ABSTRACT

Environmental sustainability is decisive in industries confronted with issues such as CO2 emissions and pollution. Such non-market issues are likely to be addressed by collective strategies in order to foster cooperation between competitors. Collective strategies are deployed at various levels (industry, intra-and inter-industry) and offer a wide range of opportunities for businesses to meet the expectations of the public regarding the protection of the environment. The industry-level perspective leads to an understanding of CSR strategies as an ‘ars combinatoria’, i.e. a combination of both intentions and forms. We present a case study conducted in the cement industry, which is exemplary regarding the change of perception of environmental sustainability in the past 20 years. We learned from this case study that collective strategies are diverse and provide a range of possibilities to enhance industry legitimacy, but also maintain a differential advantage. By collaborating with policy makers collectively, firms can reduce costs and transform constraints into opportunities. Policy makers should therefore be proactive in cooperating with businesses to conceive solutions and design collective incentives.