Antecedents and consequences of firms' climate change management practices: Stakeholder and synergistic approach

Abstract

There is a growing pressure for firms to address global warming issues, but firms differ in adopting and implementing management practices in response to climate change. The aim of this study is to assess stakeholder pressure and firms' responses to climate change, and their effect on emission reduction and operational performance. A survey was conducted and then empirically analyzed using regression analysis. This study shows that financial investors and regulatory agencies are the most influential stakeholders for adopting and implementing climate change management practices. Process efficiency and low-carbon product development are the most adopted carbon management practices while organizational engagement and carbon offsetting are not preferred. This article provides evidence that some firms' climate change management practices lead to improved operational performance such as cost reduction and enhanced delivery and flexibility, as well as improved climate change performance including carbon emission and energy consumption reductions. This study provides guidance for policy makers and firm managers on how to identify, design and manage global warming issues within the business arena.