Environmental purchasing and firm performance: An empirical investigation

Craig R. Carter, Rahul Kale, Curtis M. Grimm

Research output: Contribution to journalArticlepeer-review

337 Scopus citations

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.

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

Keywords

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

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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