The Impact of Social policies´ Promotion and the Moderating Role of Location on firm´s Environmental Scores

Document Type: Original Research Paper

Authors

1 University of Castilla-La Mancha, Cuenca, Spain

2 Universitat Politecnica de Valencia, Valencia, Spain

Abstract

The objective of present research was to analyze environmental scores in companies when
adopting external social policies. We confirmed that location acts as a differentiating factor. We also analyzed
the human rights, community and product responsibility policies interaction with Environmental Scores. Our
first hypothesis stated that social policies contribute to orientate companies toward environmental aspects
and improving environmental scores. The results supported the assumption that better environmental scores
are influenced positively by the promotion of social policies. We can conclude that the promotion of social
policies positively affects the environmental orientation of the firm. We can argue that company’s capacity to
operate guaranteeing the freedom association and excluding child, forced or compulsory labor, to be a good
citizen protecting public health and to produce quality goods and services is a measure of being more sensible
to promote environmental aspects among their structures and processes. The differences between firms that
promote external social policies and those that don’t are evident. Finally, we have determined how location
moderates the relative impact of each policy in the environmental performance.

Keywords