Toxic Emissions and Financial Performance: The Role of Complementary Strengths in Employee Relations

31 Pages Posted: 9 Nov 2017

See all articles by Sriram Narayanan

Sriram Narayanan

Michigan State University

Brian Jacobs

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management

Sachin Modi

Wayne State University - Mike Ilitch School of Business

David Closs

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management

Date Written: November 7, 2017

Abstract

This research examines the role of complementary strengths in the relationship between firm toxic emissions and financial performance. The research posits and demonstrates that the impact of toxic emissions on performance is moderated by the firm’s employee relations strengths and concerns. This research also posits that the moderating role of employee relations strengths and concerns in the emissions performance relationship is contingent on the firm’s labor productivity. Hypotheses are tested in the context of US manufacturing firms using secondary data drawn from the US Environmental Protection Agency, Compustat, and KLD Research & Analytics. The analyses and discussion suggest that not only do employee relations strengths and concerns influence the firm’s ability to reduce its levels of emissions profitably, but their impact differs based on firm’s labor productivity.

Keywords: environmental management; productivity; manufacturing; regression m

Suggested Citation

Narayanan, Sriram and Jacobs, Brian and Modi, Sachin and Closs, David, Toxic Emissions and Financial Performance: The Role of Complementary Strengths in Employee Relations (November 7, 2017). Available at SSRN: https://ssrn.com/abstract=3066927 or http://dx.doi.org/10.2139/ssrn.3066927

Sriram Narayanan (Contact Author)

Michigan State University ( email )

East Lansing, MI
United States

Brian Jacobs

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management ( email )

East Lansing, MI 48824-1121
United States

Sachin Modi

Wayne State University - Mike Ilitch School of Business ( email )

5201 Cass Avenue
Detroit, MI 48202

David Closs

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management ( email )

East Lansing, MI 48824-1121
United States

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