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Stakeholders, the Environment and Society

Edited by Sanjay Sharma and Mark Starik

The role of stakeholders is integral to corporate sustainability as society increasingly demands that corporations play a role in achieving environmental objectives in addition to building shareholder wealth. In the first book to gather cutting-edge research on the interactions between stakeholders and organizations within the context of corporate sustainability, the contributors to this volume provide a diversity of perspectives from North America, Europe, and Oceania.
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Chapter 3: Influential Environmental Stakeholders: A Grounded Model of Processes for Effecting Change

Jamie R. Hendry


3. Influential environmental stakeholders: a grounded model of processes for effecting change Jamie R. Hendry INTRODUCTION On 30 June 1999, Procter & Gamble announced that it would ‘end the use of animal tests . . . except where required by law’. On 27 August 1999, Home Depot announced that it would ‘phase out sales of so-called “old growth” wood in 2002’. On 1 February 2000, Frito-Lay, Inc. announced that it would ‘stop using genetically altered corn’. These cases evidence just three of the many instances in which environmental non-governmental organizations (ENGOs) have succeeded in influencing the operations of business firms. With the rise of both external and internal pressure on firms to be more environmentally responsible, many business managers have attempted to reduce their firms’ negative environmental impacts and report environmental activity and performance data to the public. Researchers, aware that corporate impacts on the natural environment have increasingly attracted the public’s attention in the last 30 years, have focused on three related areas of study: (1) the actions corporate managers take that jeopardize or harm the natural environment (creating negative consequences) and the motivations for those actions, (2) the actions corporate managers take that conserve resources and protect the natural environment (creating positive consequences) and the motivations for those actions, and (3) specification of appropriate metrics to capture corporate environmental performance. However, few researchers or business people have endeavored to understand the process used by ENGOs to effect change in business behavior and consequent impacts on the natural...

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