Exploring the relationship between environmental orientation and brand value: is there fire or only smoke?

Ivana First and Deepali Sinha Khetriwal

Business Strategy and the Environment, 2010, vol. 19, issue 2, 90-103

Abstract: This paper investigates whether a firm's environmental orientation influences corporate brand value. In the discussion on sustainable development, corporate participation is a given, and increasingly firms are adopting environmental policies and practices. This paper observes corporate environmentalism from two perspectives: environmental embeddedness – the level to which environmental values are incorporated in brand identity; and environmental performance – the level of a firm's accordance with environmental policies and good practices. Cross‐analysis of these two perspectives generates four types of corporate environmental orientation: leaders, performers, advocates and laggards. The results do not provide conclusive evidence for whether consumers reward environmental leaders and punish environmental laggards by converting their environmental opinions into brand perceptions and purchasing decisions. It is believed that the hypothesized relationships are moderated and mediated by other stimuli, so managers are advised not to negate corporate social responsibility, but rather to invest wisely in environmental activities and its communication. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Date: 2010
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