Managerial attributes, consumer proximity, and corporate environmental performance

Abstract

In this paper, we examine the impact of managerial characteristics and consumer proximity on corporate environmental performance (CEP). By analyzing the interaction effects between managerial and organizational factors on the firm's environmental performance, we go beyond the extant literature that has primarily focused on the linkage between CEP and financial performance. Drawing mainly from the upper echelons perspective and institutional theory, we examine the impact of managerial characteristics as antecedents of CEP along with the moderating effect of consumer proximity on CEP. In particular, we focus on the effects of three characteristics of CEOs: tenure, educational level, and functional background. Based on the analysis of 49 companies in textile and apparel industries in Korea, our results provide support for the predicted positive relationships between CEO attributes and CEP.