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IESE Research Papers,
IESE Business School

No D/778: The impact of symbolic and substantive actions on environmental legitimacy

Pascual Berrone (), Liliana Gelabert and Andrea Fosfuri
Additional contact information
Pascual Berrone: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Liliana Gelabert: Universidad Carlos III
Andrea Fosfuri: Universidad Carlos III

Abstract: Drawing on institutional theory and insights from stakeholder theory and impression management, we empirically analyze the impact of both environmental symbolic polices (participation in voluntary environmental programs, green trademarks, environmental-dedicated board committees, environmental pay policies and community communication) and substantive actions (environmental patents and pollution prevention practices) on environmental legitimacy. We show that 1) symbolic actions have a weaker positive effect on legitimacy than substantive actions; 2) that the impact of symbolic actions is greater when they are combined with substantive actions, and 3) that this impact is only short-term while substantive actions have both short- and long-term effects.

Keywords: environmental management; institutional theory; legitimacy; stakeholder management; symbolic management

30 pages, January 5, 2009

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