ABSTRACT

Many businesses issue environmental reports and statements, as well as the environmental impact assessments that may be required of them for development projects. The different goals of the firm reflect the interests of the different stake-holders in the outcome of the firm’s decisions. Commitment occurs when self interest cannot explain the decision to invest in environmental goods or assets. Commitment reflects a concern for the environment, a concern that may actually be inconsistent with the cost minimizing or profit maximizing goals of the firm. A number of surveys of industrial workers show that employees may be a potent force for ensuring that industries take on environmental commitments. The costs of dealing with such groups can often be high because, ultimately, the pressure may show up in loss of market share if the firm fails to defend itself adequately. Green consumerism has been shown to have some stable and sustained elements and some highly volatile elements.