Title: Factors that determine the level of environmental engagement of European companies: what are we doing wrong?

Authors: Léopold Djoutsa Wamba; Joséphine Florentine Mbaduet; Jean-Michel Sahut; Lubica Hikkerova

Addresses: FSEG, University of Maroua, BP 46 Maroua Far North Province, Cameroon ' FSEG, University of Maroua, BP 46 Maroua Far North Province, Cameroon ' IDRAC Business School, 47 Rue du Sergent Michel Berthet 69009 Lyon, France ' IPAG Business School, 184 Bd Saint Germain 75006 Paris, France

Abstract: This study analyses the role of a company's financial capacity and governance in improving its level of environmental engagement. The methodology used is based on applying regression analysis to panel data on 351 listed large European companies during the period 2007-2015. Firstly, the results show that the companies in the sample are fairly engaged in environmental protection with strong dispersion. Furthermore, it revealed that the financial capacity of a company has a significant effect on its level of engagement in environmental protection. Lastly, the results also show that a better quality of governance plays an important role in the decision to undertake actions leading to environmental protection. More specifically, the degree of management implication in the running of the business, the respect shown for shareholder rights, the effectiveness of the control exerted by the board of directors and the independence of the audit committee are the most important determining factors of environmental engagement.

Keywords: environmental engagement; financial capacity; corporate governance; stakeholder; organisational legitimacy.

DOI: 10.1504/IJESB.2022.126736

International Journal of Entrepreneurship and Small Business, 2022 Vol.47 No.2/3, pp.404 - 430

Received: 07 Dec 2020
Received in revised form: 23 Jul 2021
Accepted: 31 Dec 2021
Published online: 03 Nov 2022 *

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