A study on the impact of environmental management practices on firm growth of publicly listed companies under the Philippine industrial sector from 2011 to 2015

• Main Authors: Aba, Ed Norvile John B., Manalastas, Gean Margaret S., San Pedro, Jenn Mae Clarisse C., Tee, Janneth S.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Business > Environmental aspects; Corporations > Environmental aspects > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6461
• Institution: De La Salle University

The latest trend in businesses may seem to be going green. Big companies like to embrace more environmentally friendly practices for many reasons, such as reduction of costs in the long run, consumer recognition of green companies, and management willingness to save earth. There are many aspects of going green, some firms are producing green products by modifying their raw materials and their processes while others form organizations to support the environment. This study focuses on the environmental management practices (EMPs) of companies. As business students, the researchers were interested in relating the EMPs to success of an enterprise. Therefore, this study aimed to determine the impact of corporate environmental practice on firm growth of publicly-listed companies into three parts: operational level, tactical level, and strategic level. Furthermore, the study aimed to determine which of the three levels of EMPs have the most significant impact of firm growth. The dependent variables used in this study were return on asset (ROA), return on equity (ROE), operating profit margin (OPM), sales growth, and change in number of employees, which were assumed to be the most representative of firm growth. The independent variables were the environmental management practices per level of management (operational, tactical, and strategic). Ratings obtained from the companies were used in measuring the EMPs since the researchers desire to focus on the degree of intensity of the EMPs. Meanwhile, the determinants of firm growth were obtained from Osiris and from the financial statements in company's annual reports, covering a 5-year period from 2011 to 2015. In exploring the relationship, theoretical explanations and empirical data were also used. Using the canonical correlation analysis, this research found that operational and strategic environmental management practices have significant impact on firm growth. Waste reduction (reactive) was found to have the most significant impact on the operational level environmental management practices while corporate policies and procedures, mission statement, and strategic alliances were found to have the most significant impact on the strategic level environmental management practices. This research is a significant contribution to environmentally concerned stakeholders by demonstrating that EMPs can account for the growth of the firm while using the data obtained from Osiris and from the financial statements in the company's annual reports. There are many literatures that were conducted, related to environmental business practices in the United States, Canada, and other Asian countries. This study is different because it is one of the few studies regarding environmental management practices and firm growth that is in Philippine setting.