Environmental purchasing and firm performance: An empirical investigation

Craig Carter, Rahul Kale, Curtis M. Grimm

Research output: Contribution to journalArticle

309 Citations (Scopus)

Abstract

Much debate has occurred in the extant literature as to whether socially responsible actions undertaken by firms result in improved financial performance. One key dimension of social responsibility is environmental initiatives and programs. While the purchasing function can create value and significantly affect the environmental actions of a firm and its upstream supply chain, no research to date has explored the effect of environmental purchasing on firm performance. Our research provides an initial examination of this relationship. We combine survey and archival data to show that environmental purchasing is significantly related to both net income and cost of goods sold, after controlling for firm size, leverage, and primary earnings per share. (C) 2000 Elsevier Science Ltd. All rights reserved.

Original languageEnglish (US)
Pages (from-to)219-228
Number of pages10
JournalTransportation Research Part E: Logistics and Transportation Review
Volume36
Issue number3
DOIs
StatePublished - Sep 2000
Externally publishedYes

Fingerprint

Purchasing
firm
performance
Supply chains
environmental behavior
social responsibility
supply
income
examination
Firm performance
Empirical investigation
Costs
costs
Values

Keywords

  • Corporate social responsibility
  • Environmental issues
  • Purchasing
  • Supply chain management

ASJC Scopus subject areas

  • Business and International Management
  • Management Science and Operations Research
  • Transportation

Cite this

Environmental purchasing and firm performance : An empirical investigation. / Carter, Craig; Kale, Rahul; Grimm, Curtis M.

In: Transportation Research Part E: Logistics and Transportation Review, Vol. 36, No. 3, 09.2000, p. 219-228.

Research output: Contribution to journalArticle

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