ABSTRACT

The natural environment is increasingly important to manufacturing firms, which are being challenged to balance the concerns of different stakeholders: consumers and interest groups demand more sustainable and responsible manufacturing practices; shareholders press for strong returns on their investment; and government agencies continue to tighten regulations (Angell and Klassen 1999). Although these pressures can create difficult managerial challenges, effective management of environmental issues can also provide opportunities for manufacturing firms to develop competitive advantages (Reinhardt 1999).