Measuring Corporate Environmental Performance – Stakeholder Engagement Evaluation

Business Strategy and the Environment, 24, 309–325 (2015)

Posted: 10 Feb 2016

See all articles by Asit Bhattacharyya

Asit Bhattacharyya

University of Newcastle (Australia)

Lorne Cummings

Macquarie University - Faculty of Business and Economics

Date Written: February 8, 2015

Abstract

As environmental protection has become a critical factor in achieving sustainable development, organizational stakeholders are becoming increasingly interested in corporate environmental performance (CEP). Many organizations evaluate their CEP but few academic studies have sought to evaluate it. This study undertakes CEP evaluation using an environmental performance measurement (EPM) model consisting of four managerial performance indicators (MPIs: organizational system, stakeholder relations, operational countermeasures and environmental tracking) and two operational performance indicators (OPIs: inputs and outputs). Principal component analysis (PCA) and confirmatory factor analysis (CFA) are used to test model reliability and construct validity. The relationship between MPIs and OPIs has also been analysed using correlation coefficients among the six indicators. Results indicate that there were multiple dimensions to measure under an organizational system as opposed to ideally a single factor. No single model can be effectively used due to different geographical locations and differences between companies from various industry sectors. EPM is more dependent on its organizational system and stakeholder relations than operational countermeasures and environmental tracking.

Suggested Citation

Bhattacharyya, Asit and Cummings, Lorne, Measuring Corporate Environmental Performance – Stakeholder Engagement Evaluation (February 8, 2015). Business Strategy and the Environment, 24, 309–325 (2015), Available at SSRN: https://ssrn.com/abstract=2729626

Asit Bhattacharyya (Contact Author)

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

Lorne Cummings

Macquarie University - Faculty of Business and Economics ( email )

Sydney, New South Wales 2109
Australia

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