The emergence of environmental governance practices raises a fundamental question as to whether they are substantive or symbolic. Toward that end, we analyze the relationship between a firm’s environmental governance and its environmental management as reflected in its ultimate outcome, environmental performance. We posit that substantive practices would bring changes in organizations, most notably in terms of improved environmental performance, whereas symbolic practices would portray organizations as environmentally committed without making meaningful changes to (...) their operations. Focusing on a sample of environmentally sensitive firms, results are consistent with environmental governance mechanisms being predominantly part of a symbolic approach to manage stakeholder perceptions on environmental management, having little substantial impact on organizations. Statistical analyses show mostly that there is no relation between environmental governance mechanisms and environmental performance, measured in terms of regulatory compliance, pollution prevention, and environmental capital expenditures. However, there is some indication that environmental incentives are associated with pollution prevention. Interviews with corporate directors shed further light on these results by underlining that environmental governance mechanisms are employed at the board level to protect the organization from reputational and/or regulatory harm, but are not necessarily intended to proactively improve environmental performance. (shrink)

External regulatory and normative pressures from both the Chinese central environmental protection inspection (CEPI) program and public participation can act together to influence corporate environmental governance behavior. This research uses the multiperiod Difference-In-Differences method to test the compound impact of CEPI and public participation on corporate environmental governance strategies and investigate the underlying influence mechanisms. The results show that CEPI and public participation have a positive compound effect on the corporate “source-control” strategy. A reasonable reduction (...) in pollution charges and increased environmental subsidies are essential to stimulate the green innovation potential of heavily polluting firms. Our research helps clarify the game relationship between the central and the local governments and analyzes how the relationship between the government, the public, and corporates affects environmental governance, thereby advancing principal-agent theory and expanding the current research on institutional pressures and corporate environmental governance. (shrink)

Over the last several years, the environmental regulatory system has undergone radical changes. Various private normative schemes, ranging from corporate codes to environmental management systems, environmental reporting standards, project-finance codes and green indexes, have assumed an increasingly important role in the regulatory arena. The emergence of private environmental governance as an important transnational phenomenon raises two interrelated puzzles: efficacy and legitimacy. Underlying the efficacy puzzle is a deep-seated suspicion toward "soft" legal instruments, which to some (...) observers represent nothing but a coordinated form of "greenwash." The legitimacy question reflects a contrary concern — that these private regulatory structures represent new forms of global authority that are in need of distinctive legitimization. The Article begins with an outline of this new global terrain, exploring its historical evolution. It argues that the multiple links and cross-sensitivities between the different global private regimes have created a novel ensemble regulatory structure with positive enforcement and normative externalities. The Article then moves to examine the question of efficacy more generally, developing a nuanced understanding of the social dynamic of "soft-law" regulation, which rejects the binary logic underlying the "soft law"-"greenwash" narratives. Regarding the political dimension, the Article argues that this new ensemble network has brought about a new transnational political sphere which is associated with an extensive, cross-institutional quest for legitimacy. The Article then turns its focus to the field of sustainability indexes, focusing on the two leading global indexes: FTSE4Good Index Series and Dow Jones Sustainability Indexes. These indexes are taken as a prototypical case of transnational private ordering. Drawing on a close analysis of the indexes’ guiding documents and on interviews with senior executives from both organizations, the Article considers the unique features of these indexes as forms of governance and the paths through which they claim to affect society. It then moves to explore the mechanisms of legitimacy employed by FTSE4Good and DJSI, highlighting their distinctive visions of legitimization. A close examination of sustainability indexes generates insights, I will argue, regarding the field of private global environmental governance as a whole. In particular, it highlights both the new political opportunities created by the evolving network of transnational governance and the limits this new structure sets for radical critique. (shrink)

During the past four decades the governance of environmental problems – the definition of issues and their political and practical resolution – has evolved to include a wider range of stakeholders in more extensive open discussions. In the introduction to this issue of Environmental Values on 'Environment, Policy and Participation' , we outline some features of these recent developments in participatory environmental governance, indicate some key questions that arise, and give an overview of the collection (...) of papers in this special issue. (shrink)

The past two decades have witnessed the emergence of corporateassociation- and standards-based forms of environmental selfregulation. Private environmental governance is commonly presented as being a market-driven phenomenon. Firms seek to manage their environmental impacts as a means of achieving cost-based or differentiation-based advantages. Yet, these innovations are necessarily embedded in the regulatory policies and institutions of nation states and thus subject to the dynamics of regulatory change. Historically, economic crises have stimulated significant regulatory changes that have, (...) more often than not, resulted in an expansion of public regulation and a diminution of self-regulation. This Article considers the ramifications of the global financial crisis for the development of private environmental governance. (shrink)

On one day in 2009, in 38 countries around the world, 4,000 ordinary citizens gathered to discuss the future of climate policy. This project, 'WWViews', was the first-ever global democratic deliberation - an attempt to enable normal people to reach informed decisions on and impact the global policy process.This book, written by the international practitioners and scholars who facilitated the project, analyses the experiences and lessons from this ground-breaking event. Despite the apparent success of the individual deliberations, the recommendations had (...) little impact within the media or the policy process at Copenhagen. The authors examine these successes and failures, and the challenges and opportunities of such deliberative events. Through this they explore important themes for participatory approaches from the local to the global: the role of deliberation within global governance; methodology and practice; participant selection; policy impacts; engaging the media; how policy culture affects deliberation uptake; capacity building and knowledge transfer; process evaluation; content and argumentation analysis; and gender, race and class aspects.The global aims of the WWViews project, along with the opportunity to evaluate the same process in different national and cultural contexts, makes this a hugely valuable and informative study for all those interested in democratic deliberation and environmental governance from the small to the international scale. (shrink)

This innovative book is one of the first to conduct a systematic comprehensive analysis of the ideals and practices of the evolving green state. It draws on elements of political theory, feminist theory, post-structuralism, governance and institutional theory to conceptualise the green state and advances thinking on how to understand its emergence in the context of climate and sustainability transitions. Focusing on the state as an actor in environmental, climate and sustainability politics, the book explores different principles guiding (...) the emergence of the green state and examines the performance of states and institutional responses to the sustainable and climate transitions in the European and Nordic context in particular. The book's unique focus on the Nordic countries underlines the important to learn from Nordics, which are perceived to be in the forefront of climate and sustainability governance as well as historically strong welfare states. With chapter contributions from leading international scholars in political science, sociology, economics, energy and environmental systems and climate policy studies, this book will be of great value to postgraduate students and researchers working on sustainability transitions, environmental politics and governance, and those with an area studies focus on the Nordic countries. (shrink)

This article uses nationwide survey data to answer two questions: who participates in environmental governance in China and why? First it explores the social structural characteristics that distinguish participants, finding that city dwellers, the more educated and those with higher incomes and higher social status are more likely to participate, while women, the elderly, those with rural residence registration and migrants are less likely. It then tests two main explanations as to why people participate in environmental (...) class='Hi'>governance: instrumentality and identity. Participation is associated with attention to conservation issues, the perceived effectiveness of local environmental governance, knowledge of environmental problems, reading newspapers and magazines, voting in local elections, identification with a middle-class lifestyle and observance of Western holidays. Combining the analyses into a structural model shows that instrumental and identity-related variables account for nearly all of the social structural variation in participation. Participation is thus a function both of instrumental considerations and identities. (shrink)

During the past four decades the governance of environmental problems – the definition of issues and their political and practical resolution – has evolved to include a wider range of stakeholders in more extensive open discussions. In the introduction to this issue of Environmental Values on ‘Environment, Policy and Participation’, we outline some features of these recent developments in participatory environmental governance, indicate some key questions that arise, and give an overview of the collection of (...) papers in this special issue. (shrink)

This paper prepares an investigation into the roles and effectiveness of different types of corporate governance and environmental governance mechanisms in driving improvements in environmental performance. More specifically, the authors provide background theory regarding the way in which different types of traditional corporate governance and new concepts of environmental governance might have an impact on reducing firms’ levels of greenhouse gas emissions intensities. The paper also suggests a method of how this could be (...) empirically tested. (shrink)

During the past four decades the governance of environmental problems – the definition of issues and their political and practical resolution – has evolved to include a wider range of stakeholders in more extensive open discussions. In the introduction to this issue of Environmental Values on ‘Environment, Policy and Participation’, we outline some features of these recent developments in participatory environmental governance, indicate some key questions that arise, and give an overview of the collection of (...) papers in this special issue. (shrink)

Glocal environmental governance lags behind the science regarding the seriousness of the combined environmental and developmental challenges. Governance regimes have developed differently in different issue areas and are often inconsistent and contradictory; furthermore governance innovations in each area lead to new challenges. The combined effect of issue-based, plural, and fragmented governance raises key normative questions in environmental governance. Hence, this overview paper aims to address the following questions: How can the global community (...) move towards a more normatively consistent global architecture for sustainable development? In order to address this question, I first examine the key normative issues and the nature of governance in the area of climate change, water and forests. In doing so I also look at the implications of each for food production, safety and security. The paper concludes that there are strong normative and architectural inconsistencies between the fragmented and plural issue-specific regimes; that such inconsistencies are inevitable in an ‘anarchic’ international order; that some degree of normative coherence can be strived at through the adoption of global constitutionalism and rule of law; and that the present discussion on global sustainable development goals is a first step towards creating a normatively consistent global architecture for sustainable development. (shrink)

As crucial elements of green ideology, political participation and inclusiveness have become indispensable to democratic decision-making as green values gained ground across the world. It is often assumed that through the inclusion and participation of more stakeholders, the global environmental governance architecture has become increasingly democratic since the 1990s. This article asks whether civil society participation in the relevant United Nations platforms democratises transnational and global environmental governance, or simply simulates democratic participation without giving stakeholders the (...) chance to contribute to policy decisions. First, building on Hannah Arendt's concept of political action I differentiate forms of participation based on different value systems. Then, following the historical development of participation narratives in the United Nations, I argue that participation has become increasingly instrumentalised and used to conceal other types of institutional change based on efficiency considerations and neoliberal values. (shrink)

An increasingly complex governance architecture has become a major characteristic of current global environmental governance, often resulting in different degrees of complexity and fragmentation within global environmental regimes. Social learning processes are introduced by scholars and policy makers alike as management approaches for governing complex dynamic systems in situations that feature a high degree of complexity and uncertainty. Scholars argue that actors in complex environmental issue areas can learn in their social context and could develop (...) the necessary knowledge, attitudes and behaviour to enhance their capacity to effectively address the environmental problem. This is where this article picks up the discussion and assesses the impact of a regime’s complexity on its learning capabilities. It further identifies major drivers and barriers of regime learning processes in international environmental regimes. (shrink)

This article examines how chemists contributed to the technological reorganization in France at the end of the eighteenth century and the beginning of the nineteenth century, how they justified using potentially harmful or polluting processes by stating that this would contribute to national prosperity, and how the idea of improvement helped to legally and rhetorically build a production regime that disqualified traditional precautionary attitudes to certain artisanal and industrial processes. This resulted in the establishment of a new environmental (...) class='Hi'>governance regime devoted to the advancement of chemistry and of industrial production. While this shift was clearly perceptible from the 1770s with the first regulatory exceptions for strategic products, the 1810 decree, which was imagined, designed, and implemented by chemists, perpetuated chemistry’s role as an environmental regulator. (shrink)

Abstract:Ecofeminism refers to a broad range philosophical and political movements that call attention to the link between social oppression and environmental destruction. Despite their relevance and potential theoretical and practical utility, ecofeminisms are largely absent from extant approaches to environmental governance (E-Governance). In addition to calling attention to the absence of ecofeminist voices in this arena, this paper explores the consequences of said exclusion and assesses the potential for ecofeminism to inform and ultimately improve E-Governance (...) initiatives. I find that E-Governance research often disregards or fails to explicitly acknowledge and incorporate the inseparable and mutually reinforcing nature of social and environmental forms of domination and oppression. The consequences of this are twofold. First, many extant approaches forgo any opportunity to leverage the resolution of social inequities as a potential mechanism for reducing environmental harm. Second, initiatives that appear to be equity-driven often emerge as paternalistic and perpetuate the marginalization of oppressed groups. Accordingly, I develop and apply a novel collection of ecofeminist-informed design principles for evaluating, informing, and improving existing E-Governance initiatives. Ultimately, this paper yields fresh insight into the way ecofeminist voices can help researchers, communities, and societies transform how they think about societal interactions with the environment and equips E-Governance with the capacity to challenge social and environmental exploitation simultaneously. (shrink)

Since the end of the Cold War, two parallel developments took place in global governance: fragmentation in social/environmental legislations across countries, and an increasing uniformity (or 'globalisation') of economic/financial legislations. In the liberal democratic context of global governance, both of these developments are embodied in partnerships for sustainable development. Studying these partnerships in the context of private environmental governance and tracing the origin of the concept in business and law, can reveal the implications of 'privatisation (...) of governance' on sovereignty, authority, and global governance. Focusing on partnerships in the United Nations context, this paper examines the private environmental governance institutions in their historical economic context. (shrink)

Echoing other articles in this special issue, this article re-evaluates a collection of feminist works that fell out of fashion as a consequence of academic feminism embracing poststructuralist and postmodernist trends. In line with fellow contributors, the article critically reflects upon the unsympathetic reading of feminisms considered to be essentialising and universalistic, in order to re-evaluate, in my case, ecofeminism. As an introduction, I reflect on my own perhaps unfair rejection of ecofeminism as a doctoral researcher and early career academic (...) who, in critiquing 1990s international environmental governance, sought to problematise the essentialist premise on which it appeared to be based. The article thereafter challenges this well-rehearsed critique by carefully revisiting a sample of ecofeminist work produced between the late 1970s and the early 1990s. In an effort to avoid wholesale abandonment of the wealth of feminist theory often labelled as second wave, or the rendering of feminisms of the past as redundant as feminist theory changes over time, this article re-reads the work of ecofeminists, such as Starhawk, Susan Griffin and Vandana Shiva, to demonstrate their contemporary relevance. In so doing, the article argues that a contemporary re-reading of ecofeminism offers insights allowing for a radical rethinking of contemporary environmental governance. (shrink)

This article examines adaptive resource management as it has been applied to the US horseshoe crab fishery over the past decade. As a critical yet constructive exercise, I have three goals: to suggest how adaptive management, for all its promise, can still be improved; to add a nuanced case study to the literatures on the quantification of nature and environmental decision-making; and to use the example of ARM to make certain temporal aspects of contemporary natural resource management more salient (...) to science and technology studies scholars—that is, to show the ways in which time matters in environmental science, policy, and the analysis thereof. I draw attention to the time-related aspects of adaptive management by developing the notions of temporal orientation and chronological accountability. Temporal orientation refers to the time-based perspectives and epistemological commitments—that is, past-facing empiricism versus future-oriented modeling—that scientists of different types bring to bear on environmental problems. Chronological accountability refers to the missing link in adaptive forms of environmental governance: firm time lines and commitments to reflexively revisit management decisions. The time-related aspects of natural resource management deserve greater attention among both environmental managers and analysts of environmental policy. (shrink)

Muitos termos possuem um sentido técnico sem que ele seja evidente para todos, por exemplo, a "governança ambiental", termo que remete no contexto atual a uma participação cidadã nesse tipo de questão, por exemplo, da saúde de um ecossistema específico, tal como uma floresta ou um vale agrícola, a partir de preocupações partilhadas e não a partir de uma problemática de controle organizacional. Após ter tornado preciso o que é a expertise e quais são os principais problemas postos pelo recurso (...) à expertise nos contextos da ação cidadã, proponho que as expertises técnicas podem ser postas no mesmo patamar que outros tipos de expertise, referindo principalmente aos saberes comuns, à prática e à experiência concreta, dita "de campo", o que corresponde a uma ampliação. Sugere-se, então, o modelo de fórum híbrido como quadro teórico possível dessa reformulação da concepção de expertise. Many terms have a technical meaning although it is not evident for everyone, for example, the "environmental governance", term that refers in the present context to citizen participation on this type of question, for example, of the health of a specific ecosystem, such as a forest or an agricultural field, from shared preoccupations and not from a problematic of organizational control. After having made precise what is the expertise and what are the main problems posed by the recourse to the expertise in the contexts of citizen action, I propose that technical expertise can be tantamount to other types of expertise, referring mainly to profane knowledge, to the practice and concrete experience called "of field", which corresponds to an enlargement. Then it is suggested the model of an hybrid forum as a possible theoretical frame of this reformulation of the conception of expertise. (shrink)

The theory of boundary organizations was developed to address an important group of institutions in American society neglected by scholarship in science studies and political science. The long-term stability of scientific and political institutions in the United States has enabled a new class of institutions to grow and thrive as mediators between the two. As originally developed, this structural feature of these new institutions—that is, their location on the boundary between science and politics—dominated theoretical frame-works for explaining their behavior. Applying (...) the theory of boundary organizations to international society requires a refocusing of some of the theory’s central features, however. In this article, I introduce a new framework—hybrid management—to explain the activities of boundary organizations in the more complex, contingent, and contested settings of global politics. I develop the framework of hybrid management using the specific example of the U.N. Framework Convention on Climate Change’s Subsidiary Body for Scientific and Technological Advice. (shrink)

This article argues that the narrative of public participation in environmental governance that emerged from the Earth Summit in 1992 can be read as a direct challenge to the neoliberal approach to environmental governance. The challenge comes from constructing the concept of public participation as (i) the practice of providing decision makers with more and better information in order to help them design more equitable policies, and (ii) the practice of potentially influencing policy decisions by bringing (...) new perspectives and values into the decision-making process. The article shows how this counter-narrative has itself now become a contested terrain: among a variety of normative presuppositions justifying practices of public participation, one can also find a market friendly rationale. (shrink)

The emergence of conflicts between environmental safety incidents and protection rights generates sizeable political costs, which endangers the legitimacy of the government as well as political security and stability. This article further examines the role of political costs in environmental issues. First, political costs in relation to environmental issues are defined. An equilibrium strategic analysis is then presented using an evolutionary game model in which the strategic behavioral choices of government, enterprises, and citizens are investigated by embedding (...) political costs in the environmental governance system. Furthermore, the small-signal model was innovatively applied to simulate and analyze the stability of political costs under different equilibrium strategies in the system. The results show the following. Pubic behavior and government are the dominant factors that impact stability and instability, respectively. Public behavior is the core element that affects political cost consumption. When political costs are extremely depleted, the public will neglect economic interests, turn toward environmental interests, and choose the negative participation strategy, which destabilizes the system. The political cost signal at the optimal equilibrium point not only warns the government not to take the desperate action of concealing information asymmetry but also allows the government to let go of its hands to deal with the environmental issues. Corresponding policy recommendations are proposed. (shrink)

This paper discusses entanglements of science and ethics in the regulation of genetically modified crops. Using the 2009 German ban of genetically modified maize MON810 and debates concerning the quality of science cited to support it, the paper highlights how values are tacitly embedded in science for policy and how ethical questions permeate the way this science is developed, quality-controlled, and given authority in the European regulation of biotechnology. We argue that a lack of recognition and inadequate treatment of such (...) value-commitments influencing science, and through this policy, impinges upon and weakens the ethical standards involved. This has particular significance as Europe debates genetically modified crop legislative reform. (shrink)

This article describes and proposes the “environmental subsidiarity principle” as a guiding ethical value in forestry governance. Different trends in environmental management such as local participation, decentralization or global governance have emerged in the last two decades at the global, national and local level. This article suggests that the conscious or unconscious application of subsidiarity has been the ruling principle that has allocated the level at which tasks have been assigned to different agents. Based on this (...) hypothesis this paper describes the principle of subsidiarity and its application to environmental policies within forest governance and proposes the “environmental subsidiarity” principle as a critical conceptual tool for sustainable resource management. The paper explains as an example how “environmental subsidiarity” is the key principle that can link payment for ecosystem services (PES) with environmental public policies and applies this principle with all its political consequences to reducing emissions from deforestation and forest degradation, and enhancing forest carbon stocks in developing countries (REDD+) architecture. It concludes by showing how the adoption of “environmental subsidiarity” as a ethical principle could help to maximize benefits to all stakeholders involved in PES schemes such as REDD+. (shrink)

The continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the operation of the global value chain. This paper focuses on the role and performance of Apple Inc in the (...) global value chain in Asia. Apple is the most successful corporation on earth measured in financial terms and yet has failed to find a solution to recurrent employment and environmental problems occurring in plants manufacturing Apple components. This analysis informs the current theoretical debate on the development of the global value chain and the continuing institutional failure that leaves employees vulnerable and the environment neglected. (shrink)

We investigate the association between a wide range of community-level environmental, social, and governance (ESG) outcomes and the credit risk of U.S. municipal finance fixed-income securities. We develop a novel dataset of multiple ESG outcomes for U.S. counties and connect it to a 2001-2020 panel of municipal bonds issued within those counties. Overall, we find supportive evidence that collective increases in community-level ESG factors (i.e., ESG outcomes) are associated with reductions in credit risk for U.S. municipal finance instruments (...) over time. We theorize that these associations arise from variations in investor perceptions and manifested changes in fiscal health over time as a function of changing ESG outcomes. Post hoc analyses leveraging quasi-exogenous shocks to uncertainty, as well as connecting ESG outcomes to various measures of fiscal health at the county-year level, and credit ratings at the bond-year level, help validate this theory. Our research suggests that even socially agnostic investors should investigate the environmental and social performance of a municipality as part of their credit due diligence. (shrink)

Drawing on the behavioral theory, this study examines how the misalignment between a firm's environmental effort and the level of subsidies received from the government in affecting the firm's investment in non-environmental R&D. Based on a sample of Chinese A-share listed firms from 2008 to 2019 and using polynomial regression techniques, our findings reveal that firms in the “low effort-high subsidies” group exhibit lower non-environmental R&D intensity compared to firms in the “high effort-low subsidies” group. This study (...) contributes to the literature by shedding light on the interplay between corporate environmental efforts, government subsidies, and non-environmental R&D investment. The findings suggest the importance of aligning the environmental efforts of firms with subsidy levels from the government to effectively allocate resources for different types of R&D. The implications of this research suggest that firms should carefully consider aligning their environmental efforts with government subsidies to optimize their investment in non-environmental R&D and overall innovation strategy. Furthermore, the study indicates that firms and governments should prudently balance the relationship between environmental R&D and non-environmental R&D to avoid any negative impact on the latter. (shrink)

In recent years, the Audit Pilot of Natural Resources Assets (APNRA) pilot program has been implemented by the Chinese government to strengthen the protection of natural resources and the ecological environment. Based on the APNRA pilot program, we use the multi-period differences–in–differences model to investigate the response of corporate environmental responsibility to external governance pressure. We find that firms significantly improve their environmental investment and performance after the implementation of the APNRA pilot program. Sewage charges (including green (...) fees) and ecological protection incentives constitute the two main channels that explain the positive relationship. We further find that the impact of the program on corporate environmental investment and performance is more pronounced for firms in regions with poor environmental quality, and for firms in heavy-polluting industries. This paper introduces the role of government governance in generating positive externality for firms and provides a valuable understanding of environmental governance in an emerging market. (shrink)

This paper makes the case for an environmental justice approach to the practice and study of participation and effectiveness in agrobiodiversity governance. It is argued that, in order to understand the conditions under which participation leads to improved outcomes, the concept has to be rethought, both from a political and a methodological perspective. This can be done by applying an ex-ante environmental justice approach to participation, including notions of distribution, recognition and representation. By exploring the approach through (...) empirical examples of participation in biodiversity and environmental governance, a research framework is outlined, attempting to bridge normative and practical approaches to environmental justice, and tested on two cases of agrobiodiversity governance in Western Europe. (shrink)

Firms have traditionally responded to environmental violations by increasing information disclosure and/or communication to manage stakeholder perceptions. As such, these approaches may be symbolic in nature, with no genuine intention to improve the environment. We draw from restorative justice grounded in stakeholder theory and explore a relatively new approach in the form of supplemental environmental projects aimed at restoring the environment, and empirically examine the role of corporate governance in firms’ decisions to undertake reparative actions. Using (...) class='Hi'>environmental violations and SEPs data from the US Environmental Protection Agency between 2002 and 2015, we find that firms with smaller boards are more likely to undertake SEPs. We also find that firms with higher board independence and CEO duality undertake SEPs more frequently; however, board gender diversity and the existence of a sustainability committee appear to have no impacts. These results are robust to propensity score matching and an alternative data source. We extend the scope of stakeholder theory by emphasizing a new approach—restorative justice—by which corporations can repair damaged relationships and also improve the environment. We also contribute to corporate governance and environmentalism literature by identifying governance structures that promote environmental restorative justice. Thus, our study will inform different stakeholders, including regulators, shareholders, and boards of directors, and will open new avenues for business ethics scholarship. (shrink)

The concept of environmental, social and governance (ESG) is rapidly emerging as the new global industry standard and an important benchmarking tool for socially responsible investments. Major corporations seek the expertise of specialized consultants to develop and implement tailored ESG framework for their businesses. This book offers a guide to ESG and its practical applications. Beyond introducing the structured procedures of the most common ESG approaches, it delves into the comprehensive impact on the value chain, providing practical insights. (...) The text explores the latest trends in various business sectors, offering insights into their ESG practices. Closing with a forward-looking perspective, the book anticipates future developments such as climate change management and ESG certifications, while also addressing potential pitfalls encapsulated by the term “greenwashing”. Written by authors with a solid background in teaching and research, the book establishes a robust theoretical foundation. The inclusion of numerous practical examples and country-specific recommendations enhances this book’s applicability and makes it an invaluable resource to those navigating the complexities of ESG. (shrink)

This paper examines whether a firm’s financial performance is associated with superior environmental, social and governance scores in emerging markets of multinationals in Latin America. The study addresses the current research gap on this issue; it develops hypotheses and tests them by applying linear regressions with a data panel drawn from the Thomson Reuters Eikon™ database to analyse data on 104 multinationals from Brazil, Chile, Colombia, Mexico and Peru between 2011 and 2015. The results suggest that the relationship (...) between the ESG score and FP is significantly statistically negative. Furthermore, in examining environmental, social and governance separately to accurately determine each variable’s relationship to multilatinas’ FP, the results reveal a negative relationship. Finally, the empirical analysis provides evidence for a moderating effect of financial slack and geographic international diversification on the relationship between ESG dimensions and firms’ FP. This study furthers understanding of the relationship between ESG dimensions and FP for the Latin American business context. (shrink)

Environmental Law, Ethics and Governance draws attention to the necessity for inter-disciplinarity in research focused on achieving good environmental governance, be it of a physical area, an environmental problem or a natural resource. Law and ethics each have an important role to play in this regard and the chapters in this volume consider these issues from a number of different perspectives. Included in this book is the academic research and professional experiences of a diversity of (...) authors, including those engaged in research into substantive governance issues, which arise at all levels from the global to the local. The case studies explored in this book provide excellent examples from across this range. In addition, contributions are included from those involved in process and procedural matters, including the complex issues of how new law ought to be drafted, the implementation of that law and environmental legal education. This volume is both thought provoking and instructive and aims to inspire further research regarding the ethical dimensions of environmental law and legal governance. It is clear that these topics remain of great significance if law and policy is to be effective and therefore this volume is a valuable and timely contribution to the discourse in this area. (shrink)

Worsening energy crises and the growing effects of climate change have spurred, among other things, concerted efforts to tackle global problems through what the United Nations calls Sustainable Development Goals (SDGs). These are in turn argued to be best achieved via the adoption of environmental, social, and corporate governance (ESG) as the vehicle for guiding our efforts. However, though these things are often presented as the solution to global issues, they are increasingly being used as a means to (...) centralize power and exacerbate growing authoritarian trends. This article aims to demonstrate how the narratives surrounding ESG mask this reality, taking as a solution one of the foundational causes of global wealth and power disparity. (shrink)

This volume is issued by one of Max Planck Society’s 83 research institutes, the Max Planck Institute for Comparative Public Law and International Law, a strong reference on i...

This article examines the risk and return profiles of stock indices composed of companies meeting environmental, social and governance screening criteria [such as the Dow Jones Sustainability Indices ] and conventional composite indices of eight Asian countries from 2002 to 2014. The results indicate that there are no significant differences in the returns or risk-adjusted returns between the ESG indices and the composite indices within countries. The results do reveal that the market volatility of the ESG indices is (...) higher than the market volatility of the conventional indices. Market betas of DJSI and ESG equity indices are significantly lower than betas of the composite equity indices. The overall results indicate that the performance of ESG equity indices of many Asian countries is similar to the performance of conventional indices, suggesting that investors can pursue socially responsible investing objectives without a material difference in portfolio performance from conventional investing. (shrink)

Agrawal's carefully constructed arguments create a framework for environmental policy analysis. One only wishes the message were in a language and form that would draw in policy and advocacy readers, not just scholars.

The primary objective of this research is to examine the potential influence of environmental, social, and governance (ESG) disclosure on cash holdings. Additionally, the study explores the role of earnings management (EM) practices as a mediating factor in this relationship. The sample comprises 797 companies listed on financial markets across 19 European countries, and the data spans from 2013 to 2019. The outcomes indicate a significant negative correlation between ESG disclosure and cash holdings, implying that ESG performance can (...) be used by management to resolve disputes with stakeholders. The outcomes further indicate that the existence of EM practices partially mediates the link between ESG disclosure and cash holdings. Moreover, they are robust by substitute cash holdings specification, three distinct initiatives of ESG disclosure (i.e., environment, social, and governance), and a two-stage least squares assessment. Therefore, the findings document that nonfinancial reporting in the form of ESG disclosure can assist in controlling agency conflict, leading to better valuations of company performance by stakeholders. (shrink)