ENVIRONMENTAL ISSUES AND CORPORATE PERFORMANCE: A CRITICAL REVIEW

Abstract

the link between the environmental issues of the corporations and their economic performance and competitiveness has became one of the most popular issues to be studied in the profession. However, previous studies that have attempted to relate environmental issues to economic performance have often led to conflicting results. This paper reviewed the previous environmental literature and suggested that the inconsistency is due to the absence of clear framework that explain what actually constitutes environmental practices and how their outcomes are to be determined and evaluated. Therefore, it becomes difficult to identify general relationships between different indicators of environment and economic performance. The paper concluded that there is a lack of study investigating the relationship between disaggregated environmental practices, corporate environmental performance, and environmentally related competitiveness.

Key words: environmental practices, corporate environmental performance, competitiveness, resource-based view theory.