The Bottom Line Effects of Greening

The article focuses on if organizations with a pro-environmental policy benefit with bottom-line profitability as a result. It examines two organizational positions concerning environmental policies, compliance and prevention. It states that with a compliance stance, organizations resist the passage and enforcement of environmental legislation and regulations, while prevention goes beyond compliance and works toward source reduction and process innovation. It suggests that a proactive environmental policy becomes a competitive advantage when the development and implementation of pollution prevention programs results in firm resources being developed such as increased organizational learning and higher employee skills and involvement.