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This study aims to examine the impact of taking environmental initiatives on the returns for service companies.

The authors gathered data for firms that are recognized for their leadership in environmental responsibility using a well‐known social responsibility ranking list. These data were used to compare with those that were ranked high on the index with those that were ranked lower, using Jensen's alpha and Sharpe ratio performance measures relative to a benchmark.

The upper‐ and lower‐ranked socially responsible firms had significantly higher risk adjusted returns and superior performance than the benchmark. Additionally, there is evidence that firms ranked in the lower group are better valued overall.

A higher return for socially responsible firms suggests that public investors value environmentally‐friendly firms more highly today. Future research could build on this study by examining additional performance measures including four‐factor models and conditional variance.

The study suggests that a service company's commitment to environmental initiatives and the recognition of its commitment is an important signal today for the investor.

While prior research has considered manufacturing companies, this is the first study to examine the impact of a commitment to environmental initiatives for service industry firms. The findings of the empirical examination support the benefits of green initiatives to a significant component of the US economy.

The purpose of this paper is to explore the evolution of greenhouse gas (GHG) reporting quality and to determine whether the evolution of reporting quality is linked with the type of information reported based on the “search”, “experience”, and “credence” typology.

The method is based on the content analysis of GHG reporting in 245 sustainability reports by 45 oil and gas companies between 1998 and 2010. The content analysis disclosure index developed links GHG reporting requirements with seven quality dimensions. The information associated with each item on the content analysis index is classified as “search”, “experience” or “credence”. Statistical analysis is used to determine whether any significant change occurred in either overall GHG reporting quality or in the quality of reporting in any of the individual dimensions of quality over the period of the study.

GHG reporting quality has not improved significantly between 1998 and 2010. The quality of reporting is not the same in each of the seven dimensions of quality and this can be explained by information typology.

This paper provides the first longitudinal analysis of the quality of GHG reporting. The methodology developed advances current measures of reporting quality by linking reporting requirements with particular quality dimensions. The results show that the type of information is important in terms of quality evolution and that this can dictate the measures required to improve quality.

This paper aims to argue that the on-going professionalization and dissemination of the current wave of corporate social responsibility (CSR) concepts and instruments leads to a headquartering effect, i.e. the concentration of CSR-related decision-making within corporate headquarters. This headquartering effect casts doubt on earlier studies suggesting that the “transnational” or “glocal” model can effectively address the multitude of global and local CSR challenges modern multinational companies (MNCs) face.

This conceptual paper uses a stakeholder lens, in turn, drawing from resource dependence theory and organizational legitimacy theory to develop under which conditions claims of Southern stakeholders will be considered by Northern MNCs. It provides evidence for the existence of a headquartering effect as a defining characteristic of mainstream CSR approaches.

The authors argue that the increasing professionalization and dissemination of mainstream CSR approaches among MNCs reinforce the headquartering effect, with strategic decision-making increasingly confined to the companies’ headquarters, while the scope of action within the subsidiaries and the supply chain of MNCs becomes increasingly restricted over time. Ultimately, this headquartering effect strengthens a Northern CSR/sustainability agenda and fails to empower developing country stakeholders.

The paper contributes by exploring how international CSR follows a different underlying rationale than international business. While international business research follows an instrumental perspective, international CSR is driven by both instrumental and normative considerations. Thus, international business theories may not be directly applicable to international CSR contexts.

The purpose of this paper is to seek to shed light on the practice of incomplete corporate disclosure of quantitative Greenhouse gas (GHG) emissions and investigates whether external stakeholder pressure influences the existence, and separately, the completeness of voluntary GHG emissions disclosures by 431 European companies.

A classification of reporting completeness is developed with respect to the scope, type and reporting boundary of GHG emissions based on the guidelines of the GHG Protocol, Global Reporting Initiative and the Carbon Disclosure Project. Logistic regression analysis is applied to examine whether proxies for exposure to climate change concerns from different stakeholder groups influence the existence and/or completeness of quantitative GHG emissions disclosure.

From 2005 to 2009, on average only 15 percent of companies that disclose GHG emissions report them in a manner that the authors consider complete. Results of regression analyses suggest that external stakeholder pressure is a determinant of the existence but not the completeness of emissions disclosure. Findings are consistent with stakeholder theory arguments that companies respond to external stakeholder pressure to report GHG emissions, but also with legitimacy theory claims that firms can use carbon disclosure, in this case the incomplete reporting of emissions, as a symbolic act to address legitimacy exposures.

Bringing corporate GHG emissions disclosure in line with recommended guidelines will require either more direct stakeholder pressure or, perhaps, a mandated disclosure regime. In the meantime, users of the data will need to carefully consider the relevance of the reported data and develop the necessary competencies to detect and control for its incompleteness. A more troubling concern is that stakeholders may instead grow to accept less than complete disclosure.

The paper represents the first large-scale empirical study into the completeness of companies’ disclosure of quantitative GHG emissions and is the first to analyze these disclosures in the context of stakeholder pressure and its relation to legitimation.

This paper seeks to identify a requirement for a new sustainable development management system (SMS) model for global business organizations (GBOs) and proposes some essential features for such a model.

The concept is developed in four stages. First, a definition of a GBO is developed, after reviewing existing definitions and identifying their limitations. The characteristics of GBOs are reviewed, with emphasis on their implications for the management of sustainability programmes. A review of SMS literature and of existing SMS codes and standards has been made, and the limitations of existing SMSs are critically reviewed. Drawing on this three‐part analysis, a new model of an SMS suitable for use in GBOs is described.

Existing definitions of global business organizations are inadequate. Existing sustainability management systems standards and codes do not meet the requirements of global businesses (or indeed of other, regional businesses) in several respects.

The paper shows that there are special requirements for SMSs in GBOs, and that these are not met by any of the existing models or proposals in the literature. The paper proposes a new model, which combines best‐practice from existing literature with new features.

This conceptual paper aims to present a new framework for the use of incentives when encouraging small businesses to adopt more sustainable business practices. It seeks to identify and categorize various types of incentives.

The incentives framework was designed as a practical tool for use during the development of a small business sustainability program. Although conceptual in nature, the framework is based on research conducted by the Washington State (USA) Department of Ecology that used, in part, a modified grounded theory approach.

In addition to identifying and categorizing potential incentives, the paper presents an overview of mainstream thought on incentives and argues that incentives and disincentives are significantly different concepts. The paper identifies seven potential barriers to implementing incentives and summarizes potential solutions to those barriers. It also explains how incentives can be used to encourage sustainable behavior and corporate social responsibility reporting.

The framework presented is intended to assist practitioners develop and structure incentive programs. It is also intended to provide guidance to practitioners regarding the current mainstream paradigm on incentives and recommends changes to that paradigm.

The framework presented is entirely original. No similar framework appears to currently exist.

The paper aims to explore trends in the use of internet‐supported sustainability reporting for German DAX30 companies. Particular focus is to be given to the question of the extent that these companies use the more effective internet‐specific methods of provision, accessibility, comprehensibility and dialogue compared to print‐based reporting systems in the dissemination of information to, and communication with, stakeholders.

The paper draws on data from three studies in 2004, 2005 and 2007. The research is based on quantitative content analysis from these studies and on an additional e‐mail survey in 2005.

Analysis shows an overall increase in the use of internet‐specific approaches on sustainability web sites between 2004 and 2007. Particular attention has been paid to developments to improve the access and comprehensibility of information on sustainability. There remains a great deal of potential for improvement in the use of tools for stakeholder dialogue, in the introduction of customised reporting elements and in the use of other internet technologies to improve the dissemination of past and present information. It seems that companies increasingly consider internet features to be useful for reducing information costs for companies and stakeholders but not for enhancing corporate value through more intensive and credible dialogue. The findings also indicate a shortfall in communicating trade‐offs and conflicts between environmental, social and economic impacts of businesses.

The paper is the first to outline trends in the use of corporate sustainability reporting via the internet. The paper also extends previous empirical research in Germany that focused on printed sustainability reports.

This paper aims to review how current policy instruments drive (or not) environmental innovation and, by doing so, to reinvestigate the relationship between innovation and regulation.

A comprehensive literature review on innovation and environmental regulation created a theoretical foundation of the paper. Using the grounded theory, a model was developed and evaluated using interviews. This is a timely topic as the new shape of recent environmental regulation appears to be fairly strict. A new model is presented to encapsulate highly dynamic interaction of environmental innovation and regulation to provide results that reflect on the present innovation behaviour and its implications.

The model highlights various diffusion pathways that are triggered by the main three drivers of innovation namely government (regulation), market (competition and cost) and technology which has the possibility of an autonomous diffusion.

The empirical data are limited to 13 qualitative experts' interviews within industry, consultancies and governmental departments.

The suggested model is particularly useful for policy makers to better understand the innovation dynamics and its diffusion pathways to design smarter regulations that incentivise rather than force organisations to comply with regulation.

The paper shows how regulation drives (or not) innovation and how various diffusion pathways can be used by external stakeholders to direct and promote innovation.