Corporate Environmentalism: Doing Well by Being Green

17 Pages Posted: 25 Aug 2007

See all articles by Geoffrey M. Heal

Geoffrey M. Heal

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Date Written: August 2007

Abstract

Many firms go reduce their impact on the environment more than is legally required - that is, they overcomply with environmental regulations. There is clearly a cost to this, so there has to be a benefit too. I suggest that firms are consciously internalizing external costs, with a view to reducing the potential for conflict between themselves and other groups in society. The avoidance of such conflicts can pay off in the long-run in terms of stock market valuation, relations with regulators and consumer perception of the company's products.

Keywords: corporate social responsibility, external effects, corporate environmentalism

JEL Classification: H89, M20, Q20, Q50

Suggested Citation

Heal, Geoffrey M., Corporate Environmentalism: Doing Well by Being Green (August 2007). Available at SSRN: https://ssrn.com/abstract=1009755 or http://dx.doi.org/10.2139/ssrn.1009755

Geoffrey M. Heal (Contact Author)

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States
212-854-6459 (Phone)
212-316-9219 (Fax)

HOME PAGE: http://www.gsb.columbia.edu/faculty/gheal/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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