Self-Reporting Firms: Are Emissions Truly Declining for Improved Financial Performance?
| Autor: | Dor Hirsh Bar Gai, Ekundayo Shittu, Olawale Ogunrinde |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Financial performance
Public economics Strategy and Management Compensation (psychology) media_common.quotation_subject 05 social sciences Environmental stewardship Investment (macroeconomics) Panacea (medicine) 13. Climate action Anticipation (artificial intelligence) Management of Technology and Innovation 0502 economics and business 11. Sustainability Business Electrical and Electronic Engineering Function (engineering) 050203 business & management media_common |
| Zdroj: | IEEE Engineering Management Review. 48:163-170 |
| ISSN: | 1937-4178 0360-8581 |
| Popis: | Organizations are reporting their environmental performance for many reasons; most of these are reports by the organizations themselves—a self-reporting . Self-reporting is not a panacea for good firm environmental stewardship. Our observations show that the financial performance of firms is improved despite increases in their emissions reporting. Policymakers can gain insights from our findings, but so can organizations. Concerted efforts must be made to institute mandates that truly influence market performance as a function of environmental stewardship; organizations that are serious about true environmental stewardship should be supporting such initiatives. In the absence of stringent measures to rein in firm-level emissions, the evident compensation for dirty behavior by firms will continue unabated. Policymakers should initiate a widespread effort to provide an equitable platform for all firms to help decarbonize the economy. The message for firms is that when true environmental stewardship is required or instituted, the seeming benefits of increasing emissions may result in negative and dire consequences on both their book and market values. Therefore, it is important for firms to make efforts to reduce their emissions in anticipation of mandates that will make their market or book performance to be reflective of their emissions reduction initiatives. |
| Databáze: | OpenAIRE |
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