(E3 ) Working Papers Series
E3 Working Paper WP-022 Abstract
WP-022: Sonam Gupta and Robert Innes, "Private Politics and Environmental Management" (October 2011) Full Paper
We study determinants and effects of two types of private political actions (PPAs) against S&P 500 firms, environmental boycotts, and shareholder proxy proposals. We consider effects on the firms' adoption of environmental management systems (EMS) and the environmental protocol, ISO 14001. We find that PPAs have a significant impact on firms' environmental management decisions and, consistent with Baron (2009), that a firm's likelihood of experiencing a PPA is higher if it is a "soft target" that has a reputation for social responsibility.