The uneven rise of corporate environmentalism in global business
DOI: 10.23977/infse.2026.070110 | Downloads: 0 | Views: 23
Author(s)
Yunqiao Wang 1
Affiliation(s)
1 College of Social Sciences, University of Glasgow, Glasgow, United Kingdom
Corresponding Author
Yunqiao WangABSTRACT
This essay examines the uneven rise of corporate environmentalism in global business. It argues that corporate environmentalism has developed less from a moral transformation within firms than from regulation, capital-market pressure and legitimacy demands that have made environmental inaction more costly. These pressures have pushed environmental issues into corporate governance, strategic planning and investment decisions. However, this development remains selective and contested. For leading multinational firms, green technologies and advanced compliance systems can become sources of competitive advantage. For less capable firms, the same environmental requirements may appear mainly as cost pressures. The essay also shows that sustainability reporting and net-zero commitments do not always lead to deep operational change, leaving space for greenwashing and symbolic compliance. In global value chains, environmental harm may also be shifted to places with weaker regulation. The German case further illustrates the difficult trade-offs between decarbonisation, affordability and competitiveness.
KEYWORDS
Corporate environmentalism; Global business; Sustainability reporting; Greenwashing; Institutional pressure; Market incentives; Global value chains; Energy transitionCITE THIS PAPER
Yunqiao Wang. The uneven rise of corporate environmentalism in global business. Information Systems and Economics (2026). Vol. 7, No.1, 85-90. DOI: http://dx.doi.org/10.23977/infse.2026.070110.
REFERENCES
[1] A.J. Hoffman: From Heresy to Dogma: An Institutional History of Corporate Environmentalism (Stanford University Press, USA 2001).
[2] United Nations Framework Convention on Climate Change: Paris Agreement (United Nations, Germany 2015). Information on: https://unfccc.int/sites/default/files/english_paris_agreement.pdf
[3] European Union: Directive (EU) 2022/2464 of the European Parliament and of the Council as Regards Corporate Sustainability Reporting, Official Journal of the European Union, Vol. L322 (2022), p.15-80. Information on: https://eur-lex.europa.eu/eli/dir/2022/2464/oj
[4] J.H. Dunning: The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions, Journal of International Business Studies, Vol. 19 (1988) No. 1, p.1-31.
[5] J.W. Meyer and B. Rowan: Institutionalized Organizations: Formal Structure as Myth and Ceremony, American Journal of Sociology, Vol. 83 (1977) No. 2, p.340-363.
[6] T. Khanna and K.G. Palepu: Winning in Emerging Markets: A Road Map for Strategy and Execution (Harvard Business Press, USA 2010).
[7] Council of the European Union: Simplification: Council Gives Final Green Light on the “Stop-the-Clock” Mechanism to Boost EU Competitiveness and Provide Legal Certainty to Businesses (Council of the European Union, Belgium 2025). Information on: https://www.consilium.europa.eu/en/press/press-releases/2025/04/14/simplification-council-gives-final-green-light-on-the-stop-the-clock-mechanism-to-boost-eu-competitiveness-and-provide-legal-certainty-to-businesses/
[8] P.J. DiMaggio and W.W. Powell: The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, American Sociological Review, Vol. 48 (1983) No. 2, p.147-160.
[9] M.A. Delmas and M.W. Toffel: Organizational Responses to Environmental Demands: Opening the Black Box, Strategic Management Journal, Vol. 29 (2008) No. 10, p.1027-1055.
[10] European Commission: Commission Proposes to Cut Red Tape and Simplify Business Environment (European Commission, Belgium 2025). Information on: https://commission.europa.eu/news-and-media/news/commission-proposes-cut-red-tape-and-simplify-business-environment-2025-02-26_en
[11] M.E. Porter and C. van der Linde: Green and Competitive: Ending the Stalemate, Harvard Business Review, Vol. 73 (1995) No. 5, p.120-134.
[12] S. Ambec, M.A. Cohen, S. Elgie and P. Lanoie: The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness, Review of Environmental Economics and Policy, Vol. 7 (2013) No. 1, p.2-22.
[13] M.C. Suchman: Managing Legitimacy: Strategic and Institutional Approaches, Academy of Management Review, Vol. 20 (1995) No. 3, p.571-610.
[14] C. Flammer: Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach, Management Science, Vol. 61 (2015) No. 11, p.2549-2568.
[15] United Nations Conference on Trade and Development: World Investment Report 2023: Investing in Sustainable Energy for All (United Nations, Switzerland 2023). Information on: https://unctad.org/publication/world-investment-report-2023
[16] Apple Inc.: Environmental Progress Report 2025 (Apple Inc., USA 2025). Information on: https://www.apple.com/environment/pdf/Apple_Environmental_Progress_Report_2025.pdf
[17] T.P. Lyon and J.W. Maxwell: Greenwash: Corporate Environmental Disclosure under Threat of Audit, Journal of Economics & Management Strategy, Vol. 20 (2011) No. 1, p.3-41.
[18] X. Li and Y.M. Zhou: Offshoring Pollution while Offshoring Production?, Strategic Management Journal, Vol. 38 (2017) No. 11, p.2310-2329.
[19] International Energy Agency: Germany 2025: Energy Policy Review (International Energy Agency, France 2025). Information on: https://www.iea.org/reports/germany-2025
[20] German Federal Ministry for Economic Affairs and Climate Action: Cabinet Adopts Revision to the Atomic Energy Act (German Federal Ministry for Economic Affairs and Climate Action, Germany 2022). Information on: https://www.bundeswirtschaftsministerium.de/Redaktion/EN/Pressemitteilungen/2022/10/20221019-cabinet-adopts-revision-to-the-atomic-energy-act.html
| Downloads: | 24421 |
|---|---|
| Visits: | 804917 |
Sponsors, Associates, and Links
-
Accounting, Auditing and Finance
-
Industrial Engineering and Innovation Management
-
Tourism Management and Technology Economy
-
Journal of Computational and Financial Econometrics
-
Financial Engineering and Risk Management
-
Accounting and Corporate Management
-
Social Security and Administration Management
-
Population, Resources & Environmental Economics
-
Statistics & Quantitative Economics
-
Agricultural & Forestry Economics and Management
-
Social Medicine and Health Management
-
Land Resource Management
-
Information, Library and Archival Science
-
Journal of Human Resource Development
-
Manufacturing and Service Operations Management
-
Operational Research and Cybernetics

Download as PDF