The effectiveness of using environmental performance measures

ABSTRACT

This article examines the association between the extent of use of environmental performance measures (EPMs) (operational and management EPMs) and the purpose of using EPMs (for legitimacy, accountability and environmental decision-making purposes) with the effectiveness of such practices. The effectiveness of EPMs is assessed from two perspectives, the achievement of environmental process outcomes and environmental performance. Data were collected by mail survey questionnaire from a random sample of 899 senior financial officers in Australian manufacturing organisations. The results indicate that the extent to which operational EPMs are used and the use of EPMs for environmental decision making purposes show a direct positive association with the achievement of environmental process outcomes and an indirect association with environmental performance. These findings highlight the importance of achieving improvements in environmental processes, both due to its role as an antecedent of environmental performance and as a mediator of the association between the extent of use of EPMs and the purpose of using EPMs with environmental performance. The findings provide managers with an insight into how EPMs can contribute to the achievement of environmental process outcomes and environmental performance.

KEYWORDS:

• Environmental process outcomes
• the use of environmental performance measures
• the purpose of using environmental performance measures
• environmental performance

Disclosure statement

No potential conflict of interest was reported by the authors.