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Why Do Firms Engage in National Sustainability Programs and Transparent Sustainability Reporting?

Luis A. Perez-Batres (), Miller Van V., Michael Pisani (), Irene Henriques and Jose A. Renau-Sepulveda
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Luis A. Perez-Batres: Central Michigan University
Miller Van V.: Central Michigan University
Irene Henriques: York University
Jose A. Renau-Sepulveda: Central Michigan University

Management International Review, 2012, vol. 52, issue 1, No 6, 107-136

Abstract: Abstract To evaluate global and domestic corporations on their sustainability engagement, numerous metrics have been developed at the national and international levels. In this paper, we assess whether the largest 448 foreign and local firms operating in a particular country engage in local sustainability initiatives (i.e., Mexico’s Clean Industry Program). The paper also assesses the degree of sustainability reporting (transparency towards sustainability) by the 267 local firms. Using an Institutional Theory rationale, we find that type of industry (dirty vs. clean), regional home, and engagement in global sustainability initiatives—i.e., The UNGC—best explain the firm’s decision to follow local sustainability initiatives. We find that the type of industry and affiliation to a national sustainability program are highly related to transparent sustainability reporting for large Mexican firms.

Keywords: Sustainability; Business and the environment; Developing market firms; Institutional theory; Liability of foreignness (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s11575-011-0098-8

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