Spanish version: http://sl.ugr.es/09IM
French version: http://sl.ugr.es/09IP
A UGR study analyzes data from over 16,000 companies in different countries and from different sectors, from 2006 to 2012, comparing the 100 most international firms in the world with other companies in their respective industries
A University of Granada (UGR) study revealed that the one hundred most international firms in the world pollute more per employee than their respective industry sectors. However, these one hundred multinationals also develop more voluntary environmental reports than their respective industry averages.
This work published in Academy of Management Perspectives, one of the ten best business research journals in the world, analyzed data on over 16,000 firms in different countries and with different activities, in order to compare the one hundred most international companies in the world with industry averages. The study was conducted from 2006 to 2012, using a sample of one hundred companies, identified by the researchers using a process called «matched pairs», which were similar to but less international than each of these multinationals.
The results obtained call into question the traditional perception that the best businesses on environmental issues are those that provide more information on their situation on this matter.
Alberto Aragón, full professor in the Department of Business Organisation at the UGR and director of this study, explained that it seems as though social pressure on the most international firms, usually multinationals with pretty well-known brands throughout the world, has led them to provide more information on their impact, but has not been enough to lead to a measurable improvement in their impact. The work leaves some questions unanswered on the factors that lead these international firms to give more information on their impact.
Climate change and pollution in cities are some of the factors that have brought to attention how these firms interact with the environment. International companies that develop their sales and production in various countries have been the subjects of particular controversy.
On one hand, international firms have a wider impact than local companies. However, at the same time, they can take advantage of their ability to hide behind less demanding legislation and partnerships. Companies have responded to these doubts with their own environmental reports, proclaiming their advances in this matter.
Some environmental groups have expressed concern over the results of this study and suspicion that these better-known firms are possibly providing environmental information to seem more interested but without a real commitment to develop environmental advances.
Nuria Hurtado, also an author of this research, noted that these groups even referred to the possibility that some multinational firms are «green-washing», a practice which consists in doing symbolic things to appear more concerned with the environment than one actually is.
On the other hand, business associations commented that the results show a clear commitment to transparency by international businesses. These associations also assessed the difficulties in developing advanced practices in environmental issues as they are regulated differently in every country and governments have not agreed on any clear benchmark regulation.
Bibliographical reference:
Aragon-Correa, J.A., Marcus, A., Hurtado-Torres, N.E., 2016: The Natural Environmental Strategies of International Firms: Old Controversies and New Evidence on Performance and Disclosure. Academy of Management Perspectives, Vol. 30, Nº 1, pp. 24-39. http://dx.doi.org/10.5465/amp.2014.0043
Attached images:
In the photo, UGR Department of Business Organization full professor Alberto Aragón, one of the authors of this work.
Contact:
Juan Alberto Aragón Correa
Department of Business Organisation at UGR
Telephone: (+34) 958 243 705
E-mail: jaragon@ugr.es
