Why do firms adopt ‘beyond-compliance’ environmental policies?


  • Aseem Prakash

    Corresponding author
    1. The George Washington University, Washington, DC, USA
    • Dr. Aseem Prakash, Department of Strategic Management and Public Policy, School of Business and Public Management, George Washington University, 203 Monroe Hall, 2115 G. Street, NW, Washington, DC 20052, USA
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This paper examines why firms selectively adopt ‘beyond-compliance’ environmental policies. It argues that existing explanations based on factors external to firms are under-specified and a focus on internal dynamics is also required. It draws insights from institutional theory, corporate social performance perspective, and stakeholder theory and relates them to internal processes. Beyond-compliance policies are adopted, if at all, due to two types of intra-firm process: power based and leadership based. These processes arise under different conditions and lead to different types of outcome. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment