Proactive environmental strategies: A stakeholder management perspective

Abstract

This paper includes an empirical analysis of the linkages between environmental strategy and stakeholder management. First, it is shown that several simultaneous improvements in various resource domains are required for firms to shift to an empirically significant, higher level of proactiveness. Second, more proactive environmental strategies are associated with a deeper and broader coverage of stakeholders. Third, environmental leadership is not associated with a rising importance of environmental regulations, thereby suggesting a role for voluntary cooperation between firms and government. Finally, the linkages between environmental strategies and stakeholder management, based on a sample of 197 firms operating in Belgium, appear more limited than expected. Country-specific characteristics may to a large extent account for these results.