Toxic Emissions and Financial Performance: The Role of Complementary Strengths in Employee Relations
31 Pages Posted: 9 Nov 2017
Date Written: November 7, 2017
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
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