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By: Jean-Baptiste Lesourd and Steven G M Schilizzi
This text asks an important question about how the management of the environment may benefit firms. The authors take an objective, neutral perspective on the extent to which environmental issues should, or should not, be addressed within the management of business corporations. The work includes a treatment of business practices, norms and standards, using the tools of microeconomic and industrial organization analysis to provide an ordered and consistent picture. The analysis is couched within stakeholder theory, which determines how costs and benefits are defined for the firm. It also focuses on the underlying long-term trends. Actual examples and case studies illustrate the discussions. The authors conclude by highlighting the inevitable need to link environment and finance, for better stakeholder relationships and business performance.
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