Measuring Corporate Environmental Performance - Stakeholder Engagement Evaluation

Asit Bhattacharyya, Lorne Cummings

Research output: Contribution to journalArticleResearchpeer-review

Abstract

As environmental protection has become a critical factor in achieving sustainable development, organizational stakeholders are becoming increasingly interested in corporate environmental performance (CEP). Many organizations evaluate their CEP but few academic studies have sought to evaluate it. This study undertakes CEP evaluation using an environmental performance measurement (EPM) model consisting of four managerial performance indicators (MPIs: organizational system, stakeholder relations, operational countermeasures and environmental tracking) and two operational performance indicators (OPIs: inputs and outputs). Principal component analysis (PCA) and confirmatory factor analysis (CFA) are used to test model reliability and construct validity. The relationship between MPIs and OPIs has also been analysed using correlation coefficients among the six indicators. Results indicate that there were multiple dimensions to measure under an organizational system as opposed to ideally a single factor. No single model can be effectively used due to different geographical locations and differences between companies from various industry sectors. EPM is more dependent on its organizational system and stakeholder relations than operational countermeasures and environmental tracking.

LanguageEnglish
Pages309-325
Number of pages17
JournalBusiness Strategy and the Environment
Volume24
Issue number5
DOIs
Publication statusPublished - 1 Jul 2015

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stakeholder
evaluation
performance measurement
performance
studies (academic)
construct validity
environmental protection
factor analysis
model test
principal component analysis
sustainable development
environmental performance
measuring
Stakeholder engagement
Corporate environmental performance
Evaluation
industry
Stakeholder relations
Environmental performance
Countermeasures

Cite this

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Measuring Corporate Environmental Performance - Stakeholder Engagement Evaluation. / Bhattacharyya, Asit; Cummings, Lorne.

In: Business Strategy and the Environment, Vol. 24, No. 5, 01.07.2015, p. 309-325.

Research output: Contribution to journalArticleResearchpeer-review

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