Corporate motivations for environmental sustainable development: Exploring the role of consumers in stakeholder engagement

Abstract

This paper examines the extent to which the end-consumer appears to influence corporate behaviour towards reporting specific environmental management activities, through examination of environmental disclosures by the UK FTSE 100 companies. The paper also explores whether proximity to the end-consumer is associated with particular motivations for environmental management - whether cost-reducing or reputational benefits, hypothesizing that close-to-consumer companies (C2C) will have a greater focus on reputational benefits than their counterparts.The results established that C2C companies were significantly more active in particular environmental measures (climate change and management processes) than their counterparts. They were also more likely to undertake environmental activities for which there was no explicit cost-reduction benefit, suggesting that reputation with consumers/society may be a particular business motivator for them. These findings are important to policy makers, government and investors in terms of identifying which companies are leading particular aspects of the corporate environmental agenda and understanding the driving forces for it. © 2009 John Wiley & Sons, Ltd and ERP Environment.