Does better environmental performance lead to improved bottom lines? A theoretical framework
Over 40 years of study, researchers have not been able to identify a clear cut relationship between a company’s environmental performance (FP) and its financial performance (EP). For that reason, this paper provides the theoretical framework on the relationship between the two. This framework consid...
| Main Authors: | , , , |
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| Format: | Proceeding Paper |
| Language: | English |
| Published: |
Technische, Universitat Dresden
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/59162/ http://irep.iium.edu.my/59162/1/EP%20FP%20Dresden%20March%202013.pdf |
| _version_ | 1848785254603554816 |
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| author | Hamoudah, Manal Sulaiman, Maliah Mohd Alwi, Norhayati Abideen, Adewale Abideen |
| author_facet | Hamoudah, Manal Sulaiman, Maliah Mohd Alwi, Norhayati Abideen, Adewale Abideen |
| author_sort | Hamoudah, Manal |
| building | IIUM Repository |
| collection | Online Access |
| description | Over 40 years of study, researchers have not been able to identify a clear cut relationship between a company’s environmental performance (FP) and its financial performance (EP). For that reason, this paper provides the theoretical framework on the relationship between the two. This framework considers a dual perspective from traditional economic research and strategic management field in an attempt to justify the paradoxical results. Specifically the study posits whether companies do well financially under shareholder theory or do good environmentally under resource-based-view (RBV). Further, in attempt to address the methodological shortcomings, especially as it relates to the lack of a robust measure of EP, the current paper proposes four indicators from two broad dimensions. The indicators based on strategic dimension include: top management commitment (TMC) and EMS-ISO14001 certifications, while the operational dimension indicators are both environmental strategy (ES) and programs to reduce environmental impact (PREI). |
| first_indexed | 2025-11-14T16:50:13Z |
| format | Proceeding Paper |
| id | iium-59162 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:50:13Z |
| publishDate | 2013 |
| publisher | Technische, Universitat Dresden |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-591622017-11-09T08:24:34Z http://irep.iium.edu.my/59162/ Does better environmental performance lead to improved bottom lines? A theoretical framework Hamoudah, Manal Sulaiman, Maliah Mohd Alwi, Norhayati Abideen, Adewale Abideen HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping Over 40 years of study, researchers have not been able to identify a clear cut relationship between a company’s environmental performance (FP) and its financial performance (EP). For that reason, this paper provides the theoretical framework on the relationship between the two. This framework considers a dual perspective from traditional economic research and strategic management field in an attempt to justify the paradoxical results. Specifically the study posits whether companies do well financially under shareholder theory or do good environmentally under resource-based-view (RBV). Further, in attempt to address the methodological shortcomings, especially as it relates to the lack of a robust measure of EP, the current paper proposes four indicators from two broad dimensions. The indicators based on strategic dimension include: top management commitment (TMC) and EMS-ISO14001 certifications, while the operational dimension indicators are both environmental strategy (ES) and programs to reduce environmental impact (PREI). Technische, Universitat Dresden 2013 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/59162/1/EP%20FP%20Dresden%20March%202013.pdf Hamoudah, Manal and Sulaiman, Maliah and Mohd Alwi, Norhayati and Abideen, Adewale Abideen (2013) Does better environmental performance lead to improved bottom lines? A theoretical framework. In: EMAN-EU 2013 Conference on Material Flow Cost Accounting, 20th-22nd March, 2013, Technische Universitat, Dresden, Germany. |
| spellingShingle | HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping Hamoudah, Manal Sulaiman, Maliah Mohd Alwi, Norhayati Abideen, Adewale Abideen Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title | Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title_full | Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title_fullStr | Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title_full_unstemmed | Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title_short | Does better environmental performance lead to improved bottom lines? A theoretical framework |
| title_sort | does better environmental performance lead to improved bottom lines? a theoretical framework |
| topic | HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping |
| url | http://irep.iium.edu.my/59162/ http://irep.iium.edu.my/59162/1/EP%20FP%20Dresden%20March%202013.pdf |