Strategic Concern or Moral Commitment?: A Stakeholder Theory Approach to Natural Environmental Orientation
Lucie K. Ozanne1 and Bulent Menguc2, (1)University of Canterbury, New Zealand; (2)Brock University, Canada
Despite an ongoing interest in the firm-level management of natural environmental activities, there is still a lack of understanding of this phenomenon. The authors propose the concept that the firmís natural environmental orientation is a business management philosophy, based upon a company-wide acceptance of the need for entrepreneurship, corporate social responsibility, and recognition of the critical role of a commitment to the natural environment. In addition, using a stakeholder theory approach, the authors propose that a firmís interest in NEO stems mainly from its moral commitment to stakeholders and this interest has an effect on the firmís financial performance (cf. Berman et al. 1999). They empirically test the proposed model in a research design that examines the relationship between natural environmental orientation and financial performance. Findings for these results, managerial and theoretical implications, and future research directions and limitations are discussed.
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