A resource based perspective on corporate environmental performance and profitability

Drawing on the resource-based view of the firm, argues that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. Theses hypotheses are textes with an analysis of 243 firms over two years, using independently developed environmental ratings. Results indicate that "it pays to green" and that this relationship strengthens with industry growth. Concludes by highlighting the study's academic and managerial implications, making special reference to the social issues in management literature. [author]

Paper was winner of the SIF's 1998 Moskowitz Prize Competition