The Effect of Environmental Consciousness on Environmental Management

Abstract

The objective of this study was to combine environmental, social, and governance (ESG) theories, namely instrumental, political, integrative, and ethical theories, to understand whether differences in environmental consciousness of managers led to different environmental management performance. A questionnaire survey on the environmental consciousness and environmental management of Taiwan’s manufacturing firms was conducted and 261 samples were analyzed. The research model investigates the relevant relationships among the constructs by using a structural equation modeling approach. The results indicate that heightened political, integrative, and ethical environmental consciousness exert a positive influence on environmental management performance, whereas stronger instrumental environmental consciousness exerts a negative influence. The results of this study can assist companies in scrutinizing the effectiveness of their environmental management measures while also assisting investors in identifying companies with genuine environmental consciousness. The findings will do more to provide governing agencies with a reference when formulating environmental regulations.