The influence of environmental strategy, environmental reporting and environmental management control system on environmental and economic performance

Abstract

The importance of corporate social responsibility, especially in the environmental domain, continues to grow in an era of mounting climate urgency. This study is based on original, empirical, survey‐based research in two post‐communist European countries and seeks to add a geographical viewpoint and to investigate the influence of innovative constructs (environmental reporting, environmental strategy, environmental management control system) on environmental and economic performance. Data are analysed through partial least squares structural equation modelling, which enables the use of a complex model with several links between constructs. Findings reveal that environmental strategy has a positive impact on the use of an environmental management control system and an indirect positive impact on environmental performance. The environmental management control system has been shown to have a positive influence on environmental performance and, ultimately, on economic performance.