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The impact of symbolic and substantive actions on environmental legitimacy

Author

Listed:
  • Berrone, Pascual

    (IESE Business School)

  • Gelabert, Liliana

    (Universidad Carlos III)

  • Fosfuri, Andrea

    (Universidad Carlos III)

Abstract

Drawing on institutional theory and insights from stakeholder theory and impression management, we empirically analyze the impact of both environmental symbolic polices (participation in voluntary environmental programs, green trademarks, environmental-dedicated board committees, environmental pay policies and community communication) and substantive actions (environmental patents and pollution prevention practices) on environmental legitimacy. We show that 1) symbolic actions have a weaker positive effect on legitimacy than substantive actions; 2) that the impact of symbolic actions is greater when they are combined with substantive actions, and 3) that this impact is only short-term while substantive actions have both short- and long-term effects.

Suggested Citation

  • Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea, 2009. "The impact of symbolic and substantive actions on environmental legitimacy," IESE Research Papers D/778, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0778
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    References listed on IDEAS

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    6. Richard M. Crossley & Mohamed H. Elmagrhi & Collins G. Ntim, 2021. "Sustainability and legitimacy theory: The case of sustainable social and environmental practices of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3740-3762, December.
    7. Itziar Castelló & Michael Etter & Finn Årup Nielsen, 2016. "Strategies of Legitimacy Through Social Media: The Networked Strategy," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 402-432, May.
    8. Truong, Yann & Berrone, Pascual, 2022. "Can environmental innovation be a conventional source of higher market valuation?," Journal of Business Research, Elsevier, vol. 142(C), pages 113-121.
    9. Jianxin Li & Hao He & Hongshen Liu & Chenting Su, 2017. "Consumer Responses to Corporate Environmental Actions in China: An Environmental Legitimacy Perspective," Journal of Business Ethics, Springer, vol. 143(3), pages 589-602, July.
    10. Mignon Halderen & Mamta Bhatt & Guido A. J. M. Berens & Tom J. Brown & Cees Riel, 2016. "Managing Impressions in the Face of Rising Stakeholder Pressures: Examining Oil Companies’ Shifting Stances in the Climate Change Debate," Journal of Business Ethics, Springer, vol. 133(3), pages 567-582, February.
    11. Yuan Ma & Jing Wang & Yifan Bai, 2023. "Macro-Institutional Pressures and Firms’ Environmental Management Behavior: The Moderating Effect of Micro-Institutional Pressures," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    12. Conti, Raffaele & Novelli, Elena, 2022. "Not all technologies are created equal for stakeholders: Constituency statutes, firm stakeholder orientation and investments in technology generality," Research Policy, Elsevier, vol. 51(3).
    13. Dirk C. Moosmayer & Yanyan Chen & Susannah M. Davis, 2019. "Deeds Not Words: A Cosmopolitan Perspective on the Influences of Corporate Sustainability and NGO Engagement on the Adoption of Sustainable Products in China," Journal of Business Ethics, Springer, vol. 158(1), pages 135-154, August.
    14. Nguyen Phong Nguyen & Samuel Adomako, 2021. "Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2008-2020, May.
    15. Doris M. Merkl-Davies & Niamh M. Brennan, 2011. "A conceptual framework of impression management: new insights from psychology, sociology and critical perspectives," Accounting and Business Research, Taylor & Francis Journals, vol. 41(5), pages 415-437, December.
    16. Lite J. Nartey & Witold J. Henisz & Sinziana Dorobantu, 2023. "Reciprocity in Firm–Stakeholder Dialog: Timeliness, Valence, Richness, and Topicality," Journal of Business Ethics, Springer, vol. 183(2), pages 429-451, March.
    17. Jakob Utgård, 2018. "Retail Chains’ Corporate Social Responsibility Communication," Journal of Business Ethics, Springer, vol. 147(2), pages 385-400, January.
    18. Timo Busch & Bryan T. Stinchfield & Matthew S. Wood, 2011. "A Triptych Inquiry: Rethinking Sustainability, Innovation, and Financial Performance," Tinbergen Institute Discussion Papers 11-026/2/DSF 9, Tinbergen Institute.
    19. Palmer, Mark & Truong, Yann, 2017. "The Impact of Technological Green New Product Introductions on Firm Profitability," Ecological Economics, Elsevier, vol. 136(C), pages 86-93.
    20. Margarida Rodrigues & Mário Franco, 2020. "Measuring the urban sustainable development in cities through a Composite Index: The case of Portugal," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 507-520, July.
    21. Ren, Shenggang & He, Duojun & Yan, Ji & Zeng, Huixiang & Tan, Justin, 2022. "Environmental labeling certification and corporate environmental innovation: The moderating role of corporate ownership and local government intervention," Journal of Business Research, Elsevier, vol. 140(C), pages 556-571.
    22. Luis Perez-Batres & Jonathan Doh & Van Miller & Michael Pisani, 2012. "Stakeholder Pressures as Determinants of CSR Strategic Choice: Why do Firms Choose Symbolic Versus Substantive Self-Regulatory Codes of Conduct?," Journal of Business Ethics, Springer, vol. 110(2), pages 157-172, October.
    23. Leonardo Boni & Laura Toschi & Riccardo Fini, 2021. "Investors’ Aspirations toward Social Impact: A Portfolio-Based Analysis," Sustainability, MDPI, vol. 13(9), pages 1-20, May.
    24. Obiamaka Adaeze Nwobu & Collins Ngwakwe & Akintola Owolabi & Kingsley Adeyemo, 2021. "An Assessment of Sustainability Disclosures in Oil and Gas Listed Companies in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 352-361.

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    Keywords

    environmental management; institutional theory; legitimacy; stakeholder management; symbolic management;
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