Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 36, Issue 3, Pages 219-228Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/S1366-5545(99)00034-4
Keywords
corporate social responsibility; environmental issues; purchasing; supply chain management
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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.
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