Navigating through firm–environmental groups' relationships: The impact of societal trust on corporate environmental strategy

Abubakr Saeed and Hammad Riaz

Business Strategy and the Environment, 2021, vol. 30, issue 8, 3552-3568

Abstract: This study examines the impact of societal trust on corporate environmental strategy with particular reference to the firm–environmental groups' relationship, which has received very little attention in trust literature. Using data on 2332 firms from 16 countries, we find that societal trust exerts a negative effect on the likelihood of ISO 14001 certification. The negative relationship between societal trust and the likelihood of ISO 14001 is more pronounced for firms having intense collaboration with environmental groups. However, this effect appears to be weak in higher market uncertainty. These findings, besides significantly adding to the literature, have practical and managerial implications.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:30:y:2021:i:8:p:3552-3568

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