- Consulting Editors
- The Oxford Handbook of Managerial Economics
- Managerial Economics: Introduction and Overview
- Managerial Economics: Present And Future
- Market Power: How Does it Arise? How is it Measured?
- Advances in Cost Frontier Analysis of the Firm
- Supply Chain Design for Managing Disruptive Risks
- Combinatorial Auctions
- Game and Information Theory in Modern Managerial Economics
- Issues in the Analysis of Time, Risk, and Uncertainty
- Behavioral Economics and Strategic Decision Making
- Advances in Pricing Strategies and Tactics
- Product Distribution and Promotion: An Analytical Marketing Perspective
- Market Imperfections and Sustainable Competitive Advantage
- The New Managerial Economics of Firm Growth: The Role of Intangible Assets and Capabilities
- Strategies for Network Industries
- Internalization Theory as the General Theory of International Strategic Management Past, Present and Future
- Competitive Strategy in the Nonprofit Sector
- Organizational Design and Firm Performance
- Design and Implementation of Pay for Performance
- Vertical Merger
- The Evolving Modern Theory of the Firm
- Financing the Business Firm
- Corporate Governance and Firm Performance
- Managing Workplace Safety and Health
- Merger Strategies And Antitrust Concerns
- On the Profitability of Corporate Environmentalism
- Name Index
- Subject Index
Abstract and Keywords
Corporations often take environmentally friendly actions that go beyond what is required by law. Whether such corporate environmentalism is a profitable form of corporate strategy, or altruism in the form of a sacrifice of profits in the public interest, has been hotly debated. This chapter offers a theoretical framework for understanding when proactive environmental management is profitable, incorporating market forces, government regulation, and pressures from civil society, sometimes referred to as private politics. It then reviews, summarizes and critiques the empirical evidence relating corporate profitability to corporate environmentalism and identifying specific sources of “green” profits. It concludes with perspectives on the most valuable lessons for managers and the most promising areas for further scholarly research.
Thomas P. Lyon is Dow Professor of Sustainable Science, Technology and Commerce, with joint appointments in the Ross School of Business and the School of Natural Resources & Environment, University of Michigan. He also serves as Director of the Erb Institute for Global Sustainable Enterprise.
John W. Maxwell is the W. George Pinnell Professor in Business, Economics and Public Policy in the Kelley School of Business at Indiana University.
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