Internalization of Environmental Practices and Institutional Complexity: Can Stakeholders Pressures Encourage Greenwashing?

Francesco Testa (), Olivier Boiral () and Fabio Iraldo ()
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Francesco Testa: Sant’Anna School of Advanced Studies – Institute of Management
Olivier Boiral: Université Laval
Fabio Iraldo: Sant’Anna School of Advanced Studies – Institute of Management

Journal of Business Ethics, 2018, vol. 147, issue 2, No 3, 287-307

Abstract: Abstract This paper analyzes the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems (EMSs) such as those set out in ISO 14001 and the European Management and Auditing Scheme (EMAS). Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of proactive environmental practices, the influence of stakeholders can either support the integration of these practices or encourage their superficial adoption. For example, while pressure from suppliers and shareholders contribute to corporate greening, pressure from customers and industrial associations tend to encourage greenwashing (i.e., the superficial and misleading adoption of environmental practices). Product quality-oriented strategies also positively influence EMS internalization. The paper sheds light on the institutional complexity underlying the substantial versus symbolic implementation of environmental practices, and questions the dominant isomorphic view of EMS adoption. The paper also bridges the gap between complementary approaches on corporate greening, notably neo-institutional and stakeholder theories.

Keywords: Environmental management system; Environmental strategy; Greenwashing; Institutional complexity; Stakeholders (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (113)

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DOI: 10.1007/s10551-015-2960-2

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