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This chapter examines the link between environmental performance, corporate social performance and innovativeness for consumer and industrial firms, using company data on R&D, environmental and corporate social performance from the Kinder, Lydenberg and Domini (KLD) database for US-based firms. We find empirically that during the period from 1999 to 2008, there has been an increase in environmental action, especially since 2004. A positive correlation is found to exist between environmental and non-environmental social performance in many dimensions and a positive but weak link between environmental performance and R&D per employee or unit of sales. This chapter shows that there is a difference between consumer and industrial firms in terms of the evolution of eco-activities and environmental impact. Contrary to what we expected, industrial firms undertook more product-related eco-activities than consumer firms. Industrial firms also showed a greater increase in process-related eco-activity. The increase in eco-activity went with an increase in eco-impact in both company types, suggesting that environmental action did not arrest environmental degradation overall.
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- Eco-Activity and Innovativeness: What Is Their Relation to Environmental Performance in Consumer Firms and Industrial Firms?
- Springer Netherlands
- Chapter 7
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