Hostname: page-component-77c89778f8-fv566 Total loading time: 0 Render date: 2024-07-20T03:44:11.880Z Has data issue: false hasContentIssue false

The Dynamic of Corporate Self-Regulation: ISO 14001, Environmental Commitment, and Organizational Citizenship Behavior

Published online by Cambridge University Press:  01 January 2024

Abstract

This article examines the institutional impact of environmental management systems (EMSs), focusing on ISO 14001. It develops a pluralistic framework for thinking about the dynamic of corporate self-regulation that we term the polyphonic model. It argues that the adoption of ISO 14001 can move the firm into a new equilibrium trajectory, which enmeshes together environmental and economic goals and reflects greater sensitivity to ecological concerns. There is a positive reciprocal cycle between the pro-environmental structural changes induced by ISO 14001 and the employees' attitudes toward the firm and the environment. In order to examine ISO 14001 institutional impact, we conducted a series of interviews with managers and administered questionnaires to employees in 24 Israeli firms with and without certification. The findings indicate that the perceived environmental commitment of certified firms was higher than that of noncertified firms and was higher among employees that perceived the EMS as more highly integrated in the firm. Perceptions of the standard's integration were also found to be positively correlated with personal environmental commitment. The results also indicate that the increase in the firm's environmental commitment was positively associated with employees' organizational citizenship behavior within certified firms. Further indications of the pro-environmental dynamic induced by ISO 14001 were found in the in-depth interviews.

Type
Articles
Copyright
© 2009 Law and Society Association.

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

This research was supported by the Chief Scientist of the Israeli Ministry of Environment. We would like to thank Gideon Parchomovsky, Ben Richardson, and Stepan Wood for their helpful comments on an earlier draft of this article and three anonymous reviewers. We are thankful to Haya Greenwald and Shiri Ramon for research assistance. Joel Weill, former VP Quality and Special Projects at Ormat, and Dr. Nitzan Eyal of the Standards Institution of Israel provided us with valuable information regarding auditing practices in Israel.

References

References

Agle, Bradley R., et al. (2008) “Dialogue: Toward Superior Stakeholder Theory,” 18 Business Ethics Q. 153–90.CrossRefGoogle Scholar
Ahrens, Thomas, & Chapman, Christopher S. (2006) “Doing Qualitative Field Research in Management Accounting: Positioning Data to Contribute to Theory,” 31 Accounting, Organizations and Society 819–41.CrossRefGoogle Scholar
Allen, William T. (1993) “Contracts and Communities in Corporation Law,” 50 Washington & Lee Law Rev. 1395.Google Scholar
Andersen, Niels Åkerstrøm (2003) “Polyphonic Organisations,” in Hernes, T. & Bakken, T., eds., Autopoietic Organization Theory. Oslo: Copenhagen Business School Press.Google Scholar
Andrews, Richard N. L., ed. (2001) Third-Party Auditing of Environmental Management Systems: U.S. Registration Practices for ISO 14001. Washington, DC: National Academy of Public Administration.Google Scholar
Anton, Wilma R. Q., et al. (2004) “Incentives for Environmental Self-Regulation and Implications for Environmental Performance,” 48 J. of Environmental Economics and Management 632–54.Google Scholar
Bakken, Tore, & Hernes, Tor (2008) “Autopoiesis,” in Thorpe, R. & Holt, R., eds., The Sage Dictionary of Qualitative Management Research. London: Sage.Google Scholar
Borck, Jonathan (2008) “Why Do They Join? An Exploration of Business Participation in Voluntary Environmental Programs.” Ph.D. diss., John F. Kennedy School of Government, Harvard University, July.Google Scholar
Borck, Jonathan C., et al. (2008) “Evaluating the Social Effects of Environmental Leadership Programs,” 38 Environmental Law Reporter 10697.Google Scholar
Borck, Jonathan C., et al. (2009) “Environmental Leadership Programs: Toward an Empirical Assessment of Their Performance,” 35 Ecology Law Q. 771834.Google Scholar
Coglianese, Cary, & Nash, Jennifer, eds. (2001) Regulating from the Inside: Can Environmental Management Systems Achieve Policy Goals? Washington, DC: Resources for the Future Press.Google Scholar
Cohen, Aaron, & Vigoda, Eran (2000) “Do Good Citizens Make Good Organizational Citizens? An Empirical Examination of the Relationship Between General Citizenship and Organizational Citizenship Behavior in Israel,” 32 Administration Society 596.CrossRefGoogle Scholar
Crook, Clive (2008) “The Return of Regulation,” The Atlantic (July/August), http://www.theatlantic.com/doc/200807/regulation-crook (accessed 28 May 2009).Google Scholar
Darnall, Nicole, & Sides, Stephen (2008) “Assessing the Performance of Voluntary Environmental Programs: Does Certification Matter?,” 36 Policy Studies J. 95117.CrossRefGoogle Scholar
Dasgupta, Susmita, et al. (1997) “What Improves Environmental Performance? Evidence from Mexican Industry.” World Bank Policy Research Department Working Paper.CrossRefGoogle Scholar
Donaldson, Thomas (1999) “Making Stakeholder Theory Whole,” 24 The Academy of Management Rev. 237.Google Scholar
Donaldson, Thomas, & Preston, Lee E. (1995) “The Stakeholder Theory of the Corporation: Concepts, Evidence,” 20 The Academy of Management Rev. 65.CrossRefGoogle Scholar
Dunlap, Riley E., et al. (2000) “Measuring Endorsement of the New Ecological Paradigm: A Revised NEP Scale,” 56 J. of Social Issues 425–42.CrossRefGoogle Scholar
Eisenberg, Melvin A. (1999) “The Conception That the Corporation Is a Nexus of Contracts, and the Dual Nature of the Firm,” 24 J. of Corporation Law 819–36.Google Scholar
Fine, Gary Alan, & Elsbach, Kimberly D. (2000) “Ethnography and Experiment in Social Psychological Theory Building: Tactics for Integrating Qualitative Field Data With Quantitative Lab Data,” 36 J. of Experimental Social Psychology 5176.CrossRefGoogle Scholar
Freeman, R. Edward, et al. (2004) “Stakeholder Theory and the Corporate Objective Revisited,” 15 Organization Science 364–9.CrossRefGoogle Scholar
Frey, Bruno S., & Jegen, Reto (1999) “Motivation Crowding Theory: A Survey of Empirical Evidence.” Institute for Empirical Research in Economics, University of Zurich, Working Paper No. 26.Google Scholar
Frey, Bruno S., & Stutzer, Alois (2006) “Environmental Morale and Motivation.” Working Paper No. 288, Institute for Empirical Research in Economics, University of Zurich.CrossRefGoogle Scholar
Friedman, Milton (1970) “The Social Responsibility of Business Is to Increase Its Profits,” The New York Times Magazine 13 Sept.Google Scholar
Ghoshal, Sumantra (2005) “Bad Management Theories Are Destroying Good Management Practices,” 4 Academy of Management Learning & Education 7591.CrossRefGoogle Scholar
Ghoshal, Sumantra, & Moran, Peter (1995) “Bad for Practice: A Critique of the Transaction Cost Theory,” 21 Academy of Management J. 1347.Google Scholar
Goh-Eng, Ann, et al. (2006) “A Study on the Impact of Environmental Management System (EMS) Certification Towards Firms' Performance in Malaysia,” 17 Management of Environmental Quality 73.Google Scholar
Goldmann, Kjell (2005) “Appropriateness and Consequences: The Logic of Neo-Institutionalism,” 18 Governance 3552.CrossRefGoogle Scholar
Gouldson, Andrew P. (2005) “Voluntary Environmental Regulation and the Imperatives, Incentives and Capacities for Technological Change: The Case of the EU Eco-Audit Regulation (EMAS) in the UK,” in Norbert-Bohm, V. & De Bruijn, T., eds., Industrial Transformation: Environmental Policy Innovation in the United States and Europe. Boston: MIT Press.Google Scholar
Gunningham, Neil, et al. (2004) “Social License and Environmental Protection: Why Businesses Go Beyond Compliance,” 29 Law & Social Inquiry 307.CrossRefGoogle Scholar
Hazen, Mary Ann (1993) “Towards Polyphonic Organization,” 6 J. of Organizational Change Management 1526.CrossRefGoogle Scholar
Ilani, Rachel (1998) “Organizational Citizenship Behaviors as a Function of Job Satisfaction, Organization Commitment, Perceived Organizational Support and Participation in Decision Making.” In Hebrew. Master's thesis, Bar Ilan University, Psychology Department.Google Scholar
ISO 14001 (2004) Environmental Management Systems - Requirements With Guidance for Use. Geneva: ISO.Google Scholar
ISO 14004 (2004) Environmental Management Systems - General Guidelines on Principles, Systems and Support Techniques. Geneva: ISO.Google Scholar
ISO (2008) The ISO Survey - 2007. Geneva: ISO.Google Scholar
Jensen, Michael C. (2002) “Value Maximization, Stakeholder Theory, and the Corporate Objective Function,” 12 Business Ethics Q. 235–56.CrossRefGoogle Scholar
Jiang, Ruihua Joy, & Bansal, Pratima (2003) “Seeing the Need for ISO 14001,” 40 J. of Management Studies 1047–67.CrossRefGoogle Scholar
King, Andrew A., & Lenox, Michael J. (2000) “Industry Self-Regulation Without Sanctions: The Chemical Industry's Responsible Care Program,” 43 Academy of Management J. 698717.CrossRefGoogle Scholar
Luhmann, Niklas (1992) “What Is Communication?,” 2 Communication Theory 251–9.CrossRefGoogle Scholar
Luhmann, Niklas (1995) Social Systems. Stanford, CA: Stanford Univ. Press.Google Scholar
Luhmann, Niklas (2000) Organization and Decision. Opladen, Germany: Westdeutscher Verlag.Google Scholar
Lyon, Thomas P., & Maxwell, John W. (2008) “Corporate Social Responsibility and the Environment: A Theoretical Perspective,” 2 Rev. of Environmental Economics and Policy 240–60.CrossRefGoogle Scholar
Maignan, Isabelle, et al. (1999) “Corporate Citizenship: Cultural Antecedents and Business Benefits,” 27 J. of the Academy of Marketing Science 455–69.CrossRefGoogle Scholar
Mandel, Michael (2008) “Is It the Dawn of the Reregulation Era?BusinessWeek 18 Sept.Google Scholar
March, James G., & Olsen, Johan P. (1998) “The Institutional Dynamics of International Political Orders,” 52 International Organization 943–69.CrossRefGoogle Scholar
March, James G., & Olsen, Johan P. (2004) “The Logic of Appropriateness.” ARENA, Center for European Studies, University of Oslo, Working Paper WP 04/09.Google Scholar
Martens, Wil (2006) “The Distinctions Within Organizations: Luhmann from a Cultural Perspective,” 13 Organization 83108.CrossRefGoogle Scholar
Meyer, John P., et al. (2002) “Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” 61 J. of Vocational Behavior 20.CrossRefGoogle Scholar
Nelson, Richard R. (1991) “Why Do Firms Differ, and How Does It Matter?,” 12 Strategic Management J. 61.CrossRefGoogle Scholar
Nelson, Richard R., & Sampat, Bhaven N. (2001) “Making Sense of Institutions as a Factor Shaping Economic Performance,” 44 J. of Economic Behavior & Organization 3154.CrossRefGoogle Scholar
Newbold, Jane (2006) “Chile's Environmental Momentum: ISO 14001 and the Large-Scale Mining Industry - Case Studies From the State and Private Sector,” 14 J. of Cleaner Production 248–61.CrossRefGoogle Scholar
Nyborg, Karine (1999) “Informational Aspect of Environment Policy Deserves More Attention: Comment on the Paper by Frey,” 22 J. of Consumer Policy 419.CrossRefGoogle Scholar
Organ, Dennis W. (1997) “Organizational Citizenship Behavior: It's Construct Clean-Up Time,” 10 Human Performance 8597.CrossRefGoogle Scholar
Osterloh, Margit, et al. (2001) “Managing Motivation, Organization and Governance,” 5 J. of Management and Governance 231–9.CrossRefGoogle Scholar
Pelikan, Pavel (2003) “Bringing Institutions into Evolutionary Economics: Another View With Links to Changes in Physical and Social Technologies,” 13 J. of Evolutionary Economics 237–58.CrossRefGoogle Scholar
Perez, Oren (2008) “The New Universe of Green Finance: From Self-Governance to Multi-Polar Governance,” in Dilling, O. et al., eds., Responsible Business: Self-Governance in Transnational Economic Transactions. Oxford, UK: Hart.Google Scholar
Podsakoff, Philip M., & MacKenzie, Scott B. (1997) “Impact of Organizational Citizenship Behavior on Organizational Performance: A Review and Suggestion for Future Research,” 10 Human Performance 133–51.CrossRefGoogle Scholar
Podsakoff, Philip M., et al. (2000) “Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research,” 26 J. of Management 513–63.Google Scholar
Portney, Paul R. (2008) “The (Not So) New Corporate Social Responsibility: An Empirical Perspective,” 2 Rev. of Environmental Economics and Policy 261–75.CrossRefGoogle Scholar
Potoski, Matthew, & Prakash, Aseem (2005a) “Covenants With Weak Swords: ISO 14001 and Facilities' Environmental Performance,” 24 J. of Policy Analysis and Management 745–69.CrossRefGoogle Scholar
Potoski, Matthew, & Prakash, Aseem (2005b) “Green Clubs and Voluntary Governance: ISO 14001 and Firms' Regulatory Compliance,” 49 American J. of Political Science 235–48.CrossRefGoogle Scholar
Potoski, Matthew, & Prakash, Aseem (2006) “Institutional Design for EMS-Based Government Procurement Policies,” 6 Global Environmental Politics 1322.CrossRefGoogle Scholar
Prakash, Aseem, & Potoski, Matthew (2006) The Voluntary Environmentalists: Green Clubs, ISO 14001, and Voluntary Environmental Regulations. Cambridge, UK: Cambridge Univ. Press.CrossRefGoogle Scholar
Reinhardt, Forest L., et al. (2008) “Corporate Social Responsibility Through an Economic Lens,” 2 Rev. of Environmental Economics and Policy 219–39.CrossRefGoogle Scholar
Richardson, Benjamin J. (2008) Socially Responsible Investment Law: Regulating the Unseen Polluters. Oxford, UK: Oxford Univ. Press.CrossRefGoogle Scholar
Rivera, Jorge, et al. (2006) “Is Greener Whiter Yet? The Sustainable Slopes Program After Five Years,” 34 Policy Studies J. 195221.CrossRefGoogle Scholar
Rocha, Hector O., & Ghoshal, Sumantra (2006) “Beyond Self-Interest Revisited,” 43 J. of Management Studies 585.CrossRefGoogle Scholar
Ryan, Richard M., & Deci, Edward L. (2000) “Self-Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being,” 55 American Psychologist 6878.CrossRefGoogle ScholarPubMed
Schultz, W. P. (2001) “The Structure of Environmental Concern: Concern for Self, Other People, and the Biosphere,” 21 J. of Environmental Psychology 327–39.Google Scholar
Seidl, David, & Becker, Kai Helge (2006) “Organizations as Distinction Generating and Processing Systems: Niklas Luhmann's Contribution to Organization Studies,” 13 Organization 935.CrossRefGoogle Scholar
Thøgersen, John (2003) “Monetary Incentives and Recycling: Behavioural and Psychological Reactions to a Performance-Dependent Garbage Fee,” 26 J. of Consumer Policy 197228.CrossRefGoogle Scholar
Turban, Daniel B., & Greening, Daniel W. (1997) “Corporate Social Performance and Organizational Attractiveness to Prospective Employees,” 40 Academy of Management J. 658.CrossRefGoogle Scholar
Vigoda, Eran (1999) “Good Organizational Citizenship: Characteristics and Predictors of Good Citizenship Behavior in the Workplace,” 39 Megamot – Behavioral Sciences Q. [Hebrew] 535.Google Scholar
Vigoda, Eran, & Golembiewski, Robert T. (2001) “Citizenship Behavior and the Spirit of New Managerialism: A Theoretical Framework and Challenge for Governance,” 31 The American Rev. of Public Administration 273–95.CrossRefGoogle Scholar
Welch, Eric W., Mazur, Allan, & Bretschneider, S. (2000) “Voluntary Behavior by Electric Utilities: Levels of Adoption and Contribution of the Climate Challenge Program to the Reduction of Carbon Dioxide,” 19 J. of Policy Analysis and Management 407–25.3.0.CO;2-7>CrossRefGoogle Scholar
Williamson, Oliver E. (1998) “Transaction Cost Economics: How It Works; Where It Is Headed,” 146 De Economist 2358.CrossRefGoogle Scholar

Statute Cited

Regulation (EC) No. 761/2001 of the European Parliament and of the Council of 19 March 2001, OJ L 114/1 24.4.2001.Google Scholar