There is no denying the fact that the global outcry about environmental concerns has loudened in recent years. Such calls have incited responses in companies ranging from doing the bare minimum (e.g. asking staff to turn off the lights) to making radical changes to products and processes (e.g. investing in new technology, energy efficient machinery, rebuilding factories and manufacturing sites redesigning products) for addressing environmental concerns.
Pressure from a range of sources (e.g. society, government, consumers, competitors) has encouraged companies to do more to address their environmental impact. A number of studies have established a link between these pressures and company responses suggesting that companies are influenced to change their behaviour by pressures emanating from their external environment. Yet, the diversity in the level of response across different companies raises questions about why some companies choose to go further than others in responding to environmental pressures.
Understanding the internal culture and commitment of a company towards addressing environmental concerns sheds further light on the diverse nature of practical responses. Some companies will possess a stronger commitment to these issues than others, thus, the way they respond to pressures is likely to be guided by that. For a company who perceives that their responsibility in addressing global environmental concerns through their production activities is high, external pressure may provide affirmation for what they already believe, thus stirring them to keep driving their efforts forward. On the other hand, a company who views environmental pressures as a burden with which they must merely comply, will not attach the same level of import to developing a response and are more likely to do the bare minimum to appease the sources of pressure (i.e. comply with legislative requirements).
An interesting, yet seemingly under-researched, source of external pressure is competitive pressure, i.e. what their competitors are doing in this space is likely to be of significant concern to most companies. How are they responding to environmental pressures and concerns and what do you (as a company) need to do to stay ahead (or at least ensure you aren’t left behind)? This research considers (firstly) how manufacturing companies in the United Kingdom respond to competitive pressures to address environmental concerns and what role this particular pressure source plays in determining their level of response. The research then considers the role played by internal company commitment towards addressing environmental concerns in determining the level of response.
Results suggest that internal commitment plays a key role in the development of more advanced environmental practices. This suggests that external pressure in itself is not enough to drive deep and meaningful change within companies. In order for companies to progress towards developing more advanced responses to environmental concerns and challenges, it is important for them to be committed to the cause. Responding reactively to different pressures without a level of commitment may limit the distance they can go with their efforts, thus limiting our progress at a global societal level in addressing these very serious concerns.
Reference:
Graham, S. 2020. The Influence of External and Internal Stakeholder Pressures on the Implementation of Upstream Environmental Supply Chain Practices. Business & Society, 59(2). https://doi.org/10.1177%2F0007650317745636