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Global Standards and the Environmental Performance of Industry

Author

Listed:
  • David P Angel

    (School of Geography, Clark University, 950 Main Street, Worcester, MA 01610-1477, USA)

  • Michael T Rock

    (Department of Economics, Bryn Mawr College, 101 N Merion Avenue, Bryn Mawr, PA 19010-2899, USA)

Abstract

In this paper we examine the emergence of firm-based global environmental standards as an approach to managing the environmental performance of complex global production networks. Firm-based global environmental standards exist when a firm defines a uniform set of process and product environmental performance requirements that must be adhered to by all of a firm's facilities around the world, even if these firm-based standards exceed the requirements of local and national environmental regulations. We identify increasingly stringent end-market environmental regulation, as well as growing concern over the need to protect a firm's reputational capital and operating legitimacy, as two key drivers of the adoption of firm-based environmental standards. Our analysis suggests, however, that firms are responding to these external drivers in part because of the characteristics of global production networks—a production form that depends on the ability to produce from any manufacturing plant to any end market. The paper examines the impact of firm-based environmental standards through case studies of a cement plant in Thailand and an electronics manufacturing plant in Penang, Malaysia. In line with the literature on new institution economics, the case studies demonstrate that firm-based standards are providing a platform for learning and innovation within the firm.

Suggested Citation

  • David P Angel & Michael T Rock, 2005. "Global Standards and the Environmental Performance of Industry," Environment and Planning A, , vol. 37(11), pages 1903-1918, November.
    • Handle: RePEc:sae:envira:v:37:y:2005:i:11:p:1903-1918
    DOI: 10.1068/a3788
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    References listed on IDEAS

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    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Glen Dowell & Stuart Hart & Bernard Yeung, 1999. "Do Corporate Global Environmental Standards in Emerging Markets Create Or Destroy Market Value," William Davidson Institute Working Papers Series 259, William Davidson Institute at the University of Michigan.
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    Cited by:

    1. Rui Coelho & Shital Jayantilal & Joao J. Ferreira, 2023. "The impact of social responsibility on corporate financial performance: A systematic literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1535-1560, July.
    2. Joao Victor Rojas Luiz & Daniel Jugend & Charbel José Chiappeta Jabbour & Octaviano Rojas Luiz & Fernando Bernardi Souza, 2016. "Ecodesign field of research throughout the world: mapping the territory by using an evolutionary lens," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 241-259, October.
    3. Tatoglu, Ekrem & Bayraktar, Erkan & Sahadev, Sunil & Demirbag, Mehmet & Glaister, Keith W., 2014. "Determinants of voluntary environmental management practices by MNE subsidiaries," Journal of World Business, Elsevier, vol. 49(4), pages 536-548.
    4. Tong, Xin & Shi, Jin & Zhou, Yu, 2012. "Greening of supply chain in developing countries: Diffusion of lead (Pb)-free soldering in ICT manufacturers in China," Ecological Economics, Elsevier, vol. 83(C), pages 174-182.
    5. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
    6. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    7. Ivana Mijatoviæ & Biljana Tošiæ & Milan Jovanoviæ, 2019. "The Acquiring of the Knowledge about Standards in the Digital Era," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(51), pages 427-427.
    8. Stefan Lutz & Mario Pezzino, 2012. "International Strategic Choice of Minimum Quality Standards and Welfare," Journal of Common Market Studies, Wiley Blackwell, vol. 50(4), pages 594-613, July.
    9. repec:aud:audfin:v:21:y:2019:i:51:p:427 is not listed on IDEAS
    10. Samuel Howard Quartey, 2019. "Geographies of Knowledge and Sustainable Development: Towards a Conceptual Model with Research Propositions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 878-897, June.
    11. Pellegrini-Masini, Giuseppe & Leishman, Chris, 2011. "The role of corporate reputation and employees' values in the uptake of energy efficiency in office buildings," Energy Policy, Elsevier, vol. 39(9), pages 5409-5419, September.
    12. Leoncini, Riccardo & Montresor, Sandro & Rentocchini, Francesco, 2016. "CO2-reducing innovations and outsourcing: Evidence from photovoltaics and green construction in North-East Italy," Research Policy, Elsevier, vol. 45(8), pages 1649-1659.

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