Talk the Talk or Walk the Walk? An Examination of Sustainability Accounting Implementation View Full Text


Ontology type: schema:ScholarlyArticle     


Article Info

DATE

2018-10

AUTHORS

W. Eric Lee, Amy M. Hageman

ABSTRACT

This study examines how ambiguity in corporate objectives affects managers’ choice between opposing sustainability and short-term profit goals. We test this question with an experiment in which we vary whether environmental sustainability is included explicitly (vs implicitly) as a strategic objective that is used for managers’ performance evaluations. Findings show that managers increase (decrease) biodegradable production and correspondingly decrease (increase) short-term profit when environmental sustainability performance is explicitly (implicitly) incorporated within the company’s strategic objectives. Also, managers in the implicit incorporation group are more likely to decrease (increase) their biodegradable production when they learn that their counterparts within the firm have chosen to decrease (increase) biodegradable production in other product lines. Further, managers in the explicit incorporation group have greater trust in senior management, and that trust mediates the negative relationship between incorporation ambiguity and the level of biodegradable production. The theoretical and practical implications of this study are discussed. More... »

PAGES

725-739

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/s10551-016-3282-8

DOI

http://dx.doi.org/10.1007/s10551-016-3282-8

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1005214284


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