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Tracking the relationship between environmental management and financial performance in the service industry

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  • Marilyn Lucas
  • Matthew Wilson

Abstract

Attention to the relationship between environmental management and financial performance has been growing. Research in this area has, however, tended to focus primarily on manufacturing industries. Our goal in this study is to analyze the relationship between environmental management and financial performance in the context of the service industry. Using a cross-sectional sample of 1,228 service organizations spanning a wide range of business activities, we test a series of five hypothesized relationships using both univariate and multivariate analyses. The results are robust across the dataset and show conclusively that environmental management does indeed positively affect financial performance in the service sector. Copyright Springer-Verlag 2008

Suggested Citation

  • Marilyn Lucas & Matthew Wilson, 2008. "Tracking the relationship between environmental management and financial performance in the service industry," Service Business, Springer;Pan-Pacific Business Association, vol. 2(3), pages 203-218, September.
    • Handle: RePEc:spr:svcbiz:v:2:y:2008:i:3:p:203-218
    DOI: 10.1007/s11628-008-0035-5
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    References listed on IDEAS

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    1. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    2. Aaron K. Chatterji & David I. Levine & Michael W. Toffel, 2009. "How Well Do Social Ratings Actually Measure Corporate Social Responsibility?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 125-169, March.
    3. González-Benito, Javier & González-Benito, Óscar, 2005. "Environmental proactivity and business performance: an empirical analysis," Omega, Elsevier, vol. 33(1), pages 1-15, February.
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    Cited by:

    1. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    2. Silvana Trimi & Sang-Hyun Park, 2013. "Green IT: practices of leading firms and NGOs," Service Business, Springer;Pan-Pacific Business Association, vol. 7(3), pages 363-379, September.
    3. Ekaterina V. Popova & Nikolay I. Strikh, 2021. "Environmental management practices for the circular economy development in Russia and their impact on the financial performance of companies," Upravlenets, Ural State University of Economics, vol. 12(2), pages 17-34, April.
    4. Nicolas G. A. Lorgnier & Che-Jen Su & Shawn M. O’Rourke, 2022. "Brands’ perceived sustainable development goals: index development and applications with professional sport teams and fast-food brands," Service Business, Springer;Pan-Pacific Business Association, vol. 16(1), pages 125-157, March.
    5. Markus Hang & Jerome Geyer‐Klingeberg & Andreas W. Rathgeber, 2019. "It is merely a matter of time: A meta‐analysis of the causality between environmental performance and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 257-273, February.
    6. Nicolás Gambetta & María Antonia García-Benau & Ana Zorio-Grima, 2017. "Corporate social responsibility and bank risk profile: evidence from Europe," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 517-542, September.
    7. Fazli Haleem & Sami Farooq & Yang Cheng & Brian Vejrum Waehrens, 2022. "Sustainable Management Practices and Stakeholder Pressure: A Systematic Literature Review," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    8. Ricardo Server Izquierdo & Jordi Capó Vicedo, 2012. "Corporate social responsibility of financial organizations in the social economy: a case study on savings banks," Service Business, Springer;Pan-Pacific Business Association, vol. 6(1), pages 99-115, March.
    9. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2019. "The effect of environmental attitudes and policies on separate waste collection: the case of Insular Italy," Letters in Spatial and Resource Sciences, Springer, vol. 12(1), pages 63-85, April.

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