Are there is relation between achievement of competitive advantage of industrial companies and its level of environmental disclosure?
I think so, thank you so mach for your answer
Yes, there is relation between achievement of competitive advantage of industrial companies and its level of environmental disclosure.
I think it is equivocal and the relationship depends on the strategy of companies.
Dear Colleagues and Friends from RG, To answer the question: Is there a relationship between achieving a competitive advantage for industrial enterprises and the level of their environmental disclosure? - it is necessary to determine the scope and nature of the impact of the functioning of a given economic entity on the environment. If an economic entity, enterprise, financial institution, etc. implements a business concept fully correlated with the green economy philosophy, i.e. constituting an important segment of sustainable pro-ecological development, then it can be concluded that there is a specific relationship between achieving the competitive advantage of a given economic entity and the level of its environmental disclosure . Some entities, e.g. banks, finance pro-ecological projects by subsidizing this activity because they treat pro-ecological activities as part of improving their image and marketing. Such pro-ecological activities do not generate additional income and profits, so they will not be a good example of the above-mentioned correlation. A significant part of pro-ecological reforms, including the transformation of the energy sector based on the development of renewable energy sources, is financed or co-financed by the state from the resources of the public finance system, so it will also not be a good example of a correlation in terms of the possibility of achieving a competitive advantage of an enterprise and the level of their environmental disclosure. On the other hand, examples of pro-ecological activities implemented by commercial enterprises, including production enterprises as a result of a competitive game on highly competitive markets. Without state financial support, subsidies or low-interest loans to finance environmentally-friendly projects, these would be measures to implement environment-friendly investment projects, environmental reforms, development of eco-innovations, etc. would be scarce, since these are activities currently usually characterized by low profitability or financially deficit. In a situation where the state financially supports the implementation of pro-ecological projects implemented by commercial entities, it means that there are no free market market structures and full competitiveness. In such a situation, there is no full market game between specific enterprises operating, so it is pointless to look for examples of a strong correlation between achieving competitive advantage of industrial enterprises and the level of their environmental disclosure.
Best wishes
Dariusz Prokopowicz
there are some relational studies on the discussion area, Kindly refer...
López-Gamero, M. D., Molina-Azorín, J. F., & Claver-Cortés, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables. Journal of environmental management, 90(10), 3110-3121.
Yu, H. C., Kuo, L., & Kao, M. F. (2017). The relationship between CSR disclosure and competitive advantage. Sustainability Accounting, Management and Policy Journal.
Dear Prof. Musavi,
Thanks for initiating this discussion...
Kind Regards,
Gayan
Dear Colleagues and Friends from RG,
I would like to supplement my comment above with the following:
In my opinion, in some countries there is a link between achieving a competitive advantage for industrial enterprises and the level of their environmental disclosure. In some countries, we can diagnose examples of this correlation. Some enterprises, both large corporations, financial institutions and smaller business entities from the SME sector increasingly include ecological issues in their functioning, in their offer of products or services, in the matter of waste produced and recycled, etc. The competitive advantage may be achieved by these entities, which is defined by consumers or contractors, usually carried out as non-basic ecological activity. Most economic entities that consider the issue of ecology in their activities, if they implement it on their own initiative, try to present it in advertising campaigns. A significant number of companies are forced to do so by increasingly restrictive legal regulations, such as pressure to switch from plastic packaging to biodegradable or increasingly restrictive regulations regarding greenhouse gas emissions and air and water pollution. In some developed countries, including Europe or the entire European Union, there are more and more examples of introducing restrictive legal regulations forcing the reduction of air and water pollution. Restrictions come down to financial penalties when a specific company does not comply with specific environmental regulations. However, more and more financial companies and institutions, including banks, include environmental issues in their activities also on their own initiative, treating these issues as an opportunity to stand out in the context of competitors. In such a situation, these environmental issues are included in the main mission of the conducted activity to improve their image and promotes this pro-ecological mission in advertising campaigns. If this is noticed by consumers and contractors, it is possible to obtain a specific range of competitive advantage.
Best wishes.
Dariusz Prokopowicz
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