation. Business Strategy and the Environment., 24(6), 431–450
25. Daft, R. (2012). Organization theory and design. Boston: Cengage Learning
26. De Villiers, C., & Van Staden, C. J. (2010). A framework for the integration of environmental legitimacy, accountability and proactivity. In: The 6th Asia Pacific interdisciplinary research in accounting (APIRA) conference, Sydney, New South Wales, Australia
27. De Villiers, C., & Van Staden, C. J. (2011). Where firms choose to disclose voluntary environmental information. Journal of Accounting and Public Policy, 30(6), 504–525
28. Deegan, C. (2002). Introduction: The legitimizing effect of social and environmental disclosures—A theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282–311
29. Delmas, M., & Toffel, M. W. (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment, 13(4), 209–222
30. Delmas, M. A., & Toffel, M. W. (2008). Organizational responses to environmental demands: Opening the black box. Strategic Management Journal, 29(10), 1027–1055
31. Depoers, F., Jeanjean, T., & Jérôme, T. (2014). Voluntary disclosure of greenhouse gas emissions: Contrasting the Carbon Disclosure Project and corporate reports. Journal of Business Ethics, 134(3), 445–461
32. Eiadat, Y., Kelly, A., Roche, F., & Eyadat, H. (2008). Green and competitive? An empirical test of the mediating role of environmental innovation strategy. Journal of World Business, 43(2), 131–145
33. Ferguson, M. J., Lam, K. C., & Lee, G. M. (2002). Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong. Journal of International Financial Management & Accounting, 13(2), 125–152
34. Freedman, M., & Jaggi, B. (2005). Global warming, commitment to the Kyoto protocol, and accounting disclosures by the largest global public firms from polluting industries. The International Journal of Accounting, 40(3), 215–232
35. González-Benito, J., & González-Benito, Ó. (2005). A study of the motivations for the environmental transformation of companies. Industrial Marketing Management, 34(5), 462–475
36. Hahn, R., & Lülfs, R. (2014). Legitimizing negative aspects in GRI-oriented sustainability reporting: A qualitative analysis of corporate disclosure strategies. Journal of Business Ethics, 123(3), 401–420
37. Hahn, R., Reimsbach, D., & Schiemann, F. (2015). Organizations, climate change, and transparency reviewing the literature on carbon disclosure. Organization & Environment, 28(1), 80–102
38. Harmes, A. (2011). The limits of carbon disclosure: Theorizing the business case for investor environmentalism. Global Environmental Politics, 11(2), 98–119
39. Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014
40. Hockerts, K., & Morsing, M. (2008). A literature review on corporate social responsibility in the innovation process (pp. 1–28). Frederiksberg: Copenhagen Business School (CBS), Center for Corporate Social Responsibility
41. Hofer, C., Cantor, D. E., & Dai, J. (2012). The competitive determinants of a firm’s environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30(1), 69–84
42. Hrasky, S. (2011). Carbon footprints and legitimation strategies: Symbolism or action? Accounting, Auditing & Accountability Journal, 25(1), 174–198
43. Jennings, P. D., & Zandbergen, P. A. (1995). Ecologically sustainable organizations: An institutional approach. Academy of Management Review, 20(4), 1015–1052
44. Kammerer, D. (2009). The effects of customer benefit and regulation on environmental product innovation. Empirical evidence from appliance manufacturers in Germany. Ecological Economics, 68(8), 2285–2295
45. Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), 145–165
46. Kolk, A., Levy, D., & Pinkse, J. (2008). Corporate responses in an emerging climate regime: The institutionalization and commensuration of carbon disclosure. European Accounting Review, 17(4), 719–745
47. Kuo, L., & Yi-Ju Chen, V. (2013). Is environmental disclosure an effective strategy on establishment of environmental legitimacy for organization? Management Decision, 51(7), 1462–1487
48. Lee, S. Y., Park, Y. S., & Klassen, R. D. (2013). Market responses to firms’ voluntary climate change information disclosure and carbon communication. Corporate Social Responsibility and Environmental Management., 22(1), 1–12
49. Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793–2799
50. Li, F., & Ding, D. Z. (2013). The effect of institutional isomorphic pressure on the internationalization of firms in an emerging economy: Evidence from China. Asia Pacific Business Review, 19(4), 506–525
51. Liang, K. Y., & Zeger, S. L. (1986). Longitudinal data analysis using generalized linear models. Biometrika, 73(1), 13–22
52. Lin, H., Zeng, S. X., Ma, H. Y., Qi, G. Y., & Tam, V. W. (2014). Can political capital drive corporate green innovation? Lessons from China. Journal of Cleaner Production, 64, 63–72
53. Luo, L., Lan, Y. C., & Tang, Q. (2012). Corporate incentives to disclose carbon information: Evidence from the CDP Global 500 Report. Journal of International Financial Management & Accounting, 23(2), 93–120
54. Luo, L., & Tang, Q. (2014). Does voluntary carbon disclosure reflect underlying carbon performance? Journal of Contemporary Accounting & Economics, 10(3), 191–205
55. Mahadeo, J. D., Oogarah-Hanuman, V., & Soobaroyen, T. (2011). Changes in social and environmental reporting practices in an emerging economy (2004–2007): Exploring the relevance of stakeholder and legitimacy theories. Accounting Forum, 35(3), 158–175
56. Meng, X. H., Zeng, S. X., Shi, J. J., Qi, G. Y., & Zhang, Z. B. (2014). The relationship between corporate environmental performance and environmental disclosure: An empirical study in China. Journal of Environmental Management, 145, 357–367
57. Noci, G., & Verganti, R. (1999). Managing ‘green’ product innovation in small firms. R & D Management, 29(1), 3–15
58. Pellegrino, C., & Lodhia, S. (2012). Climate change accounting and the Australian mining industry: Exploring the links between corporate disclosure and the generation of legitimacy. Journal of Cleaner Production, 36, 68–82
59. Peng, J., Sun, J., & Luo, R. (2015). Corporate voluntary carbon information disclosure: Evidence from China’s listed companies. The World Economy, 38(1), 91–109
60. Porter, M. E., & van der Linde, C. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73(5), 120–134
61. Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879–891
62. Rashid, A., & Lodh, S. C. (2008). The influence of ownership structures and board practices on corporate social disclosures in Bangladesh. Research in Accounting in Emerging Economies, 8(1), 211–237
63. Rennings, K. (1998). Towards a theory and policy of eco-innovation-neoclassical and (co-) evolutionary perspectives (No. 98-24). ZEW Discussion Papers
64. Rennings, K. (2000). Redefining innovation—Eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332
65. Rennings, K., Ziegler, A., Ankele, K., & Hoffmann, E. (2006). The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance. Ecological Economics, 57(1), 45–59
66. Russo, A., & Tencati, A. (2009). Formal vs. informal CSR strategies: Evidence from Italian micro, small, medium-sized, and large firms. Journal of Business Ethics, 85(2), 339–353
67. Sezen, B., & Çankaya, S. Y. (2013). Effects of green manufacturing and eco-innovation on sustainability performance. Procedia-Social and Behavioral Sciences, 99, 154–163
68. Sharma, S., & Vredenburg, H. (1998). Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities. Strategic Management Journal, 19(8), 729–753
69. Stanny, E., & Ely, K. (2008). Corporate environmental disclosures about the effects of climate change. Corporate Social Responsibility and Environmental Management, 15(6), 338–348
70. Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610
71. Tachizawa, E. M., & Wong, C. Y. (2015). The performance of green supply chain management governance mechanisms: A supply network and complexity perspective. Journal of Supply Chain Management, 51(3), 18–32
72. Testa, F., Iraldo, F., & Frey, M. (2011). The effect of environmental regulation on firms’ competitive performance: The case of the building & construction sector in some EU regions. Journal of Environmental Management, 92(9), 2136–2144
73. Tilling, M. V., & Tilt, C. A. (2010). The edge of legitimacy: Voluntary social and environmental reporting in Rothmans’ 1956–1999 annual reports. Accounting, Auditing & Accountability Journal, 23(1), 55–81
74. Yalabik, B., & Fairchild, R. J. (2011). Customer, regulatory, and competitive pressure as drivers of environmental innovation. International Journal of Production Economics, 131(2), 519–527