Drivers (predictors) of green management practives and green investment:

empirical evidence from central and eastern european firms

Abstract

There is a continuous need to understand and develop green practices and investments
in order to emphasize environmental focus. This article’s purpose is to
analyze how firms from Central and Eastern Europe approach the topic of green
management and correlate their decisions with their eco-friendly actions. The
methodology applied is binary logistic regression and our data sample consists
of 5,472 businesses/firms/companies from 12 countries. Results indicate that
firms whose strategy entailed objectives regarding ecological aspects and that
had set up a management position dedicated to these objectives are more likely
to monitor their energy consumption, to set targets on energy consumption and
CO2 emissions and to invest in more eco-friendly machinery or heating and cooling
devices. On the other hand, if the firms are experiencing losses due to pollution,
there is no significant probability for them to implement the above-stated
actions. This paper offers interesting implications for stakeholders and managers
to understand the predictability of their actions and to assess the correlations
between inside firm actions in depth.