Do Tournament Incentives Matter for CEOs to Be Environmentally Responsible? Evidence from Chinese Listed Companies

Relying on tournament theory and environmental management research, we examine how CEO tournament incentives induce top executives to invest more in green innovation. Using a sample of Chinese listed companies from 2010 to 2016, we find evidence that CEO tournament incentives are positively associated with green innovation. In addition, we find that a positive relationship between CEO tournament incentives and green innovation is stronger in state-owned enterprises than in non-state-owned enterprises. These results support tournament theory, which proposes that better incentives induce top executives’ efforts to win the tournament incentives, and such efforts are subject to fiercer competition among employees, which improves firms’ social and financial performance. Moreover, our findings have implications for policy makers and regulators who wish to enhance environmental legitimacy by providing tournament incentives to top executives.

CORPORATE ENVIRONMENTALISM: REDESIGNING BUSINESS MODELS TO FIT STRATEGY, ORGANIZATIONAL CAPABILITIES AND THE NATURAL ENVIRONMENT

The increasing concern of citizens, nations and businesses on natural environment protection and respect lead companies to re-invent new ways of business activities and models. In that sense, new paradigms as the Circular Economy and stakeholders’ pressures move companies towards corporate environmentalism, which supposes to modify company’s aim, mission and strategy. The formulation and implementation of effective proactive environmental strategies implies the reconfiguration and development of new environmental organizational capabilities, especially those linked to business operations and market-related ones. In this new competitive arena, environmental innovations, green marketing and corporate image, environmental legitimacy and reputation are analyzed as main drivers of proactive environmental strategies and key decisions of new and sustainable business models.This paper develops an integrative review of previous concepts intimately related to corporate environmentalism and proposes some fruitfully avenues of future research for those, both academics and business practitioners, focused on how to fit firm’s activities and competitiveness and the respect and preservation of the natural environment.

Environmental Legitimacy Through Adopting Green Products and Its Effect on the Brand Equity: Moderating Role of Management Awareness

The current study sought to examine the influence of adopting green products as a form of environmental legitimacy on ''brand equit'y'' through the moderating role of management awareness. Quantitative method was adopted through utilizing a questionnaire which was distributed on (96) individuals within green brands producers in Jordan. Results of study indicated that all brand equity variables are influenced by adopting green products as a form of environmental legitimacy. Results also indicated that brand personality was the most influenced variable of all scoring an R value of (0.74) and explained 54.7% of total influence. Study recommended organizations to focus on adopting green products in order to enhance brand equity as an approach for developing and supporting sales, and encouraging customers of regular products to switch to green products.